Agencies Beware: Almost 60% of SMBs Switched Their Outsourced Marketing Providers in the Past Year, inTandem by vcita Report Reveals

Tel Aviv, September 13, 2023] According to a report published today by inTandem by vcita, the SMB technology platform for organizations that serve the SMB market, there has been a marked shift in SMB behavior with almost 60% of SMBs switching their outsourced marketing providers in the last year. With 70% of SMBs outsourcing marketing services such as web development, SEO, and social media management, this highlights the fickle nature of SMBs and the struggle of marketing agencies as they seek to retain existing clients.

Rapid Turnover

Previously, only 32% of SMBs outsourced marketing services in 2022. Within the last year, however, this number surged to 70%.

Short Retention Periods

Of those who changed providers, 67% did so within six months or less, indicating a short window for agencies to prove their value.

Retention Challenges

CEO Itzik Levy emphasizes the importance of investing in retention and churn-prevention strategies.

Reasons for Switching

Top reasons cited for switching providers include lack of ROI (68%), inability of in-house teams to utilize services effectively (20%), and dissatisfaction with the provider-client partnership (17%).

Budget Expectations

Despite high turnover rates, 52% of SMBs expect their marketing budgets to increase in the coming year.

Meeting SMB Expectations

“SMBs today want more from their marketing agencies. From mobile payments to appointment scheduling to client management, agencies need to provide their SMB clients with value-adding services that go beyond their usual offerings, enabling SMBs to view agencies as a true strategic partner, reducing churn and increasing engagement and long-term loyalty,” said Itzik Levy, CEO and founder of vcita.

Additional findings include:

  • Insights on Lead Generation and SEO

Lead capture, nurture, and SEO services maintain a low 2.5% churn rate, crucial for immediate business success due to their measurable results and specialized expertise.

  • Digital Marketing Priorities

SMBs prioritize web, social media, and email marketing. Last year, 23% invested in paid search advertising, 19.4% in social media management, 16.6% in email marketing, 15.4% in paid social media, and 15.2% in web development.

  • 2024 Marketing Goals

SMBs aim to drive sales (29%), retain clients (17%), and boost brand awareness (15%) in the coming year.

About the survey:

Over 500 small-to-medium sized business owners in the United States were surveyed online in early June 2023. The SMBs surveyed operate in diverse industries and the businesses range from solopreneur ventures to operations of upwards of 20 people.

To see the full report please visit:

About inTandem by vcita

inTandem offers a technology platform for SMB service providers, aiding in productivity, revenue growth, and financial management.

For more information, visit or follow us on LinkedIn.

Explore more Industry News.

Related articles