American Express recently released its Amex Trendex: Small Business Edition – Holiday Report, providing valuable insights into the current state and strategies of U.S. small businesses during the holiday season.
The report reveals that 66% of small businesses find the holiday season crucial for their financial health, with this sentiment being strongest in the retail sector, where 89% of respondents acknowledged its importance.
A significant focus for these businesses is customer acquisition, with 50% of respondents citing it as their primary goal for the season, slightly outweighing the aim of increasing sales.
Watch now: Small businesses, particularly those led by Gen Z and Millennial entrepreneurs, are using social media for various purposes this holiday season, but not in the ways one might think.
42% of the Gen Z and Millennial-owned businesses planning to hire seasonal workers are leveraging social media as their primary hiring tool. Social media is also an essential marketing avenue, with 76% of companies prioritizing platforms like Facebook, Instagram, and YouTube for their holiday marketing efforts. The focus is mainly on reaching Millennial and Gen Z customers.
Artificial intelligence (AI) is another area where younger business owners are showing keen interest. While 25% of all surveyed businesses plan to use AI this season, this number rises to 50% among Gen Z and 36% among Millennial owners.
“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,” said Jeanniey Walden, Host and owner of the T.V. show LiftOff with Jeanniey Walden.
Overall, the trend is clear: small businesses are adapting to modern technologies and platforms to enhance their performance during the critical holiday season. This shift, marked by a 7% increase in AI prioritization since July, is led by larger small businesses and those owned by younger generations.
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