Consumers prefer small businesses for holiday shopping

by | Nov 2, 2023 | Business Finance, Business Strategy, Resources, Small Business | 0 comments

Consumers prefer small businesses for holiday shopping

As the holiday season approaches, a paradigm shift is evident in the consumer market. According to a recent study by Constant Contact and Ascend2, a staggering 84% of consumers are likely to visit small businesses in the next two months. The study, which surveyed 500 U.S. SMB decision-makers and 500 consumers, highlights the potential for small businesses in the current retail landscape.

The Loyal Customer Base

The study also sheds light on the loyalty factor. An impressive 87% of consumers expressed that they are more likely to return at other times throughout the year after visiting and buying from a small business during the holidays. This is a clear indication of the solid customer base small businesses can tap into.

The High Stakes for Small Businesses

The holiday season is a crucial period for small businesses, often determining the success or failure of their annual performance. Key findings include:

  • 75% of retail and e-commerce SMBs heavily rely on holiday customers to meet their annual revenue goals.
  • 73% of all SMBs surveyed attribute more than a quarter of their annual sales to the holiday period.
  • 58% of retail SMBs consider holiday customers as “extremely important” to the overall success of their business.

The Power of Personalization

Personalized emails and texts (52%), social media ads (42%), and sales and discounts (40%) are the most used marketing tools by SMBs. These strategies can significantly enhance customer engagement and drive sales.

Customer Retention: A Challenge and Opportunity

While 93% of SMBs believe retaining customers in the new year is important, only 18% consider their strategy “highly effective.” A worrying 14% have no retention strategy at all. This is a missed opportunity, as 81% of consumers are more open to receiving emails and texts from a small business they visited during the holidays.

The holiday season presents a golden opportunity for small businesses to attract, engage, and retain customers. As consumers increasingly prefer to shop small, the potential for growth and success is immense.

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