Holiday Season Accounts For 25% Of Small Business Revenue, Study Finds

WALTHAM, Mass. — A new study by Constant Contact reveals that the holiday season is more important to small businesses than most shoppers realize. The study found that the last quarter of the year accounts for at least 25% of annual revenue for small businesses, making it a critical time for them.

Constant Contact, a digital marketing and automation platform, has helped millions of small businesses and nonprofits worldwide. The company recently released a special holiday series of its Small Business Now Report, which found that the last quarter of the year is pivotal for small businesses financially. The study also evaluated the importance of consumer holiday spending and the strategies used by small businesses to maximize sales.

Holiday season sales attribute to over 25 percent of SMBs annual revenue according to over half of the businesses interviewed. However, only a third of the consumers understand the significant impact their holiday spending has on these businesses. The SMBs in the retail sector have higher stakes since they are likely to rely twice on the holiday season for almost fifty percent of yearly revenue. This disconnect underscores the significance of fronting stable customer associations. Further, it offers a chance for SMBs to better relay the importance of shopping small during the festive season.

“The holiday period is a crucial time of year for small businesses as they work overtime to attract new customers, hit revenue goals, and plan for the year ahead,” said Laura Goldberg, chief marketing officer at Constant Contact.

“Our latest Small Business Now report quantifies the impact that holiday shopping has on small businesses that power our communities and it also reveals opportunities where they can tweak their marketing strategies to activate their Q4 customers. Constant Contact is a trusted partner to small businesses around the world and we will continue to fuel their success with powerful marketing tools to help them send better emails and texts to holiday customers, meet year-end objectives and keep those shoppers engaged in the new year,” added Goldberg.

Pressure piles on small businesses during the holiday festivities. The study reveals that 75 percent of retail SMBs rely squarely on holiday clients and 73 percent admit that holiday season sales account to over one quarter of their annual sales. Besides, 58 percent of the retail SMBs admit that holiday clients “extremely important” to the general success of their enterprises.

Most clients do not realize the effect of their holiday purchases on SMBs. 54 percent of SMBs have a feeling that communities support them fully during the festive season.

The holiday period is meant for growth and expansion for most small businesses since they court new customers. Nonetheless, most small businesses do not have efficient ways of marketing to nurture, retain, as well as convert their holiday clients in the new year, thus, curtailing their growth.