Why it matters:
- Small Business Saturday is an important day for independent businesses, not just for driving sales but for connecting with new and existing customers.
- Forecasts and consumer surveys are predicting moderate to strong growth this holiday season, despite economic concerns, with opportunities to gain new customers and market share.
- Understanding how consumers plan to shop this holiday will be the key to a successful Small Business Saturday.
Retailers and brands start preparing for Black Friday – the Super Bowl of shopping – a year in advance. Small businesses can use strategies from their 2024 holiday playbook to prepare for their most important day, Small Business Saturday.
Small Business Saturday, held on the Saturday after Thanksgiving, is a crucial time for local stores and businesses, not only to boost sales but to create valuable connections with the consumers in their communities.
The day, first held in 2010, has grown in popularity every year, with consumers spending $17 billion during last year’s event. Sensormatic Solutions, which tracks store traffic, is predicting that it will be the sixth busiest shopping day of the season this year.
To prepare for this year’s Small Business Saturday on November 30, small businesses can use some of the same strategies big brands and retailers are banking on this holiday season. Here are five consumer trends to be aware of:
Consumers are price conscious, but they still plan to spend
Consumer surveys and economic forecasts show Americans are feeling the pinch of higher prices for household necessities, and that many are expecting to spend less this year on gifts. However, total holiday spending still is expected to grow this year by a healthy amount, although the growth rate could be slower than last year’s increase.
The consensus of the early forecasts is that overall spending will increase during the holiday months of November and December by between 2% and 3.5%, with online sales increasing by 7% to 9%.
“We expect that healthy growth in disposable personal income, combined with a steady labor market, will support a solid holiday sales season,” Akrur Barua, Economist with Deloitte, said in releasing the firm’s holiday forecast.
Price-conscious consumers are saying they will seek out and wait for the best holiday bargains before buying, but they also plan to take advantage of discounts to splurge on big-ticket items for holiday gifts or for themselves, according to consumer surveys conducted by Salesforce for its holiday forecast.
[Read: 4 Strategies for Early Holiday Shopping Season Prep]
Value doesn’t always mean the lowest price — it could even include ‘splurge items’
While value will be more important than ever this holiday season, value can have other meanings beyond price, retail experts on a Salesforce panel about holiday trends attended by CO— said recently.
Consumers who want value aren’t necessarily looking for the rock-bottom price, members of the panel said. They often are looking for a product that will be valuable to them because it meets their needs or works well, or because holiday discounting has allowed them to trade up to a more expensive item.
This holiday season, consumers “have a finite budget to spend,” said Rob Garf, Vice President and General Manager, Retail and Consumer Goods, at Salesforce. While “more of that budget is going to be spent on the value side,” and discounts will be important this year, consumers still will spend a share of their budgets on higher priced, or splurge items, Garf said.
“The trick is how do you get, as a retailer or brand, the other portion” of those budgets, he said.
“If you don’t define what value means for your brand to the consumer, they will define it themselves,” said David Oksman, Vice President, Marketing and Direct-to-Consumer, at Samsonite, who was part of the holiday forecast panel at Salesforce.
“If you’re building the equity and creating a value proposition – for us it’s about being trusted and long-lasting – the consumer is going to care about the quality of the product,” especially when they are choosing a product that reflects their lifestyle, Oksman said.
For a small business, that value proposition can be a reputation for having unique, quality products that the business stands behind.
If you don’t define what value means for your brand to the consumer, they will define it themselves.
David Oksman, Vice President, Marketing and Direct-to-Consumer, Samsonite
Create ways to connect with customers before the big day
Businesses should be using the early fall to collect contact information for prospective customers so they can reach out to them during the holiday season, the Salesforce panel recommended.
Businesses that offer discounts or giveaways to customers who sign up for a loyalty program or register their email addresses then will be able to contact those customers about Small Business Saturday events and deals and other promotions during the holidays.
Loyalty programs that reward frequent shoppers let businesses collect contact information, and also increase the retailer’s value proposition in the consumer’s mind, Caila Schwartz, Director of Strategy and Consumer Insights at Salesforce, said.
Offering loyalty program members benefits—such as early access to new products, or invitations to “first look” events or in-store experiences—continues to be an effective way to create added value for customers, the panel said.
SMBs are uniquely positioned to monetize the shorter-than-normal holiday season
With Thanksgiving falling on November 28 this year — five days later than last year – this will be the shortest period between Thanksgiving and Christmas since 2019.
Big retailers are already factoring the short season into their plans, and scheduling promotions earlier in an effort to pull purchases into October and early November.
The calendar, however, could prove to be an advantage for independent retailers and local shops. Small stores typically see a holiday surge from last minute shoppers, when consumers are worried that there isn’t enough time left to order online.
Many Americans don’t get serious about holiday shopping until Black Friday. With Small Business Saturday falling on the last day of November, shoppers will have only three additional weekends before Christmas to find gifts. Small shops can position themselves as problem-solvers, with gift-giving advice and services such as gift-wrapping.
A small business advantage in an AI age: the human touch
In Salesforce’s holiday forecast presentation, Schwartz shared an encouraging insight for small businesses that are wondering how they can compete with AI-powered big retailers.
When consumers were asked what kind of help they most wanted from an AI-enabled chatbot, the number one response was “that they’ll pass them off to a human if they can’t understand or service the question,” Schwartz said.
Consumers report being frustrated if they getting bounced back to a chatbot repeatedly when they need help. Small businesses should remind customers, especially on Small Business Saturday, that they have humans available who can answer questions.
The U.S. Chamber of Commerce Foundation is partnering with American Express to support small business. Are your customers proud to Shop Small? Order your complimentary "Shop Small" stickers through the below link and share them with your customers on November 30th. Order your complimentary stickers here by November 20, 2024. Stickers will be shipped to your store. While supplies last.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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