It’s no secret that the holiday season is one of the most important times of the year for business owners, and this is especially true for small and midsize businesses. In fact, many businesses, especially retailers, make 20 to 40 percent of their annual sales during November and December, according to the National Retail Federation.
Consumers spent $5.7 billion on Small Business Saturday, an increase of 3.6 percent from last year. The movement was started by American Express in 2010 to give small businesses a boost during the recession. Many states and consumers have supported the cause shopping at small, locally owned businesses on the Saturday after Black Friday.
The challenge for small businesses, of course, is to persuade consumers to shop small throughout the holiday season, not just on Small Business Saturday. Sounds tricky, but it’s quite easy if you follow these tips:
Know Your Niche
There’s no way small businesses can compete with big box retailers, so don’t waste your time trying. Instead, focus on what makes you special. Do you offer hand- knitted sweaters or one-of-a-kind paintings from local artists? Feature those products on social media and in your holiday marketing collateral.
Get Personal
Retailers send an average of 27 emails in December. SMB owners just don’t have the time or manpower to compete with large chain stores who specialize in coordinating email marketing campaigns, but they still need to get noticed by consumers.
A great way for small business owners to do this is to send out personal holiday cards. Take a few hours to write – by hand – a greeting to loyal customers or create a fun flyer with a holiday message. If you don’t have addresses for your customers, slip a note in their bags when they make a purchase: “Thanks for shopping in my small business. You can believe I appreciate you as a customer.” The message need not be fancy. Make the customer feel good about having supported you.
Create Some Ambience
Picture walking into a national chain store. Beneath the fluorescent lights, it’s not uncommon to lose your sense of direction in the labyrinth of aisles.
You can remind your customers that what you lack in size you more than make up for in the experience. Consider putting up Christmas lights outside your building or playing holiday music. Like to bake? Set out a tray of homemade cookies for your guests to enjoy while they browse. Make your business a destination and consumers will be more than happy to choose you over a larger competitor.
Get Social
Social media has become a huge part of holiday shopping. More than ever, consumers are researching products online and checking reviews on social media sites such as Facebook and Pinterest before committing to a purchase. Shoppers even use social media while they’re at stores to compare prices at different retailers.
Small business owners have an advantage over national chains because you have more time to interact with your consumers online. Make a point to check your social media sites regularly and follow up on any customers comments, good or bad.
You can also get social with other small business owners around you. Speak with them about setting up group sales or offering discounts to customers who shop at your stores.
