Fixed Contact just lately launched its newest Small Enterprise Now report, which reveals that 89 p.c of small companies globally have felt the affect of inflation as they put together for the important vacation gross sales season.
The report, which surveyed over 1,600 small companies (SMBs) and three,000 shoppers throughout the US, Australia, Canada, and the UK, highlights the challenges SMBs face as they method the yr’s ultimate quarter, an important interval for a lot of companies.
The report underscores the significance of vacation gross sales for small companies, with 33 p.c of SMBs feeling essentially the most stress to drive income through the fourth quarter.
Inflationary pressures proceed to affect each companies and shoppers, with 52 p.c of shoppers globally decreasing their spending at small companies resulting from inflation. Consequently, SMBs are adjusting their advertising and marketing methods to stay aggressive and appeal to vacation customers.
“Small companies are extremely resilient, however as they head into a vacation season stuffed with uncertainty, they need to get proactive of their advertising and marketing to make sure success,” mentioned Sarah Jordan, Chief Advertising Officer at Fixed Contact. “Our research reveals that regardless of inflation, customers nonetheless wish to help small companies, so the SMBs who thrive would be the ones who begin their vacation advertising and marketing early, streamline their work with automations, and have interaction prospects constantly all through the season.”
Inflation’s Influence on Small Companies and Customers
The report highlights the steps SMBs are taking to navigate inflationary challenges:
- 46 p.c of SMBs have reduce on bills to handle prices, and 39 p.c have raised costs.
- In Canada, 35 p.c of SMBs have raised their costs, the bottom charge among the many surveyed areas.
- 52 p.c of shoppers globally have decreased their spending at SMBs, with Australia (60 p.c) and Canada (56 p.c) main the development.
- Within the U.S., 52 p.c of shoppers plan to scale back their spending at small companies this yr, a major enhance from 27 p.c in 2022.
- 62 p.c of shoppers cite value as a key issue of their vacation procuring choices.
Advertising Challenges for Small Companies Throughout the Holidays
The vacation season stays a important interval for SMBs, with many counting on sturdy year-end gross sales to maintain their companies. Nevertheless, many SMBs face challenges with their advertising and marketing methods throughout this busy time:
- The proportion of SMBs attributing at the very least 50 p.c of their annual gross sales to the vacation interval has practically doubled since 2023.
- Canadian small companies are essentially the most reliant on vacation gross sales, with 21 p.c stating that at the very least half of their annual income is generated over the last quarter.
- 65 p.c of SMBs wrestle with funds constraints or time administration through the fourth quarter.
- 79 p.c of SMBs who measure their advertising and marketing effectiveness expressed uncertainty in regards to the success of their vacation technique in 2023.
- 20 p.c of SMBs haven’t any solution to measure the affect of their vacation advertising and marketing efforts.
Early Vacation Planning: A Missed Alternative for Some
Whereas October is commonly seen as the beginning of the vacation procuring season, the research reveals that SMBs could also be lacking out by ready too lengthy to start their vacation preparations:
- 99 p.c of shoppers revisit the identical companies annually for vacation procuring.
- 92 p.c of shoppers who revisit companies through the holidays plan to buy at small companies this yr.
- 58 p.c of U.Okay. shoppers begin desirous about vacation procuring earlier than October, in comparison with 38 p.c of shoppers globally.
- 42 p.c of SMBs globally wait till October or later to start their vacation preparations, with 30 p.c of SMBs in Australia not beginning their advertising and marketing efforts till November.
How SMBs Can Enhance Their Vacation Advertising Methods
The report highlights methods SMBs can enhance their advertising and marketing efforts to raised put together for the vacation season:
- The highest methods for a profitable vacation season embody bettering effectivity (35 p.c), providing particular promotions (28 p.c), and creating an end-of-year advertising and marketing technique (26 p.c).
- Canadian small companies usually tend to experiment with new advertising and marketing instruments or know-how in comparison with different areas.
- Australian SMBs usually tend to begin ordering stock sooner than normal to arrange for the vacations.
- 78 p.c of shoppers plan to buy at a small enterprise they’ve by no means bought from earlier than through the vacation season.
- 51 p.c of SMBs imagine that social media advertising and marketing and e mail advertising and marketing may have the largest affect on their vacation targets.
Research Methodology
Fixed Contact’s Small Enterprise Now report surveyed over 1,600 small enterprise decision-makers from firms with 250 workers or fewer within the U.S., Australia, Canada, and the U.Okay. Moreover, over 3,000 shoppers aged 18 and older throughout these areas participated within the survey. The research was carried out by Ascend2 Analysis in August 2024.
