How SMEs are preparing for the 2024 holiday season: Q&A with Jill Schoolenberg, International Market Lead at Constant Contact

It’s hard to believe that October is here, and the holidays are coming quickly. Tell us more about how important the holidays are to small businesses and entrepreneurs?

The holiday season is absolutely crucial for small businesses and entrepreneurs, especially those in the retail and eCommerce sectors. For many, this period can make or break their year. In fact, in Canada, 21% of small businesses say the holiday season accounts for at least 50% of their annual revenue, highlighting just how significant this time is.

It’s also a stressful time when owners are trying to manage rising costs, inflation, and increased customer demand. The pressure to hit revenue goals is real, which is why early planning and a strategic marketing approach are more important than ever.

What trends are you seeing impact small businesses at this time of year?

Inflation and price sensitivity are two of the biggest trends we’re seeing in our research. Many small businesses have had to raise prices or cut back on expenses to stay afloat, while at the same time, consumers are becoming more cautious with their spending. In Canada, 56% of consumers have reduced their spending at small businesses this year due to inflation.?

Still, it’s clear that Canadian shoppers are eager to support small businesses! Constant Contact’s latest Small Business Now report shows that 77% of Canadian consumers plan to buy from a small business that is new to them this holiday season.

This means that SMEs need to balance price increases with strategies like focusing on product quality, convenience, and personalized service—factors that can set them apart from larger retailers and keep customers coming back.

How can Canadian SMEs combat any economic pressures they may be feeling ahead of the holiday season?

Canadian SMEs are feeling the longtail effects of inflation, but they know customers are sensitive to price right now as well. So, many are doing everything they can not to raise prices. In fact, just 35% of SMEs in Canada have increased their prices as a way to battle inflation, which is the lowest we observed in our research. We recommend that SMEs focus on delivering value instead of competing on price alone.

Small businesses should highlight their unique strengths—whether that’s the quality of their products, the personalized experience they offer, or the convenience of shopping locally. Offering bundled deals, loyalty programs, or targeted promotions can also help encourage spending without slashing prices.?

Building strong customer relationships throughout the year will also ensure that by the time the holiday season rolls around, they have already established trust and loyalty.

What are you seeing from shoppers in Canada that might influence when SMEs should begin thinking about their holiday plans, and when is it too late?

It’s very clear that shoppers are thinking about the holidays before Black Friday. While SMEs in Canada are doing their best to match that shift, 43% either wait until at least November to get started, or don’t do any holiday preparations at all.

Waiting that late into the season can put SMEs at a disadvantage. Many shoppers are looking for deals throughout the year, and they don’t always wait until the typical holiday rush to make purchases anymore. Getting ahead of the curve by starting their holiday prep as early as September, or even sooner, allows SMEs to capture early shoppers and reduce the stress of last-minute marketing.

What can SMEs in Canada do to put themselves in a better position to succeed this holiday season?

There are a few key things Canadian SMEs can do to improve their chances of holiday success. First, start planning early — shoppers want to support small businesses all year long, so don’t wait until the holiday rush begins to think about marketing. Segment your audience, set up automations, and get your promotions ready to go.?

Second, focus on efficiency. Streamlining marketing efforts and focusing on high-impact strategies, like email marketing or targeted social media campaigns, will help you save time and money.?

Finally, small adjustments like holiday-themed campaigns, personalized promotions, or product bundles can make a big difference without overwhelming your resources.

Any other tips that SMEs can use to finish the year strong?

One thing we always stress is not trying to do everything at once. It’s easy to feel like you need to be everywhere during the holiday season, but it’s more effective to focus on the strategies that will give you the best return — email marketing, social media and SMS marketing give you great value with powerful results.?

For example, instead of spreading your time and marketing budget thin by trying to manage lots of marketing channels, concentrate on the ones that resonate most for your audience. And don’t forget to keep measuring and adjusting. Monitoring what’s working, whether it’s a specific promotion or email campaign, will help you refine your strategy and finish the year on a high note.