Tracking customers drives growth

Small businesses using analytics, CRM systems or promotional codes to track customer sources grew revenue at twice the rate of those with no tracking. Fifty-one percent of tracking firms grew revenue in 2025 versus just 22% with no tracking.

“Firms with formal customer acquisition tracking were more than twice as likely to report revenue growth as those with no tracking.”

Digital channels outpace physical stores

Fifty-six percent of small businesses generating more than 75% of sales through digital channels grew revenue, compared with 42% of physical-store-led businesses. Physical-led companies also posted the highest rate of revenue declines at 20%.

Mobile apps show strongest momentum

Among small businesses already using an app, 58% reported higher sales through that channel and 73% plan to expand it. Third-party delivery platforms followed closely with 57% of users reporting sales gains.

“Among SMBs already using an app, 58% reported higher sales through that channel and 73% plan to expand it.”

Digital sales now dominate overall

Digital channels generated 57% of small business sales on average in 2025, while physical channels produced 41%. Small business revenue grew 9.5% on average, more than twice the 4.7% growth in nominal GDP.

Digital marketing expected to lead

Forty-eight percent of small businesses expect digital marketing to become their leading source of new customers, up from 34% today. One-third of firms don't plan to add any channel in the next year.

“48% of SMBs expect digital marketing to become their leading source of new customers, up from 34% today.”