Running a small or medium-sized business (SMB) comes with no shortage of hurdles, especially when it comes to customer service. Competing with larger companies that have deeper pockets and bigger teams can feel like a constant struggle.
So how can SMBs compete? Let’s look at the challenges and the opportunities to unlock new avenues for growth and profitability.
Challenge: Keeping Pace in a Tough Landscape
In today’s always-connected world, customer expectations are at an all-time high. They expect fast, seamless communication across the communication channels they prefer, along with personalized services that are tailored to their needs.
But meeting these demands can be tough for SMBs, especially when they’re managing multiple tools, systems, and workflows with limited resources.
Consider a small retail business that handles customer inquiries through phone calls, emails, text, and social media. Without a unified system to track interactions, a customer might call in about a product: only for the team to follow up with an email addressing a completely different issue.
Unless the business is very small and/or specialized, where the owner and the few employees remember each customer and can easily track them, customers’ issues risk falling between the cracks.
Consequently, the customer may then reach out again on social media, leading to frustration due to inconsistent responses. This fragmented approach can result in delays, miscommunication, and missed opportunities to build lasting customer loyalty.
But many SMBs still operate in siloed environments where customer data is scattered across call logs, chat histories, and emails. Without a unified view of customer information, providing consistent service or responding efficiently becomes a challenge.
Meeting Customers Where They Are
Along with traditional communication channels, customers now expect to connect with businesses on less-traditional platforms, including text and apps like WhatsApp, Facebook Messenger, and Instagram. These channels offer a fast, familiar way for customers to get in touch, while also providing businesses with an opportunity to offer quick, personalized support.
For SMBs, this shift presents a significant opportunity. A local boutique might use WhatsApp to offer personalized shopping advice, while a neighborhood gym could engage members through Instagram stories or direct messages to share fitness tips and foster community.
When SMBs meet customers where they are and communicate in ways that feel authentic and natural, they can build stronger, more meaningful connections that last.
This not only creates a better experience for the customers, who feel heard and valued on their preferred platforms, but also makes life easier for contact center agents. With the right tools in place, agents can manage multiple conversations efficiently, reduce response times, and deliver more personalized service.
Opportunities: Smarter Tools, Simpler Workflows
But the landscape is shifting. Advances in cloud technology, affordable software-as-a-service (SaaS) platforms, and open-source tools have made AI solutions an option for SMBs.
While AI had required huge investments and complex setups, these changes have removed those barriers to what these technologies can deliver.
Let’s look at some examples:
- AI-powered tools like chatbots and virtual assistants can handle routine inquiries, reduce call volumes, and allow staff to focus on more critical tasks or meaningful customer interactions.
- AI can help centralize information from calls, chats, emails, and surveys into one system. AI-powered analytics enable SMBs to spot trends, anticipate customer needs, and personalize interactions. For example, a small eCommerce business can use AI to suggest products to customers based on previous purchases, delivering more personalized shopping experiences.
- AI enables real-time call sentiment detection and reporting. Agents no longer must spend time documenting every detail of the interactions. This reduces administrative burdens and allows agents to focus on listening, responding, and improving the customer experience (CX).
Here are the benefits:
- For customers, a more connected system means faster, more accurate responses and more personalized experiences: without repeating themselves or re-explaining their issues across different channels.
- For contact center agents, it creates a smoother, more manageable workflow. With easy access to customers’ full histories, agents can focus on solving problems rather than tracking down information. This not only improves efficiency but also boosts confidence and job satisfaction.
Another area where AI is transforming SMB capabilities is quality management (QM). AI QM, traditionally reserved for larger enterprises, can now automatically score customer interactions based on business-specific outcomes. This empowers SMBs to ensure interactions are handled correctly, agents receive targeted training, and all engagements consistently meet business standards.
The result is reduced stress, increased job satisfaction, and more time to focus on resolving issues and strengthening customer relationships.
Salesforce data revealed that 78% of growing SMBs plan to increase their AI investments in 2025, while only 55% of declining businesses are planning to do so. This contrast signals that AI adoption is not just a trend, but a necessary competitive advantage with a widening gap in technology adoption and future-readiness.
Ultimately, automation and AI are transforming the way SMBs operate by reducing manual work, improving responsiveness, and enhancing the experience for both customers and the people who serve them.
The Bottom Line
SMBs often face real challenges in scaling customer service. But the good news, as outlined, is that they now have access to more powerful, affordable tools than ever before.
AI QM, traditionally reserved for larger enterprises, can now automatically score customer interactions based on business-specific outcomes.
By embracing these new technologies, SMBs can deliver quicker, more personalized service, streamline their internal processes, and compete with the larger enterprises, unlocking new avenues for growth and profitability, thereby helping them win the business race.
McKinsey data revealed, even back in 2019, that businesses see revenue growth in areas where AI is implemented. This highlights the tangible benefits these tools bring to SMBs. The future is clear: technology-driven transformation is the key to SMBs remaining competitive, relevant, and capable of thriving in a rapidly changing marketplace.
