Personalized Marketing in 2026 Combats Rising Costs, Cautious Consumers

"In July, half of all small business owners said inflation and rising costs were their biggest challenge, and 23% reported being stuck in survival mode and unable to focus on long-term planning, according to a KeyBank survey. To succeed, businesses must devote more time to keeping spending under control and maximizing profit margins. At the same time, consumers are also noticing price hikes across many different industries."

"Last month, consumer sentiment, which is a datapoint economists use to assess spending habits, was down 30% from December 2024, according to the University of Michigan Surveys of Consumers. 47% of respondents cited high prices as a concern, which is down 35% from the previous year. A Deloitte survey found that 80% of consumers prefer brands that offer personalized experiences and spend 50% more with such brands."

"About 242,000 small businesses import goods into the U.S. every year, according to the U.S. Chamber of Commerce, with many reporting that tariffs are cutting into their already thin margins. Roughly 70% of small businesses say they are paying higher prices for the goods and services. Increased overhead in 2026 combined with cautious consumers is forcing businesses to focus on reaching new customers and highlighting their value."

Businesses face rising operating costs from inflation, healthcare, and tariffs while consumers respond to price hikes by reducing spending. Half of small business owners named inflation and rising costs as their top challenge, and 23% reported being stuck in survival mode, limiting long-term planning. Consumer sentiment fell 30% from December 2024, and 47% cited high prices as a concern. Tariffs are squeezing margins and disrupting supply chains, with roughly 70% of small businesses paying higher prices for goods and services. Increased overhead and cautious consumers are pushing businesses to acquire new customers, highlight value, and use hyper-personalized, segmented marketing; 80% of consumers prefer personalized experiences and spend 50% more with such brands.

Read at Sfgate