As U.S. small and medium-sized enterprises (SMEs) head into the 2024 holiday season, there are both new challenges and evolving opportunities. While this year’s landscape continues to be shaped by inflation and supply chain concerns, businesses are shifting towards technology investments, personalized customer service and international market expansion to boost holiday sales.
To understand business expectations and how they are preparing to tackle challenges and seize opportunities this holiday season, DHL surveyed hundreds of U.S. SMEs. Below are the key findings and insights:
Sales Optimism Remains, but Expectations Temper Slightly
Despite ongoing economic challenges, SMEs remain generally optimistic about holiday sales, though this year’s outlook is more measured than in 2023. Nearly half (48%) of businesses expect an increase in year-over-year (YOY) holiday sales—with 14% anticipating significant growth and 34% a slight uptick. Meanwhile, 44% anticipate sales staying on par with 2023. Only 8% foresee a decline, indicating continued resilience amid volatility.
Holiday Prep is a Priority as SMEs Plan Even Earlier
High sales optimism goes hand-in-hand with holistic preparation, as many businesses began their holiday planning earlier this year. About 45% of SMEs began prepping for the holidays during Q2 or earlier, compared to 39% last year. This shift indicates a growing awareness among businesses to stay ahead of potential challenges and capitalize on holiday demand.
Creative Strategies to Combat Challenges
Supply chain issues (36%) and inflation combined with fluctuating consumer demand (34%) remain the top concerns for SMEs this holiday season. In response, SMEs are focusing on two main strategies to capture more holiday sales: expanding into international markets (35%) and leveraging holiday discounts (32%). Businesses are also betting on creative promotional tactics to stand out this season, like tiered discounts based on spending (38%) and limited time offers (37%) to drive customer engagement.
Personalized Service Takes Center Stage for Customer Improvements
When asked about customer experience improvements, a majority (60%) of respondents are prioritizing personalized customer service this holiday season. This highlights the growing emphasis on tailoring customer interactions to make them more meaningful. Other key areas of investment include enhanced web and mobile experiences (23%) and eco-friendly practices (13%).
Businesses Embrace the Holiday Spirit for Sales Success
SME leaders are willing to go to great lengths to achieve holiday goals:
- 43% said they would wear a Santa suit on every video call if it meant exceeding holiday sales goals
- 20% would put up lights for all their neighbors
- 19% would sing carols to every customer
- 18% would even chug a gallon of eggnog!
As SMEs prepare for the 2024 holiday season, they remain optimistic, yet cautious, with a strong focus on international expansion, personalized service and creative promotions. Partnering with an experienced logistics provider like DHL can help businesses navigate supply chain challenges, expand into new markets, and create custom shipping solutions to ensure a successful holiday season. DHL is dedicated to working closely with companies, and to creating custom-shipping solutions so they can begin or continue to expand their businesses beyond the U.S. borders. Start by requesting a DHL account today.
