How to Boost Your Holiday Sales This Season

Globally, small business owners are concerned that an unstable global economy and shifting consumer behaviors will impact fourth quarter sales and their holiday season, according to Constant Contact’s Small Business Now report.

But there’s some good news in the report too. Sarah Jordan, chief marketing officer at Constant Contact, says the report shows that consumers want to support small businesses.

Since many small businesses are reliant on holiday sales to meet their annual goals, Jordan advises business owners to start their holiday marketing now, “streamline their work with automations, and engage customers consistently throughout the season.”

Consumers are particularly concerned about the price of goods—62% say price will be a “key factor” when making holiday shopping decisions. And 52% plan to spend less at small businesses this holiday season, nearly double the total in 2022 (27%).

Part of the conundrum is that while consumers are concerned about high prices, 39% of small business owners raised prices to survive. Plus 46% reduced expenses to manage costs, which may limit their marketing outreach.

Another concern is that 78% of the business owners aren’t certain their holiday marketing efforts were effective last year, so they’re not sure what to do, even though they’re committed to spending more time on marketing this quarter. What’s worse is that 20% of businesses don’t measure the impact of their holiday marketing.

Planning your holiday marketing? Avoid last season’s mistakes

Of the businesses that did track their marketing in 2023, most business owners say their biggest mistake was trying to do too many things at once. This year, their goals are to improve efficiency (35%), offer special promotions or discounts (28%), and create an end-of-year marketing strategy (26%).

When planning your holiday marketing you need to know what your customers' typical shopping behaviors are. The report shows that 92% of consumers revisit the same small businesses every year when shopping for the holidays and 78% plan to do their holiday shopping at a small business they’ve never purchased from before. To reach these customers, 51% of businesses say social media marketing and email marketing have the biggest impact on their holiday goals.

To dig a little deeper and learn how small business owners can boost holiday sales, I talked to Dave Charest, director of small business success at Constant Contact.

How to boost your holiday sales

Marketing to strangers

Rieva Lesonsky: Since the goal is to attract more holiday shoppers and 78% of consumers plan to shop at a small business they have never purchased from before, what’s the best way to market to strangers?

Dave Charest: Attracting new holiday shoppers is about more than just promo codes and discounts—it’s about building trust early and creating a connection. Our research shows that shoppers want to support SMBs all year, so one of the most effective ways to tap into that interest is by marketing to them all year, not just during the holidays. Consistently sharing your story, values, and the benefits of shopping small helps build familiarity so that when the holiday season arrives, you’ve already established a relationship.

I always encourage SMBs to lean into their strengths and the reasons their customers seek them out—the quality of their products, convenience, and the personalized service they offer. All of those can help set them apart from larger retailers and encourage new customers to visit and buy.

Selling to consumers who plan to spend less

Lesonsky: How do you sell to consumers who plan to spend less at small businesses due to inflation? Were these people planning to shop at bigger retailers?

Charest: Consumers who are feeling especially price-sensitive due to inflation could be spreading their holiday shopping out throughout the year. Most will shop whenever they feel like they are getting the quality or deal they are looking for. If they don’t feel compelled to wait for holiday sales, small businesses shouldn’t wait to market to them either. Starting your holiday marketing early can make all the difference.

Lesonsky: Shoppers plan to spend less: Nearly two-thirds cite price as a key factor in their holiday shopping decisions, yet 39% of small businesses have raised prices. How do you get price-conscious customers to shop at your store or website? Is the answer to offer special promotions or discounts?

Charest: No small business wants to raise prices, but in today’s economic climate, many are left with little choice. The good news is that coupons and discounts aren’t the only lever to help encourage visits and sales.

One-quarter of the SMBs we polled said their biggest opportunity this holiday season is working more efficiently. That could mean finding new suppliers, getting a better hold on their time management, or leveraging technology to find efficiencies in their processes and budgets. For lots of small businesses, marketing is a place where technology like AI can help them streamline their work.

We’ve also seen that many small businesses go into the holiday season without much of a plan for how they market to current and potential customers. So, a big focus for them this year is to create that road map, so they have a clear playbook for a successful season.

Holiday marketing should be a yearlong strategy

Lesonsky: If most of the SMBs who measure their marketing effectiveness feel uncertain that their holiday strategy was effective in 2023, what’s the best way to figure out how to reach consumers?

Charest: Many small businesses fall into the trap of trying to do too much at once during the holidays. There’s incredible pressure to drive lots of revenue, so they end up spreading themselves too thin. My advice is to focus on the strategies that help you build meaningful connections with your customers. Engage with them year-round through consistent email or social media outreach and gather feedback to see what’s working. The more you understand your customers’ needs, the better you can tailor your marketing. A clear, data-driven approach will help you fine-tune your efforts and ensure your holiday strategy is effective.

It’s also important to lean into your data and adjust. Don’t worry about the vanity metrics, like opens and clicks. Go a level deeper by tracking difference-makers, like engagements, list growth, and conversions. Refining their marketing approach and setting clear, attainable goals can help SMBs ensure they are maximizing their holiday impact.