Small businesses that formally track where their customers come from were more than twice as likely to report revenue growth as businesses with no tracking method, according to a new study from PYMNTS Intelligence.
The report, “The SMB Growth Gap: What Leaders Track That Others Miss,” found that 51% of small and medium-sized businesses using formal tracking systems increased their revenue in 2025. That compares with 34% of businesses relying solely on informal observation and 22% of those with no tracking method.
The findings show an association between customer tracking and revenue growth, although the study does not establish that tracking directly caused the stronger performance.
PYMNTS Intelligence surveyed 526 U.S. SMB owners and executives across multiple industries, revenue levels and geographic regions from May 1 through May 24, 2026.
Digital channels also appear poised to play a larger role in attracting customers. Forty-eight percent of SMBs expect digital marketing to become their most important source of new customers during the next year, up from 34% that identified it as their leading source today.
Walk-in traffic is moving in the opposite direction. Although 29% of SMBs currently receive the largest share of their new customers through walk-ins, only 12% expect it to remain the most important acquisition channel during the coming year.
Mobile apps and social media lead businesses’ investment plans. Among SMBs already operating a mobile app, 73% plan to expand the channel. Sixty-nine percent of businesses using social media intend to increase their presence there.
By comparison, 40% of businesses with physical stores plan to expand that channel, and only 6% of all SMBs expect to open another brick-and-mortar location.
The preference for digital investment reflects recent sales momentum. Fifty-eight percent of businesses using mobile apps reported increased sales through that channel during the previous year. Fifty-seven percent of businesses using third-party delivery platforms also recorded growth, compared with 37% of those operating physical stores.
Physical locations nevertheless remain an important part of the small-business market. Sixty-one percent of the surveyed businesses operate with a hybrid model combining physical and digital channels. Digital channels produce an average of 57% of SMB sales, while physical channels account for 41%.
Revenue growth was more common among businesses with a digital presence. Fifty-six percent of digital-led SMBs increased revenue in 2025, compared with 51% of hybrid businesses and 42% of businesses primarily dependent on physical locations.
The results suggest that channel selection alone does not determine performance. The stronger dividing line is whether a business can identify where customers originate, measure which channels are gaining momentum and direct its investments accordingly.