Mid-market enterprises find themselves in a unique situation in a tight economic market. Due to their size, they don’t often have the same access to financial capital that larger enterprises do, which can make it doubly challenging to compete for customers and talent. They’re also in a less favorable position than smaller enterprises because they’re more reliant on debt financing, making it particularly difficult to refinance their debt, raise new capital, and meet their financial obligations.
It was with this background that we unveiled our mid-market offering in March with entry pricing under $150/site, so these enterprises weren’t forced to choose between affordability, performance, and ease of use when adopting SD-WAN and SASE solutions. Though pricing is a critical factor when targeting the mid-market, especially in the current economic climate, these enterprises care most about value and the solution that gives them the greatest impact for their dollar. Beyond this, we’ve learned some other valuable lessons over the last several months that are helpful to know when targeting and working with this group.
Get in front of them early and often, while maintaining patience
One of the benefits to being a mid-market enterprise is that these organizations tend to be more efficient in their decision-making and thus can move more quickly than larger organizations. In a world where large companies are already transforming at breakneck speeds, the mid-market is moving at an incredible pace. They realize that to compete and scale against industry titans, they need to modernize faster and use IT as a differentiator to win new customers and retain existing customers. At the same time, they will do their homework before implementing the latest technology to ensure they’re making a wise investment.
According to recent analyst reports, the next big opportunity for mid-market enterprises is Unified SASE, a fully integrated approach to networking and security with a single-pass architecture. This approach distinctly fits the needs of these enterprises that are punching above their weight because it enhances security and network performance, increases observability, reduces the complexity of IT operations, and provides them with much-needed cost savings. A Dell’Oro Group report forecasts that total SASE solutions spending is poised to surpass $63 billion between 2022 and 2027, with Unified SASE projected to exhibit a five-year compound annual growth rate (CAGR) exceeding 30%, more than twice the rate of disaggregated SASE solutions. A Dell’Oro Group report from February 2023 projected that small and midsize businesses would be the catalysts driving this Unified SASE revenue.
Since we unveiled our mid-market offering in March, we have seen keen interest and early adopters move quickly to implement it. This has allowed us to truly get to know the mid-market and their needs as the rest of the market matures. This has been a key point of differentiation from others that have more recently slapped the “Unified SASE” label on their products. When playing the long game, consistency and patience can make all the difference between a smart investment and sunk costs.
Personalization is priority #1
Mid-market enterprises aim to deliver a more personalized experience on a local level than the bigger enterprises do. However, due to the proliferation of granular customer data across all enterprises, this once distinct advantage is beginning to shrink in many cases for the mid-market. In response, the mid-market is using its agility advantage to operationalize data faster to regain that competitive edge. Therefore, the service providers they look to work with must enable this agility as well. Whether it’s dynamic pricing, highly curated recommendations, support staff that has a complete picture of each customer’s journey, or more rapidly developing new products and services borne out of customer demands, mid-market enterprises are continually finding new ways to make the customer experience unforgettable, both in-person and online.
Targeting the mid-market with technology products or services today often requires solutions that can help them in this regard. The question you should be asking yourself is: How does my product or service build on their speed advantage so they can deliver a more personalized, dynamic customer experience? If you have a solid answer to that question, there’s a strong likelihood the mid-market will want what you’re selling. If you don’t, you’ll be lower on their priority list.
Listen, listen, listen
Building on the point about personalization, mid-market enterprises make a concerted effort to listen to their customers closely so they can provide them exactly what they’re looking for. As a byproduct of this, these enterprises have the same expectations of the organizations they do business with, so it’s wise to pay attention and fully focus on what they’re asking within each interaction. When meeting with them, take copious notes, pause phone and computer notifications, address issues shortly after the meeting ends, and try to meet in-person when possible.
Sometimes what these enterprises are trying to communicate will be explicit, while other times you’ll need to read between the lines, so it’s critical not to be distracted or you may something subtle. This can be difficult in the always-on world we live in, but it’s precisely why it can make a dramatic difference between being someone they can rely on and just being another vendor.
Like any business relationship, mid-market enterprises want to be heard. However, this group is especially attuned to this trait, so you have to be open, inquisitive, and of an execution mindset. If there’s a consistent listening issue, it can be enough to lose an account. On the other hand, good listeners can rise quickly with the mid-market.
Looking ahead
Enterprises of all shapes and sizes are facing unique sets of challenges in the current economic climate, but mid-market enterprises may be in the most difficult spot of all. When trying to reach this market with products and services, it’s helpful to understand where this group is struggling most, how they’re trying to compete with larger enterprises, and the characteristics that they value most from their partners and vendors.
Using a blanket approach that fails to meet the mid-market where they are in their specific journeys will make it particularly challenging to break through with this group. Doing due diligence upfront and developing a sound, customer-centric strategy that makes them feel like a valued partner from the first interaction can go a long way in establishing a strong bond. The opportunities are there for the taking, especially in today’s economic environment. Just remember to pause and think about their needs first.
