Small and midsize businesses are considering or adopting marketing technology to better engage with new and existing customers. Over a third — 35% — of SMBs are currently considering adopting new martech to better target audiences. Another 41% are currently adopting new technologies or have done so in the last year.
These findings come from a study of over 600 SMBs in Verizon Business and Morning Consult’s fifth annual “State of Small Business Survey.”
AI adoption. Thirty percent of SMBs are using AI tools for marketing and social media. This represents an increase of 16 percentage points over last year’s survey.
Another 42% of SMBs surveyed don’t use AI tools but are considering adopting them.
Social storefronts. Thirty-nine percent of SMBs are in the process of setting up social media “storefronts” or “shops,” or have done so already, in the aim to sell products and services directly to customers through social media platforms. Another 31% are considering making this move.
While the percentage of those martech adopters remains unchanged from last year, the percentage of SMBs adopting social media storefronts is up 8% over last year.
Concerns over customers. Economic concerns remain the top concerns for SMBs, but with little change over last year. However, concerns over customer relationships have increased year-over-year.
The percentage of SMBs either very or somewhat concerned over existing customer relationships has risen 12% YoY. For engaging new customers, concerns are up 9%.
Here is the breakdown on SMB concerns and YoY change.
Why we care. AI-powered tools and marketing technology are not just considerations for the enterprise. Social commerce, and digital experiences generally, have changed the way consumers shop for products and services, including those goods they buy from SMBs. These responses show that many SMBs are aware of the changes to consumer behavior and are looking to build and update their stacks to adapt.
Dig deeper: Highlights from the 2024 MarTech Replacement Survey
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**One-Third of Small and Medium Businesses Seek New Marketing Technologies to Enhance Customer Targeting**
In today’s rapidly evolving digital landscape, small and medium-sized businesses (SMBs) are increasingly recognizing the importance of adopting new marketing technologies to stay competitive. A recent survey reveals that approximately one-third of SMBs are actively seeking innovative marketing tools to improve customer targeting and engagement. This trend underscores the growing realization that traditional marketing strategies may no longer be sufficient to meet the demands of modern consumers, who expect personalized, timely, and relevant interactions.
### The Growing Importance of Customer Targeting
Customer targeting is the process of identifying and reaching specific segments of a business’s audience with tailored messages, products, or services. In an era where consumers are bombarded with information from multiple channels, the ability to deliver highly personalized experiences has become a key differentiator for businesses of all sizes. For SMBs, effective customer targeting can lead to increased customer acquisition, higher retention rates, and improved return on investment (ROI) for marketing efforts.
Historically, SMBs have faced challenges in competing with larger enterprises that have access to more sophisticated marketing tools and larger budgets. However, the rise of affordable and accessible marketing technologies has leveled the playing field, allowing smaller businesses to leverage data-driven insights and automation to enhance their marketing strategies.
### Why Are SMBs Turning to New Marketing Technologies?
Several factors are driving SMBs to explore new marketing technologies:
1. **Changing Consumer Expectations**: Today’s consumers expect businesses to understand their preferences and deliver personalized experiences. Generic, one-size-fits-all marketing campaigns are no longer effective. SMBs are turning to technologies like customer relationship management (CRM) systems, artificial intelligence (AI), and machine learning to analyze customer data and create more targeted marketing campaigns.
2. **Increased Competition**: The digital marketplace has become more crowded, making it harder for SMBs to stand out. By adopting advanced marketing technologies, businesses can gain a competitive edge by identifying niche audiences, optimizing ad spend, and delivering more relevant content to potential customers.
3. **Data-Driven Decision Making**: Marketing technologies provide SMBs with access to valuable data and analytics that can inform decision-making. Tools like predictive analytics, customer segmentation, and behavioral tracking allow businesses to better understand their customers’ needs and preferences, leading to more effective marketing strategies.
4. **Cost Efficiency**: Many SMBs operate with limited marketing budgets, making it essential to maximize the impact of their marketing efforts. Technologies such as marketing automation platforms, programmatic advertising, and social media management tools enable businesses to streamline their marketing processes, reduce manual labor, and optimize their spending.
5. **Omnichannel Marketing**: Consumers today interact with brands across multiple channels, including social media, email, websites, and mobile apps. SMBs are increasingly adopting omnichannel marketing technologies to ensure a seamless and consistent customer experience across all touchpoints. This approach not only improves customer satisfaction but also increases the likelihood of conversion.
### Key Marketing Technologies SMBs Are Adopting
As SMBs look to enhance their customer targeting capabilities, several key marketing technologies are gaining traction:
1. **Customer Relationship Management (CRM) Systems**: CRM platforms allow businesses to manage and analyze customer interactions and data throughout the customer lifecycle. By centralizing customer information, SMBs can segment their audience, track customer behavior, and deliver personalized marketing messages. Popular CRM solutions like Salesforce, HubSpot, and Zoho CRM are widely used by SMBs to improve customer targeting.
2. **Marketing Automation**: Marketing automation platforms, such as Mailchimp, ActiveCampaign, and Marketo, enable SMBs to automate repetitive marketing tasks, such as email campaigns, social media posting, and lead nurturing. These tools allow businesses to deliver personalized content at scale, improving engagement and conversion rates.
3. **Artificial Intelligence (AI) and Machine Learning**: AI-powered tools are becoming increasingly accessible to SMBs, enabling them to analyze large volumes of data and predict customer behavior. AI can be used for tasks such as personalized product recommendations, dynamic pricing, and chatbots for customer service. Machine learning algorithms can also help businesses optimize their marketing campaigns in real-time, ensuring that they reach the right audience with the right message.
4. **Programmatic Advertising**: Programmatic advertising uses AI to automate the buying and placement of digital ads, allowing SMBs to target specific audiences based on demographics, interests, and online behavior. This technology helps businesses optimize their ad spend by ensuring that their ads are shown to the most relevant audiences.
5. **Social Media Management Tools**: Social media platforms are a key channel for customer engagement, and SMBs are increasingly turning to tools like Hootsuite, Buffer, and Sprout Social to manage their social media presence. These tools allow businesses to schedule posts, monitor engagement, and analyze performance across multiple social media platforms, helping them refine their targeting strategies.
6. **Predictive Analytics**: Predictive analytics tools use historical data to
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