Surging disputes between SMEs and digital marketing consultants prompts action from Ombudsman

Nearly 70% of small businesses drop their digital marketing provider within 12 months, and half report being upsold on services they don’t need, according to first-of-its-kind research from the Australian Small Business and Family Enterprise Ombudsman (ASBFEO) and the University of the Sunshine Coast.

Australian small businesses can attract new customers through a strong online presence, but a tidal wave of complaints from SMEs disappointed with the service of their digital marketing partners prompted ASBFEO to commission a study into the sector.

The research, led by the University of the Sunshine Coast’s Karen Sutherland, exposes an uneasy relationship between digital service providers and the small businesses they are recruited to help.

Central to the problem: a disparity between what small businesses believe they need, in terms of marketing, search engine optimisation, or online branding, and the services actually offered by a provider.

Concurrently, the study found many providers did not accurately convey the details, risks, timeframes, and likely results of their services, and did not view small businesses as active partners in the relationship.

This mismatch in expectations means one in three relationships between an Australian small business and a digital service provider ends in a dispute, Ombudsman Bruce Billson said Monday.

The findings led ASBFEO to create two new fact sheets for small businesses and digital service providers, respectively, in the hopes of making those relationships smoother and more mutually beneficial.

For small businesses thinking about using the services of a digital marketing provider, the ASBFEO recommends:

• Identifying the support needed before signing a deal,
• Assessing the provider’s work for other clients to see if matches your requirements,
• Having open communication with a provider — and recognising early on if slow response times are unlikely to improve,
• A close consideration of the contract,
• Contacting the ASBFEO to file a dispute if there are significant roadblocks in the business relationship.

“Before you talk to a provider, identifying the assistance you need and what you want the provider to do, and what you want to do yourself,” Billson said.

“And when you talk to a provider make sure you understand exactly what they will do for you and at what times and that you are both clear on the cost, including any fees or other charges, and for
how long the agreement will apply.”

Sutherland said businesses should acquaint themselves with all the available services, and query the provider about the level of care they provide.

“Is the service for ad campaign management only? A website revamp? Who will own the website domain at the end of the contract? Will social media be required? If so, how much control will the
marketing provider have over that social media account?” she said.

“And most importantly, make sure everything that’s agreed upon is written into a contract.”

For digital service providers hoping to provide better services to SMEs, steps the ASBFEO recommends include:

• Being clear upfront about the exact type of services you provide,
• Managing expectations about levels of service, hands-on support, and communication,
• Research your clients’ business,
• Undertake regular meetings with the client as the relationship progresses,
• Embed a clause that covers dispute resolution and access to external mediation in case of a broken business relationship.

Small businesses and digital service providers can access the fact sheets ot the ASBFEO website.