By Lisa Purichia
Partner, Director of Accounting Services & Retirement Plan Services
Email Lisa
We’re in the midst of a critical time for small businesses. According to the U.S. Small Business Administration, eight in 10 small businesses lean on holiday sales to meet their yearly profit goals. The stakes are especially high this holiday season, as small businesses continue to combat inflation. Surveys from the National Federation of Independent Business show that many of these businesses plan to raise prices.
The good news is that consumers seem ready to shop small and local this holiday season. In a recent Constant Contact survey, 78% of the 3,000-plus consumers surveyed said they “plan to holiday shop at a small business they have never purchased from before.”
As a small business owner, what can you do to attract and retain these consumers?
Meet Consumers Where They Are
Right now, as you’re reading this, many people are likely shopping online. Greet them with a holiday-themed email or post a reminder about your products and services on social media.
These are easy, cost-effective strategies for dealing with inflation. And because consumers are price-sensitive at the moment, you’re more likely to catch their attention with simple messages about holiday promotions or discounts. Better yet, these are efforts you can easily track. See if customers are clicking on the links in your emails or engaging with your social media posts. What’s catching their eyes? Use that information to adjust how you interact with them. (In the aforementioned Constant Contact survey, 20% of small businesses reported having no way to track or measure the impact of their holiday marketing.)
Replacing customers is much more difficult than retaining existing ones. Now is the time to focus on loyalty programs, customer appreciation events, etc. They’re more likely to stick by you through brief periods of higher prices if they have these incentives waiting for them in the light at the end of the inflation tunnel.
Be Open and Honest
Think about how you reward your customers for their loyalty and understanding. Now apply that to your relationship with suppliers.
To alleviate the effects of inflation, try setting up a more flexible payment schedule with your suppliers. Being transparent and trying to make a deal with them to maintain your business partnership shows your loyalty and appreciation.
Be open in your communication with customers as well. Remind them of the personalized service you offer — the kind they can’t get from the bigger businesses.
Here’s another chance to be honest: Need more help steering your business through the stormy seas of inflation? Call us at (317) 608-6699 or email Lisa for further assistance.