(BPT) - For small business owners, the holidays are crucial to their success. This year is no different, as small businesses expect holiday shopping to contribute nearly half (47%) of their total yearly revenue in 2025 - up from 33% in 2024. In addition, 93% of business owners say the holiday season is vital to their success this year, according to the Intuit QuickBooks 2025 Holiday Shopping Report. Data from the annual survey uncovers surprising consumer trends, as shoppers balance economic anxieties with the value of gift-giving, plus useful insights that reveal how consumers are utilizing tools like AI to aid their shopping.
The good news? Despite inflation concerns, consumers feel more financially confident than last year, actually planning to increase holiday spending by 25% this holiday season. This year's holiday data from Intuit also estimates that $109 billion of this consumer spending is expected to go to small businesses, with 48% of consumers saying they "shop small" to support local businesses and strengthen their neighborhoods, providing a healthy boost in potential revenue for these businesses.
The value of gift-giving
The survey findings also reveal that while rising costs continue to play a role in consumer spending, gift-giving is one area they intend to prioritize this year. Nearly half of the respondents (47%) shared that they're cutting back in other areas to expand their gift budget, including reducing discretionary purchases like dining out and traveling, and even essentials like groceries and healthcare expenses.
The desire to give to family and loved ones is the driving impulse, with 42% of consumers saying gift-giving feels even more important than ever this year. Additional Intuit research, from Mailchimp's 2025 Holiday Shopping Unwrapped report, reinforces these sentiments, as the report found that over half of shoppers (52%) say their top motivation for giving gifts this year is to bring joy to others.
Here are some additional insights that can help small business owners make the most of their sales and revenue potential this holiday season.
Plan for peak shopping moments
The holiday shopping rush peaks in November, when 45% of consumers expect to do most of their buying. Thanksgiving is a key shopping moment, as Mailchimp data reveals that 71% of U.S. consumers make a purchase on this day. Many start even earlier, with nearly one in three starting holiday shopping in October.
To prepare for these busy shopping moments, small businesses should ensure they're equipped with the right digital tools that can easily track and manage inventory in real time to meet the demands of shoppers, and ultimately, help increase their sales potential.
Help guide shoppers through search
The number of consumers planning to use AI tools to assist with gift buying has increased 70% from last year. Shoppers say the main benefits of using AI are to uncover better prices and discounts (64%), find new products (51%) and get personalized recommendations (47%).
To help shoppers find their products and services, small businesses should make sure they're not just focusing on search engine optimization (SEO), but also generative engine optimization (GEO), which helps to optimize their content to increase the likelihood of their business and products appearing in AI-driven search results.
Use marketing channels that matter most
Over half of consumers surveyed (58%) shared that receiving coupon codes is a tactic most likely to get them to make a purchase. Reminders about sales or promotions sent via email (40%) and SMS (31%) are also influential in encouraging them to buy, even more than social media ads or influencer recommendations.
Small businesses should ensure they're using a personalized omnichannel marketing strategy across email and SMS to alert customers to special deals and promotions - and sending timely reminders to help convert the sale.
Mobile is a must, but in-store shopping remains a priority
Two-thirds of consumers (65%) say they'll use phones to browse, compare prices and buy gifts, with the biggest draws being easy mobile checkout (51%), mobile-friendly websites (47%) and retailer apps offering exclusive deals (43%). For that reason, business owners will want to be sure that they provide those key services to mobile shoppers.
But in-store shopping is still important: Over half of shoppers (52%) plan to shop both online and in-store, so small businesses should ensure they're taking an omnichannel approach across their sales strategy.
Use AI tools strategically
Small businesses are dramatically increasing use of AI in business operations, with nearly three-fourths (74%) planning to use AI during the holiday season compared to just 30% last year, representing a 147% increase. Plus, 42% of these businesses report they'll be using AI during the holiday season for the first time. From predictive inventory management to customer segmentation, AI tools are helping small businesses stay ahead of demand, but leveraging the right tools to fit their needs is key.
Businesses should look to adopt AI-powered tools that do the work for them, including key tasks like auto-generating invoices and scaling ability to send personalized email and messaging campaigns, versus ones that add more complexity or require additional steps to complete tasks.
To learn more about how small businesses can optimize holiday sales and find the right tools to help their business grow and thrive, visit these resources from QuickBooks and Mailchimp.