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Executive Q&A: How to Boost Holiday Sales and Loyalty Amid Inflationary Pressures

Medium shot of young sales woman holding and using golden ribbon to tie bow for red wrapped gift box for Christmas present at counter of holiday shop.
Photo credit: dikushin - stock.adobe.com

The holiday season is a critical time for all businesses, but it can be especially make-or-break for small merchants and entrepreneurs. The pressure is especially intense this year as 89% of SMBs globally have been impacted by inflation, according to recent research from Constant Contact.

The digital marketing and automation platform surveyed more than 1,600 SMBs and 3,000 consumers across the United StatesAustraliaCanada, and the UK to understand how an unstable global economy and shifting consumer behaviors are pressuring SMBs ahead of Q4. The resulting Small Business Now report reveals that to alleviate this pressure, SMBs are adjusting their marketing and prioritizing operational efficiency.

During an exclusive interview with Small Business Xchange, Dave Charest, Director of Small Business Success at Constant Contact, shared in-depth insights from the report and tactical insights to help SMBs refine and optimize their holiday plans.

Small Business Xchange (SBX): Improving efficiency is a big priority for small businesses this holiday season. How can small businesses do this as the selling period gets more hectic?

Dave Charest:  Making things run smoothly is huge for small businesses, especially this holiday season with 89% feeling the pinch of inflation. Using automation tools for tasks like email marketing and customer follow-ups can take some of the load off, so teams can focus on everything else that needs to get done during this busy time.

The earlier you start planning, the better. Nearly half of small businesses miss the mark by starting their holiday marketing too late, which only adds stress and slows things down. And with 79% unsure about last year’s holiday strategies, it’s even more important to map things out early. By getting ahead of the game, businesses can manage resources better, build a solid marketing plan, and spot any areas that need a tweak to boost efficiency. Prioritizing tech and planning ahead gives small businesses a real shot at a smooth and successful holiday season.

SBX:
SMBs also have aimed to manage costs by cutting back on spending and, in some cases, raising prices. How can small businesses maximize revenue when so many consumers are deal-savvy, especially this year?

Charest: If you want to maximize revenue this holiday season, it’s not just about running discounts. While coupons and deals can bring shoppers back, they’re not the only tools in your kit. Highlight what makes your business unique and your commitment to the local community — because that’s what sets you apart. Shoppers appreciate quality, personalization, and community engagement, especially with 92% planning to buy from small businesses this season.

Loyalty programs are another great way to keep customers coming back. On top of that, using targeted emails and social media helps keep your business front and center, building trust and relationships with your audience. With 99% of consumers revisiting the same businesses each holiday season, staying connected can make a big difference. By focusing on these strategies, you’ll be able to navigate the challenges of inflation and still drive sales.

SBX:
We’re seeing brands and retailers already ramp up their holiday marketing. How can small businesses best track, adapt, and optimize their marketing while juggling so many other tasks?

Charest: As the holiday season gets closer, small businesses need to keep an eye on their marketing and be ready to make adjustments. A multichannel approach — using social media, email, and SMS — helps keep your business on your customer’s radar. Personalizing your messages adds that extra connection, making them hit home with your audience even more. Plus, using analytics tools can give you a clear picture of how your marketing efforts are performing.

Consistency in communication builds excitement but you also need to stay flexible, so you can tweak your strategy based on what’s actually happening. By blending a smart approach with real-time data, small business owners can fine-tune their marketing efforts for the best results this holiday season. And, once the season wraps up, those insights can set you up for an even better plan next year.

SBX: Do you have any tactical tips to help SMBs bolster their marketing this holiday season?

Charest: To really stand out this holiday season, small businesses should focus on hosting community events that create memorable experiences and meaningful connections with customers.

Make sure you’re consistent with how and where you’re marketing, so you stay on their radar. You can do this by running interactive social media campaigns to boost brand awareness, offering special deals for loyal customers, and using email marketing to tell compelling stories about your products and connection to the local community.

A multichannel strategy is key to keeping your business top-of-mind during the holidays. And with 99% of consumers revisiting the same businesses each year, combining community engagement, personalization, and storytelling will set you up with a strong holiday marketing plan.

SBX: And how should small businesses think about balancing customer acquisition and retention? What does that journey flow (ideally) look like?

Charest: With 52% of consumers always looking to support small businesses, your marketing is the key to making this holiday season a success. This is a great time to not only bring in new customers but also build loyalty that lasts.

Start by using targeted marketing to get on people’s radar and drive traffic your way. Then, keep that momentum going by delivering great service across every channel — whether it’s through email, SMS, social media, or in person. Personalized touches like thank-you emails or asking for reviews help keep customers engaged. Additionally, loyalty programs touting exclusive offers can keep them coming back, and promoting special events or giving early access to new products adds value beyond just discounts. By focusing on building strong connections and loyalty, small businesses can attract and retain customers this holiday season.

SBX: What is the biggest mistake you typically see small businesses making during the holiday season? What do you recommend they do instead?

Charest: The biggest holiday mistake we saw last year was small businesses trying to do too much. When small businesses spread themselves too thin with too many marketing strategies, it overwhelms both their resources and results. With nearly half of SMBs waiting until October to start holiday planning, they risk making rushed decisions that can have a big impact on their season’s success.

Here’s the good news: Small tweaks can help attract shoppers and avoid last year’s missteps, so small business owners should focus on these areas for a successful holiday season:

  1. Boost efficiency: Automation tools can save time and free up resources by taking care of tasks like email marketing, customer segmentation, and follow-ups. This is especially important with inflation affecting consumer spending.
  2. Prioritize customer retention: Keep your loyal customers coming back with personalized promotions, great service, and value beyond discounts.
  3. Stay engaged year-round: Shoppers are always interested in supporting small businesses, so use targeted, cost-effective strategies like email and social media to stay connected with the right audience without blowing your budget.

By focusing on these key strategies and getting ahead with planning, small businesses can set themselves up for a successful holiday season.

SBX: Last holiday season, we saw data suggesting that consumers were especially eager to support small businesses. How do you anticipate this trend will evolve this year?

Charest: With inflation hitting nearly all small businesses and 52% of consumers cutting back on spending because of it, today’s economy has definitely shaken things up. Even though price matters to shoppers this holiday season, they’ve shown strong support for small businesses.

If you’re looking to tap into that, remind your customers about the quality of what you offer, the convenience of shopping local, and the personalized service they can’t get anywhere else. It can also be a good time to roll out loyalty programs, personalized promotions, or bundle deals to give people a reason to keep coming back.

These strategies can help ease concerns about inflation-driven pricing while still giving customers a reason to choose your business over the competition.

Executive Q&A: How to Boost Holiday Sales and Loyalty Amid Inflationary Pressures

Medium shot of young sales woman holding and using golden ribbon to tie bow for red wrapped gift box for Christmas present at counter of holiday shop.

The holiday season is a critical time for all businesses, but it can be especially make-or-break for small merchants and entrepreneurs. The pressure is especially intense this year as 89% of SMBs globally have been impacted by inflation, according to recent research from Constant Contact.

The digital marketing and automation platform surveyed more than 1,600 SMBs and 3,000 consumers across the United StatesAustraliaCanada, and the UK to understand how an unstable global economy and shifting consumer behaviors are pressuring SMBs ahead of Q4. The resulting Small Business Now report reveals that to alleviate this pressure, SMBs are adjusting their marketing and prioritizing operational efficiency.

During an exclusive interview with Small Business Xchange, Dave Charest, Director of Small Business Success at Constant Contact, shared in-depth insights from the report and tactical insights to help SMBs refine and optimize their holiday plans.

Small Business Xchange (SBX): Improving efficiency is a big priority for small businesses this holiday season. How can small businesses do this as the selling period gets more hectic?

Dave Charest:  Making things run smoothly is huge for small businesses, especially this holiday season with 89% feeling the pinch of inflation. Using automation tools for tasks like email marketing and customer follow-ups can take some of the load off, so teams can focus on everything else that needs to get done during this busy time.

The earlier you start planning, the better. Nearly half of small businesses miss the mark by starting their holiday marketing too late, which only adds stress and slows things down. And with 79% unsure about last year’s holiday strategies, it’s even more important to map things out early. By getting ahead of the game, businesses can manage resources better, build a solid marketing plan, and spot any areas that need a tweak to boost efficiency. Prioritizing tech and planning ahead gives small businesses a real shot at a smooth and successful holiday season.

SBX:
SMBs also have aimed to manage costs by cutting back on spending and, in some cases, raising prices. How can small businesses maximize revenue when so many consumers are deal-savvy, especially this year?

Charest: If you want to maximize revenue this holiday season, it’s not just about running discounts. While coupons and deals can bring shoppers back, they’re not the only tools in your kit. Highlight what makes your business unique and your commitment to the local community — because that’s what sets you apart. Shoppers appreciate quality, personalization, and community engagement, especially with 92% planning to buy from small businesses this season.

Loyalty programs are another great way to keep customers coming back. On top of that, using targeted emails and social media helps keep your business front and center, building trust and relationships with your audience. With 99% of consumers revisiting the same businesses each holiday season, staying connected can make a big difference. By focusing on these strategies, you’ll be able to navigate the challenges of inflation and still drive sales.

SBX:
We’re seeing brands and retailers already ramp up their holiday marketing. How can small businesses best track, adapt, and optimize their marketing while juggling so many other tasks?

Charest: As the holiday season gets closer, small businesses need to keep an eye on their marketing and be ready to make adjustments. A multichannel approach — using social media, email, and SMS — helps keep your business on your customer’s radar. Personalizing your messages adds that extra connection, making them hit home with your audience even more. Plus, using analytics tools can give you a clear picture of how your marketing efforts are performing.

Consistency in communication builds excitement but you also need to stay flexible, so you can tweak your strategy based on what’s actually happening. By blending a smart approach with real-time data, small business owners can fine-tune their marketing efforts for the best results this holiday season. And, once the season wraps up, those insights can set you up for an even better plan next year.

SBX: Do you have any tactical tips to help SMBs bolster their marketing this holiday season?

Charest: To really stand out this holiday season, small businesses should focus on hosting community events that create memorable experiences and meaningful connections with customers.

Make sure you’re consistent with how and where you’re marketing, so you stay on their radar. You can do this by running interactive social media campaigns to boost brand awareness, offering special deals for loyal customers, and using email marketing to tell compelling stories about your products and connection to the local community.

A multichannel strategy is key to keeping your business top-of-mind during the holidays. And with 99% of consumers revisiting the same businesses each year, combining community engagement, personalization, and storytelling will set you up with a strong holiday marketing plan.

SBX: And how should small businesses think about balancing customer acquisition and retention? What does that journey flow (ideally) look like?

Charest: With 52% of consumers always looking to support small businesses, your marketing is the key to making this holiday season a success. This is a great time to not only bring in new customers but also build loyalty that lasts.

Start by using targeted marketing to get on people’s radar and drive traffic your way. Then, keep that momentum going by delivering great service across every channel — whether it’s through email, SMS, social media, or in person. Personalized touches like thank-you emails or asking for reviews help keep customers engaged. Additionally, loyalty programs touting exclusive offers can keep them coming back, and promoting special events or giving early access to new products adds value beyond just discounts. By focusing on building strong connections and loyalty, small businesses can attract and retain customers this holiday season.

SBX: What is the biggest mistake you typically see small businesses making during the holiday season? What do you recommend they do instead?

Charest: The biggest holiday mistake we saw last year was small businesses trying to do too much. When small businesses spread themselves too thin with too many marketing strategies, it overwhelms both their resources and results. With nearly half of SMBs waiting until October to start holiday planning, they risk making rushed decisions that can have a big impact on their season’s success.

Here’s the good news: Small tweaks can help attract shoppers and avoid last year’s missteps, so small business owners should focus on these areas for a successful holiday season:

  1. Boost efficiency: Automation tools can save time and free up resources by taking care of tasks like email marketing, customer segmentation, and follow-ups. This is especially important with inflation affecting consumer spending.
  2. Prioritize customer retention: Keep your loyal customers coming back with personalized promotions, great service, and value beyond discounts.
  3. Stay engaged year-round: Shoppers are always interested in supporting small businesses, so use targeted, cost-effective strategies like email and social media to stay connected with the right audience without blowing your budget.

By focusing on these key strategies and getting ahead with planning, small businesses can set themselves up for a successful holiday season.

SBX: Last holiday season, we saw data suggesting that consumers were especially eager to support small businesses. How do you anticipate this trend will evolve this year?

Charest: With inflation hitting nearly all small businesses and 52% of consumers cutting back on spending because of it, today’s economy has definitely shaken things up. Even though price matters to shoppers this holiday season, they’ve shown strong support for small businesses.

If you’re looking to tap into that, remind your customers about the quality of what you offer, the convenience of shopping local, and the personalized service they can’t get anywhere else. It can also be a good time to roll out loyalty programs, personalized promotions, or bundle deals to give people a reason to keep coming back.

These strategies can help ease concerns about inflation-driven pricing while still giving customers a reason to choose your business over the competition.