Smart use of marketing and tech helps boost retail sales
By Dave Charest
The world of small business is always evolving, but in 2025, the latest wave of new entrepreneurs is navigating a particularly tough landscape with a mix of optimism and resilience.
The latest report from Constant Contact, Small Business Now: Growth in Motion, reveals insights from more than 1,600 small business owners across the United States, United Kingdom, Australia, New Zealand and Canada.
Despite dealing with economic uncertainty, these early-stage businesses are not just surviving – they are setting themselves up for success by embracing technology, refining marketing strategies, and focusing on building lasting customer relationships.
Thriving through tough times
It is no secret that the economic climate right now is anything but easy.
With external challenges such as inflation and shifting consumer habits, it is a tough world for any business owner. Yet, new entrepreneurs are not backing down. Instead, they are diving headfirst into the challenge, and their focus is clear: customer relationships.
According to the report, 63 percent of new entrepreneurs are turning to social media as their go-to marketing tool. But here is the interesting part: Even though social media is a top choice when getting started, a surprising 33 percent of these business owners today see email marketing as an untapped goldmine for conversions and customer loyalty.
As these businesses mature, they are broadening their marketing with channels such as email and SMS, which are coming up strong as powerful tools to nurture those all-important customer relationships.
When it comes to tech, the numbers speak for themselves: 91 percent of business owners say that technology has played a crucial role in their success, and a whopping 72 percent plan to use AI for marketing this year.
Technology is not just a nice-to-have. It is a survival tool for small businesses – one that is essential for growth.
Optimistic, but realistic: The SMB mindset for 2025
Entrepreneurs are feeling positive but cautious.
Nearly half (45 percent) of small business owners believe their business will grow in the coming year, but many (55 percent) are also acknowledging the hurdles they will face.
Rising costs, customer acquisition struggles and shifting consumer preferences have a solid 35 percent of entrepreneurs seeing economic factors as a big potential roadblock. But not to worry. Small businesses are determined and resilient.
People are still choosing to start new businesses every day.
Even though 52 percent of these business owners admitted that getting their business off the ground was tough, there is a ton of excitement and pride in the air.
A remarkable 95 percent of entrepreneurs said they would do it all over again if given the chance – 71 percent said they are excited about the future, and 57 percent proud of what they have accomplished.
Dave Charest
Going beyond social media: SMBs expand their marketing reach
Social media may dominate the marketing space for new businesses, but there’s a growing trend toward diversifying strategies.
The majority of these entrepreneurs may still rely on social media as their main marketing tool, but many are branching out into channels such as email and SMS to connect with their audience.
In fact, 33 percent of SMB owners view email marketing as an underutilized tool that could be key to turning leads into loyal customers.
While social media gets all the attention – likely for its ease of use, accessibility, and affordability – email marketing can be a powerful revenue driver to support growth.
Plus, email’s secret superpower is its ability to help build lasting relationships and customer loyalty.
Also, do not forget SMS. Only 15 percent of SMBs are investing in it, even though SMS has proven to be one of the most engaging marketing channels available.
AI and tech: The secret weapons for SMB growth
Let us talk tech – it is a game-changer for small businesses.
Early-stage small businesses are embracing technology like never before, with 91 percent agreeing that tech has been a growth driver for their businesses. And AI is also leading the charge.
Nearly two-thirds (72 percent) of SMB owners plan to use AI in their marketing efforts this year, and the areas they are focusing on are pretty exciting:
- 37 percent are using AI for content creation
- 32 percent are diving into customer data analysis
- 31 percent are leveraging AI to create personalized marketing experiences.
This is not just about automating tasks—it is about making smarter, more data-driven decisions and connecting with customers in more meaningful ways.
With this, 38 percent of business owners are planning to learn new marketing strategies, and more than a quarter (28 percent) will use AI and automation to overcome challenges like customer acquisition and sales growth.
It is clear that technology is becoming a key part of their competitive advantage, growth prospects and overall success.
Consider this: New small business owners who have the most confidence in their business growth this year are embracing AI more than others, indicating that confidence in business growth and the adoption of AI are closely linked.
Of this high-confidence group, 41 percent plan to use AI for data analysis, and 39 percent will use it to personalize customer experiences, compared to just 25 percent of all others.
AS THESE NEW and early-stage entrepreneurs continue into this year, their direction is clear: Reassess and refine strategies, embrace new technologies, and stay customer-centric and highly adaptable.
By focusing on these areas, new small businesses are setting themselves up for long-term success – even in the face of an unpredictable market.
If you are a small business owner yourself, the message is simple: Stay adaptable, keep innovating and never stop connecting with your customers.
The entrepreneurs who thrive in 2025 will be those who stick to sound business fundamentals, keep refining their marketing approach, and embrace new tools and technologies to stay ahead.
Dave Charest is director of small business success at Constant Contact, a digital marketing and automation platform for small businesses and nonprofits globally.