The holiday shopping season kicks off the day after Thanksgiving with Black Friday. But the next day, Small Business Saturday, lets you strengthen your community with your holiday spending.
Shopping at local stores instead of large chain retailers makes a significant economic difference in the community. The American Independent Business Alliance estimates $52.90 of every $100 spent at local businesses will recirculate through the community. By contrast, only $13.60 of every $100 spent at chain stores stays in the community.1 Your holiday spending at small, local businesses will pay their employees, support their capital growth, and spread to the larger community.
How to Support Small Businesses
One of the easiest (and most obvious) ways to support small businesses is to shop – in-store or online. Local stores often offer one-of-a-kind handmade or locally made items that you won’t find anywhere else.
Pay cash when you can. It saves stores on the costs of processing credit card transactions. Shopping locally can also create a sense of community as you build relationships with local store owners and staff. And if you’re looking for flexibility, many small businesses established online shopping options during the pandemic, making it easier than ever to support them.
Another way to help small shops is by purchasing gift cards. It’s a popular option for those friends or family members who are difficult to shop for; in fact, the U.S. gift card market is expected to reach $241.3 billion in 2024.3 Not only are gift cards convenient, but they often bring in new customers. According to a Fiserv study, nearly 90% of consumers who receive gift cards to a new business return as repeat customers and frequently sign up for loyalty programs.4
Word-of-mouth is another easy way to help small businesses. Sharing a positive experience at a local business can encourage others to visit. Personal recommendations are highly trusted; a Nielsen study found that 88% of consumers place the highest trust in recommendations from friends and family.4 Leaving positive online reviews on Google, Yelp, or Facebook can also amplify a business’s reputation. In fact, a Harvard Business School study found that a business’s revenue increases by up to 9% if its Yelp rating rises by one star.5
Social media plays a huge role, too. Sharing posts or tagging your favorite businesses can increase their reach and potentially introduce them to new customers. A recent survey by Visual Objects found that social media is one of the most effective digital marketing tools for small businesses, with platforms like Facebook, Instagram, and LinkedIn being particularly beneficial for connecting with local customers.6
Communication is also important. Business owners benefit from your feedback. If a store doesn’t carry what you’re looking for, ask if they can order it. It may tip them off to a consumer trend they were unaware of. It’s also a good idea to let shop owners know how you heard about them. Word of mouth? Online advertising? It helps businesses understand how to spend their marketing dollars.
With the holiday season around the corner, supporting small businesses is a powerful way to strengthen the local economy. Every purchase, positive review, or mention helps lift the small businesses that bring jobs for residents and invest in the local communities.
Financial matters can be tough. We’re here to make it a little easier. Check out our upcoming events to keep the insights coming!
Sources
- https://www.bankrate.com/credit-cards/business/how-to-support-small-businesses/#in-person
- https://www.score.org/resource/blog-post/small-businesses-giving-back-makes-a-big-impact-local-communities
- https://www.globenewswire.com/news-release/2024/03/25/2851630/28124/en/United-States-Gift-Card-and-Incentive-Card-Market-Growth-Dynamics-Databook-2024-Payment-Firms-are-Partnering-with-Gift-Card-Providers-to-Tap-into-the-Growing-Popularity.html
- https://www.nielsen.com/insights/2021/beyond-martech-building-trust-with-consumers-and-engaging-where-sentiment-is-high/
- https://www.harvardmagazine.com/2011/10/hbs-study-finds-positive-yelp-reviews-lead-to-increased-business
- https://www.prnewswire.com/news-releases/small-businesses-value-social-media-over-all-other-digital-marketing-channels-301505849.html
