Bruce Billson (pictured above), Australian small business and family enterprise ombudsman, has unveiled a comprehensive best practice guide, in a bid to address the challenges faced by small businesses in their digital marketing endeavours.
The guide aims to assist small businesses in establishing successful partnerships with digital marketing service providers, following a study indicating that one third of such collaborations end in disputes.
The guide, accessible at asbfeo.gov.au/DMS-providers and asbfeo.gov.au/DMS-SMES, provides actionable tips for small businesses to better understand their needs and align them with the services offered by digital marketing providers.
The research, conducted by the University of the Sunshine Coast, identified a significant lack of understanding and communication breakdowns between small businesses and digital marketing providers as key contributors to disputes. Surprisingly, almost 70% of small businesses reported parting ways with their chosen digital marketing provider within the first year.
“The growth in disputes involving digital platforms and digital service providers has motivated us to provide a guide to preventative steps and better practice guidance that might help reduce the harm these disputes are causing,” Billson said in a media release.
“Digital platforms have fundamentally changed the way in which small businesses connect and sell to their customers and enable them to reach a significant portion of Australian and international markets.”
The study revealed that mismatches in expectations and a lack of transparency were common issues. Digital marketing service providers often failed to communicate risks, lacked transparency in service details, timeframes, and results, and did not treat their clients as collaborative partners.
The study found that a deficiency in digital literacy among small business owners hindered them from asking pertinent questions about the services offered by digital marketing providers.
Additionally, half of the surveyed small businesses reported feeling pressured by their providers to purchase costly and unnecessary services.
“Before you talk to a provider, identifying the assistance you need and what you want the provider to do and what you want to do yourself,” Billson said.
“And when you talk to a provider make sure you understand exactly what they will do for you and at what times and that you are both clear on the cost, including any fees or other charges, and for how long the agreement will apply.”
Karen Sutherland, lead researcher at the University of the Sunshine Coast, emphasized the importance of clear communication, budget discussions, and setting realistic expectations. The guide also includes advice for digital marketing providers to better understand the needs of small businesses.
“Is the service for ad campaign management only? A website revamp? Who will own the website domain at the end of the contract? Will social media be required? If so, how much control will the marketing provider have over that social media account?” Sutherland said.
“And most importantly, make sure everything that’s agreed upon is written into a contract.”
To mitigate issues, Sutherland suggested small businesses undertake due diligence before engaging with a provider.
“Different companies have different capabilities. Some are used to working with bigger clients, bigger budgets and will want more control over a business’ marketing content – and maybe that’s not a good fit for you or your business,” she said.
“So, make sure you form a clear idea of what it is you want and research prospective companies before you engage with them. “Look at some of their previous work, reach out to former clients and see if it seems they seem like the right company for your needs.”
Small businesses facing disputes or in need of assistance can contact the ombudsman at www.asbfeo.gov.au.
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