For small businesses, knowing where a customer came from appears to be nearly as valuable as winning the customer in the first place.
That’s the clearest takeaway from “The SMB Growth Gap: What Leaders Track That Others Miss,” an installment of the SMB Growth Monitor from PYMNTS Intelligence. The survey of 526 U.S. small and medium-sized businesses (SMBs) found that firms with formal customer acquisition tracking were more than twice as likely to report revenue growth as those with no tracking.
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Digital reach also helped. Yet the findings suggest that measurement, more than any single sales channel, gives growing companies a clearer path forward.
That visibility can help an owner direct limited time and money toward channels that are already producing customers.
Key Findings:
- Tracking creates a 29-point growth gap. Fifty-one percent of SMBs using analytics, customer relationship management systems or promotional codes increased revenue in 2025. That compares with 34% of firms relying only on informal observation and 22% of businesses with no tracking. The report doesn’t establish that tracking caused the growth. Still, measurement can work like a compass, helping owners see where demand is coming from before they spend their next marketing dollar.
- Digital-led firms hold a 14-point advantage. Fifty-six percent of SMBs that generate more than 75% of sales through digital channels grew revenue, compared with 42% of businesses led by physical stores. Hybrid firms landed in between at 51%. Physical-led companies also posted the highest rate of revenue declines at 20%, versus 15% for digital-led and hybrid firms.
- Mobile apps show the strongest momentum. Among SMBs 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. By comparison, 37% of businesses with physical stores said store sales rose and 40% plan to expand that channel.
The broader picture remains encouraging. SMB revenue grew an average of 9.5% in 2025, more than twice the 4.7% growth in nominal gross domestic product. Half of the companies beat that economic benchmark, although one-third held revenue flat and 16% reported a decline. Digital channels generated 57% of sales on average, while physical channels produced 41%.
Looking ahead, 48% of SMBs expect digital marketing to become their leading source of new customers, up from 34% today. One-third don’t plan to add a channel during the next year, leaving payments, financial services and marketing providers room to help businesses measure what works before they invest.
At PYMNTS Intelligence, we work with businesses to uncover insights that fuel intelligent, data-driven discussions on changing customer expectations, a more connected economy and the strategic shifts necessary to achieve outcomes. With rigorous research methodologies and unwavering commitment to objective quality, we offer trusted data to grow your business. As our partner, you’ll have access to our diverse team of PhDs, researchers, data analysts, number crunchers, subject matter veterans and editorial experts.
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