To better understand how small businesses (SMBs) can use technology to their advantage, Constant Contact, the small-business-focused digital marketing and automation platform, released its Small Business Now: An AI Awakening report. The company’s survey was conducted by Ascend2 and polled more than 480 SMB decision-makers in the U.S. at the director level or higher.
The research measures how SMBs feel about the future of artificial intelligence, marketing automation and where the technologies will have the biggest impact in the future. Three of the major report findings are SMB adopters of AI seeing immediate value, users of the technology continuing to show skepticism and SMBs saying customer acquisition is their biggest challenge.
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“Artificial intelligence has been around for years, but the technology has finally matured to a point where it can make a real difference for small businesses,” said Laura Goldberg, chief marketing officer at Constant Contact.
According to the company’s survey data, 91 percent of SMBs currently using AI believe that the technology has made their business more successful. Another 28 percent of respondents also said that they expect to save a minimum of $5,000 in the next 12 months thanks to AI.
Cutting costs and improving efficiency is another notable achievement, with 33 percent of SMBs polled estimating that their business saved 40 minutes a week on marketing using AI or automation. Furthermore, 70 percent of SMBs said they would pay more for a marketing platform that gave them access to AI or automated tools.
Despite a growing interest and capturing the intrigue of SMBs, questions about the best way to utilize technology remain. Constant Contact noted that the consensus among SMBs of the top concerns associated with AI and automation are data security, perceived cost and a steep learning curve.
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Fifty-five percent of SMBs report that their interest in AI grew in the past five months. However, 46 percent of SMBs polled said that they have a very basic knowledge of the technology and its benefits.
“When we first began asking small businesses about AI and automation a few years ago, more than half of them didn’t see the value,” said Goldberg. “Fast forward to now and that picture has completely changed. Small businesses are using automation to better time their email and text messages, and using AI to create personalized content and build automated campaigns. They are using these tools to elevate their marketing strategies and now feel ready to take things to the next level.”
SMB survey respondents are unanimous in noting that their biggest challenge to overcome is customer acquisition. Many companies are struggling with marketing and are experiencing a lack of marketing skills and talent to succeed. The other major areas that require the most attention are customer acquisition, hiring and retaining staff and converting leads to sales.
A recent report by WWD found that while 93 percent of small businesses agree that social media is effective in aiding their business gain new customers, more than 60 percent of small businesses don’t know how to best utilize social media platforms. Fifty-two percent of decision-maker respondents pinpointed marketing as a focus area of improvement in the next 12 months.
“Our report shows that small businesses see the power of AI, and they are combining it with marketing automation to attract and save time, create more memorable experiences and grow their businesses,” said Goldberg. “Constant Contact has been ahead of the curve in making AI and marketing automation available to our customers, and we will continue to look for new ways to leverage it to help them save valuable time, drive impact and become better marketers.”
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