Small Business Saturday Celebrates 13th Anniversary, American Express Announces New Partnership
and Douyin. Social media continues to be a powerful driver of small business sales. Amex’s goal is to drive reported consumer spending by small businesses to $100 billion from 2021 to 2025.
The new 2022 American Express Shop Small Impact Study shows that reaching the next generation of shoppers through social media has become essential for small businesses. 63% of small business owners say they want to focus on growing their Gen Z and millennial customer base this holiday season.
Social media is a mecca for ad spend
“Instagram, Facebook and TikTok, those channels are still highly used by customers and business leaders are aware of it. That’s why we’re seeing them double their social media spend this holiday season,” Fiverr Gali Arnon, chief marketing officer at . “The increase in demand for social media-related services on Fiverr shows that business leaders are keen to leverage these channels to engage customers and increase brand awareness.” Ninety percent of businesses say social media is sacred. According to a Fiverr survey of small and mid-sized e-commerce businesses across the country, companies have no plans to cut ad spend in this area for the upcoming holiday season, with 40% planning to increase spend in the category.
Small businesses use social media to stay in touch with customers
During the pandemic, many small business owners have turned to social media to connect with their communities and customers. “We put a lot of effort into Instagram and trying to connect with our customers, and we’ve always loved continuing to do that,” said Ann Cantrell, retail store owner at Annie’s Blue Ribbon General Store. Retail store in Brooklyn, New York uses video, personalized content And community oriented posts, not just product posts. Cantrell discussed how social media, especially Instagram, has had a huge impact on her business and said they are getting into TikTok. “Instagram Stories has been very active for us. We just had a $500 sale from a London client who was visiting family in New York, and the whole deal was done through Instagram.” Cantrell discusses how social media Creating a real connection with her client base and saying, “I think it’s effective where they hear and see my authentic voice. It’s one of my favorite parts of the business.”
To&From launched this June as a gift business and has successfully leveraged social media to drive revenue and community engagement. According to To&From co-founder Bridget Johns, the gift market is estimated at $800 billion (excluding corporate gifts), but it’s not growing as fast as other retail segments. “The problem is knowing what gifts to buy and remembering to buy them,” Johns said. Solving this problem is the inspiration behind the brand. Social media marketing is used with great success, but the challenge is finding the right audience. “For example, we’ve seen good returns on investing in Facebook groups with specific audiences and gift themes. One example is a custom gift list for hockey players. It works really well with targeted ads and hockey mom groups, said Johns.
Small Business Owners Weigh In
Shoppers this year will be more cautious with their holiday shopping and will be looking for good value at various price points. “We’re optimistic about holiday 2022 and have curated a wide range of price points for customers to choose from, depending on what they want to spend. Customers are worried about rising prices this year, but Cantrell believes you can spend $20 on her Have fun in the store, a very good $200 time; the key is to have a wide range of price points to meet the needs of a wide range of shoppers.
Cantrell discusses how this year shoppers are more determined to buy when they see what they need. “Whether it’s a birthday gift for a friend’s child or a gift for a colleague. When they see something they like, they buy it because they know they might not be able to get it later.” Shoppers pay more attention to what they shop for stores and the products they buy. Johns agrees, saying: “I think people will still spend the holidays, and most of the research shows that expectations will be flat or up, but I suspect spending will be more conscious.”
holiday shopping trends
“Consumers are leaning toward their values, and how they vote with their wallets stands out to me,” Johns said. “We attribute all talent to multiple dimensions, but outside of relationship/occasion filters, social values are the most used filter on our site.” Trends on To&From show that people like to find brands that support their interests , such as women-owned businesses, BIPOC-founded companies, or companies with sustainability as a core value.
Popular gifts fall into three categories: those that support values that the giver or recipient care about, those that have a personal aspect, and those that share time together. “I think the last few years of the Covid year have taught a lot of us that we actually like spending time with our families, so To&From has been trending gifts that enhance that time together,” Johns said.
Inflationary pressures are weighing on spending
“We expect inflationary pressures, coupled with slower global economic growth, to weigh on discretionary e-commerce spending, which is likely to continue in 2023,” PayPal President and CEO Dan Schulman said on a recent earnings call. “I think seeing more retailers offering promotions more frequently is a clear sign that consumers are looking for deals, discounts and other ways to save on purchases. These sales have been frequent since October, clearly Proof that consumers are trying to rein in high prices, which is tightening their wallets and spending power,” said Greg Lisiewski, vice president of shopping at PayPal. PayPal recently launched a rewards program to help consumers save money in time for the holidays
According to the Fiverr SME survey, business leaders are aware of the potential negative impact that inflation, recession and supply chain disruptions can have on their business. More than one-third of business leaders (36%) said the impact of the recession and inflation on sales will be the most significant challenges they expect their businesses to encounter this holiday season, with more than one-third of business leaders (36 percent) saying the results of the survey will be the most significant challenges from large electronics companies. Competition from commerce retailers (37%).
Small businesses are finding it hard to compete with big retailers
According to research from American Express, 72% of small business owners are concerned about the impact of inflation on their business this year. Owners say the current economic climate is making it tougher to compete with big retailers. Small Business Saturday, November 26 is a great opportunity for business owners to connect with customers and the community (#ShopSmall Accelerator).