We can’t discount the importance of the financial strain in the country and its impact on holiday shopping. That’s why this year, you need to address the elephant in the room and appeal to the budget-conscious consumer. However, getting into a price war isn’t the answer either. You don’t want to cut away your own profit margins. Selling more and making less is not the way to go.

Appealing to the Budget-oriented Customer

Here are some effective approaches to help you appeal to cost-conscious consumers and still bring in revenue:

1. Ace Competitive Pricing and Promotions

Offering competitive prices and special promotions is crucial to attract budget-conscious consumers. You can do this by:

• Providing a range of products or menu items at different price points to cater to various budgets.
  • Introducing early holiday deals for shoppers who start their holiday buying early. Sometimes your competition is not the business down the street but inaction. No one wants to buy when they think a better offer is coming. That’s why so many businesses are offering pre-Black Friday discounts and labeling them as such.
  • Creating loyalty programs, introducing punch cards, or providing discount coupons for shopping now that they can use later will encourage customers to return.
  • Matching or beating prices from previous years to make holiday goods more affordable. Try a loss leader on one item to bring people in your store. A fun marketing campaign could be “Shopping like it’s 1999” and offering one item at its 1999 price or for $19.99.
  • Creating a value menu. Most shoppers want a great deal, but they hate to do math. Take a tip from fast food restaurants and create a value menu. People assume the value menu is a great deal because it’s marketed that way. If you don’t run a restaurant, create a “value bundle” or a “best value” tag for certain products or services. Cost-conscious shoppers will be drawn to them.
  • Providing discounts for large spends and free shipping. Many shoppers want to get holiday shopping over with. Encouraging them to spend more with you and knock out their list with you can be a powerful marketing driver. At checkout ask, “Who else do you have left on your list?” Then suggest an item in store that might fit what they’re looking for. If you offer online shopping, provide free shipping for a set dollar spend. People will often spend more on products to avoid paying for shipping.

2. Value-Added Services

Enhance the shopping or dining experience with additional services that provide value:

• Offer convenience features like easy returns, extended hours, or gift-wrapping services.
  • For restaurants, provide recipes or complete dinner menus that meet specific price points. Examples include the $5 menu or pick two for $30.
  • Implement order-ahead and in-store pickup options to make shopping more convenient. Take a hint from a past promotion of Little Caesars pizza where they always had pepperoni pizzas ready to grab and go between set hours.
  • Think about a harried parent and what they might need this time of year. You may be able to offer a new service or product for the holiday season only. For instance, you might offer pizza by the slice (when you usually sell only whole pies) or some little grab-and-go goody at a discount price to keep hungry kids happy while their parents shop. Some supermarkets give a free cookie to every child whose parents come to the bakery. Yes, there’s a cost to providing a free cookie, but a parent being able to shop in peace means they’ll select your store knowing their child will be content as they shop. This could increase spend too.

3. Strategic Marketing

Use targeted marketing techniques to reach budget-conscious consumers:

• Employ urgency and scarcity in your messaging (e.g., “Last Chance,” “Limited Stock”) to drive immediate action. Fear of missing out is a powerful motivator.
  • Highlight the convenience and cost-effectiveness of shopping locally for last-minute needs. Talk about how local businesses can provide a helpful shopping experience and are excellent at making gift suggestions.

4. Budget-Friendly Options

Develop product or menu offerings specifically designed for cost-conscious customers without impacting your bottom line.

• Introduce smaller versions of popular items or sample packs at lower price points.
  • For restaurants, create special fixed-price holiday menus or family-style options. Market that it’s not “cheating” at a potluck if you bring a delicious item everyone loves and then plug your family-sized menu items.
  • Offer gift cards with bonus incentives (e.g., $5 off a $100 gift card) to encourage higher spending.

5. Emphasize Value and Quality

Communicate the value proposition of your products or services:

• Highlight the quality and uniqueness of your offerings compared to mass-market alternatives.
  • Emphasize the benefits of supporting local businesses during the holiday season.
  • Tell the story of your product, service or business. Antique stores, for instance, often use tags to explain what an item does, where it’s from, and how it’s valuable. A story can transform an ordinary item into something extraordinary.
  • Create a “Be like ___” campaign. Ever notice how pictures on a menu influence buying decisions? If you offer a service where images help decision-making (beauty providers and tattoo artists, looking at you), post images on the wall of some of your most popular designs. Label them by name like “Mary’s updo” and post a small card with her story. For instance, “Mary wanted to look elegant for her company holiday party. This beautiful chignon looks intricate, but it lasts through the night and into the wee hours with no upkeep and fuss.” This functions like a testimonial but puts a face and name to your design.

Budget-conscious shoppers and diners aren’t always looking for the cheapest price. They want to feel like they’ve gotten the best deal. If you long to increase foot traffic and sales while building customer loyalty during the Small Business Season, don’t make people embarrassed for being cost-conscious. Make them feel welcome.

It’s the most wonderful time of the year. Cozy lights, warm smells, family nearby, and cheap gifts from big box stores, right?

Not so fast! While the convenience of online giants can’t be denied, small businesses have a secret weapon: the power of nostalgia, tradition, and beloved memories.

This holiday season, you can tap into those warm, fuzzy feelings to create a marketing campaign that truly resonates with your customers and beats big every time. Here’s how:

Evoke the Spirit of Holidays Past

Remember the excitement of visiting a local toy store as a kid? Or the aroma of freshly baked goods wafting from the bakery down the street? There are certain sensory memories that are hard to forget, and they lead to purchases. (I’m a sucker for apple cider donuts—and see them as an undeniable sign that fall is here—because they were special treats when we were kids. You can play on these same types of memories.)

Here’s how to capitalize on sensory experiences and powerful memory triggers:

• Decorate with a nostalgic touch: Think vintage ornaments, classic holiday colors, and cozy displays that evoke a sense of yesteryear. Yeah, that tinsel may not fit in with today’s more neutral palate, but Gen Xers (especially) love nostalgic nods to their youth, no matter how gaudy.
• Share heartwarming stories: Use your marketing channels to share stories about your business’s history, family traditions, or how your products played a role in holiday celebrations. You can also share your own holiday memories of “businesses gone by.” Reminding people of all the wonderful businesses that are no longer around can illustrate the importance of their support in much the same way the Ghost of Christmas past showed old Ebeneezer Scrooge what he no longer had in Dickens’ A Christmas Carol.
• Create a sensory experience: Engage all five senses. Play classic holiday music, offer festive treats, and use scents like cinnamon or pine to transport customers to a magical holiday wonderland.

A quick word about the science of scent: Scent is extremely powerful in evoking memory and if it works for your business, you should use it. The olfactory system, which processes smells, has a direct connection to the parts of the brain involved in memory and emotion. Smells bypass the cognitive processing that other senses undergo, making the connection between smell and memory more immediate. Additionally, smells are often linked to emotional experiences. For example, the smell of freshly baked sugar cookies might evoke memories of waiting for Santa.

Become Part of New Traditions

Even if you’re new to the area and are thinking, “My place isn’t associated with memories or holiday traditions,” today is a great day to start. You can become part of your customers’ evolving holiday traditions by:

• Hosting unique events. Parents with littles, people with out-of-town guests, and a host of others are looking for activities to keep their friends and family busy and get them in the “holiday spirit.” Think cookie decorating classes, holiday-themed workshops, or special shopping nights with exclusive discounts.
• Offering personalized gifts: Provide gift-wrapping services, personalized ornaments, or custom gift baskets to make holiday shopping more meaningful.
• Supporting local causes: Partner with a local charity or community group to give back during the holidays and show your commitment to your community. Some businesses have Angel Trees or collect toys for a nonprofit.

Realize Community is Key

Your business can thrive by building community connections.

• Run contests encouraging customers to share their favorite holiday memories or traditions associated with your business.
• If you sell handcrafted goods, showcase the stories of the makers behind them.
• Participate in Small Business Season and celebrate shopping local. Team up with the chamber and other small businesses in your area to promote the benefits of shopping small.

Embrace the Digital World

Nostalgia isn’t just for your brick-and-mortar store. Use your online presence to evoke those same warm feelings. Post old photos of your business or town during the holidays on social media. Incorporate vintage-inspired graphics and fonts in your email marketing and social media posts. Create a “holiday memories” board on Pinterest. Curate images that evoke a sense of nostalgia and link them back to your products or services.

Additionally, if you offer an online store, make sure people know about it. Often they buy online from box stores because they don’t think about their local store selling on the internet. Market your online offers as well.

The convenience of online shopping is undeniable, but convenience is not as memorable as an experience. Small businesses offer something money can’t buy: a genuine connection to the community and the magic of the season. By tapping into the power of nostalgia and tradition, you can create a holiday marketing campaign that not only drives sales but also builds lasting relationships with your customers.

Gift cards are the ideal gift during the holiday season. They’re a convenient go-to for customers. They always fit, are always in the right color, and they are an ideal gift for people you know well and people you’re just getting to know. Gift cards also make terrific employee gifts, thank yous and bonuses. If you have a small business, you should look at gift cards as a strategic tool—not just for boosting holiday revenue. Gift cards can also help you foster long-term customer relationships and assist you in increasing revenue for today for services rendered or goodspurchased in the future. Many businesses discovered the value of offering a gift card program during the pandemic (andat time of natural disasters). During these challenges, gift cards can be a source of revenue even when the business is not open.

Why Gift Cards Are a Must for Small Businesses

Gift cards are appealing to shoppers, especially for last-minute, hard-to-shop-for, or out-of-town gifts (have you seen the cost of mailing packages these days?!). If you sell online and offer gift cards, you can capture out of town buyers as well. Gift cards don’t have to be an administrative headache. Digital gift cards are becoming the new standard, with over 50% of the market share in the first half of 2024. Gift cards can also be a gateway to future sales, new customer acquisition, and increased brand visibility.

Creative Gift Card Ideas for the Holidays

Boring rectangle cards are out. Instead, create an appealing gift out of them and include some upsells to facilitate purchases by:

Bundling Gift Cards with Small Holiday Extras

Include a small, festive item (e.g., holiday candle, ornament, or seasonal treat) with each gift card purchase as a value-add or offer a discount on a small item with a gift card purchase, such as buy a $25 gift card, get this ornament for an additional $2. Show them bundled together at the cash register to capture impulse buys.

Get creative with your bundle item. For instance, a coffee shop could include a mini bag of holiday coffee beans (a taster) or a boutique could add a scented sachet. It’s a nice touch the recipient will love. It creates a positive impression, encourages impulse purchases, and differentiates your business from all the other rectangle cards.

Tiered Gift Card Bonuses for the Holidays

Offer bonuses based on gift card spending levels (e.g., “Buy a $50 gift card, get a $5 bonus; Buy a $100 gift card, get a $15 bonus”).

Promote these offers on social media, in-store, and on your website to draw in more shoppers. Let us know because we can help you get the word out. <Insert any special programs or gift guides you might have to promote this. If you participate in Yiftee or other community gift card, enter that info here.>

This type of tiered bonus encourages higher gift card purchase values and attracts customers who might want to gift (or keep) the bonus card.

Partner with Other Local Businesses for Joint Gift Card Offers

Collaborate with nearby or complementary businesses to create a joint gift card package (e.g., a coffee shop and a bookstore, or a spa and a boutique). Create a gift card deal that adds value and introduces each business to new customers.

You could also work together to create a tiered bonus like above. For example, for every $100 purchased at the bookstore, get a free $5 gift card at the coffee shop.

You would need to work out payment arrangements with the other business. This type of partnership can also increase foot traffic, foster local exchanges, and offer an exciting, unique gift idea for shoppers.

Holiday Gift Card “Mystery Bonus”

Include a mystery discount or reward with each gift card purchase valid after the holidays. For example, a restaurant might offer a “mystery envelope” with a surprise discount for January or a “Buy one get one free” offer for a future visit.

This encourages repeat visits in the new year, provides post-holiday sales boost, and builds excitement around gift card purchases.

Limited-Edition Holiday-Themed Gift Card Designs

Offer holiday-specific designs or branded packaging for gift cards that make them more visually appealing and memorable. A limited-edition design can be created affordably, especially if it’s an e-gift card. Promote it on social media and in email campaigns.

If you don’t have the time or inclination to do this, add it to a special glitter sleeve or other festive mini container. Leave them wrapped beautifully on a tree or at your register to influence impulse buys.

Doing so increases the perceived value of the gift card and encourages more people to choose it as a holiday present.

Marketing and Promoting Gift Card Offers

While gift cards make ideal gifts, they don’t market themselves. Local shoppers may not realize you have a gift card. Run a social media campaign informing people that you sell gift cards as well as any specials you’re offering. Post stories, photos, and videos to draw attention and drive sales. Get creative with photos of bundled gift cards, reels of mystery bonuses being revealed, or countdowns to encourage last-minute purchases.

Use attractive in-store signage and point-of-sale promotions to bring attention to your gift cards. Create holiday-specific displays near the checkout area to capture impulse buys.

Don’t forget email campaigns and website mentions. Design festive email campaigns focused on gift card promotions and ensure you can sell gift cards on your website for easy holiday gift purchasing.

Bonus Points for Overachievers

Gift cards are a great way to assist people in finding easy holiday gifts, but you also want to create a campaign to help convert those gift card recipients into loyal customers. You can do this by offering discounts or exclusive offers for their next visit. Additionally, you can place a message on the gift card about being eligible for a discount if they join your email list. That way you can continue to nurture the relationship even after the gift card is used.

Don’t think of gift cards as boring. They are an excellent source of revenue and can provide quick assistance for desperate customers. When implemented strategically, gift cards can provide immediate holiday revenue and long-term customer engagement.

What does nearly every feel-good holiday movie have in common? A small business owner, of course! And that’s because there’s something magical about following your dreams and being part of a community. If you think back to some of your most cherished holiday memories, they probably revolve aroundyour favorite winter activity, meeting up with loved ones at a beloved restaurant, drinking a decadent hot beverage (from the place that has the very best coffee/cocoa and desserts), marveling at thebusinesses decorated in holiday lights, and shopping at your favorite store where you can always find that perfect something. And one of the things that makes it all so special are the traditions you’ve created at those places with the people who mean the most to you.

The memory of those beautiful moments is what’s behind the magic of Small Business Season!

From November 1st to December 31st, we’re celebrating the heart and soul of our community–our small businesses. These entrepreneurs pour their passion and creativity into their shops, restaurants, and services, making our area unique and vibrant. Small Business Season isn’t just about buying things. It’s about making a conscious choice to support the dreams and livelihoods of our friends, neighbors, and fellow community members. Every purchase you make at a small business has a ripple effect, helping to create jobs, boosting the local economy, and fostering a sense of connection. This holiday season, get ready to explore the many gems here in Burke! This Small Business Season, we hope you’ll:

• Discover unique gifts and one-of-a-kind treasures at local boutiques, craft fairs, and artisan markets.
• Treat yourself (and your loved ones) by indulging in delicious meals at family-owned restaurants (after all, who wants to cook after a busy day?), book a relaxing spa treatment at a local salon, or sign up for a fun workshop.
• Share your favorite small businesses on social media, leave positive reviews, and tell everyone about the amazing experiences you’ve had and the holiday traditions you’re making.

Remember, every dollar you spend at a small business makes a difference. Let’s show our appreciation and support for the hardworking entrepreneurs who help our community thrive! Timeless treasures and cherished memories are just around the corner—shop local! P.S. If you’re a small business owner, reach out and let us know how we can help you spread the word about your business this season!