In the foundational lessons of Sales 101, we learned that selling to Small and Medium-sized Businesses (SMBs) differs significantly from selling to large enterprises. SMBs are not merely smaller versions of large companies, just as large enterprises are not simply scaled-up versions of small businesses. These two are very different, each with its own unique characteristics, separate needs, and distinct sales philosophies.
In this infographic and accompanying blog post, we’ll compare selling to SMBs vs. selling to enterprise customers and find out how the two approaches contrast with each other in terms of pain points, business objectives, buying process, decision-makers, messaging, and ideal tactics.
Defining SMB and Enterprise Customers
Before diving into the comparison, let’s clarify what qualifies as SMB and enterprise:
- Small Business: Fewer than 100 employees; annual revenue less than $50 million
- Mid-Sized Business: 100-999 employees; annual revenue between $50 million and $1 billion
- Enterprise: Any business exceeding these thresholds
So, for this blog and infographic entry, we’ll consider any business that falls outside the above ranges as an enterprise.
With that out of the way, here’s a rundown of key differences when selling to SMB and enterprise customers:
Key Differences in Sales Strategies
Pain Points
Enterprises and SMBs face different challenges that influence their purchasing decisions. Understanding these pain points helps in tailoring solutions effectively.
SMB sales pain points usually revolve around cost-efficiency, ease of use, and immediate results. SMBs often look for solutions that are affordable, simple to implement, and provide quick value. Some of the SMB’s common pain points include achieving stability and profitability (47%) and enhancing productivity through workflow improvements (47%).
Enterprise sales pain points, on the other hand, often include complex operational challenges, scalability issues, and integration with existing systems. Enterprises seek solutions that address large-scale problems and provide a high return on investment.
Check out the 3 levels of pain points for better sales conversion.
Sales Cycle Length
The length of the sales cycle can impact how sales strategies are executed. A longer cycle often requires different approaches compared to a shorter cycle.
SMB sales generally have a shorter sales cycle as decisions are often made by fewer people and with lower financial implications.
While, the enterprise sales typically involve a longer sales cycle due to the complexity of the decision-making process, multiple stakeholders, and higher financial stakes.
Discover how Callbox’s lead generation campaign generates sales appointments for an Enterprise Software Leader.
Priorities
Each market segment has distinct priorities that guide its purchasing decisions. Knowing these priorities allows for more targeted sales efforts.
SMBs prioritize short-term benefits, such as cost savings, operational simplicity, and ease of use. They are more focused on immediate impact—considering a project or solution’s time-to-value (TTV), which is the time between decision-making and deployment—and tangible benefits.
Meanwhile, enterprises’ priorities are often centered around long-term strategic goals, such as improving efficiency across large teams or enhancing data security, market share, and recurring revenue—evaluating how solutions align with these broader objectives. Additionally, they prioritize ROI, compliance, and scalability as well as evaluate how the solution’s benefits support this overall direction.
Here is a 5-step approach that is guaranteed to give you enterprise leads and customers.
Buying Journey
The process of making a purchase decision varies greatly between enterprises and SMBs. Understanding these differences helps in aligning sales strategies with the buying journey.
The buying journey in SMB sales is typically shorter, with a faster decision-making process. SMBs often make purchasing decisions quickly, sometimes based on a single demo or trial period. Typically, they make purchase decisions within 2 to 90 days from initial contact, following a more straightforward path.
On the other hand, the buying journey in enterprise sales is lengthy and involves multiple stages, including detailed needs assessments, product demos, and extensive negotiations. The process often includes multiple reviews and approvals from different departments. Enterprises often engage in a longer and more complex buying journey that can span from a few months to several years.
Learn how outsourcing lead generation can benefit your small to medium enterprise business.
Decision-makers
The decision-making process differs between enterprise and SMB clients. Identifying key decision-makers helps in crafting targeted sales pitches and strategies.
SMB decisions are usually made by the business owner or a small management team, often led by a single decision-maker, with CEOs making 98% of tech buying decisions. The process involves fewer people, making it quicker and more straightforward. Although some tasks may be delegated, the final decision rests with one person.
In contrast, enterprise sales decisions are made by a committee of stakeholders, including executives, department heads, IT managers, and procurement teams. Each decision-maker has specific concerns and criteria. Typically, the decisions require consensus from an average of 6.8 stakeholders, each representing different departments with their own interests and expertise.
Learn how Callbox can bring quality leads to your business.
Messaging and Content
Effective messaging and content strategies vary depending on the target market. Tailoring content to address the specific needs of each segment enhances engagement.
In SMB sales, messaging should be direct and emphasize ease of use, cost-effectiveness, and immediate benefits. Content should be simple, including product overviews, quick-start guides, and customer testimonials. SMBs tend to research like consumers, relying heavily on internet searches and reviews. They value clear explanations of how solutions provide business value.
While enterprise messaging should focus on complex solutions, ROI, and strategic benefits. Content should be detailed, and include case studies, white papers, and in-depth product information that addresses specific business challenges. Enterprises use a variety of in-depth content such as whitepapers, case studies, and webinars. Decision-makers typically review 2 to 5 pieces of content materials during the buying cycle.
Check out the strategies and tips for successful content marketing.
Sales Tactics
Sales tactics must be adapted to fit the characteristics of each market segment. Different approaches are needed to effectively engage enterprise versus SMB clients.
SMB sales tactics involve quick, persuasive pitches, offering free trials or demos, and emphasizing customer support. Sales teams often use a more straightforward approach to demonstrate value quickly and close deals efficiently.
Moreover, SMBs utilize a mix of inbound and outbound channels. Both paid and organic search align with SMB decision-makers’ information-seeking behaviors, supported by email marketing and personalized calls.
Meanwhile, enterprise tactics include a consultative sales approach, personalized demonstrations, and tailored solutions. Building relationships with multiple stakeholders and providing extensive support throughout the sales process is crucial. Enterprises also employ similar channels but focus on nurturing leads through multiple touchpoints and a rich content portfolio.
Learn how to boost your sales with inbound and outbound strategies.
Conclusion
There’s more to the SMB vs. enterprise comparison than just sheer size alone. Selling to SMBs and enterprises requires more than just scaling your sales strategy.
Each segment demands a tailored approach that aligns with its specific needs and characteristics. By understanding these differences, you can refine your sales tactics and generate more effective leads.
