43% of B2B small businesses used automation tools pre-COVID compared to 38% of B2C SMBs that started using automation tools after COVID-19 began
Before the COVID-19 pandemic, automation software was growing steadily in popularity across an increasing number of industries. Data from the Pollfish survey reveals, though, that business-to-business (B2B) focused services were more apt to have already been using automation tools to perform more business tasks with less staff than business-to-consumer (B2C) services before the pandemic. This is due to the difference in the customer experience for each type of business and the systems necessary to manage and execute the customer journey.
While automation in B2C largely focuses on the individual customer journey and brand building through data-driven engagement, B2B businesses often support their customer base as a whole, with a focus on education, content, and established shared values. The ultimate goal of B2B automation is guiding large numbers of users through the sales funnel and conversion process, but not necessarily with as much personalization. Therefore, more activities and business processes are automated by B2B service providers, to allow the bulk of the staff to focus on revenue-generating activities.
Automation Software
B2B
28% I don’t use automation tools for my business
30% I started using automation tools after COVID-19 began
43% I used automation tools prior to COVID-19
B2C
28% I don’t use automation tools for my business
34% I used automation tools prior to COVID-19
38% I started using automation tools after COVID-19 began
B2B & B2C
27% I don’t use automation tools for my business
35% I used automation tools prior to COVID-19
38% I started using automation tools after COVID-19 began
Automation software has been steadily gaining popularity over the last few years, but it wasn’t until the pandemic struck that more businesses found the inherent value in automation to offset staffing shortages. We reached out to the wider community of small business owners to find more insight into whether they used automation before or after the pandemic and the reasoning for doing so.
“I started using automation tools well after COVID-19. Finding suitable talent for vacant positions became complicated after the Great Resignation and now ‘quiet quitting’. So, I had to choose automation tools.”
—Shannon Steinberg, SEO Manager, Allied Van Lines
“We started using automation tools in earnest shortly after COVID-19 began. At the time, many of our employees were transitioning to home working while at the same time, we were dealing with a higher number of calls and emails. Automation tools allowed us to provide a consistently high level of customer service despite these challenges.”
—Leanna Serras, Chief Customer Officer, FragranceX
“I began using automation tools for my company before COVID-19 for a project. I was excited to try them out because I am a believer in the power of automation. Not only do the automation tools help me free up my time to do other important tasks but they also help to increase the accuracy and efficiency of the work that I do. Automation tools are great for entrepreneurs who have many things to do and not enough time. I believe that many businesses could benefit from the implementation of automation tools in their workflow. I can’t wait to see what more and more companies can do with this amazing new technology.”
—Dr. Staci Holweger, Founder and Doctor of Regenerative Medicine, LifePatches
40% of both B2B and B2C small businesses used sales and customer service automation tools most frequently pre-COVID
Regardless of the differing approaches to automation in other business use cases, customer engagement and service have become an extremely popular application for automation. With the rise in eCommerce and a shift in culture towards being constantly online, businesses have been challenged by the 24/7 demands of their customer base.
While in the past a business might have outsourced customer service to costly call centers, modern technology has allowed a significant portion of basic customer service tasks and engagement such as appointment scheduling, product returns, and information requests to be automated by software, freeing up teams to handle sales and lead conversions as well as any escalated service issues.
Automation is often used for repetitive administrative tasks, such as supply ordering and vendor account management, making it an ideal solution for office management tasks. Nurturing and managing sales leads and guiding the customer journey are also prime tasks for automation, as it can be extremely challenging to provide personalized engagement to a large customer base. Lead management software, such as Customer Relationship Management (CRM) automation, is often used in conjunction with sales automation tools to enhance the customer experience and buying journey.
Overall Breakdown Pre-COVID
10% Leads
20% Sales
12% Ecommerce
9% Events
11% Engagement
20% Customer Service
16% Office Management
1% Other
38% of B2B and B2C SMBs still prioritize sales and customer service automation tools now in 2022
While the post-COVID business landscape hasn’t changed so significantly that businesses have abandoned automation en masse, the slight shift in priorities shown by the data here tells an important story in how COVID-19 has changed our business practices. The slight uptick in usage for lead generation and eCommerce solutions reflect an increased activity in eCommerce platforms due to the pandemic, and the need to meet existing and new customers where they are.
Overall Breakdown in 2022
11% Leads
19% Sales
13% Ecommerce
11% Events
11% Engagement
19% Customer Service
16% Office Management
1% Other
“I moved my in-person workshop online in 2020 once the pandemic started and all in-person activities stopped. I took a class on building an online course and what automated tools I could use to help me get information out faster. Currently, there are five softwares that I use that are critical to my current success. The first is LearnDash, for creating and laying out my digital course. The next software that has supported my success is Calendly, which helps with client scheduling.
Then there’s Zapier, a tool for integrating workflows between two unrelated software platforms, such as allowing Calendly to add appointments to my Outlook calendar. The fourth software I use regularly is Stripe, allowing me to collect payments through my online courses. Finally, there’s Buffer, a tool for scheduling and deploying online marketing campaigns.”
—Dr. Sandi Webster, CEO, Sandi Webster LLC
“I use tools like HubSpot and FreshBooks. I can schedule meetings, set up automatic email responses, and manage my accounts using these tools. I no longer need to hire more people to carry out mundane tasks like scheduling and updating invoices. The automation tools do these things for me.”
—Jason Farr, Owner and President, Aviara Pavers Inc.
“I automate all my emails through a CRM system and this way I can segment people and respond automatically and set up email campaigns. I have also leveraged an online scheduling tool called Acuity Scheduling for several years, as it’s an easy way to schedule appointments without having to go back and forth with emails and dates that work for both parties. I love that you can also have intake forms inside the calendar so that you can save time when you do get on the call with a known duration.
For social media post automation, I just started after the pandemic since I wasn’t using social media before. It allows me to batch similar posts and then task a virtual assistant to schedule those posts throughout the week. For meetings and recorded interactions, I’ve been using Zoom since before the pandemic and it’s great to be able to get recordings of my classes in video and audio automatically as soon as I finish a call. This makes my life easier as it’s much easier to put classes together for my clients.”
—Tania Vasallo, Business Strategies and Money Mindset Coach, The Courage To Be Happy
A majority of B2B respondents noted that automation tools reduce their need for hiring third-party help, while most B2C respondents said that automation tools mainly help them with marketing and advertising efforts
Startups and entrepreneurs operating in the B2B space are often built around revenue-generating sales teams with a few business processes covered by the expertise of leadership and other team members. This makes automation a perfect tool to handle engagement, office management, accounting and bookkeeping tasks, and service tasks so that the team can focus their efforts on revenue generation and maintaining customer relationships.
Traditionally, these gaps in the process have been the driving force behind the growing trend to outsource gaps in business processes to managed services, agencies, consultancy, and freelancers. As automated software solutions become more robust, they are increasingly capable of handling tasks traditionally handled by third parties. Automation for B2B can be used to identify the proper target audience. It’s also being implemented through content management platforms to deliver content necessary that boosts SEO rankings and drives more traffic to lead funnels.
On the B2C side, customer engagement, sales, and service are the driving priorities of field personnel, while back-office support is often more focused on administrative tasks such as finance and accounting, strategy, research and development, and marketing. Marketing has reached a point that requires expertise in multiple disciplines and skill sets, as well as extremely personalized and time-consuming outreach efforts. That’s why it’s no surprise it’s a major business process outsourced by B2C organizations so that every customer could have the illusion of a personalized experience without the company having to field the personnel necessary to pull that off.
Businesses that operate in both B2B and B2C point to automation as the most important tool for remaining focused and engaged at a higher level without having to rely on outsourced talent.
B2B
Reduces our need for third-party help
Increases our opportunities for new leads
Helps our team focus on higher-level projects
Assists with providing better/faster customer service
Allows for easier office management
Helps us hire fewer in-house staff
Quickens hiring tasks
Improves internal workflow
Helps with marketing and advertising efforts
Other
B2C
Reduces our need for third-party help
Increases our opportunities for new leads
Helps our team focus on higher-level projects
Assists with providing better/faster customer service
Allows for easier office management
Helps us hire fewer in-house staff
Quickens hiring tasks
Improves internal workflow
Helps with marketing and advertising efforts
Other
B2B & B2C
Reduces our need for third-party help
Increases our opportunities for new leads
Helps our team focus on higher-level projects
Assists with providing better/faster customer service
Allows for easier office management
Helps us hire fewer in-house staff
Quickens hiring tasks
Improves internal workflow
Helps with marketing and advertising efforts
Other
It’s hard to argue with the bottom-line benefits that automation software platforms bring. From increased efficiencies to allowing teams struggling with staffing shortages to stay on top of current and future business projects, the community had many positives to share on their experiences with automation. This is especially true given the staffing instability many businesses endured while a potential recession looms over the remainder of the year.
“The current economic conditions including inflation mean we have to squeeze the budget. Hiring new employees and training them incurs a lot of costs. Employing automation tools has helped us avoid these costs. Even if we are spending money on automation tools, the long run benefits are notable.”
—Aimal Irfan, Editor in Chief, InsideTechWorld
“One of the most significant benefits of automation tools is that they allow us to focus on what we’re good at—the creative side of things—while also addressing the more mundane tasks that tend to bog down small businesses. By using automation tools, we can spend less time on administrative work and more time doing what we love: creating beautiful websites and online marketing campaigns for our clients.”
—Andrew Tsionas, Co-Founder & Managing Partner, Kaizenzo Inc.
“When COVID-19 began, automation was helpful for us because it allowed us to continue operating without interruption. It also provided us with an opportunity to learn new skills for managing our processes. The overall benefits of automation tools for our business include increased efficiency and productivity as well as higher customer satisfaction levels due to the ability to streamline tasks and processes.”
—Jonathan Saeidian, Founder and CEO, Brenton Way
41% of B2B and B2C respondents save $100-$499 per month by using automation tools
The costs of acquiring and deploying automation tools and software can feel more costly at first–setup fees, subscription fees, and not to mention training your team. However, the benefits of automation often help businesses reduce or even eliminate costs elsewhere on the profit and loss sheet.
Efficiencies and business process streamlining save money by allowing staff to accomplish more revenue-generating tasks in a shorter amount of time, while labor-related administrative costs can be reduced through automation rather than hiring and training new staff to fill a business process need.
Automation also increases the quantity and quality of leads and conversions, helping to increase the overall bottom-line revenue. It’s important to point out that the cost savings for small businesses in the $100-$499 range can easily be reinvested in other business processes focused on revenue generation, growing leads, and boosting a brand’s customer relationship management efforts. And in the cases of both B2B and B2C respondents, while a majority saved in this range, it’s key to note that more than an equal percentage saved more.
B2B
12% Less than $100
42% $100-$499
21% $500-$999
15% $1,000-$1,999
11% $2,000+
B2C
19% Less than $100
45% $100-$499
21% $500-$999
10% $1,000-$1,999
5% $2,000+
B2B & B2C
No matter which side of the business or consumer services divide you find yourself on, there are clear benefits to software automation and leveraging other automation tools. As small businesses hunker down and prepare their budgets and annual strategies for the possibility of a recession in the final quarter of 2022 that could extend into 2023, they must understand the opportunities to cut costs and save revenue.
Affordable Small Business Tools
32% of small businesses listed Google Docs as their most commonly used free business tool in 2022, followed by Canva at 15%
With the explosion of Software as a Service products, developers would attempt to capture market share with low-cost or even free alternatives to popular word processing, marketing, webpage development, and project management software platforms. It shouldn’t surprise anyone operating a business, that the top platforms listed by respondents fall into these categories. A popular strategy amongst our respondents is embracing free or low-cost tools to get their businesses up and running that will scale with their subsequent growth.
At a certain volume of usage in the automation process, these free or low-cost tools provide the opportunity to upgrade to pricier paid service models. These paid service tiers open the door to enhanced services necessary to support the added complexity that growth tends to bring to an organization. At this level of business, businesses rely upon the automation provided by the tool, but has outpaced the free tool and requires a more robust solution to maintain business operations. For example, paid services such as Intuit’s Quickbooks, are providing extensive free trials designed to support companies in the startup phases until they can transition to a paid account.
Our respondents favored automation tools that mirror higher-cost alternatives on the market. Google Docs is a great alternative for small businesses to create documents and spreadsheets without paying for costly Microsoft Office licensing, while Canva provides a user-friendly alternative to graphic design tools like Adobe Creative Suite. Similarly, WordPress provides a free or low-cost tier for new businesses to establish a web presence that can be enhanced later based on their needs.
Overall Breakdown
32% Google docs
7% Slack
15% Canva
13% WordPress
4% Trello
8% Flickr
4% Hubspot CRM
8% MailChimp
6% Calendly
4% Other
With the threat of an economic downturn forcing business owners to rethink their business strategies moving into the last quarter of 2022, we wanted to find out what types of free automation tools brands are currently using and plan to continue to use.
“A cheap business tool that I use for my brand is ProofHub. It’s a one-stop solution to encourage projects and collaboration in the company. ProofHub has no fixed price or per-user fee, making it an ideal option.”
—Zach Tetley, Co-Founder, NexusHomeBuyers , TheeDigital
“I’m using HubSpot CRM to track my appointments. This software has allowed me seamless communication with customers and potential clients during the 2022 recession. That’s why my sales and profit margins are up to par.”
—Jeff Johnson, Acquisition Manager and Real Estate Agent, Simple HomebuyersTheeDigital
Due to the 2022 recession, 18% of respondents plan to find cheaper-priced e-signature tools, followed by social media management tools (17%) and communication tools (17%)
The economic challenges of the post-COVID economy and the inflation-fueled recession-like behavior in the market has many of our respondents reconsidering the tools they are using. With the reliance on digital record keeping, e-signature tools top the list of business processes our respondents are actively looking for more affordable solutions than the ones they currently have in place.
The pandemic-induced rise in social media activity by consumers and the boost in work-from-home and alternative work arrangements led many brands to quickly adopt automation tools and software platforms that helped them manage their business activities in these spaces.
As we approach the final quarter of 2022, employers have gained a better understanding of the role played by content across Facebook, LinkedIn, Twitter, and other social media platforms, and employees and leadership have become more acclimated to the idea of communicating with remote team members. Owners are finding this degree of relative stability to be the perfect time to reevaluate the tools that are being used to manage these business tasks and find alternatives that are more affordable and better suit their needs during the possibility of a recession.
13% Project management software
14% Time tracking tools
17% Social media management software
12% Meeting scheduling tools
18% E-signature tools
17% Communication tools
9% None of the above
1% Other
With efficiency and affordability being key strategic initiatives, it makes sense companies are also looking to get more return on their software investments by finding free or cheaper alternatives to the automation tools already in play.
“I hope to find cheaper alternatives for cloud-based management inventory. Fishbowl inventory cost about $4000 plus for ownership which I consider as high for my small business.”
—Lynne Martin, Owner and CTO, Cash for Houses TheeDigital
“It’s best to have communication software tools such as Microsoft Teams and Slack. These tools help our teams communicate and collaborate in a hybrid and work-from-home setup. However, it can be expensive depending on the business’s needs. It can also limit the number of users. Therefore, a cheaper alternative can be helpful for businesses that can’t afford these tools.”
—Lauri Kinkar, CEO, Messente
TheeDigital
“We are looking to save on marketing tools, particularly for SEO. We want to level up in terms of optimizing our website and I think one of the best tools that can help us out is SEMRush. The Pro plan is already expensive, but considering its features, the pricing seems reasonable. However, we want to find a cheaper alternative to it because we can’t afford to shell out tons of money at the moment, but at the same time, we want to get the benefits SEMRush has to offer.”
—Kris Lippi, CEO, ISoldMyHouse.com
TheeDigital
A majority of SMBs intend to invest the money they save in cheaper tools into internal business operations and new products and/or services
If the pandemic taught business owners anything, it is that tragedy can strike without warning, and it’s crucial to take every precaution to shore up your business’ operational stability when economic conditions allow for it. The difference between the recession we faced due to COVID-19 and the one many economists feel is coming in late 2022 or early 2023, is that we can see the signs ahead of time. SMBs are using this time to shore up resources, cut costs, and in general ensure revenue streams are being bolstered to insulate themselves.
While automation remains a priority, companies are trading in the strength of big-name costly platforms for free or low-cost alternatives that just as effectively meet their needs. The resulting cash surplus is being used by our respondents in several ways.
Many are putting the money towards either improving existing products and services or expanding their product or service offerings, which were both popular and effective strategies leveraged by companies that survived and thrived throughout the pandemic. Others, having learned expensive lessons throughout the Great Resignation, are focusing those funds on improving internal business operations and improving and expanding salary and benefits packages. One of the most crucial elements that appeared on this list, and one that many risk management experts feel should be a higher priority for all businesses, is improving and expanding cybersecurity, due to skyrocketing cybercrime.
New products and/or services
Improvements to existing products and/or service
Internal business operations
Employee salaries and/or benefits
Better promotional items and/or campaigns
Increased cybersecurity
Business expansion into new locations
A larger internal team
Other
With efficiency and affordability being key strategic initiatives, it makes sense companies are also looking to get more return on their software investments by finding free or cheaper alternatives to the automation tools already in play.
“I’ve been a small business owner for a while now, and I’ve learned that it’s not just about making money. It’s also about knowing how to make your money work for you. By saving on cheaper software, I plan to invest more money in marketing and customer service. I think by switching over from the expensive package to the cheaper one for just those uses where we need something basic—like sending out proposals—we’ll be able to save some money while still keeping everything organized and running smoothly.”
—Sophia Jones, Investment Analyst, PiggyBank
TheeDigital
“We plan to invest in three primary areas this year with savings from the changes we make to our automaton platforms. First, we’re planning to invest more money in marketing and advertising this year, and we’re hoping to find cheaper alternatives to some of our key tools. Second, we’re planning to invest more money in employee training, and we’re hoping to find cheaper alternatives to our communication and e-signature tools. Lastly, we’re planning to invest more money in product development this year, and we’re hoping to find cheaper alternatives to some of our key tools.”
—Iam Akshay, Founder and Owner, OnlineCourseing
““I’m planning to invest in an all-in-one platform, like Capterra or SourceForge, where we can create marketing campaigns and communicate as a team at the same time. Security is one of the things I want to prioritize. I believe that investing in a highly secure marketing automation software can help my company generate qualified leads and convert marketing spending into satisfactory long-term revenue.”
—Simon Bacher, Co-Founder, Simya Solutions’ Ling App
39% of small businesses are currently saving $100-$499 per month by using less expensive tools
Businesses are already saving between $100 to $2000 a month by leveraging automation tools and business tools designed to streamline operations. With the possibility of a recession leaving many concerned, additional efforts to reduce costs by seeking alternatives to their existing tech stacks means that businesses can increase the flow of revenue to the bottom line even more, with a majority of our respondents claiming savings of $100-$499, and an additional 40% saving more.
29% Less than $100
39% $100-$499
23% $500-$999
10% $1,000-$1,999
7% $2,000+
It’s already a challenging landscape for small business owners, startups, and entrepreneurs struggling to survive the post-pandemic economy and maintaining market share versus larger enterprise-level competitors with seemingly bottomless budgets. With operations hobbled by more uncertainty on the horizon, business owners must embrace opportunities to reduce costs without reducing production capacity or service.
Switch Up Your Technology Stack and Automation Strategies Today to Improve Your Economic Stability in the Coming Months
If you had doubts as to whether you could afford the time and effort necessary to transition components of your existing technology stack to more affordable alternatives, our survey should instead have you asking, can you afford to wait?
Not every business has the resources necessary to take the time and effort to identify where they can make significant changes to save and create opportunities for reinvestment and improvements. The UpCity marketplace has several small business consultants who are ready to help any business owner who has read this survey and come to the realization, as many of our respondents did, that it’s a perfect time to reassess your automation software platforms and small business tools to find out if there are better, more affordable alternatives available that will help your business create a more sustainable and profit-focused workflow.