TRANSCRIPT
Australian Small Business and Family Enterprise Ombudsman Bruce Billson interview with Leon Delaney.
Radio 2CC Canberra
17 January 2024
Leon Delaney
The Australian Small Business and Family Enterprise Ombudsman is offering to lend a helping hand to small businesses who are struggling with digital marketing. The Ombudsman is Bruce Billson, good afternoon.
Bruce Billson
Leon, great to be with you and your listeners.
Leon Delaney
I'm far from being a Luddite, I've been using computers since I was 17 years old. I don't think it's a big deal. But digital marketing is a little bit baffling and confusing because in many cases, if you're trying to advertise your business and you want to do some digital marketing, you're dealing with people that you don't even meet with. It's just all online and it can get very confusing.
Bruce Billson
You're spot on and it's really changed the way small and family businesses have relationships with their customers and find new customers. So much of it can rely upon digital channels. And therefore, to put your best foot forward in that highly contested environment, often people are thinking what can I do to improve my website?
How do I make sure when people search a particular term that my business, my offering, my service is the one that pops up near the top or, you know, in terms of the social media channels, how do I make sure my content - that I'm pushing out stories about customers, about the product, about the business - are really catching people's eye.
And so many businesses turn to specialists in that field. Some of them, as you point out, you might never see. Without being too much of a killjoy, we certainly see them. We saw an enormous uptick in the number of businesses that were having disputes with these digital marketing providers and thought, gee there's something going on here. Why are we seeing such a recurring concern, that keeps coming to us as a business-to-business dispute?
And in fact, one in three of the small businesses that engaged a digital marketing service provider ended up in a dispute. More than two-thirds didn't stay with their provider longer than a year. And so, you saw this enormous turnover, one in three, ending up with a bit of a barney going on and people thinking, I'd like to be getting value for money out of out of this service like I would for any business input. I'm just not sure whether I'm getting it. So that's why we leaned-in a bit and though, let's have a look at what's going on.
Leon Delaney
Okay. So why is the dispute rate so high? Why are businesses left so disappointed?
Bruce Billson
I must acknowledge the collaboration that we had with the University of the Sunshine Coast. Dr. Karen Sutherland and her team, they were fantastic. We partnered up with them to probe a little bit more deeply and this is real world-leading research that's been produced.
So much of the disputation arises from the business not actually knowing what it is they're paying for, what they're buying and what the nature of the relationship is. They might have heard someone say, come and spend your $700 a month with us and we’ll double your sales. It'll be great. You know, you'll be really prominent across social media channels, yah, yah, yah.
And then when the contract comes in, it doesn't actually speak to that outcome. It talks about posting content, that you help us develop, twice a week. And we’ll make sure that when a search is done in your field of enterprise that your name pops up.
And people will spend that money. They might be six, seven months into a contract, with no discerning improvement in their business and really wondering what they're paying for. And they go back to the digital marketing service provider and ask, what are you actually doing? And they say we’re doing exactly what we said we were going to do, you know what's up?
And you find this knowledge gap. Sometimes it's a digitisation knowledge gap, that the business might not be as funky on the digital tools as you are Leon...
Leon Delaney
I would never claim to be any kind of expert or wizard.
Bruce Billson
But you see how that would play out. Imagine yourself with your business thinking, I know I've got to be more prominent on these channels and I've got to lift my digital marketing game.
But do you know enough about what the experts are doing to be able to lean in, help make good choices, know what's expected of you, know what success looks like, and also, know how the relationship might end when the contract concludes and they tell you, gee Leon, the codes to get into your website, we own those. Sorry mate, go and build a new website if you're going to stay with us.
Those sorts of things are what have popped up in the discussions and the concerns that led to this research.
Leon Delaney
Now, what sort of help can you provide to businesses that are struggling with these issues?
Bruce Billson
We're trying to do two things. One, get in front of the problem so that for small businesses and family businesses in particular, that they enter digital marketing service arrangements as well-informed as they can be. Know what they're buying. Choosing their provider wisely. We're encouraging them to take the time to talk to existing clients, to talk about the experience they've had and whether that's a good choice. And really hone-in on what it is they think they need that this business is providing, and then putting in place contractual arrangements, frequent communications, a clear, shared understanding of what the contract involves.
And in some cases, Leon, even a little bit of education. Say to the digital marketing specialist, help build my knowledge about what it is you're doing and what's effective as we work through this process. Just don't simply outsource it in a set and forget kind of way, but actually build know-how as part of that relationship on the way through.
What we're also saying to digital marketing providers - who probably don't really welcome a call from my office, saying, hey, you’re having a blue with one of your clients, what's going on here - we’re encouraging them to be really upfront from the beginning. What's the work that you're going to provide? Provide a portfolio, give some examples. Point to how what you're going to do links to the business's goals. And be quite specific about the services, the cost, what the outcomes are expected and maintain that open, transparent, regular communication, regular meetings, respond to queries and then know what the exit arrangements are when that contract concludes.
Leon Delaney
Bruce, thanks so much for chatting today.
Bruce Billson
It's good to be with you Leon. Best wishes to your listeners and a safe drive home in the rain.