Almost one-third of small businesses (31%) concentrate their digital marketing efforts on increasing sales, but most aren't prioritizing engaging current customers. This data comes from a new survey by The Manifest, a business news and how-to website, which finds that small businesses are not maximizing their digital marketing investments.

Only 6% of small businesses' say their primary digital marketing goal this year is customer retention.

Furthermore, only 6% of small businesses are focused on SEO, which is an effective method of growing long-term, organic traffic to their site.

Companies may be losing sales as they focus on more challenging wins instead of targeting already interested customers.

Lauren Douglas, chief marketing officer of FountainheadME, a marketing agency in California, said you must create a relationship with current customers to retain them.

"Make them feel that you are talking to them personally, and you will improve brand loyalty," Douglas said.

Businesses should grow their customer base with personalized communication to solidify their client relationships.  

Small Businesses Spend Less Than $50,000 on Marketing Efforts

Small businesses do not often invest significant funds into their digital marketing campaigns.

More than half of small businesses (55%) spend less than $50,000 on all marketing efforts, including employee salary.

More than one-third of companies (36%) only invest $10,000 into their annual marketing budget.

Small businesses measure digital marketing effectiveness using different standards based on their goals and size, though.

Robert Weiss, president of MultiVision Digital, a video production agency in New York, said that he considers it a win if the money invested in digital marketing is matched, not exceeded, in returns.

"We just want a 1 to 1 ratio because for us, once we acquire a client, there's a strong long-term value proposition because we keep clients," Weiss said.

Small businesses emphasize digital marketing success using individual company goals.

The amount of money put into a digital marketing budget can determine results.

Small Businesses Prefer In-House Teams to Third-Party Agencies

Small businesses often choose in-house teams to complete digital marketing projects because it's cheaper and more efficient.

Almost two-thirds of small businesses (60%) use in-house teams while only 40% hire an outside agency for digital marketing campaigns.

Small businesses rely on their own employees to understand their brand's mission and communicate effectively with their managers. While an outside agency may have more expertise, an in-house team can be more cost-efficient and knowledgeable about the small business itself.

Companies should investigate different marketing software and tools to fully optimize this in-house team, though.