Regardless of rising inflation and fears of a recession, enthusiasm for supporting small companies stays robust heading into the 2022 vacation season, new analysis from small biz digital advertising platform Fixed Contact.
The agency’s second annual Small Enterprise Now Report explores the challenges impacting American small companies by way of the lens of right this moment’s client. Performed by YouGov, the analysis options insights from over 1,000 shoppers and 500 small companies.
“Our report affords a way of optimism to small companies who could also be feeling involved about how the present financial local weather will influence their enterprise,” mentioned Laura Goldberg, CMO of Fixed Contact, in a information launch. “Whereas inflation is actually forcing shoppers to be selective about the place they spend, our findings point out that supporting small companies remains to be a precedence for them—significantly in the course of the busy vacation season. Now in its second yr, our Small Enterprise Now Report delivers insights on how small companies can tweak their digital advertising methods to get nearer to their prospects, end 2022 on a optimistic word and prime themselves for a profitable yr in 2023.”
The fledgling indicators of a recession
Small companies are dealing with a difficult future as they navigate a possible recession, labor shortages and historic inflation. Knowledge from the report recommend they have already begun to really feel the influence, however most don’t count on a recession will put them out of enterprise.
- At the moment, 40 p.c of SMB resolution makers are struggling to draw new staff, and because the nation heads in direction of a possible recession, 21 p.c are involved they received’t be in a position to rent/retain workers
- Regardless of these fears, 84 p.c of SMB resolution makers didn’t specific considerations about their firm’s capability to outlive a possible recession
- When requested what would make them really feel extra assured of their companies’ capability to outlive a recession, 23 p.c responded hiring extra workers, 22 p.c mentioned having a much bigger promoting, advertising or promotional funds and 20 p.c would really like extra help from their communities
Customers are additionally feeling the squeeze of inflation, and lots of are beginning to reprioritize their budgets. Nonetheless, outcomes point out small companies would stay a precedence throughout a recession.
- 85 p.c anticipate they’d reduce on spending throughout a recession
- 58 p.c anticipate the primary classes they’d pull again on throughout a recession are comfort, way of life or leisure spending
- Nonetheless, greater than 1 in 3 (36 p.c) would search for alternatives to help small and medium sized companies extra typically throughout a recession, and 29 p.c famous they’re all the time prepared to pay extra to help a small enterprise
- Value sensitivity remains to be a high concern, although, as 33 p.c really feel they need to help small and medium sized companies, however it isn’t cost-effective to take action throughout a recession in comparison with shopping for from massive field retailers
A preview of vacation spending
The report reveals that consumers are getting an early leap on vacation gifting this yr. Actually, 36 p.c of shoppers started their vacation purchasing previous to October. Conversely, 51 p.c of small enterprise resolution makers report they don’t start prep for the vacation season earlier than October. This leaves a brief window to correctly market their companies and join with prospects.
Even so, whereas 40 p.c of shoppers plan to spend much less this vacation season in comparison with 2021, information additionally reveals important enthusiasm for community-based engagement.
- Of those that plan to vacation store, 35 p.c really feel it’s necessary to buy domestically and help their communities, and one other 44 p.c plan to donate or volunteer their time to nonprofits
- Almost half (48 p.c) of those that plan to keep away from massive field shops and main on-line retailers select to take action as a result of it’s necessary to them to help small companies
- Equally, 34 p.c of those that plan to keep away from massive field shops and main on-line retailers really feel small companies supply a extra satisfying purchasing expertise, and 25 p.c suppose small companies are higher geared up to assist with customer support or returns if there is a matter
A change in communication preferences
Findings from the report point out that e mail remains to be one of the simplest ways to talk with prospects. Greater than half (55 p.c) of shoppers that favor a enterprise use a digital channel to contact them agree e mail is their most popular method to be contacted by small companies, and that’s instantly adopted by SMS/textual content (17 p.c). This illustrates a brand new alternative for small companies to activate their prospects and drive extra enterprise.
- 83 p.c of shoppers learn texts despatched to them by companies within the final 12 months, and 74 p.c discovered SMS content material useful, fascinating, or helpful in that timeframe
- 39 p.c of shoppers who signed up for SMS/textual content messages from a enterprise had been motivated to take action due to a deal the enterprise was providing
- Of those that acquired SMS/textual content messages from a enterprise throughout the final yr, 20 p.c made not less than one buy
Learn extra in regards to the findings right here.
These outcomes are comprised of two separate surveys focusing on small-medium enterprise resolution makers and shoppers. All figures, except in any other case acknowledged, are from YouGov Plc. The entire pattern dimension for small-medium enterprise resolution makers (head of a group, group, or small group and above – aged 18+) was 507. Fieldwork was undertaken between the ninth – 14th of September 2022 and all figures are weighted and are consultant of small-medium enterprise resolution makers of companies with 500 or fewer staff. For shoppers, complete pattern dimension was 1112 adults and fieldwork was undertaken between sixteenth – twentieth of September 2022. The figures are weighted and are consultant of all U.S. adults (aged 18+).
