No matter the time of year, the holiday season is always imminent for small businesses. For many companies, the holiday season comprises the bulk of their yearly sales, so preparing early and thoughtfully can make all the difference.
While the holidays bring fierce competition, they also provide opportunities to capture new customers. According to the National Retail Federation, 2023 winter holiday online sales brought in $276.8 billion of revenue, with total sales reaching a record $964.4 billion. We’ll explore ways small businesses can increase holiday sales and have their best season yet.
Holiday marketing strategies
Follow these 13 tips to maximize the holiday season’s profit potential.
1. Determine the discounts you want to offer.
American consumers are savvy shoppers. They know businesses compete for customers and are always on the lookout for discounts and sales.
Strategize early and brainstorm ways to appeal to your customers’ desire for excellent deals. For example, offer a single, valuable discount to draw in bargain hunters or plan a series of short-term promotions that change weekly, giving shoppers an incentive to return. You could also use discount codes to boost e-commerce sales.
While they cost you nothing to distribute, digital coupons can boost customer engagement and retention for current and past customers.
2. Provide gift suggestions.
As the holidays approach, your customers’ lives will become more hectic. Consider making holiday shopping easier by preparing email marketing campaigns with gift ideas. Include a call to action, such as “Buy Now,” and shoppable links that bring customers directly to your website’s product pages.
Similar to upselling and cross-selling, you can personalize gift suggestions based on previous purchases, showcase unique gift suggestions, and demonstrate how to bundle multiple items into one perfect gift. As a bonus and incentive, offer a discount on gift bundles.
3. Say thank you ahead of time.
Stand out from the crowd by sending thank-you cards to your loyal customers at Thanksgiving instead of waiting until the traditional Christmas and Hanukkah card-giving season. An unexpected thank-you card can make your customers feel genuinely appreciated — and you’ll be top of mind as they shop for family and friends.
4. Tap into nostalgia.
The holidays are surrounded by a glow of memories of childhood and magic — times when the snow was thick and Santa Claus was real. Why not design your marketing campaign to tap into holiday nostalgia?
Consider using black-and-white pictures, old-style fonts, and nostalgic photos from times gone by. Whether you’re planning an in-store display or an online landing page, nostalgia can guide your campaigns this year.
Evoking nostalgia can deepen your customers’ emotional connection to your brand and build brand intimacy.
5. Focus on customer loyalty.
Although you’re eager to attract new customers, don’t neglect your loyal shoppers. Repeat customers spend roughly two-thirds more than new customers, so keeping them connected is worth it.
Take the opportunity to offer a special gift to your best customers, such as a valuable discount or an exclusive first look at a new product. You could also send handwritten holiday cards to your loyal customers through the mail, the old-fashioned way. This strategy will garner your customers’ attention and show that you care.
Customer loyalty is crucial. According to 2023 Yotpo data, 67 percent of customers buy repeatedly from the same brands to demonstrate their loyalty, and 44 percent joined a customer loyalty program for a brand they liked.
6. Make the most of mobile.
SMS marketing and mobile marketing have become increasingly crucial for e-commerce in the last few years. Adobe found that, for the first time, more than half of online sales (51.1 percent) were made via mobile devices during the 2023 holiday season, up from 47 percent in 2022.
Create mobile-friendly email marketing campaigns and optimize your online store for mobile devices. If you decide to use SMS messaging for holiday marketing via text, your customers can easily click on a link and go directly to a product page on their phones.
7. Offer free shipping.
If you sell online, free shipping is the best special offer you can present year-round. However, free shipping is crucial if you want strong sales during the holiday season.
Consider offering free shipping for all holiday purchases, and ensure your customers know about it. Feature your free shipping offer in your marketing emails, and make it prominently visible throughout your online store.
To reduce abandoned e-commerce carts, send an automated email to the customer with an offer for free expedited shipping.
8. Go large on the holiday spirit.
Consumers aren’t just shopping for gifts; they also want holiday spirit. Update your window display, home page and landing pages with warm holiday scenes and plenty of sparkle.
Consider offering a holiday gift-wrapping service, both in-store and online, or market a special, limited-edition product only available during the holiday season. If your company does charity work around the holidays, feature photos on your social media feeds so customers know you’re not just paying lip service to the holiday spirit.
9. Tap into niche social media channels.
You probably already use social media marketing on Instagram and Facebook, but have you considered other channels? Social networks like Quora, Reddit and Pinterest don’t get as much attention, but they hold millions of loyal users waiting for your content.
For example, users go to the Pinterest social platform to plan or make purchases, so marketing on Pinterest is an excellent holiday strategy. Choose a niche social channel that fits your product, and plan special marketing or advertising efforts.
10. Turn to video marketing.
Video can enhance your marketing strategy, particularly during the holidays. Consumers love behind-the-scenes videos relating to their favorite brands and businesses.
This holiday season, show your company’s human face by asking employees to share their favorite holiday memories or giving customers a peek into what’s involved in preparing your business for this special time of year. A cute or funny holiday marketing video is also an excellent opportunity for nonproduct-related companies to tap into the holiday season.
Videos go a long way toward establishing your brand’s authenticity, a requirement in today’s marketing — especially if your customer base includes millennials who prioritize experiences over goods.
11. Hold in-store events.
Despite the rise in online buying, many consumers still prefer shopping in-store for the holidays. According to Statista, 43 percent of shoppers in 2022 planned to shop in person, compared to 57 percent who planned to shop online.
When customers come into your store, greet them with something special, such as free hot cocoa, entertainment and product demonstrations to get them in the buying mood.
12. Take advantage of Small Business Saturday.
Small Business Saturday is the first Saturday after Thanksgiving — the day immediately following Black Friday. It’s an opportunity to showcase your wares and demonstrate that buying from you supports the community. CNBC data shows that more than a third of U.S. adults who do holiday shopping said they planned to shop locally or buy from small businesses to support local communities.
13. Become a holiday planning, hosting and gifting partner.
The holiday season can be stressful as people plan and host festive meals, holiday parties and more. Relieve some of your customers’ stress by providing content, products and services that lighten the load.
One example is the alcohol delivery service Drizly, which provides White Glove Service for holiday events, including recommendations and delivery. Even complimentary gift wrapping can take some of the burden off your customers.
