Every SMB in the US lost out on potential revenues, ranging from several hundred to several thousands of dollars, averaging $820 per business in the first six months of 2023
[Seattle, WA October 24, 2023] According to new data revealed today by inTandem by vcita, the SMB technology platform for organizations that serve the SMB market, US SMBs lost out on over $27B in unearned income in the first half of 2023 due to clients not showing up to scheduled meetings*. These no-shows, as well as last-minute cancellations, are robbing small business owners, who tend to struggle with cash flow, of the opportunity to fill that time with a paying client.
Additionally, while online payments allow small businesses to get paid three times faster, it does not eliminate the problem of late payments. Data shows that customers are taking more and more time to pay for services, on average taking 22 days for an SMB to collect late payments in 2023. This trend is extremely concerning for small businesses who often struggle with cash flow and can be a death-blow for young SMBs.
“This data is a wake-up call showing that SMBs are still losing revenue and struggling to manage cash flow due to operational challenges that can easily be solved with technology, and our mission is to make this type of technology accessible to more SMBs,” said Itzik Levy, CEO and Founder of inTandem by vcita. “At inTandem by vcita, we are supporting SMBs and organizations that serve them with the digital tools they need to future-proof their business and to fulfill their business potential.”
Additional findings include:
- Growing popularity of SMB services: The demand for services provided by SMBs is on the rise. The number of services consumers chose to book with small businesses grew by 10% between the years 2021 to 2022, and by an additional 21% between 2022 and 2023. The increase in consumers choosing to buy from small businesses could be linked to the increased awareness towards supporting local and small businesses, a topic that gained public attention during the COVID-19 pandemic.
- Increased use of digital tools: When it comes to frequency of usage, SMBs are using digital tools more consistently and more often. The percentage of SMBs using the vcita platform daily grew by 11% between 2021 and 2022 and by an additional 46% from 2022 to 2023. These results show that there is not only a growing demand for digital tools, but that once acquiring these tools, SMBs will likely use them frequently and consistently.
*The findings were generated based on data gathered from more than 10,000 SMB vcita users who had a total of 76,703 no-shows in the first half of 2023, an average of 7.67 no-shows per business over six months. The average value of an SMB meeting was estimated at $107. With 33,185,550 SMBs across the U.S., according to The Office of Advocacy of the U.S. Small Business Administration, those businesses missed out on an estimated $27.2B in revenue due to client no-shows.
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inTandem by vcita is a technology platform designed for organizations that serve the SMB market. SMB service providers can partner with inTandem to expand their proposition and provide their clients with tools to increase productivity, grow revenues, and manage their finances. With hundreds of thousands of SMB users worldwide, and partnerships with banks, financial service providers, marketing agencies, MSPs and telcos, inTandem delivers an innovative digital platform that helps organizations engage their SMB customers, increase retention, grow brand awareness, and develop new revenue opportunities. inTandem is powered by vcita, a technology solution helping SMBs thrive in today’s digital world.