Small businesses are doing all they
can to drive holiday sales in the face of economic pressures and evolving consumer behaviors, judging by a new report from Constant Contact: Small Business Holiday Outlook.
It’s a
serious matter, for 60% of SMBs attribute half their annual sales to this period. The study shows that a third of owners feel the highest revenue pressure of the year during Q4.
Despite that,
77% of SMB owners are confident they will meet their targets this year. Consumers are exceptionally loyal, with 72% returning to the same firms each holiday season. And 88% will become repeat
customers after a holiday purchase.
"Our report shows that SMBs are responding to this make-or-break pressure with unprecedented strategic adaptation, evidenced by the quadrupling of new
campaign launches in the U.S. this year," says Smita Wadhawan, chief marketing officer at Constant Contact, in a statement.
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Of the SMBs polled, 40% see social media as the most effective
channel for holiday success. In contrast, only 18% say the same about email.
The most effective promotional strategy is discounts and sales---51% of SMBs offer such deals.
Indeed, 60% of owners plan to increase their communication frequency during this period. And 33% are launching new marketing campaigns, compared to 7% in 2024.
However, SMBs are grappling
with significant challenges:
- Economic headwinds, including inflation/rising costs (32%) and weak customer spending (22%).
- Operational strain, presenting
such hurdles as customer engagement (39%), budget limitations (36%) and creating new content ideas (34%).
- Tariff Impact: of the businesses surveyed, 46% say they have been
negatively affected by recent tariff policies, leading them to cut expenses (46%) or raise prices (43%).
On the consumer side, 70% are actively seeking deals and
promotions.
Constant Contact surveyed 1,800 small business owners and over 2,400 consumers in the United States, United Kingdom, Australia and New Zealand.