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YouTube Video "SMBs Guessing About Marketing"
Small and medium-sized businesses (SMBs) globally continue to face a turbulent economy. Research indicates that current market conditions have had a minimal positive impact on their bottom lines. But business owners can overcome economic challenges without going broke.
Constant Contact, a developer of digital marketing tools, released its Small Business Now report in September, revealing that marketing budgets are up, while confidence in their effectiveness is down.
A survey of more than 2,500 SMB leaders across the U.S., U.K., Canada, Australia, and New Zealand, along with insights from 8,000 consumers, revealed that fewer than one in five SMB owners are very confident in the impact of their marketing efforts.
The study identified a growing gap between the effort SMBs put into marketing and their confidence in gaining meaningful business results. Despite increased marketing budgets and the broader adoption of tools such as email marketing, AI, and video, only a few of SMBs, down from 2024 feel very confident in the effectiveness of their marketing.
Constant Contact reports that economic pressure is forcing SMBs to pivot. Email has reclaimed the top spot as the most trusted channel for almost half of worldwide respondents. Half of SMBs use AI for marketing, and most leverage video, but adoption hasn’t yet translated into more substantial confidence.
Only a few feel very prepared to adapt to uncertainty. U.S. SMBs lag behind global peers in AI adoption. In Canada, many are leaning into the “Buy Canadian” movement, while SMBs in Australia, New Zealand, and the U.K. are more optimistic about what’s ahead.
SMBs are under pressure to deliver positive marketing results but feel they are doing more without getting more in return.
SMBs are working harder than ever, but without the time, expertise, or data to guide them. Many are still guessing about what will resonate with their customers,” she said.
Why SMB Marketing Confidence Is Falling
The confidence gap voiced by a growing number of small business owners is driven by a perfect storm of economic pressure, complexity, and uncertainty. They are navigating rising costs, which almost half cite as their top source of stress.
SMBs feel pressure that means every dollar spent on marketing needs to count, but their single biggest frustration is simply not knowing what’s working. SMBs feel like they’re guessing, and that uncertainty erodes confidence, even when their effort is high.
The report shows that only a third of U.S. small businesses use AI, the lowest rate among all countries polled and significantly below the global average of half of SMBs. this is resulting not from a lack of interest but rather as a reflection of their intentional nature.
U.S. SMBs prioritize stability over speed. Many are running lean operations with very little time to experiment, so they stick with what they know works.
There’s also a healthy skepticism about automation replacing the personal touch that sets their brand apart.
The most significant barrier is the time required to navigate the learning curve. Add to that concerns about data privacy, content accuracy, and protecting their brand voice.
However, there is momentum building for AI. SMBs who use AI report stronger performance in email, paid social, and search marketing.
Why SMBs Are Returning to Email
SMBs are shifting back to proven channels that offer more control and clearer results. The data shows that almost half of SMBs now say email is their most effective marketing channel, which is nearly double reported last year.
This isn’t an accident. While social media is important, its effectiveness can be unpredictable.
Email, on the other hand, provides SMBs with a direct, unfiltered line to customers. It is a channel they own, allowing them to communicate immediately and maintain those vital customer relationships, especially when every sale counts.
In an environment where the top frustration is not knowing what’s working, email provides the clarity and results they desperately need.
Using Email To Build Customer Trust
Avoiding common email marketing mistakes will ensure trust-building success for SMBs. The key is leveraging email as a direct, personal line of communication, not just a sales tool. It is also essential not to lose an authentic voice, especially with new technology.
For instance, nearly half of SMBs use AI to help write emails. A top concern is creating a brand voice mismatch.
The biggest mistake is letting automation replace the personal touch that makes your business unique. Use AI to brainstorm or get started, but always ensure the final message is genuinely yours.
SMBs need to avoid eroding trust by making customers feel like just another number. Avoid guessing what they want.
The key is to pay attention to what they respond to and refine your approach, which will give you the confidence that your efforts are truly connecting.
The Next Shift in SMB Marketing Tech
Constant Contact’s research shows the next major shift is not about a single new technology, but rather the intelligent integration of the tools SMBs are already adopting, such as AI. The next wave of technology must address businesses’ top struggle: not knowing what’s working.
It has to move beyond just helping SMBs create content faster and start providing genuine clarity and actionable insights. The single most important action SMBs can take is to focus intensely on what SMBs can control and measure.
Constant Contact and e-commerce platforms provide intuitive AI tools that act as an assistant, not a replacement, for marketing strategies. It helps SMBs write first drafts for emails and social posts. The top use case for AI is using clear insights and real-time data.
Industry analysts note that SMBs value easy-to-use tools that deliver measurable outcomes far more than long feature lists when choosing a marketing platform.
As a starting point, even without a platform, SMBs can use AI for email marketing assistance. For instance, instead of staring at a blank page, you can ask AI to brainstorm ideas or create a first draft.
SMBs owners are still the expert on their business, so you can then edit and refine the content to match your unique brand voice.
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