Small Businesses That Track Customer Sources Report Stronger Growth

Small businesses that diligently track the origins of their customers are experiencing stronger growth, according to a recent study. PYMNTS Intelligence surveyed 526 U.S. small and medium-sized businesses (SMBs) and found that those with formal customer acquisition tracking were more than twice as likely to report revenue growth compared to those without any tracking methods.

Digital reach emerged as a significant factor, with 56% of SMBs generating more than 75% of sales through digital channels reporting revenue growth, compared to 42% of physical store-led businesses. Hybrid firms, which utilize both digital and physical channels, had a 51% growth rate. Physical-led companies, however, saw the highest revenue decline at 20%.

The study also revealed that mobile apps were performing exceptionally well, with 58% of app users reporting higher sales and 73% planning to expand this channel. Third-party delivery platforms were also noteworthy, with 57% of users experiencing sales gains. Overall, SMB revenue grew by an average of 9.5% in 2025, more than double the 4.7% growth in nominal GDP.

While half of the companies exceeded this economic benchmark, one-third held revenue flat and 16% experienced a decline. Looking ahead, 48% of SMBs anticipate digital marketing will become their primary source of new customers, a significant increase from the current 34%. This suggests that businesses should prioritize measurement and data-driven decision-making to optimize their marketing efforts and allocate resources effectively.