New Data Reveals Amid High Inflation, Consumers Want to Support Small Businesses

Through a recent survey, ActiveCampaign found people recognize the struggles small businesses are going through and are showing up to support them by purchasing their products and services

According to new data released from ActiveCampaign, the leader in Customer Experience Automation (CXA), 56% of consumers are prioritizing making purchases from small businesses amid high inflation trends. This is after only 4% of consumers reported not experiencing inflation, and 28% reported noticing prices climbing faster among small- and medium-sized businesses (SMBs)—vs. 20% among larger brands and 49% across all companies. Still, consumers want to support SMBs given the many obstacles they are facing every single day. In fact, 30% of consumers said they want to support small businesses over big brands because they know they have more struggles and less resources.

In recognition of SBA’s National Small Business Week last week, ActiveCampaign surveyed 1,000 consumers to find out more about the impact inflation and other obstacles have had on both consumers and small businesses, along with how businesses can thrive during this time.

The survey found that while consumers want to support SMBs, 88% said higher prices are one of their top three barriers to doing so, with 69% selecting it as their number one barrier. With almost half (42%) citing remembering to seek out small businesses when searching for products and services as one of their top three barriers, it’s more important than ever that businesses of all sizes keep their brand top-of-mind for consumers. Businesses can make this a reality by collecting, organizing and taking action on customer data. From segmenting audiences to sending tailored content to finding customers where they are, data drives better decisions and ultimately, improves the customers’ experience.

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“We look forward to continuing to support growing companies by helping them take action on the data specific to their businesses and by helping them deliver amazing experiences to their customers.”

Additional findings from the report include:

• 1:1 experiences are the answer: Personalized experiences and aligned values tied at 43% when consumers were asked what would make them prioritize shopping at small businesses despite inflation. There are many ways small business owners can replicate that 1:1 experience through marketing strategies including through email communications, text messaging and even through Slack notifications.
• Entrepreneurship is the new degree: 45% of consumers polled said they’ve considered starting a small business in the past year. And, breaking this down further, 56% of students polled said they’ve considered starting a business this past year. Amid the struggles business owners have faced, many students are eager to try their hand at entrepreneurship.
• Business owners need to create experiences that benefit both in-person and online interactions: 64% of consumers want to interact with small businesses in-person, leaving 36% who prefer to interact online. Historically, consumers have almost solely wanted to interact with businesses in-person because this is how those businesses were set up to provide a great customer experience. Now, there are solutions for businesses of all sizes to offer personalized experiences online, giving consumers the 1:1 attention they are looking for with the added convenience.

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