Small Business Now: How the Economy is Impacting the Holiday Season

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Click to download reportWe know that this year, small businesses like yours are facing challenges like inflation and potential economic instability going into the holiday season. It’s an important time for many businesses, especially in retail and ecommerce, so it’s important to have all the information at hand to navigate these challenges and make the most of the opportunities the holiday season presents.

To help with said navigation, we've conducted a study, surveying over 1,600 small businesses and 3,000 consumers across Australia, Canada, the UK, and the U.S. Our Small Business Now report identifies the biggest holiday season challenges and provides practical marketing strategies to connect with customers and mitigate inflation.

Inflation Adaptation

Inflation impacts businesses and customers alike, making pricing a hot holiday topic. While many businesses are trying to balance raising prices and cutting expenses, they can't afford to lose sight of retaining their customers, as well.

Here’s what customers and businesses are saying about inflation and spending:

• 89% of SMBs are affected by inflation.
• 52% of consumers have reduced spending at small businesses.
• 46% of SMBs have cut expenses, and 39% have raised prices.
• 62% of consumers consider price the deciding factor for holiday shopping.

With SMBs and consumers feeling the pinch, it makes it more important than ever to emphasize the quality of what is being presented to consumers. If we expect consumers to loosen their purse strings, you'll have to consider ways to make sure your marketing is not only engaging, but also clearly demonstrates why your product or service is worth it.

See how:

• Re-engage lapsed customers with winback campaigns
• Insert videos into your campaign that highlight customer testimonials
• Integrate with Shopify to streamline reporting and automate reminders for shoppers

Santa, can I have more time this holiday season?

Many SMBs depend on the holiday rush to get their revenue over the goal line, but find the marketing side of things challenging due to resources– both time and money.

For example:

• 65% of SMBs struggle with budget or time management in Q4.
• 79% are unsure if their 2023 holiday marketing strategy was successful.
• 20% have no way to measure holiday marketing impact.

We understand that your time is incredibly valuable. When you're balancing numerous tasks, it's crucial to ease your workload through automation. Moreover, while there are countless channels to explore, hone in on one or two that resonate most with your business, such as email marketing and social media. By monitoring your campaign analytics (or reporting dashboard), you can more easily see what's working and what's not so you know what to do in the future.

See how:

• Integrate your email marketing with social media
• Work smarter and save time using marketing automation
• Interpret your email reporting to inform new strategies

Every Little Bit Counts

This holiday season, SMBs are prioritizing efficiency and small, strategic changes over complete overhauls. Top plans include:

• Improving efficiency (35%)
• Offering special promotions/discounts (28%)
• Creating a clear marketing strategy (26%)
• With 78% of consumers planning to shop at new small businesses, customer acquisition is key. SMBs find social media and email marketing most effective (51%).

The most impactful strategic shift you can make to save time and achieve results is to embrace AI tools like the AI Content Generator or Campaign Builder to help give your marketing a starting point. Constant Contact takes the reins, analyzing your marketing needs and creating a comprehensive, multi-channel marketing plan. This includes determining the optimal number of emails, social media posts, and events, as well as the best dates to maximize their impact.

See how:

• Use the Content Generator to write email, landing page, social, and SMS content for you
• Automatically generate a marketing campaign based on your goals
• Get started with the Automation Path Builder

In conclusion

The 2024 holidays might bring inflation and economic uncertainty, but small businesses can still prosper. Start your planning early, and take advantage of multiple marketing channels like email, social media and SMS. This can help you to create a strategy that not only engages your loyal base, but also attracts new customers. Leverage automation and AI tools to save time and streamline your efforts, allowing you to focus on what truly matters.