As the new year approaches, small businesses are gearing up for the consumer trends shaping 2025. During the latest installment of the U.S. Chamber of Commerce CO– event series Ready. Set. Scale., industry experts highlighted key opportunities and challenges facing small businesses. From the complexities of omnichannel operations to growing consumer demand for data privacy and innovative customer experiences, these insights are essential for businesses striving for growth and success.
Key themes for 2025 consumer trends:
- Omnichannel Experiences: Opportunities and Challenges
Elaine Buxton, President and CEO of Confero Inc. (a 2024 CO–100 Top Small Business), emphasized that while omnichannel strategies allow businesses to connect with consumers across multiple platforms, they also bring operational hurdles. Buxton identified several common challenges:
- Inconsistent service: Customers often receive varying service levels depending on whether they interact online, in person, or via phone.
- Operational disruptions: For example, online orders may fail to integrate seamlessly with in-store pickup processes.
- Resource balancing: Small businesses often struggle to allocate resources effectively between physical and digital demands.
“You have a complex web of processes that are hard to manage, leading to customer frustrations,” Buxton explained. However, to address these challenges, she recommended internal audits to identify and resolve inefficiencies.
- Data Privacy: A Critical Priority for Trust
Data privacy continues to grow in importance as consumers demand greater transparency regarding how their personal information is used. Buxton stressed that trust hinges on clear communication and proactive cybersecurity measures.
Best practices for data privacy in 2025:
- Protect sensitive data: Avoid publicly sharing customer information, such as phone numbers.
- Transparency: Clearly articulate how customer data will be used and the benefits provided in return.
- Proactive cybersecurity: Small businesses must remain vigilant about data breaches, as these can erode trust.
Buxton also noted, “If you’re asking for an email or phone number, customers expect clear information, such as, ‘What will you send me, and what’s the value for me?’”
- AI and mobile commerce: driving customer engagement
Barbara Thau, Editorial Director of Features at CO–, highlighted the transformative impact of AI in customer service. AI-powered chatbots, for instance, have enhanced customer interactions and boosted conversion rates by 2% during Cyber Week 2024.
Additionally, mobile commerce continues to rise, accounting for 70% of online sales, reflecting a major shift in consumer behavior.
Key trends to watch:
- Conversational commerce: AI agents are becoming more sophisticated, enriching customer interactions and improving ROI.
- Wellness integration: From personalized notes to wellness-focused travel experiences like sleep tourism, consumers increasingly seek products and services tied to self-care.
- Value-added experiences: Businesses are shifting focus from deep discounts to creating meaningful connections with customers, emphasizing experiences over products.
What’s Next for Small Businesses?
Incorporating these consumer trends into business strategies will be vital. Small businesses that optimize their omnichannel operations, protect customer data, and use AI to enhance customer service will be better positioned for success in an increasingly competitive marketplace.
