How To Leverage Provider Changes to Get More Business

How To Leverage Provider Changes to Get More Business

SMBs do not change their service providers often. But when they do, it signals sales opportunities. Learn how tracking SMB provider shifts helps sell services, software & more to small businesses mid-transition.

SMBs are a unique business breed that constantly needs to evolve to survive. One of the ways SMBs evolve is by evaluating their requirements and adding or switching service providers to better meet their changing operational needs.

Choosing providers can make or break an SMB. The right payroll and benefits app keeps employees happy. A solid IT partner protects against cyberattacks. Easy-to-use inventory software saves hours of manual work.

If an SMB decides to switch service providers, it’s important to pay attention. This is the opportunity for sales if you provide products or services to SMBs. With information about why and when SMBs make these changes, you can customize your outreach and offer solutions that are perfectly tailored to SMBs amid a transition.

This article will discuss how to leverage Tarci’s data insights platform to detect SMB provider changes in real-time. You’ll learn proven approaches to act on provider change alerts with compelling offers addressing the underlying needs driving SMBs’ moves. We will lay out how you can use Tarci data to master this strategy.

SMBs Add & Remove Service Providers

Provider changes are a way of life. As SMB’s needs grow and business requirements shift, small and medium businesses continuously evaluate if existing providers are still the best fit. This leads to switching out vendor relationships to support evolving operations better.

Tarci data indicates when provider additions and removals happen among SMBs. For example, in 2023, significantly more SMBs chose Intuit QuickBooks over competitors for their accounting software needs.

What’s Causing This QuickBooks Shift?

SMBs swap providers for 4 key reasons:

1.    Lower Service Fees

The monthly costs charged by vendors are often a primary driver. SMBs operate on tight budgets, so reducing fees can have a huge impact. Many look to cut costs while maintaining features by switching.

2.    More Advanced Features & Reporting

Outgrowing entry-level tools is common. SMBs are upgrading to support growth and search for providers offering deeper functionality, analytics, and insights.

3.    Easier To Use Software

Ease of use goes hand-in-hand with advanced capabilities. The ideal provider offers top-tier features through an intuitive, simplified user experience. Difficult-to-use tools often spur changes.

4.    Access To Newer Technologies

From AI to mobile apps, SMBs want to leverage cutting-edge tech just like large enterprises. Adoption of innovation motivates provider swaps.

Most Switched Provider Categories

While provider changes happen across operational categories, these see the most switching activity:

  • Payroll Processing
  • Marketing Automation
  • IT Management
  • Operations Software
  • Inventory Management

With an understanding of the range of providers impacted and why SMBs are prompted to make changes, you can better identify windows of opportunity among your SMB target bases.

Leveraging Provider Changes for Sales Opportunities

Now that you understand both the breadth of providers commonly changed by SMBs and what motivates these shifts, let’s explore how to translate this into sales and outreach opportunities.

1.    Times of Transition Signal Openness

The periods when SMBs are actively adding or removing vendors indicate heightened attention to evaluating new options. They likely have pain points with the outgoing provider and are setting up a new solution. These signals increase openness to switching, meaning your offers have higher odds of resonating.

2.    Address Previous Provider Gaps

Research indicates that many SMBs change providers due to dissatisfaction issues. Common examples are complicated functionality, rising prices, poor support, and too many manual processes. Lead outreach highlighting how your offering solves the frustrations. Showcase strengths in the key areas you think are motivating the SMB to change.

3.    Launch Timely Introductory Offers

A small business that is in the process of transitioning, needs to urgently integrate a new vendor into its existing operations and workflows. Timely promotional offers can help ease the onboarding process and attract attention. Special deals that lower costs also align with the desire for lower fees. With the right offer, you can displace competitors when SMBs are evaluating their options.

Leverage Tarci for Provider Change Intelligence

Now that you understand the provider shifting patterns of SMBs and how to turn changes into timely sales plays. The next piece is identifying transitioning SMBs within your target base. However, manually identifying SMB provider changes across your entire target market is unrealistic. This is where Tarci comes in.

Tarci applies advanced analytics and alternative data sources to uncover provider additions, removals, and complete transitions as they occur. When you use our data insights, you will be exposed to a continuous intelligence platform that tracks various SMB signals beyond just firmographic attributes.

Tarci’s platform

Tarci captures signals when an SMB adds or removes vendors across key categories like payroll, IT, inventory software, etc. together with other changes, all contribute to the insights.

Tarci’s unique data modules provide insights as well as “Tarci’s reason to engage” which leads to highly targeted opportunities to showcase your value.

Marketing Providers

As a marketing software provider, Tarci can identify pivotal opportunities to showcase your offerings to SMBs. For example, if Tarci notices an SMB removed a marketing automation platform like Marketo or Pardot, it signals an opening. As an email marketing services provider, you could quickly send a personalized message highlighting your affordable email plans specially designed for SMB budgets. Moving fast allows you to reach SMBs during this active transition period when they are most open to alternatives.

Payroll Processing Providers

Payroll software transitions present prime opportunities for HR consultancies looking to assist SMBs. For instance, if Tarci detects an SMB recently added a new payroll processor, a consultancy could provide value. You could quickly email the SMB offering a Payroll Best Practices Consultation Call to guide successful onboarding onto the new system. The introductory message would highlight your HR compliance guidance tailored to the specific payroll platform they selected. You can ensure proper setup saving SMBs major headaches.

IT Service Providers

IT provider transitions are common among SMBs. For example, if you know several SMB clients in your market switched IT providers, it presents opportunities. You could call each organization offering Free IT Health Checks along with a custom Support Package. Specifically, ask probing questions to understand where previous vendor disappointments occurred. Did they lack security expertise? Struggle scaling systems? Provide poor support? Then describe how your Health Check assessment will diagnose current infrastructure vulnerabilities and pain points.

Inventory Management Solutions Providers

Inventory struggles are common pain points for manufacturers relying on generic ERP systems. When such platforms are replaced, that signals opportunities. For example, if you know a manufacturer recently dropped a base-level ERP solution, your inventory management firm could reach out. You can send an email messaging the potential benefits of purpose-built inventory tools compared to inflexible ERP options.

Healthcare Billing Solutions

As a medical coding company, seamless integration with billing platforms is critical. For instance, say Tarci data shows an SMB medical practice recently adopted a next-generation billing tool. As an experienced auditor, your firm could call the practice owner to introduce medical coding audit packages tailored for the updated platform.

Conclusion

SMB provider changes create purchasing windows faster than common sales cycles. The second an underperforming vendor is swapped for an alternative, decision-makers actively seek solutions to transition smoothly. Tarci identifies these key inflection moments most sales reps miss.

Opportunistically, responding to platform change alerts generates up to 6X higher prospect engagement over generic outreach. A combination of timing, personalization, and creative offers makes messages intrinsically more relevant.

Now is the time to evolve SMB sales strategies beyond basic firmographic targeting.  Leverage on service Provider change signals for more impactful conversations with SMB prospects.

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