Sarah Jordan is CMO at Constant Contact and as such, has a unique perspective on the trends and opportunities in customer communication and engagement. Her insights reveal a pressing need for small businesses to rethink their strategies, particularly as they brace for 2025—a year poised to redefine marketing efficiency through AI and owned channels.
The Algorithmic Squeeze
Social media platforms have long been a cornerstone for small business marketing. Yet, as Jordan points out, the constant evolution of algorithms has made it increasingly difficult for businesses to maintain consistent visibility. With these shifts, small businesses are not just competing against each other but also against an influx of ads, influencer content, and platform-driven trends. The result? A diminishing ROI on organic social strategies and heightened pressure to produce more content—and not just any content, but content that is strategic, frequent, and segmented.
The fundamental challenge lies in the fact that businesses do not own their social media channels. Algorithms dictate who sees their content, and these algorithms are ultimately designed to benefit the platforms, not the businesses using them. This dependency on third-party platforms is a vulnerability that small businesses can no longer afford to ignore.
The Resurgence of Owned Channels
Looking ahead, Jordan predicts a resurgence of owned marketing channels—email and SMS in particular—driven by AI-powered advancements. This trend is more than a reaction to social media’s limitations; it’s a strategic pivot towards channels that offer greater control, reliability, and ROI. Unlike social platforms, email and SMS allow businesses to own their audience relationships, eliminating the middleman and ensuring their messaging reaches customers without algorithmic interference.
Owned channels also offer the advantage of personalization. Today’s consumers expect tailored experiences, and owned channels excel at delivering these. AI-driven tools can analyze customer behaviors, preferences, and purchase histories to craft highly targeted campaigns. This level of segmentation not only enhances customer engagement but also drives conversions.
AI: The Great Equalizer
AI is no longer a buzzword; it is rapidly becoming the backbone of modern marketing. Jordan highlights its transformative potential, particularly for small businesses that have historically lacked the resources to compete with larger enterprises. AI tools are leveling the playing field, making advanced marketing capabilities accessible to even the smallest operators.
From content creation to campaign optimization, AI is streamlining workflows and reducing costs. Tools like predictive analytics, chatbots, and automated email campaigns enable small businesses to operate with a level of sophistication previously reserved for corporate giants. For instance, AI can analyze a business’s customer data to predict purchasing behaviors, allowing for more precise inventory planning and marketing campaigns. Similarly, AI-powered chatbots can handle customer inquiries in real time, freeing up valuable human resources.
The Economics of Efficiency
The economic landscape for digital marketing is shifting. Rising ad costs and increased competition have made traditional channels less viable for many small businesses. In this environment, efficiency is not just a preference; it’s a necessity. As Jordan notes, 2025 will be the year businesses must fully embrace tools that deliver both cost savings and improved outcomes.
AI plays a crucial role in this equation. By automating repetitive tasks, it reduces the manpower required for effective marketing. Additionally, AI-driven analytics provide actionable insights, enabling businesses to allocate resources more effectively. For small businesses, this means achieving more with less—a critical advantage in today’s competitive landscape.
Integrating Owned Channels with Other Strategies
While the resurgence of owned channels is a promising development, it doesn’t mean abandoning other marketing strategies. Instead, businesses should adopt a holistic approach that integrates email and SMS with social media and in-person marketing efforts. This multifaceted strategy ensures consistency and maximizes reach.
For example, a business might use social media to attract new customers while relying on email campaigns to nurture those relationships. Similarly, SMS can be employed for timely, high-impact messages, such as flash sales or appointment reminders. In-person events, meanwhile, can serve as touchpoints that humanize the brand and deepen customer connections. Together, these elements create a cohesive ecosystem where each channel amplifies the others.
Challenges and Considerations
While the potential of AI and owned channels is undeniable, small businesses must navigate several challenges. First, there is the learning curve associated with adopting new technologies. Many small business owners lack the technical expertise to fully leverage AI tools, which can lead to underutilization.
Additionally, data privacy is a growing concern. Consumers are increasingly wary of how their data is collected and used, and businesses must prioritize transparency and compliance. Implementing robust data protection measures is not just a legal obligation but also a way to build trust with customers.
Finally, there’s the risk of over-reliance on automation. While AI can handle many tasks efficiently, it cannot replicate the human touch that defines truly exceptional customer experiences. Businesses must strike a balance between leveraging AI and maintaining genuine, personalized interactions.
Preparing for 2025 and Beyond
The road to 2025 is paved with opportunities for small businesses willing to adapt. To capitalize on these opportunities, Jordan’s advice is clear:
1. Invest in Owned Channels: Build and nurture your email and SMS lists. These channels will serve as the foundation for your marketing efforts, offering reliability and control that social platforms cannot match.
2. Embrace AI: Familiarize yourself with AI tools and explore how they can enhance your operations. Start small, focusing on areas where AI can deliver immediate benefits, such as email automation or customer segmentation.
3. Adopt a Holistic Approach: Integrate owned channels with other marketing strategies to create a unified, multi-channel ecosystem. Consistency across platforms will strengthen your brand and ensure maximum impact.
4. Prioritize Data Privacy: Be transparent about how you collect and use customer data. Implement strong data protection measures to build trust and comply with regulations.
5. Stay Human: Remember that technology is a tool, not a replacement for authentic customer interactions. Use AI to enhance, not replace, the personal touch that sets your business apart.
As 2025 approaches, small businesses face both challenges and opportunities in the marketing landscape. Sarah Jordan’s insights illuminate a path forward—one that leverages the power of AI and owned channels to achieve greater efficiency and effectiveness. By embracing these tools and strategies, small businesses can not only navigate the complexities of modern marketing but also thrive in an increasingly competitive environment. The future belongs to those who adapt, innovate, and prioritize meaningful connections with their customers.
Photo by bady abbas on Unsplash