Customer experience—Customers have come to expect tailored experiences that resonate with their wants and needs. In fact, 63% of consumers expect personalisation as part of the standard service they receive, according to a survey by market research company The Harris Poll and software company Redpoint. SMEs may increasingly leverage artificial intelligence (AI) tools to analyse purchasers’ history, preferences and feedback to tailor customer touchpoints. However, customers can typically see through robotic messages, so SMEs must find ways to add the personal touch authentically.

AI—Many UK businesses use AI in some capacity. According to the government’s most recent Cyber Security Breaches Survey, 68% of businesses have adopted at least one type of AI, such as machine learning, natural language processing and generation, or robotic process automation. SMEs may increasingly turn to AI tools to improve productivity, find efficiencies and enhance the customer experience in 2025. However, AI can pose data privacy, ethical concerns and cyber-security risks. As such, employers must consider AI solutions with caution.

Sustainability—According to a YouGov survey, 82% of consumers believe that businesses have a responsibility to protect the environment. Consequently, 88% of small businesses now prioritise certain aspects of sustainability more than they did at the start of 2024, according to a study by Novuna Business Finance. As consumers increasingly demand eco-friendly products, SMEs must consider ways to increase sustainability, such as greener transportation options, sustainable suppliers and energy efficiency measures.

Social media management—SMEs that have yet to fully embrace social media marketing may need to do so to reach wider audiences in 2025. In particular, educational content is becoming increasingly popular and can help SMEs create customer loyalty. SMEs should avoid being overly sales-orientated when considering their social media strategies. Instead, social media posts with tips and tutorials can increase brand authenticity and encourage customers to check in regularly.

Employee engagement—More than half of SME leaders identified a talented and motivated workforce as their secret weapon in a survey by Startups.co.uk, a small business advice platform. As such, finding ways to boost employee engagement may be important to help SMEs retain talent and bolster productivity in 2025. Investing in employee development (eg training and upskilling opportunities) and finding ways to recognise staff achievements are ways to boost engagement.