A 3rd of SMEs are turning to new martech to focus on their prospects

Small and medium-sized businesses are considering or adopting marketing technologies to better engage with new and existing customers. More than a third (35%) of SMEs are currently considering adopting new martech to better target their audiences. 41% of them are currently adopting new technologies or have done so in the last year.

These findings come from a study of more than 600 small businesses as part of Verizon Business and Morning Consult’s fifth annual State of Small Business Survey.

Adoption of AI. Thirty percent of SMBs use AI tools for marketing and social media. This represents an increase of 16 percentage points from last year’s survey.

42% of SMEs surveyed do not use AI tools but are considering adopting them.

Social showcases. Thirty-nine percent of SMEs are creating or have already created social media “storefronts” or “stores” with the aim of selling products and services directly to customers via social media platforms . 31% are considering making this decision.

While the percentage of these martech adopters remains unchanged from last year, the percentage of SMBs adopting social media storefronts is up 8% from last year.

Customer concerns. Economic concerns remain the top concern for SMEs, but with little change from last year. However, concerns about customer relations have increased with each passing year.

The percentage of SMEs very or somewhat concerned about existing customer relationships increased by 12% year-on-year. For engaging new customers, concerns are up 9%.

Here is the distribution of SME concerns and the evolution from one year to the next.

Image: Verizon Business and Morning Consult, “State of Small Business Survey.”

Why we care. AI-based tools and marketing technologies are not just business considerations. Social commerce, and digital experiences in general, have changed the way consumers purchase products and services, including those they purchase from SMBs. These responses show that many SMBs are aware of changes in consumer behavior and are looking to build and update their stacks to adapt.

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