MINNEAPOLIS--(BUSINESS WIRE)--A new research initiative from Barlow Research, co-commissioned by Digital Insight and Visa Inc., focuses on the Small Office/Home Office or SOHO market (typically businesses with less than $100K in sales) uncovered interesting findings regarding the value of these small firms. With over 20 million entities, seven out of ten businesses under $10MM in annual sales fall into the SOHO category.
“Working with Digital Insight and Visa, who are small business experts in their own right, helped us create a study that includes actionable opportunities grounded by the data we collected”
“There is a significant business market that is being ignored by almost every major bank. The fact is, most banks are simply not organized to serve these small firms. To be successful in the SOHO market, product silos and delivery systems must work together,” said John Barlow, President of Barlow Research Associates.
The size of the SOHO market is a driving force when considering the value of this segment to the financial services industry. The SOHO market is so expansive that this segment is even more valuable than the middle market ($10MM-&$500MM). Additionally, this segment continued to grow over the past decade. The non-employer business segment was the largest and fastest growing segment in the country. However, this market is often overlooked and underserved by many financial institutions, providing an opportunity for those that have learned how to serve this valuable segment.
The SOHO market is a diverse group of organizations including new start-up businesses, not-for-profit organizations, established non-employer businesses and simple hobby firms. Regardless of the structure of these small firms, one thing is for certain, they represent a significant portion of the businesses in bank branches. The dilemma is how to service this segment in a way that is cost effective to the financial institution.
Barlow Research has recently made available the SOHO Opportunity Study, a multi-client research initiative, using a research methodology that allowed for the inquiry of over 300 questions. The SOHO Opportunity Study examined financial management, payment and credit card behaviors, measured the value of the SOHO customer, and analyzed current and future product/service usage.
“Working with Digital Insight and Visa, who are small business experts in their own right, helped us create a study that includes actionable opportunities grounded by the data we collected,” said Barlow.
About Barlow Research Associates, Inc.
Barlow Research Associates, Inc. was founded in 1980 to provide research to the financial services industry. With a focus on business banking relationships, Barlow Research provides syndicated and custom solutions to the market research needs of small, medium, and large banks in the United States.