SMB

The small-business segment: short cycles, few decision-makers, high volume, low contract value.

Volume economics

SMB works when acquisition is cheap enough to be repaid quickly, which usually means self-serve or very light sales involvement. Applying a high-touch motion produces acquisition costs the contract value cannot repay.

Churn is structural here

Small businesses fail, get acquired and change direction more often. Some SMB churn is not a product problem and cannot be fixed by customer success.

RELATED TERMS

Freemium

A permanently free tier intended to build a user base from which some proportion converts to paid.

Mid-Market

The segment between SMB and enterprise, typically with some procurement process but without full enterprise complexity.

Product-Led Growth (PLG)

A motion where the product itself drives acquisition, conversion and expansion — users experience value before speaking to anyone.

Segmentation

Dividing the market into groups that warrant different treatment — different motion, pricing, coverage or support model.

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