How digital marketing can help small businesses shine this holiday season

The holiday season is a critical time for small and medium-sized enterprises (SMEs), especially as rising costs of living force consumers to prioritize where they shop.

The Small Business Now report by Constant Contact, a digital marketing and automation firm, found that more than half (56 per cent) of Canadians have decreased their spending at small businesses this year due to inflationary pressures.

Yet, Canadians still want to support small businesses, with 77 per cent indicating they are likely to shop at a local small business they haven’t tried before this holiday season. How can SMEs attract the attention of those shoppers? It starts with marketing themselves effectively.

Online marketing tools can help business owners reach both new and returning customers while fostering the personal connections consumers value in their shopping experiences.

“Canadians have a strong desire to support businesses in their own backyards, so marketing these strengths, along with a seasonal message or promotion, can help SMEs stand out, attract new shoppers and build lasting connections,” says Frank Vella, chief executive officer at Constant Contact.

With the right strategy, targeted marketing can make a big impact during the holidays. A channel like email is a powerful way to reach shoppers and communicate value.

“Email marketing remains a highly effective, low-cost way to engage customers with personalized messages and exclusive holiday offers, and maintaining a marketing list is crucial for driving both revenue and long-term growth,” he adds.

While consumers may be price sensitive this holiday season, there are other ways for SMEs to showcase their value, including the quality of their products and services, convenience of shopping locally and personalized service and support. By leaning into their unique traits, SMEs can boost brand awareness, build brand loyalty and encourage repeat visits.

“Canadian shoppers are looking for more than just promo codes and discounts – they want to feel valued as individuals and know that their purchases are contributing to their community,” says Mr. Vella. “Digital marketing gives small businesses the reach and agility they need to engage consumers quickly and effectively.”

Smart, cost-effective holiday marketing

According to the Small Business Now report, which surveyed 1,600 small business owners and marketers and 3,000 consumers throughout Canada, the U.S., the U.K., Australia and New Zealand, Canadian small businesses are particularly reliant on holiday sales, with 21 per cent reporting at least half of their annual revenue is generated during the holidays.

In today’s economic climate, end-of-year marketing efforts are essential for driving revenue and engaging customers. Similar to email marketing, social media is another accessible and cost-effective tool to create connections with customers. “Sharing behind-the-scenes content or customer testimonials helps make a business feel authentic and relatable,” Mr. Vella says.

With targeted and timely offers, SMEs can help price-conscious shoppers get the most out of their holiday shopping. According to 36 per cent of Canadian SMEs, discounts and sales are the most effective holiday promotions, but they also respond well to bundled offers (22 per cent) and giveaways, contests and experiential promotions (22 per cent), and exclusive offers and early access (20 per cent).

Regardless of which marketing tactics SMEs choose, it’s important that they make it easy for shoppers to find them during the holiday season when their interest in supporting SMEs is high.

“Leveraging tools like email marketing and social media marketing, and hosting events, helps SMEs stand out,” says Mr. Vella. “Reaching shoppers at the right moments gives them a compelling reason to choose local over large multinational retailers.”

Budget and time are two significant barriers for SMEs when considering their holiday marketing strategies, with many business owners noting they tried to do too much at once last year. Digital marketing can address both budgeting and time constraints, offering SMEs greater control and flexibility, says Mr. Vella.

“They can quickly adjust their messaging, test different campaigns and track results in real-time. This level of adaptability is invaluable, particularly during the holidays when consumer behaviour can shift quickly,” he says.

Time is in short supply for SMEs during the holiday season. Automating manual processes – like building email templates and cross-posting content on social media – can allow SME owners to save time on the backend, instead diverting their attention back to running their business.

While the holidays only come once a year, nearly 90 per cent of shoppers who visit an SME during this time are likely to return, so it’s vital to nurture customer relationships throughout the year.

“There is so much opportunity for small businesses to see strong holiday sales. We recommend that businesses continue engaging with holiday shoppers into the New Year using strategies like loyalty programs, hosting in-person events, or offering other experiences that go beyond a transaction,” says Mr. Vella. “These efforts help create a lasting connection, encouraging customers to stay involved with your brand all year long.”

For more tips, best practices and recommendations on how SMEs can succeed this holiday season, or to take part in a free trial of the Constant Contact platform, visit ConstantContact.ca.

Advertising feature produced by Globe Content Studio with Constant Contact. The Globe’s editorial department was not involved.