Nov 12 2025
Digital Workspace

3 Common Challenges to Personalizing Customer Relationships for SMBs

Consumers want businesses to offer a more personalized experience, but pitfalls persist.

Consumers face a barrage of messages from businesses that can feel overwhelming at times, especially when they aren’t relevant to their lives. Many of them would rather receive information tailored to their needs, including on the products they frequently purchase, or suggestions based on previous searches. 

Ideally, many customers (67%) would like to receive personalized deals or offers when shopping in-store or online based on their spending habits, according to an Adobe Commerce survey. And when they received personalized recommendations, 72% of respondents said, they influenced them to buy more items. 

This signals to small businesses that personalization is key to improving the consumer experience and strengthening customer relationships. However, even as customer relationship management and enterprise resource planning tools adopt more features driven by artificial intelligence, there are still some common pitfalls that SMBs should avoid.

Click the banner below to learn how to optimize your organization’s customer experience.

 

1. Lack of understanding around customer needs and habits 

A Microsoft blog offers this example about how a common personalization mistake can decrease trust in a brand: A customer is looking for new running shoes online but decides to make the final purchase in-store. Afterward, she receives an email offering a deal on the shoes she just bought and other accessories that she’s not interested in. 

That can be a frustrating experience for a customer, and it may make her less willing to revisit the shop for another purchase. This issue is likely happening because businesses are still struggling with connecting disparate systems across teams for a more holistic view of their customers

DISCOVER: How to deliver winning customer experiences with modern contact center tech.

2. Lack of unified technology strategy

It’s imperative that small businesses have a “single source of truth” so that customers can have seamless, relevant interactions. This can cut down on customers being asked to repeat support inquiries or receiving information on unrelated topics. 

“In order to drive connected experiences, it’s important to consider all of the data we have on that individual,” Victoria Calkins, product marketing manager at Salesforce, says in a company blog post. “For example, we want to know when they’ve browsed on our website or contacted customer service. As marketers, we often don’t have access to all of this data because it may live in other parts of an organization.” 

RELATED: How one company created an app to improve their customer service. 

One survey found that 39% of small businesses still use spreadsheets, email and personal productivity tools to manage consumer demands, and that leads to inefficiencies that can impact the customer experience. Integrating tools and streamlining workflows are crucial to improving the customer journey. 

“Legacy systems often operate in silos, leading to fractured customer experiences,” Kate Leggett, vice president and principal analyst for customer relationship management and customer service at Forrester Research, told BizTech last year. “By integrating ERP and CRM, companies can create a seamless experience that spans the front and back office.” 

DIG DEEPER: Here are a few ways IT leaders are rethinking customer service. 

3. Lack of collaboration between departments 

Even with a more unified technology stack, if businesses don’t foster a spirit of collaboration across the organization, there will likely be a breakdown in communication to the customer. 

“When your customer experience strategy isn’t aligned with your broader business objectives, you’ll likely end up chasing initiatives that don’t deliver for the company,” according to a 2024 Oracle blog

Ultimately, SMBs should align on an organizationwide personalization strategy. Not only will they improve relationships with their customers, they may also discover operational efficiencies and positive financial gains with a more comprehensive approach.

Anchiy/Getty Images
Close

New Workspace Modernization Research from CDW

See how IT leaders are tackling workspace modernization opportunities and challenges.