This resource disparity not only creates quite the revenue gap. It can also make it almost impossible for smaller brands to compete with larger ones.
Gartner’s 2025 CMO spend survey says that marketing budgets make up 7.7% of overall company revenue. For established companies, that’s millions of dollars available to spend on marketing efforts. But for your small business, 7.7% could be more than you’re willing to spend.
That’s why AI is so important for small businesses. It can help lean teams take on challenges like:
– Gaps in expertise: Without an in-house team of email marketers, data analysts, and strategists, small teams struggle to specialize. AI can help overcome these barriers to providing a personalized customer experience.
– Scaling struggles: As you grow, your customer base may expand faster than you’re able to keep up with. AI can help marketers scale up their strategies and assets to meet rising demands.
– Always-on expectations: Customers expect instant responses and personalized experiences. AI marketing and customer service agents can cut down on the time it takes to create a stellar brand experience.
Here’s how AI is helping small businesses like yours personalize the customer experience—without substantially increasing the resources you need to do it.
1. Create marketing plans and campaign assets in minutes
In 2024, Gartner research showed that 57% of marketers thought skill gaps and training would be the “most significant talent-related obstacle” to achieving strategic priorities.
For small business owners and marketers who need to wear many hats, each new skill often comes with a new line item in the budget for another team member or contractor.
This is where AI can step in to fill skill gaps in marketing strategy, asset creation, and content repurposing. Rather than adding to your team, you can use AI to:
Create marketing strategies
For small teams, it’s important that this starting point is as close to complete as possible. All-purpose AI tools may not cut it, but what can is an AI marketing agent trained on your brand voice, industry benchmarks, and past performance.
An AI marketing agent can analyze your website and create a custom marketing strategy, complete with always-on flows, sign-up forms, and ready-to-launch campaign drafts.
You may still want to review the output, but when you know you’re getting a marketing strategy that was built based on your brand and not someone else’s, you won’t need to make as many adjustments.
AI for small business marketing example: A small fitness apparel brand wants to double down on a running-focused marketing strategy, but they don’t know where to start. An AI marketing agent analyzes the brand’s website and current state of the running industry to develop a complete strategy: educational content to build trust with beginner runners, abandoned cart flows that highlight the unique features of their gear, and sign-up forms tied to major running events such as the Boston Marathon.
Generate on-brand content
Whether you need assets for holiday campaigns, flash sales, or personalized customer touchpoints, an AI marketing agent can quickly generate on-brand content that keeps up with always-on demand.
Use an AI marketing agent and other generative AI features to create:
- Email campaigns and flows: An AI marketing agent can generate emails for newsletters, promotional campaigns, and basic automations that align with your business goals and seasonal trends. AI can also help you reach recipients at the optimal time with content that’s personalized to their preferences and browsing behavior.
- Text message campaigns and flows: Use AI to draft action-oriented texts for time-sensitive promotions, order updates, or customer service interactions. With AI-powered channel affinity, you can reach people via text message first if that’s how they prefer to interact with your brand.
- Responses to reviews: AI can help you create thoughtful, personalized replies to both positive and negative reviews to show you value customer feedback.
- Advanced flows: Describe what you want in plain language, and watch AI build out multi-step, multi-message, cross-channel automated flows with triggers, time delays, and conditional splits.
- Attention-grabbing subject lines: Use AI to create compelling subject lines that boost open rates by tailoring the copy to your brand voice and audience.
AI for small business marketing example: Svenfish uses AI to analyze subject lines that have previously performed well and give the Svenfish team concise inspiration for keeping their email marketing fresh. The seafood brand made 82% of YTD ecommerce revenue with emails that leveraged at least one AI feature.
Edit, repurpose, and optimize content
According to Klaviyo’s 2025 online shopping report, 77% of omnichannel consumers regularly shop across 3–4 channels. That means small businesses like yours can no longer afford to be on just one or two channels. You don’t need to be everywhere, but you need to be where your customers are.
AI can help small businesses meet this expectation without adding head count. For example, you can use AI for:
- Photo remixing: An AI photo editing tool can more quickly tailor an image’s size, visual elements, or background to a channel or season.
- Copy variations: Generate multiple versions of the same message with different tones, lengths, or calls to action, so you can test what resonates with your audience.
- Additional refining: An AI marketing agent can track trends, run tests, and automatically refine your targeting and messaging across channels.
AI for small business marketing example: Let’s say a pet supply shop wants to run their first Black Friday promotion via text message, but they don’t have the resources to stage a new product shoot. The brand can take the photos they used for their National Dog Day summer email campaign, modify the background for the holidays, and tweak the size to fit a text message campaign—all with simple prompts rather than learning Photoshop.
2. Offer 24/7/365 shopping assistance
Customer support often goes hand in hand with marketing. According to Klaviyo’s 2025 state of B2C marketing report, 75% of marketers say customer service makes up more than 10% of their role.
When you’re running a small business with limited resources, AI can help address customer questions quickly. Klaviyo’s 2025 AI shopping index found that 68% of consumers actually prefer AI assistants over humans to get instant answers from brands, and 56% prefer AI for personalized product recommendations.
When they’re drawing from your customer data and product catalog, AI customer agents are well equipped to handle certain levels of personalized customer service that can even nudge people toward making another purchase.
Here’s how an AI customer agent can help deliver fast, personal, and on-brand experiences for customers:
- Personalized recommendations: AI agents can offer real-time product suggestions based on customers’ browsing behavior, past purchases, or stated preferences.
- Purchasing assistance: AI agents can help customers as they shop, answering questions about colors, sizing, and more and making it easy for customers to add items to their cart without leaving the conversation.
- Post-purchase support: AI agents can resolve queries about order status, shipping timelines, return policies, subscription management, and other transactional questions around the clock.
- Support escalation: When a customer needs human assistance, AI agents can hand off the conversation to a human agent with complete context preserved.
AI for small business marketing example: When natural fragrance brand Happy Wax implemented an AI customer agent, more than 50% of support conversations handled by the agent were fully resolved without service team involvement within a 90-day period. Customers got quick answers, and the Happy Wax team was able to focus on more high-touch moments.
3. Reach better customers across more channels
Small businesses can’t afford to waste marketing dollars on broad campaigns. Reaching more customers is important, but reaching more of the right customers is how small brands can compete.
Here are a few ways AI can help brands zero in on the shoppers most likely to complete a purchase by reaching them through the channels they actually use:
Find niche audiences within your audience segments
AI can help you build segments using plain language prompts. For small businesses, this is important for scale. The more complex the segment, the more relevant the marketing message. Without AI, finding and creating those segments can take time you might not have.
AI for small business marketing example: Luxury blanket brand Saranoni uses AI to create zip code-based segments for messaging that changes based on a customer’s location. This saves them 10–30 minutes per segment compared to manually constructing each segment.
Reach customers on their preferred channel at the right time
While some people love email, others prefer text messaging or mobile push notifications. AI can determine which channel each customer prefers, so you can reach people where they engage most. This is important for reducing message fatigue and increasing engagement.
AI for small business marketing example: Drinkware brand Corkcicle wanted to make sure customers got relevant messages on optimal channels ahead of BFCM. The brand now uses AI to target campaigns by channel engagement, and their most efficient segment is now customers who prefer email and have engaged in the last 90 days.
4. Anticipate customer needs with predictive analytics
For small businesses, every customer counts—and keeping them matters more than ever.
Predictive analytics can help brands with retention by letting them know which customers are at risk of churning or buying soon. This kind of insight is how smaller brands can become proactive with their marketing efforts rather than getting stuck in a reactive state.
Here’s how small businesses can use AI-powered predictive analytics to drive retention and keep customers loyal:
- Identify at-risk customers. AI analyzes engagement patterns, purchase frequency, and more to predict which customers might be losing interest and how likely they are to churn. With this information, you can send out offers or re-engagement campaigns before customers are lost to a competitor.
- Reach out to VIPs with special offers. Identify VIPs based on predicted lifetime value or average order value, then trigger personalized outreach like special offers, early access to new products, or recommendations based on their buying history.
- Use anticipated next order dates to encourage repeat purchases. When you can predict when a customer is most likely to buy again, you can send an offer that speeds up time to purchase.
- Predict recurring purchases. If a customer often buys two or more of the same product, offer them the option to subscribe and save with a discount.
AI for small business marketing example: With predictive analytics, personal care brand Every Man Jack discovered that the best times to send replenishment flows were slightly before or after each customer’s unique predicted next order date. Within 90 days, Every Man Jack generated 12.4% of Klaviyo-attributed revenue with predictive analytics segments.
5. Optimize your marketing efforts
According to Klaviyo’s recent AI trends report, 84% of marketers agree that AI does the heavy lifting for them so they can focus more on valuable work.
By testing different approaches and analyzing what works, AI optimization tools free you from manual testing while improving your customer touchpoints.
Here are a few key ways AI can optimize your marketing efforts:
- Review sentiment analysis: AI can identify themes in your reviews by analyzing feedback over specific periods and categorizing reviews by topics like customer service or product fit.
- Personalized A/B testing: To send the optimal email or text message, run a smart A/B test that uses AI to send the variation that’s most likely to resonate with each individual customer.
- Forms display optimization: AI tests multiple versions of your web form to find the highest-converting display time, then automatically selects the winning version and sets it live.
AI for small business marketing example: Skincare brand Tata Harper used AI to test 20 variations on placement and timing across their desktop and mobile sign-up pop-ups. In the 30 days after the winning versions went live, form submissions jumped 65%+ from the 30 days prior to testing.
Ramp up your marketing efforts with K:AI (Klaviyo AI)
AI is multiplying what small business owners can accomplish with their marketing efforts. The same sophisticated strategies that enterprise brands use are now accessible to businesses of every size.
K:AI (Klaviyo AI) powers built-in agents that use your customer data in Klaviyo B2C CRM to plan and launch marketing strategies, personalize every message, and resolve customer requests from one platform.
With Klaviyo, you gain access to:
- K:AI Marketing Agent: Create marketing plans, campaigns, flows, sign-up forms, and on-brand content, and improve results automatically without briefs or prompting.
- K:AI Customer Agent: Launch your brand’s always-on AI assistant to recommend products, convert customers, and resolve questions across web chat, email, text, and WhatsApp.
- Other personalization features: Use features like AI-powered channel affinity, predictive analytics, and personalized product recommendations to create unique experiences for every shopper.
Small businesses need to meet customer expectations and compete with fewer resources. K:AI builds launch-ready campaigns, answers customer questions 24/7, and helps you sell more by personalizing every interaction.
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