Navigating the Holiday Crunch: Marketing Strategies for SMBs in an Uncertain Economy

The holiday season is a big deal for small businesses. It’s the time when many of you are counting on strong sales to help meet your year-end goals. But let’s be real—it’s also one of your most stressful times of the year, especially if you’re in the retail or ecommerce sectors.

With everything on your plate, it’s easy to feel overwhelmed and underprepared, and this year, things are even more challenging. Inflation and an unstable economy are making things tougher for everyone, and that uncertainty only adds pressure to the busy season.

We know the holidays are your time to shine, so we’ve been keeping an eye on the latest trends to help you get ahead. Our latest Small Business Now report dives into the biggest challenges small businesses and nonprofits are facing this holiday season — from inflation to time management. It also highlights some practical ways you can adjust your marketing strategies to connect with customers, mitigate inflation and make the most of the year’s busiest months.

Here’s what we uncovered after surveying more than 1,600 small businesses and 3,000 consumers across Australia, Canada, the UK and the U.S.

Inflation is Forcing SMBs and Consumers to Adapt Their Holiday Approach

Inflation is still hitting both businesses and consumers hard, which means that price sensitivity will play a big role in how customers shop this holiday season. While many SMBs have been forced to raise prices or cut back on expenses, the key to success will be balancing those adjustments with strategies that don’t drive away price-conscious customers.

• 89% of SMBs have been impacted by inflation.
• 52% of consumers have reduced their spending at small businesses this year, especially shoppers in Australia (60%) and Canada (56%).
• 46% of SMBs have cut back on expenses to manage costs, and 39% have raised prices to cope with inflation.
• In Canada, where consumers are particularly price-sensitive, only 35% of SMBs have raised their prices.
• The percentage of U.S. consumers planning to decrease their spending at SMBs has nearly doubled since 2022, jumping from 27% to 52%.
• 62% of consumers say price will be the deciding factor in their holiday shopping decisions.

What SMBs Can Do: Value is about more than just price. Lean into your strengths when marketing your business. Consumers are price-sensitive right now, but they still want to shop small. So, remind them about the quality of your products, the convenience of shopping in their community, and the personalized service you offer. 

Consider introducing loyalty programs, personalized promotions, or bundle deals that incentivize customers to keep coming back, even if prices are higher. These strategies can help offset inflation-related pricing concerns while still giving customers a reason to choose your business over the competition.

SMBs Are Not Confident in Their Holiday Marketing

It’s no surprise that many SMBs rely on the holiday season to meet their annual revenue goals. However, our report shows that small businesses are struggling with how to make their marketing efforts count, especially when so many are spread thin between budget constraints and time limitations.

• The percentage of SMBs that attribute at least 50% of annual sales to the holiday period has nearly doubled since 2023.
• 65% of SMBs report struggling with budget constraints or time management in Q4.
• 79% of SMBs who measure marketing effectiveness were unsure if their 2023 holiday strategy was successful.
• 20% of SMBs have no way to measure the impact of their holiday marketing.

What SMBs Can Do: Don’t fall into the trap of trying to do too much during the holidays. Instead of ramping up marketing efforts across every channel, streamline your approach. Focus on high-impact, low-cost strategies, like email marketing and social media, and make sure to track results so you can adjust. 

Constant Contact’s platform helps SMBs automate the most time-consuming aspects of digital marketing and understand what’s working. We help you transform a goal into an action plan, determine the right customers to market to and make sense of what’s working. This will help you focus on what’s working and cut back on what’s not, without wasting time or money.

Waiting Until October is a Missed Opportunity for SMBs

Consumers want to support small businesses, and they begin thinking about the holidays earlier than many SMBs realize. With inflationary pressures, many are shopping for deals throughout the year. While SMBs tend to wait until Q4 to ramp up their marketing, the reality is that customers are already planning their purchases by the time October rolls around. There is an opportunity for SMBs to win over these early shoppers and reduce their holiday stress simply by preparing earlier.

• 99% of consumers revisit the same businesses each year for holiday shopping.
• 92% of holiday shoppers include small businesses in their plans.
• 58% of U.K. consumers start thinking about holiday shopping before October, compared to 38% globally.
• 42% of SMBs wait until at least October to begin holiday prep.
• 57% of SMBs increase the frequency of their marketing communications in Q4.

What SMBs Can Do: Start planning your holiday marketing early to spread out costs and reduce stress during the holiday crunch. With spending uncertain, planning will be even more critical this year. September—or even earlier—is ideal for developing your strategy, setting goals, segmenting your audience, setting up automations, and creating content. A marketing platform like Constant Contact helps you to get ahead of your workload and avoid the last-minute crunch, all while staying ahead of consumer demand. 

Small Marketing Tweaks Can Help SMBs Avoid Last Season’s Mistakes

Our report shows that many SMBs felt overwhelmed last holiday season by trying to do too much at once. This year, they’re focusing on efficiency and making small, strategic adjustments instead of completely overhauling their approach. These minor tweaks can make a big difference, especially in attracting new customers and retaining existing ones.

• The top three things SMBs are doing to ensure a successful holiday season are improving efficiency (35%), offering special promotions or discounts (28%), and creating a clear marketing strategy (26%).
• 78% of consumers plan to shop at a small business they’ve never purchased from before, highlighting the importance of customer acquisition.
• 51% of SMBs feel that social media and email marketing have the biggest impact on holiday goals.

What SMBs Can Do: You don’t need to reinvent the wheel. Small adjustments—like holiday-themed email campaigns, targeted promotions, or bundling existing products—can make a significant impact without overwhelming your resources. Focus on building relationships with new customers while keeping current ones engaged with personalized messaging and timely offers.

Key Takeaway

The 2024 holiday season may be shaped by inflation and economic uncertainty, but that doesn’t mean it can’t be a successful one for small businesses. By planning early, streamlining marketing efforts, and making small adjustments to your strategy, you can attract new customers, engage loyal ones, and make the most of this critical time of year.

If you’re interested in diving deeper into the findings and learning more about how SMBs are preparing for the holidays, download the full Small Business Now report. You can also see our previous reports on the Constant Contact Data Hub.

Ready to boost your marketing without dialing up your workload? Try Constant Contact free today, and see the difference the right tools can make. You can do this! You’ve got us.