Summary
NMI’s survey highlights the strong emotional and practical factors driving consumer support for small businesses, particularly during the holiday season. The survey underscores the importance of flexible payment options and modern checkout experiences in attracting and retaining customers.
Key Findings
Emotional Connection to Small Businesses:
87% of consumers say gifts from small businesses are more thoughtful.
53% feel a sense of belonging or community, 49% feel satisfied, and 40% feel proud when shopping small.
78% are willing to pay more to support small businesses.
Generational Support:
Millennials:
90% agree small business gifts are more thoughtful.
83% are willing to pay more for SMB products.
81% shop small during economic challenges.
Gen Z: Preferences for modern checkout experiences and flexible payment options are highest in this group (42%).
Challenges for Small Businesses:
Outdated Checkout Systems:
32% of U.S. adults prefer larger retailers due to better online ordering systems.
Gen Z (34%) and Millennials (39%) cite modern checkout and payment flexibility as critical.
Key Payment Preferences:
Credit/debit cards, cash, and contactless payments (e.g., Apple Pay, Google Pay).
Opportunities for SMBs:
Coffee shops, casual takeout restaurants, and bakeries are the top small business categories likely to succeed during the holiday season.
Flexible payment systems and omnichannel strategies can improve customer loyalty.
American Express Initiative:
In its 15th year, Small Business Saturday® encourages shopping at local businesses.
Amex is donating $1 to the U.S. Chamber of Commerce Foundation for each qualifying purchase made at small businesses on November 30.
Key Takeaway
Small businesses must embrace modern payment solutions and omnichannel strategies to meet evolving consumer expectations, especially during peak shopping seasons like the holidays.
Trend
"Support Local" Movement: Consumers prioritize thoughtful gifts and community connections, with growing expectations for seamless payment experiences.
Consumer Motivation
Emotional: Supporting local businesses fosters pride, satisfaction, and community connection.
Practical: Flexible payments and efficient checkout processes simplify the shopping experience.
What is Driving the Trend
Emotional attachment to small businesses.
The rise of mobile and contactless payment technologies.
Growing expectations for convenience among Millennials and Gen Z.
Who Are the Consumers Referenced?
Millennials: Leading supporters of small businesses.
Gen Z: Demands modern technology and convenience in shopping.
General Population: 78% willing to pay more for small businesses.
Description of Consumers
Products Referenced: Gifts from local coffee shops, bakeries, and casual takeout restaurants.
Age: Millennials (25-40) and Gen Z (10-25) are key demographics.
Conclusions
To thrive in 2025, small businesses must modernize their checkout systems and integrate flexible, omnichannel payment options, catering to both emotional and functional consumer needs.
Implications for Brands
Emphasize Local Charm: Market the thoughtful and unique aspects of SMB products.
Modernize Payments: Offer contactless and mobile wallet options.
Digital Engagement: Leverage social media to highlight community-focused campaigns like Small Business Saturday.
Implications for Society
Strengthened local economies through increased support for SMBs.
Greater community engagement and pride fostered by supporting small businesses.
Implications for Consumers
Access to unique, thoughtful products with enhanced convenience through modern payment options.
Opportunities to contribute to community well-being.
Implications for the Future
Small businesses that integrate modern checkout and payment technologies will remain competitive and thrive in an increasingly digital marketplace.
Consumer Trend
Tech-Savvy Local Shopping: Consumers value both the emotional satisfaction of supporting small businesses and the convenience of digital solutions.
Consumer Sub-Trend
Modern Payment Expectations: Seamless, flexible payment options drive loyalty, particularly among younger consumers.
Big Social Trend
Support Local Movements: Rising interest in sustainable and community-focused shopping experiences.
Local Trend
Increased preference for small businesses offering personalized service and flexible payment methods in local communities.
Worldwide Social Trend
Global shift toward community-first commerce combined with digital-first payment solutions.
Name of Big Trend Implied by Article
"Digitally-Enabled Local Loyalty"
Name of Big Social Trend Implied by Article
"Community-Centered Retail"
Social Drive
Emotional connection to small businesses.
Desire for convenience and flexibility in payments.
Learnings for Companies in 2025
Invest in Modern Payment Systems: Secure, flexible, and fast options like mobile wallets are essential.
Highlight Local Values: Emphasize community contributions and unique product offerings.
Promote SMB Advantages: Use campaigns like Small Business Saturday to boost visibility and loyalty.
Strategy Recommendations for 2025
Adopt Omnichannel Solutions: Offer seamless online and in-store experiences.
Enhance Checkout Technology: Integrate mobile, contactless, and app-based payment systems.
Social Media Engagement: Leverage platforms to promote community connections and SMB stories.
Tailored Marketing: Highlight the uniqueness and emotional value of SMB products.
Final Sentence (Key Concept)
Consumers increasingly value small businesses for their community impact and unique offerings, but modern payment solutions and seamless checkout experiences are essential to winning loyalty.
What SMBs Should Do in 2025
Action: Modernize payment systems and leverage community-focused marketing.
How to Do It:
Implement mobile and contactless payment options.
Emphasize the unique, thoughtful nature of SMB gifts.
Use social media and local campaigns to boost engagement and visibility.
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