SMALL BUSINESS NOW

An AI
Awakening
How small businesses areusing AI and automation
to bolster their business.

Research created in partnership with Ascend2

1

Small Business Now: An AI Awakening

Table of Contents
Introduction											03Special Segments										051.0 Attraction or Distraction: The New Customer Dilemma			

06• What keeps SMBs up at night?
• Improvements are needed throughout the SMB journey.

2.0 Harnessing the Power: How Can AI Help SMBs?				

10• Interest in AI is growing but there is still a lack of understanding.
• Hesitations with implementing AI.

3.0 AI is Changing the Game for SMBs. 						

14• AI is improving efficiency.
• AI Can Help SMBs Save Money

The Bottom Line										18Participants and Methodology								19About the Research Partners								20

2Small Business Now: An AI Awakening

Introduction

If you had an extra
hour in your work
week to do anything
you want, how would
you spend it?
Small businesses are constantly starved fortime. On any given day they are probably
fulfilling orders, keeping up with their books,
interacting with customers, managing staff,
and performing dozens of other tasks. It’sa lot, and it doesn’t leave them much extra
time to market themselves to customers.
What would an extra hour in the workweek
mean to them? Quite a bit. We asked 486
small business owners and decision-makers,
and here’s how they would spend that time:

If using AI and/or automation in my marketing
could save me at least 1 hour per week, I would
use that time to:____.
37% Plan what’s next for my business
31% Fine tune my overall marketing strategy
30% Improve my product or service(s)26% Spend more time interacting with customers in-person
22% Rest and/or take time for myself
21% Network with other business owners
17% Get more active on social media
17% Budget and managing my expenses
12% Update my systems and technology
10% Give back to my community

SMB owners and decision-makers are a dedicated bunch.
And while they deserve a break, only 22% reported thatthey would use an extra hour to take time for themselves.

Small Business Now: An AI Awakening

3

Introduction
Time travel may not yet be possible, but the good news is that AI

Key Takeaways

and automation can help give small businesses that extra hour.
Interest in AI and automation technology has exploded over thelast 6-12 months, and as it permeates more industries, its ability
to help businesses work more efficiently has become abundantly
clear. In fact, 26% of SMBs say they are already investing in AI and/or automation technology with significant results and another 44%

Small businesses unanimously say theirbiggest challenge is customer acquisition.
Attracting new customers is the biggest challenge for
60% of the SMBs we surveyed, and it also takes moretime to address than any other challenge.

report that they want to start using AI.
This report outlines how AI and automation can enhance marketing
effectiveness and improve the efficiency of execution to give SMBs
the extra time they need to put back into their business (or maybe
to take a much-needed rest)!

Small businesses are flocking to AI, butsome still have questions. Nearly three-quarters(74%) of SMBs are interested in using AI for their business,and 55% reported their interest has grown in the last six
months. However, 80% of those surveyed report having
only an intermediate or beginner level of understandingof how AI could potentially benefit their marketing
efforts.

Small businesses who have adopted AI are
seeing immediate value. 91% of AI users say thatit has helped make their business more successful, and
60% reported saved time and greater efficiency. Further
illustrating the value AI and automation provide, 28%
expect their business to save more than $5000 in the
coming year as a result of using AI in their marketing.

Small Business Now: An AI Awakening

4Special Segments
Look out for these special segmentationsof our data throughout this report.

Marketing Sophistication.
24% of decision-makers surveyed describe theirmarketing sophistication as advanced or expert.
This group gives us insight into what the mostdeveloped marketing strategies look like for SMBs.

AI Users.
Overall, 26% of SMBs are alreadyinvesting in AI and/or automation
technology. Throughout the report
we will take a close look at criticaldifferences between the marketing
efforts of this group compared tothose that do not yet use AI. (44%would like to start in the next 12months and 14% have no plans to
use AI in the near future).

How likely are you to invest in AI
and/or automation technology
in the next 12 months?

26%

Currently
using

44%

14%

Not using Not using,but would no interest
like to start in starting

Which of the following best describes yourcompany’s digital marketing sophistication?
30% Basic
Minimal marketing efforts, limited use of digitalplatforms, and little to no marketing data analysis
43% Intermediate
Some marketing activities, moderate use of digitalplatforms, and occasional marketing data analysis
20% Advanced
Well-developed marketing strategies, active
presence across various digital platforms, andregular marketing data analysis
4% Expert
Highly sophisticated marketing strategies,
extensive use of digital platforms, and advanced
marketing data analysis to drive decision-making

Time with AI.
29% of SMBs surveyed have been using AI for longer
than one year. This group gives us perspective on
how AI can change a business over time.

How long have you been using AI and/or
automation technology in your marketing?
More than
2 years10%
1 - 2 years
19%

Less than
6 months
31%

3% NoneWe do not do any marketing
6 months 1 year
40%
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Small Business Now: An AI Awakening

16%

Unsure1.0 Attraction or Distraction: The New Customer Dilemma

Attracting new customers is keeping
the vast majority of SMB marketers up
at night, and it is also what is keeping
them most occupied during the day.

For 60% of those surveyed, attracting new customers is oneof the greatest challenges they are currently facing. But
while finding and engaging new customers is by far the mostcommonly reported challenge overall, top barriers to successvary greatly by company size.

Non-profits face different hurdles.
Non-profit SMBs report significantly moredifficulty with hiring and retaining staff (50%vs 29% of for-profit SMBs) and a lack ofexpertise in digital marketing (37% vs 19% of
for-profit SMBs).

What are the greatest challenges your business iscurrently facing? (Segmented by number of employees)
1 - 9 employees

70%

57%

50%

Attracting newcustomers

10 - 49 employees

42%

41%

34%

Marketing totarget audience

The smallest businesses
are more challenged byattracting new customers.

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Small Business Now: An AI Awakening

33%

36%

50 or more employees

37%

Converting leads
to sales28%

16%

SMBs with 50+
employees are 2x more
likely than those with
under 10 employees
to be struggling withimproving the customer
experience.

17%

Access to funds/
capital

22%

20%

20%

Lack of expertisein digitalmarketing

16%

24%

30%

Improving
the customer
experience

16%

19%

22%

Complicated and/or ineffective
digital marketing

11%

45%

46%

Hiring andretaining staff

1.1 Attraction or Distraction:
The New Customer Dilemma

Attracting new customers is also thechallenge that requires the mosttime and attention according to
31% of all SMBs surveyed.
Which of these challenges typicallyrequires the most time/attention?
Attracting new customers
31%
Hiring and retaining staff
17%
Converting leads to sales
14%
Marketing to target audience
11%
Access to funds/capital
8%
Complicated and/or ineffective digital marketing
7%
Lack of expertise in digital marketing
6%
Improving the customer experience
6%			
Small Business Now: An AI Awakening

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1.2 Attraction or Distraction:
The New Customer Dilemma

Improvements are needed
throughout the entire
customer journey, to help
SMBs move faster andimprove the way they market
themselves to customers.
In the year ahead, over half of SMBs have their sights set on
improving their social media marketing (52%) to overcome
their top challenges. This indicates that most small businesses
feel that social media is the best pathway to acquiring newcustomers. Other areas they plan to improve are website
experience (43%), customer relationship management (32%),
and email marketing (31%).
SMBs in the consumer space feel more strongly about theirneed to improve social media efforts (59% for B2C vs 48% for
B2B). While improving reporting and event marketing are more
important to B2Bs.

What areas of your marketing strategy would
you most like to improve over the next 12 months?
(Marketing/Sales Channel)
Social media marketing
59%
48%

Website experience
41%
40%

Customer relationship management
31%
37%

Email marketing30%
32%

In-person customer experience
24%
21%

Event marketing
11%
19%

Branding/design22%
18%

Reporting
6%
12%

SMS/text marketing
12%
11%

Online ratings and reviews
19%
10%

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Small Business Now: An AI Awakening

B2C
B2B

There’s a good chancethat someone’s firstexperience with yourbrand will come via
social media...
So it’s important for small businesses to be activeon the appropriate channels. However, social ismost effective when it’s incorporated into a bigger
marketing strategy that includes email marketing andautomation.
Constant Contact’s marketing platform is poweredby cutting-edge AI and automation tools that canhelp small businesses attract new customers andkeep them coming back for more. We give you tools
to manage multiple channels (including social media),
and give you access to powerful AI and automations
to ensure the right message reaches the rightcustomer in the channels they prefer. With ConstantContact, you can turn your social followers into repeat
customers and, hopefully, raving fans.

Small Business Now: An AI Awakening

92.0 Harness the Power: How Can AI Help SMBs?

Interest in AI is strong, but it’s clear that there is
still a need for more education about its benefits.
Small businesses are definitely hearing the buzz about AI, and they are listening with intent. Nearly
three-quarters (74%) of SMBs are interested in using AI for their business, and that interest is accelerating– 55% report that their interest grew in the last 6 months. But, 80% of those surveyed report having a
beginner–intermediate understanding of how AI could potentially benefit their marketing efforts.
Hesitations from those who do not use AI give a clear picture of this general lack of understanding. They
have concerns about data security and the perceived costs associated with using AI, which suggests thatthey need more guidance on how to get started using it in their marketing.

What are your concerns or hesitations about using
AI and/or automation technology in your marketing?

10

44%

41%

33%

I’m concerned
about thesecurity of mydata

The technology
is too expensive
to implement

It would taketoo muchtime to learn/
implement

Small Business Now: An AI Awakening

27%

26%

12%

There are no
I don’t feel they I don’t think it’s
AI/automation would help my ethical to use AI/
automation
tools built forbusiness
small businesses2.1 Harness the Power: How Can AI Help SMBs?

Breakdown: Extent of use of AI (Company size)

Who is already using AI?

50+ employees

26% of all SMBs surveyed are already investing in AI and/or
automation technology and another 44% would like to start. Larger

Not using/unsure20%

companies are more likely to be using AI right now. 40% of SMBs

Using
40%

with more than 50 employees say they are using AI (compared to
30% with 10 - 50 employees and 12% with 1 - 9 employees).

Would liketo start
41%
10 - 49 employees

Marketing Sophistication.
Over half (51%) of SMBs withadvanced or expert marketing
sophistication are currently using
AI in their marketing programs.

Nonprofits are 53% more
likely than other SMBs
to have already started
using AI and automation.

Not using/unsure
20%

Using
30%

Would liketo start50%

1 - 9 employees
Not using/unsure
46%

Using
12%

Would liketo start
42%
11

Small Business Now: An AI Awakening2.2 Harness the Power: How Can AI Help SMBs?

SMBs are using AI for social media
and content creation, but could
EASILY be using it for much more.

88% of SMBs are using AI in two or
more of these areas and 70% are using
it in three or more of these areas.

Where are SMBs putting AI to use? Social media, content creation (writing
or images), and in their email campaigns. These areas are also among theeasiest to implement AI into according to those surveyed.

The most advanced marketingstrategies are 3x more likely
than less sophisticatedstrategies to be using AI for
analytics and SMS or text
campaigns, and more than 2x
more likely to be using AI for
website forms and CRM.

Where to start? Get started
with AI by setting up simple
automations like welcome
emails or anniversary messages
or use it to improve the copy
you use in your campaigns.

In which of the following areas ofyour marketing do you currently
use AI and/or automation?
52% Social Media

Nearly half of
SMBs that areusing AI are
creating content
with it. Learn
more about how
Constant Contact’s
AI Content
Generator allows
marketers to create
engaging content
in just a few clicks.

44% Content creation (writing or images)
41% Email campaigns
38% Ad targeting
35% Analytics
34% Website forms		
30% CRM
25% SMS/text campaigns

Small Business Now: An AI Awakening

122.3 Harness the Power: How Can AI Help SMBs?

SMBs with the most experience using AI
see the value (and are willing to empty
their pockets for it).
One thing we learned from theseresults is that the more time small
businesses spend using AI and
automation, the more value they

Already seeing a positive impact
from AI and/or automation.
(Time using AI)

see. In fact, 39% of SMBs that havebeen using AI for less than 6 months
have seen immediate results – but,
this number jumps to 57% after ayear of use. In other words, AI andmarketing automation can have bothan immediate and a lasting impact

39%

45%

57%

Less than 6months6 months to
one yearMore than
one yearon your business.
With this in mind, is AI worth the investment? The majority of SMBs would likely say yes.

In fact, 70% of SMBs would be willing to pay moreto access AI and automation.
And the longer businesses have had to work with AI, the more they are willing to pay for
it. One-third of SMBs that have been using AI for more than a year say they would be
willing to pay at least 50% more for a marketing platform that gave them access to AI and
automation technology.

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Small Business Now: An AI Awakening

92%of those who
already use AI
feel that it isimportant formarketing tools
to include AI/
automation
functionality.

3.0 AI is changing the game for SMBs

91% of SMBs say that using AI has
helped make their business more
successful… but how?
Remember all the things small businesses said they would do with an

How much time each week do you estimate
you have saved in your marketing efforts byusing AI and/or automation technology?

60+ minutes(substantial)
11%

extra hour in their week? Well, 60% of SMBs that have started using AI
for marketing report that it has helped them save time and work more
efficiently. Just how much time? One-third of AI-users save more than 40
minutes per week on marketing efforts and 72% estimate they save morethan 25 minutes!

41 - 60 minutes(significant)22%

0 - 10 minutes(negligible)
8%
11 - 25 minutes(very little)
20%

42% of SMBs with more than 50 employees say they

have saved more than 40 minutes per week through theuse of AI.

26 - 40 minutes(noticeable)
39%

45% of expert marketers say they have saved morethan 40 minutes per week through the use of AI.

Estimated time saved per week (Number of areas AI is used)

74%

35%

12%

Use AI in 2+ areas

14

74%

32%

11%

81%

41%

19%

Use AI in 3+ areas Use AI in 4+ areas

Small Business Now: An AI Awakening

More than 25 min saved
More than 40 min saved
More than 60 min saved

AI can be a more
powerful time-saver whenused on various channels
throughout the customer
journey. Those using AI
in four or more areas of
their marketing strategy
saw more time saved.

3.1 AI is changing the game for SMBs

AI Can Help SMBs Save Money.
It’s not just time that small businesses crave – their budgets are often

Expect to save $1000+ next year

small and they always have to think lean. Small businesses know thattime is money, and that’s why it’s encouraging that 58% of SMBs
currently using AI in their marketing expect to save more than $1,000
in the coming year. Another 28% expect to save over $5,000.

How much money do you expect to save inthe coming year as a result of using AI and/or
automation technology in your marketing?

$0 - $499
20%$500 - $999
22%

$10,000 - $24,999
8%$5,000 - $9,999
15%

64%

Using AI in2+ areas

Using AI in3+ areas

Using AI in4+ areas

Expect to save $5000+ next year

29%

28%

43%

Using AI in2+ areas

Using AI in3+ areas

Using AI in4+ areas

Similar to the time savings generated by AI,

small businesses who use AI in
multiple areas of their marketing
also see increasing cost savings.
Constant Contact
offers a free 60-day, no
strings attached, trial
to get to know our AI
and automation tools.
Start yours today.

Small Business Now: An AI Awakening

61%$25,000
5%$1,000 - $4,999
30%

15

60%

Nearly half (43%) of SMBs using AI in four or moreareas of their marketing expect to save at least$5,000 in the coming year (almost 15% more thanthose who use it in two more areas).

3.2 AI is changing the game for SMBs

SMBs are getting to know theircustomers better because of AI.

Describe the biggest impacts that AI and/or
automation technology has had on your marketing.

How well do you know your customers? Thirty-eight percent ofI’ve saved time and worked more efficiently

SMBs that have been using AI for more than one year say they
have gotten to know their customers better as a result of using AI
in their marketing. AI can help small businesses segment contacts,
understand their behavior, and spot trends in their engagement
history. All of this helps them send more effective and efficient
marketing communications and build stronger relationships withcustomers.

(Time using AI)

46%
55%
79%

I have grown my business faster
43%
33%
21%

I have gotten to know my customers better
38%
22%
11%

I’ve made fewer errors
38%
37%
39%

I am more competitive with bigger companies
27%
22%
16%

I’ve saved money and stretched my budget further
27%
29%
21%

I haven’t had to hire additional employees
More than 1 year
6 months - 1 year
Less than 6 months
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Small Business Now: An AI Awakening

8%
6%
8%

3.3 AI is changing the game for SMBs

Company size also
contributes to the areas
AI is most useful.
Larger SMBs have been able to grow their businessfaster and compete with bigger companies as a resultof using AI, while smaller companies are saving time
and working more efficiently.

Describe the biggest impacts that AI and/or
automation technology has had on your marketing.
(Company size)
I’ve saved time and worked more efficiently
50%
63%
78%

I’ve made fewer errors
38%
44%
26%

I have grown my business faster
38%
33%
17%

I’ve saved money and stretched my budget further
29%
23%
22%

I have gotten to know my customers better
29%
19%
17%

I am more competitive with bigger companies
26%
19%
17%

I haven’t had to hire additional employees
9%
5%
9%

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Small Business Now: An AI Awakening

50+ employees
10 - 49 employees
1 - 9 employees

The Bottom LineAI and marketing automation aren’t just for large
corporations anymore. These technologies are now
accessible to small businesses for the first time, and they
can be easily implemented and integrated into existing
technology stacks.
Our findings show that AI and marketing automation canhelp solve some of the biggest challenges small businesses
face – attracting new customers, marketing to them anddelivering a memorable experience. Small businesses
recognize this opportunity, and many have already begun
leveraging them to tell better stories, sell smarter andwork more efficiently. Best of all, they are spending lesstime marketing and more time doing what they do best…
running their business.
If you are looking for a better way to market your businesswith less effort, Constant Contact can help you get started.
Our proven marketing platform is trusted by millions ofsmall businesses, and with award-winning customer support,
you’ll never be alone if you get stuck. We’ll give you the tools
you need to craft the right message, deliver it to the rightcustomers, create more repeat business and own your story– all while saving you time and money.
Now is the time to unleash AI in your business. Start a free
60-day trial of Constant Contact today.

Small Business Now: An AI Awakening

18

Participants & Methodology
Participants
N = 486 Small Business Owners and Decision-Makers
Marketing/Sales Channel

Number of Employees(Business-to-Business) B2B		

24%

1-9 employees			42%

(Business-to-Consumer) B2C		

45%

10-49 employees		

29%

B2B and B2C equally			

31%

50-99 employees		15%100-250 employees		

14%

Job Role
Executive/C-Suite/Owner/Partner

70%

Nonprofit (501c3) organizations

Vice President/SVP			8%Yes					12%

Director					22%

No					88%

Methodology
Ascend2 benchmarks the performance of business strategies and the tactics and technology that drives them. To
collect this data, we used a custom online questionnaire to survey a panel of 486 small business owners, operators,
and marketing decision-makers in a director role or above. These individuals represent U.S. organizations that
operate in both B2B and B2C channels and have up to 250 employees. The survey was fielded during the month ofJune 2023.

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Small Business Now: An AI Awakening

About the Research Partners

Constant Contact delivers everything small businesses and nonprofits need to build,
grow and succeed. With powerful online marketing tools, contact management and sales
features, and innovative AI capabilities, Constant Contact makes it easy to attract theright people, engage more customers, close more deals and grow.
Learn more at Constant Contact.

Companies partner with Ascend2 to create original research from survey
conceptualization through report and content creation to media outreach. Ascend2
helps companies fuel marketing content, generate leads, and engage prospects to drive
demand through the middle of the funnel.
Learn more about Ascend2.

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Small Business Now: An AI Awakening