Social-centric, technology-powered small enterprises take center stage in the latest Constant Contact report
In the dynamic world of business, adaptability is the key to success, and this is particularly true for new entrepreneurs. Frank Vella, CEO at Constant Contact, has emphasized this adaptability, with new entrepreneurs being digitally savvy and understanding that adaptability is a crucial growth strategy.
According to the Constant Contact Small Business Now report, these new businesses are heavily relying on social media as their primary news channel. An impressive 63% of the surveyed SMBs rely on social media, with both paid and unpaid posts being the biggest revenue drivers for 73% of them. However, email marketing, considered an underutilized tool by 33% of new SMBs, might be a potential area for growth.
On the other hand, SMS marketing, despite its strong engagement potential, is only being leveraged by 15% of new SMBs. This could be an untapped opportunity for businesses looking to reach their customers directly and effectively.
The integration of AI into marketing activities is another significant trend. In Germany, companies like the Cologne-based DOOH service provider Seatback and platforms like Readpeak are increasingly using AI for marketing automation, content generation, personalized targeting, predictive analytics, and performance optimization. Many German marketers are also adopting AI-driven hyper-personalization, creative assistance in storytelling, and social media strategies to enhance brand communication.
In the coming year, 72% of SMBs plan to use AI for marketing. AI will be used for tasks such as content creation (37%), customer data analysis (32%), and personalized messaging (31%). Already, 41% of highly confident SMB owners are using AI to analyze customer data, aiming to enhance customer relationships, maintain stability, and work smarter.
The spirit, passion, and resilience of SMBs are strong, despite economic challenges. Frank Vella, CEO at Constant Contact, stated that this spirit is evident, with 55% of new SMB owners expressing concerns due to factors like customer acquisition, rising costs, and shifting consumer habits. However, 45% of new SMB owners feel very confident in their business growth for 2025.
The enthusiasm for small business ownership is palpable, with 95% of entrepreneurs saying they would choose small business ownership again. AI and automation are set to play a critical role in helping businesses remain competitive in an evolving economic landscape.
In conclusion, new SMBs are leveraging digital marketing and AI to grow their businesses and stay competitive. Despite challenges, the spirit of entrepreneurship remains strong, with entrepreneurs proud (57%) and excited (71%) to be part of the SMB community.
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