The Small Business Holiday Outlook 2025: Your Guide to Winning the Make-or-Break Season

The holiday season is fast approaching, and we know it’s a make-or-break time for many of you. It’s the moment when all your hard work pays off — or faces its toughest test. For our latest Small Business Now report, we surveyed more than 1,800 small business owners and nearly 2,500 consumers across the United States, Canada, the United Kingdom, Australia, and New Zealand to dive deep into what’s happening on the ground, revealing the strategies that work and the challenges you’re ready to conquer this holiday season.

Think of this as your friendly guide to making the most of the festive rush!

The holiday season is your Super Bowl

Let’s be real: the end-of-year and holiday season is HUGE. This period is essential for the financial health of many small businesses. Our report shows that for a striking 60% of small businesses, this time accounts for up to 50% of their annual sales. That concentration of revenue means 35% of owners feel significant pressure in Q4, a feeling particularly acute in the retail sector.

What this means for you: Don’t underestimate the power of these next few months. If you haven’t started already, now is the time to finalize your plans. The good news? Despite the high stakes, a resilient 77% of owners are confident in hitting their revenue goals.

Social media is your megaphone — and discounts are your secret weapon

When it comes to getting the word out and driving action, our report confirms where you need to focus your limited marketing budget.

• Social media reigns: Nearly 40% of SMBs told us social media marketing is the most impactful channel for holiday marketing. This significantly outweighs email marketing (18%).
• Deals seal the deal: Once you’ve got their attention, discounts and sales are the most effective promotions, cited by 51% of businesses running promotions.
• Marketing creativity is accelerating: Small businesses are pushing creative boundaries with their marketing strategies. Notably, the U.S. saw a dramatic shift in campaign innovation, with the number of businesses launching entirely new marketing campaigns quadrupling from 7% in 2024 to 33% in 2025.

What this means for you: Double down on your social media game. Constant Contact offers integrated Social Media Marketing tools to help you create engaging posts and reach new customers. And don’t shy away from offering enticing deals — they’re your secret weapon for success!

Navigating economic bumps in the road

We know things aren’t always easy. Inflation and economic pressures weigh heavily on small businesses worldwide.

• Top external worries: Inflation/rising costs (32%) and weak customer spending (22%) are your top concerns.
• The tariff factor: 46% of businesses report being negatively impacted by recent tariff policies, forcing many to implement mitigation strategies like cutting expenses (46%) or raising prices (43%).

But here’s the good news: you’re a resilient bunch! To ensure success, 42% of owners focus on improving efficiency, and 36% plan to offer promotions and discounts.

What this means for you: Focus on what you can control. Look for ways to streamline your operations and make every dollar count. Constant Contact helps simplify complex marketing, enabling you to focus on efficiency and deliver real-world results.

Consumers are savvy — and fiercely loyal

Your customers are feeling the pinch, too, and they’re shopping smarter. 70% of consumers plan to actively seek deals and discounts due to rising prices, and they are adapting by shopping earlier and buying fewer items.

But here’s the heartwarming part: they love supporting small businesses!

• 72% of consumers return to the same small businesses each holiday season.
• A massive 88% are likely to become repeat customers after a holiday purchase.

What this means for you: Build on that loyalty! Your personal touch is what sets you apart and keeps them coming back. Use targeted Email Marketing and automation tools to nurture these relationships, turning first-time holiday shoppers into loyal, year-round advocates for your brand.

Don’t try to do everything at once

Our research revealed key internal challenges that can stall your holiday momentum: budget limitations (36%) and the struggle to generate new ideas or content (34%).

Furthermore, we found a significant untapped opportunity: the smallest businesses (under 10 employees) are less likely to engage in crucial holiday preparations or offer promotions.

What this means for you: Prioritize! Pick the few key strategies that you know work best for your business (like social media and targeted discounts) and execute them brilliantly. Constant Contact provides the essential tools and guidance to simplify execution, helping you overcome budget limitations and ensure you aren’t missing out on crucial holiday revenue.

This holiday season is your chance to connect with your community, showcase your passion, and drive those crucial sales. You’ve got this!

Ready to get glowing this holiday season?

Join our free one-hour webinar on November 13, 2025 at 2:00 pm ET for holiday campaign ideas, strategies to amplify your campaigns, and time-saving tips for getting more done this season. (Can’t make the live session? Register anyway to get the recording sent to your inbox!)

In the meantime, download the full Small Business Holiday Outlook 2025 Report for more insights on how fellow small business owners are wrangling the busiest time of the year.