Customer loyalty pays, according to new survey data from Constant Contact. Of those business-to-consumer (B2C) small businesses surveyed in October 2013, a resounding 82 percent said loyal customers are the number one way that they grow their business, followed by online marketing tools (66 percent), a stronger economy (50 percent), and skilled employees (47 percent). As for how they earn that loyalty: 90 percent said by offering a great product or service; 60 percent cited sustained customer communications through email, and 49 percent through social media channels. So loyal customers are a top driver of business growth—but what exactly does “growth” mean to small businesses? Turns out, not every small business has grand plans to expand beyond their flagship location. Fifty-seven percent of respondents defined business growth as more revenue. More customers (40 percent) came in as the second most-cited definition of growth, and expanded inventory placed a distant third at 1.5 percent. Other definitions included more employees, expanded space in current location, and more locations.

1. New survey results from Constant Contact in celebration of Small Business Saturday

2. 82%
of small businesses say loyal customers are the
number one way that they grow their business.
What factors are helping to build your business?
Loyal customers Online marketing
tools
Stronger
economy
Skilled
employees
Customer events Promotions and
coupons
Back-end
technology
automation
None of these

3. What exactly does “growth” mean to small
businesses? Here’s how they ranked its
meaning:
1. More revenue
2. More customers
3. More inventory
4. More employees
5. Expanded space in current
location
6. More locations

4. How do you achieve customer loyalty?
Offering a great
Sustained
product or service communications
through email
newsletters
Sustained
communications
through social
media channels
Face-to-face time Value-added online
through events
promotions
Other

5. What are the roadblocks to growth?
29% say finding new customers.
23% cite not having the time.
16% point to the tough economy.
Finding new I don’t have
customers time to do the
things I’d need
to do to focus
on growth
Tough
economy
I don’t have
the money to
invest in
growth
Increased
competition
Other
Marketing
costs
Customer
turnover
I don’t have
any hurdles
Employee
turnover

6. ´Tis the season to be busy.
What is your busiest season?
Fall
Winter
Spring
Summer
What percentage of your overall (annual) profits come
from your busiest season?
26-50%
I don't know
More than 50%
0-25%

7. Holiday Payoffs
52%
said that new holiday customers become repeat,
loyal customers
Yet…
28% still do no advanced planning for the holidays.
When do you start planning for the holiday season?
Two to three
months in
advance
I don't plan for
the holiday
season
One month in
advance
More than three Between 2 and 4
months in
weeks in advance
advance

8. Of the 72% that plan ahead, here’s what they do:
Increase inhouse
marketing
activities
Increase online
and in-store
promotions
Nothing
Run Small
Business
Saturday
promotions
Order more
inventory
Other
Partner with Hire more staff
Increase
my local biz
outside
association
marketing help

9. Small Business Saturday
Prior to this year, have you ever
participated in Small Business Saturday?
Yes
No
What do you expect to gain from
participating in Small Business Saturday this
year?
It will help
It will deliver It will deliver a
create
new customers quick boost in
awareness for
sales
my business
I like the
marketing
materials
provided
Other

10. The majority of those who have participated in Small Business Saturday in
the past, plan to do so again this year.
Yes
No
Unsure
Of those who have not participated in the event
in the past, 52% still don’t have plans to start.
Why not? Many answered “I don’t think I’ll get
more business from it.”
Other
I don’t think I don’t think I don’t know I don’t know I have
I’ll get more it’s worth
enough
of other participated
business
the time
about it businesses in the past
from it
in my area and didn’t
doing it find value in
it

11. About the survey
This Constant Contact-sponsored survey was administered in October of 2013 to 854
B2C small business participants in the Constant Contact Small Biz Council – a research
panel of US small businesses recruited from the Constant Contact customer base. This
survey is part of an ongoing series about the state of small businesses and the ways
they connect with, and grow, their audiences.
Resources
For additional resources visit: http://www.constantcontact.com/holiday
Constant Contact’s Blog: http://blogs.constantcontact.com/