Key Takeaways:
• Around half of SMBs generate more than a quarter of their annual sales during the holiday season.
• 81% of customers are open to receiving communications from SMBs after holiday purchases, yet only half receive such messages.
• 56% of SMBs have an hour or less per day to devote to marketing.
• 34% of consumers are more likely to make purchases from marketing emails.
Strategic Customer Engagement Crucial for SMBs
The holiday shopping season is a golden opportunity for (SMBs) to maximize sales and build a robust customer base. However, according to a new study by Constant Contact, there is a significant room for improvement in terms of SMBs converting seasonal shoppers into loyal customers.
Importance of Holiday Shoppers to SMBs
As part of the study, half of all surveyed SMBs revealed that the holiday shopping season accounts for more than a quarter of their annual sales. Moreover, 58% of businesses recognize holiday customers as extremely vital to their success. Shockingly though, many SMBs miss out on the potential to convert these seasonal shoppers into repeat customers.
Overlooked Opportunities for SMBs
A surprising finding from the study states that 27% of consumers never hear from the SMB again after their inaugural visit or purchase. This is despite the fact that 81% of consumers express their openness towards receiving communications from the businesses post their first encounter, particularly during the holiday season. In stark contrast to consumer readiness, less than half of these customers ever receive any follow-ups.
The Constraint of Time
The underlying cause of such missed chances may well be the perceived lack of time. The study shows that 31% of SMBs worry about customer retention, but an overwhelming majority (56%) claim that they have less than an hour each day to dedicate towards marketing.
Power of Consistent Communication
This gaping disconnect presents a colossal missed opportunity for SMBs. Digital marketer Amber Roosen, in a LinkedIn post, highlighted the role of consistent emails in building trust and loyalty with SMB customers. A Constant Contact blog post from June 2024 further supports this claim, adding that 34% of consumers are likely to complete a purchase based on a marketing email.
Tools To Enhance Customer Engagement
In light of the upcoming holiday season, it becomes essential for SMBs to ask themselves what efforts they made to foster strong relationships with their customers this year. Moreover, they need to consider strategies for customer retention next year. Thankfully, there are myriad tools available now to help businesses stay connected with their customers, reduce the amount of time spent on communications, and eventually yield better sales during the holiday season.
The Potential of Customer Retention
Customer retention is crucial as acquiring new customers can be significantly more expensive than sustaining existing ones. According to the same Constant Contact report, it takes three new customers to compensate for the loss of one existing customer. Therefore, a strategic and consistent follow-up plan post-holiday purchases can do wonders for SMBs in terms of boosting customer loyalty and long-term sales.
Summing Up
The holiday season poses a substantial opportunity for SMBs to both make profits and build a loyal customer base. However, the current trend indicates a lack of compelling follow-up strategies that could potentially increase customer retention. With a plethora of tools available to ease customer communication and the proven impact of a consistent follow-up on customer loyalty, SMBs must up their game this holiday shopping season.