American Express recently issued its Amex Trendex:
Small Business Edition Holiday Report, which outlines trends among U.S. small businesses heading into the holiday season. The new data shows how the holidays are critical for the small business sector’s financial health, and reveals how they are staying resourceful to bolster their businesses.
“The final months of the year are especially critical to ensure small businesses meet their revenue goals for the full-year,” said Anna Marrs, group president, global commercial services and credit and fraud risk. “From embracing AI and social media to hire and attract new customers, to using these tools to boost growth, small businesses are finding ways to set themselves up for success.”
The new data shows that two in three small businesses surveyed say the holidays are important to their financial health. This is especially true for the retail sector, which had the highest percentage of respondents cite the season’s importance (89%) compared to all small businesses (66%).
Across all small businesses, when asked for their top business goal this holiday season, 50% of surveyed respondents cited “acquiring new customers” as a primary goal. This surpassed the goal to “increase sales,” which was the second highest response with 44%. However, those surveyed within the retail industry, reported “increase sales” as their No. 1 response at 71%.
Of all small business owners surveyed, 29% stated they plan to hire seasonal workers this holiday season. Among these businesses, Gen Z and Millennial small business owners are the most likely to do so (42%). Social media is their top strategy to hire as 20% of all small businesses surveyed, including 27% of Gen Z and Millennial small businesses surveyed, stated they will use social media to find and hire seasonal employees.
In addition, more than 3-in-4 survey respondents are planning holiday-season marketing efforts, and stated they’re primarily prioritizing Facebook (82%), Instagram (63%) and YouTube (48%).
Seeing the greatest potential for growth, 58% of all surveyed plan to use social media to reach new Millennial customers, and 40% said they plan to use it to reach new Gen Z customers.
Twenty-five percent of all survey respondents, across generations, plan to use AI this holiday season and 39% see the benefit in using it. This compares to 50% of Gen Z and 36% of Millennial survey respondents.
“We have already started using AI in our social media and communications efforts,” said American Express customer and small business owner Jeanniey Walden, host and owner of TV show LiftOff with Jeanniey Walden. “AI is a cost-effective way to help build business and manage customer experiences. There are so many administrative activities that small business owners must master, and AI is making it easier for owners to prioritize their time where they should: on the customer.”
Forty-one percent of surveyed small business owners are generally prioritizing AI for their business. This is a 7% change from American Express small business July data survey with large small businesses (increasing +23%) and Gen Z/Millennial-owned businesses (increasing +11%) leading the charge.
