Consumers Are Spending More This Holiday Season: Three Tips for Small Businesses To Optimize Sales

Despite inflation woes, almost half of consumers expect to spend more this holiday season compared to last year. This presents an opportunity for the millions of businesses around the country who ring up their biggest sales of the year during the holidays. While so much prep work is done in advance, there are still steps small businesses can take to attract new customers and drive sales based on what consumers expect from their holiday shopping experiences. 

Create Hassle-Free, In-Person Shopping Experiences

According to the QuickBooks Holiday Shopping Report, the importance of optimizing an in-person shopping experience can yield great rewards for small businesses. The good news is that consumers ARE looking to go in-store — with 61% of consumers saying they find the best small business deals in-person. Ensuring the best shopping experience for your customers can start with offering extended shopping hours, which consumers say would increase the likelihood of them shopping at a business. Opening on days you might otherwise be closed or staying open a little later could mean more sales, especially in the weeks leading up to the end of the holiday season.

Stress from holiday shopping is a key factor in driving consumers to small businesses, as 67% of consumers feel crowded stores are the main driver of their stress, followed by managing their spending. To alleviate some of these stress factors, business owners should strive to provide a hassle-free checkout experience.  In the survey, almost two-thirds say they’ll shop more with a small business that has contactless or mobile payments. If you don’t already, ensure you have a comprehensive POS system that allows your customers to choose how they want to pay.

Make Sure You Are Delivering a Seamless Online Shopping Experience

Demand for a seamless online shopping experience and options to buy now, and pay later (BNPL) continue to be top of mind, especially for younger Gen Z consumers where 7 of 10 surveyed said they planned to use BNPL this holiday season alone. Providing flexibility and offering BNPL options at checkout can help attract new customers and retain loyal ones. 

Providing a seamless digital experience through accurate inventory management is another way small businesses can provide a positive online shopping experience. Managing inventory using inefficient methods, such as spreadsheets and pen and paper can be time-consuming and error-prone, all of which put the Scrooge on sales, especially during the busy season. Add to that the complexity of selling through multiple channels like Shopify, Amazon, and eBay, inventory tracking can be even more of a headache. And if a customer purchases a product and later finds out it is sold out, or worse — on backorder ahead of the holidays – you could risk losing their business. 

For product-based businesses looking to improve their ecommerce strategy, invest in a commerce platform that can connect your orders across channels while also accurately tracking inventory. This will help to prevent under and over stocking, minimizing potential impact to your bottom line. Automated inventory management solutions can also show how sales are trending across channels, identify top-performing products, and spot opportunities for growth. What if the pine-scented candle that underperformed last year is suddenly trending to become a top-selling product by mid-November? With these modern solutions, business owners can receive notifications when inventory is low and seamlessly create purchase orders to replenish stock. 

Prioritize Marketing Your Business

More than two-thirds (69%) of consumers have up to 10 people on their gift-giving list this year — that’s a lot to manage. To help them find what they’re looking for, it’s important to spread the word about your unique products and offerings. Make sure to regularly share your products across social media platforms and highlight how they can be used as different gift ideas. You should also consider staying in touch with customers over email so you can inform them of top products, timely promotions, and sales. Staying top of mind for consumers through consistent marketing tactics is key to increasing sales over the busy shopping season. 

While consumers are expected to spend more this holiday season, understanding what would drive them to choose a competitor is helpful when deciding how to market your business. Just over half (51%) of consumers say that finding a better deal at a bigger retailer or better shipping options (44%) would make them reconsider buying from a small business. By leading with messages that reinforce the value you provide — think personal services, unique offerings and local community ties — coupled with competitive pricing and shipping options, small business owners can market themselves more successfully in a way that is appealing to potential customers. 

The holidays are an exciting, but sometimes stressful time for small businesses and shoppers alike. While there are many ways to tackle the upcoming challenges and opportunities head-on, one thing is certain: focusing on your customers’ needs and getting a handle on inventory and accounting is key to success — anytime of year. 

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