The small-to-midsized business (SMB) space has arguably been getting the short end of the stick for awhile now. Much like the Tampa Bay Devil Rays — er, Rays — used to until they defeated their larger American League East compatriots, the New York Yankees and Boston Red Sox, for the AL East Division title last year and fell just short in the World Series.

Enough with the baseball analogies, though. The SMB space is vast yet it is not until recently that many different software companies have begun to create solutions that are geared specifically for this burgeoning business segment. For years it had been dumbed down, cheaper versions of enterprise-grade software that likely made many SMBs feel as though they were like hand-me-down clothes from your older siblings. And, unless Tim Gunn is the own handing them down, do you really want them?

Executives at VoIP application provider BroadSoft also believe that is misguided, particularly in the area of telephony. Voice over Internet Protocol (VoIP) can help SMBs be more competitive with its larger counterparts, says the company’s vice president of marketing, Leslie Ferry. “Quite honestly, small businesses work harder [than their larger counterparts] sometimes,” she declares. “They shouldn’t let their appearance from a telephony standpoint negatively impact what they can deliver from core competency.”

She expands further, saying that in the past six months her company has been on a mission to explain why SMBs would want a VoIP solution — essentially, a set of facilities used to manage the delivery of voice information over the Internet — over more traditional analog solutions for its telephony needs. “We’ve been in the business for 10 years,” she says. “There’s just a lot of institutional, market, and product knowledge we thought we could use to self-educate small businesses to understand our solution.”

Some fast benefits Ferry points out include:

• getting VoIP as a hosted, on-demand solution thereby eliminating upfront capital expenses;
• integration with a Web portal from a CRM desktop so information is there immediately about incoming client calls;
• cheaper costs for handling calls via IP solutions;
• the ability to have a virtual call center and leverage work-at-home agents, eliminating the costs of opening a brick-and-mortar facility;
• call forwarding and call routing;
• the ability to network and use support services anywhere; and
• mobile phone services to help keep SMB workers in touch with colleagues and clients at any time.

Sound like something we would expect for a large company with multiple contact center sites? Absolutely — that’s exactly the point Ferry is trying to get across. SMBs can have this functionality now, so when we call into one of these smaller businesses’ customer service lines we forget if it is a multibillion dollar coporation or a mom-and-pop outlet.

For the SMBs out there, do you feel as though you need VoIP to run the telephony for your contact centers, and to keep up with the changing times? Do you believe that you’re finally getting solutions that speak specifically to the challenges you face every day, as opposed to just a stripped down version of an enterprise-grade offering?

In the conversations I’ve had with analysts about different topics during my time here at CRM magazine, I’ve surmised that in most cases the more mature a software becomes, the more apt it is to be delivered in verticalized solutions, whether its for a particular industry (retail, government) or business segment (SMB).

Is this something that you see as well? As SMBs — is this a good or bad thing? You be the judge.

On Friday, Monster.com, the job search site, issued an important memo to its site users. According to Patrick Manzo, Monster’s senior vice president and global chief privacy officer, the Web site encountered a security breach that put its customer database in jeopardy. The data was illegally accessed and account and contact information consisting of user IDs and passwords, email addresses, names, phone numbers, and basic demographic data were taken.

What does this mean for consumers with Monster.com profiles? Monster is encouraging its users to change passwords the next time they log in. Here’s where it gets tricky — Monster has a policy of never emailing its members and asking to confirm log-in or password information. So, users must proactively seek to change this information in order to avoid any misuse of their data. Luckily, to date, no misuse or suspicious behavior involving the data has been reported.

I discussed the topic of security quite extensively with Gartner analyst Scott Nelson a few months back. Nelson predicted as social media continues to skyrocket, consumers will become more worried and cautious about security measures and the privileged information they share on the Web.

Nelson put it all into perspective:
“I think the key is one of trust. The more I can build trust as an enterprise relating to you as a customer, the more you, in turn, can turn around and trust me. If I show trust to you in the handling of your data, if I show trust you in what I reveal to you and what you might be interested in, and if I show trust in the feedback you give me … the more trust a customer can turn around and show back. I think one of the keys to the CRM cycle is going to be building trust over time. I think firms have really missed in that if you really build up that trust level, it’s highly unlikely a customer is going to leave you and go somewhere where they are going to have start all over again. On the flip side, you’ve got to be really serious because all it takes is one breach in that trust for them to say, ‘Okay, you’ve burned me, I’m not going to trust you again.’ [It's about] putting policies in place to really safeguard that, putting strategies in place to utilize that trust, and make it transparent to them.”

It’s evident that Web 2.0 is one of the next waves of technology your business will have to incorporate in some form or fashion in order to keep up with your increasingly Internet-savvy consumer base. We’ve already had countless news stories on our Web site as well as several features on the topic, including one in December 2007 proclaiming that “It’s All Coming 2.0gether.”

Another analyst, Cutter Consortium Senior Consultant San Murugesan, explains that now is not the time for enterprises to wait and see if Web 2.0 is for them, simply because there is not one single definition to define it.

His report, “Business Uses of Web 2.0: Potential and Prospects,” spells out seven steps enterprises must take in order to successfully incorporate Web 2.0:

1. assess the current state of your business;
2. make an informed technological decision, which he says means enterprises must determine exactly how they want to utilize particular tools like blogs, wikis, or forums;
3. evaluate the Web 2.0 application in question for pros, cons, and potential security issues;
4. prepare a plan for the implementation;
5. go through a trial phase;
6. do a hard launch out the new application; and
7. monitor the usage and outcomes of the new technology used.

In Murugesan’s eyes, of the seven steps, the first two are necessary for laying a foundation. With that said, the last step – monitoring the usage and outcomes – is extremely important. “Actually use the content and feedback you gain from the use of Web 2.0,” he says, giving the example of a blog. “If you don’t gain insights from the comments left, it’s not going to benefit the business.”

He admits that this can be a challenge, but that there are tools available to help try and cull all the customer feedback you receive, not the least of which being enterprise feedback management solutions. I dove into this topic with my January 2009 feature, “The Feedback Funnel.”

Essentially, it is one thing to collect data. It’s another to actually use it to better your business. The sentiment from my sources from the January feature in addition to my conversation with Murugesan is unanimous: Customers will know if their insights aren’t being used — and will leave to find another company that does, and can prove it.

So I’ve currently been obsessed with Yazoo’s (aka, Yaz for “you Americans, too old to have Wikipedia at your disposal” –editor, who is one such American) 1982 hit “Only You.” Not only have I been playing it on repeat, but I wanted to share it with the world (i.e., my gChat – Google Talk? – buddy list).

Two days ago, we learned that videos are now embedded directly into your chat window. Today, my editor clicked on the YouTube link in my status to the video for “Only You” and realized there was no sound. After checking all his sound controls, we finally uncovered the mystery. Can you find the culprit?

Hint: it’s right here ^.

Apparently, after disputes with Warner Music Group, YouTube has had to enforce this policy for over a week, but I was just listening to this song yesterday!

The site is imposing its law-abiding, fun-ruining shadow…slowly but steadily. As YouTube explains,  “music licensing is very complicated.”

In other related news, the on-going debate between rising royalty prices for Internet radio continues to exacerbate the concerns around our ability to listen to music for free. I got a cursory explanation of the situation from a Pandora executive, but I will be following up with the company’s CEO Joe Kennedy sometime soon. In any case, the executive I spoke to assured me that Pandora was not going out of business (phewf) due to reports of its inability to afford the royalty fees; in fact, the company had increased 50 percent in revenue last year.

I’m not sure what the right solution is, but for now, watch and listen while you can!

Update: Surprise, Surprise.

I’m not the only one that feels this way. YouTube Users Lash Out At Warner Music (And Google) With Protest Videos http://twurl.nl/cdxha6

UPDATE: This story was updated on February, 4, 2009.

Infusionsoft, the provider of marketing automation software for truly small businesses is truly devoted to its intended customer base. So much so that it guarantees to double the sales of any small business that signs up for its Web-based software. The young CRM player has been making a lot of noise lately. Earlier this month, Infusionsoft announced its tiered approach to pricing and delivery of its solution.

In late December the company also announced a new round of investment — $7.9 million in Series B financing. Dave Lee, Infusionsoft’s vice president of product and marketing told me that despite economic conditions, things haven’t appeared to slow down for the company. Interest among small businesses continues to skyrocket, he said. “Especially in the small-business world that we live in — 25 employees or less — you’d think they’d be hurting,” he told CRM in an interview in early January. “They’re the ones that are being really smart and are thriving right now…. It’s very encouraging to see there’s demand out there.”

What’s also encouraging is Infusionsoft’s faith that its customers will succeed after turning to its product. The “Double Your Sales” idea sprouted from an experimental contest last year, in which the company challenged a company (All About Spelling) to double its sales for free software. All About Spelling succeeded by a landslide, proving to the Infusionsoft team that doubling an organization’s sales is an obtainable feat. It will be interesting to see what kind of return this “Double Your Sales Guarantee” brings for the company. It’s a pretty powerful concept — especially considering the less-than-friendly economy.