As we savor the final moments of summer, the approaching fourth quarter and the imminent holiday shopping season demand the attention of businesses. Factors such as the resurgence of Covid, supply chain shortages, and the conclusion of pandemic-era benefits add an element of uncertainty to the e-commerce landscape, intensifying competition for holiday traffic.
In this challenging environment, it is crucial for small businesses (SMBs) to proactively solidify their strategies. Simply put, those not already planning for the holidays find themselves lagging behind.
How to increase your online sales during the holidays
Establish Clear Holiday Goals:
Approach the holiday season with defined objectives, avoiding potential chaos and ensuring effective use of resources. Analyze last year's performance to identify strategic improvement opportunities, setting clear and SMART (Specific, Measurable, Attainable, Relevant, Time-based) goals. Goals may extend beyond revenue growth to include areas like customer acquisition or inventory reduction.
Build a Goal-Driven Strategy:
Develop a strategy aligned with your holiday goals. Allocate your budget based on outreach to three specific audiences: current customers, individuals actively searching for your products, and those unaware of your brand. Tailor your advertising spending to maximize impact, focusing on platforms and methods that resonate with each audience.
Align Ad Spending with Consumer Behavior:
Instead of evenly distributing ad spend throughout the quarter, align it with holiday consumer behavior. Consider a bell curve approach, starting with modest spending in early October, peaking around Thanksgiving, and gradually decreasing until Christmas. Allocate a significant portion (80%) of your budget for the weeks before and after Thanksgiving to capture peak consumer activity.
Incentivize Larger Carts with Holiday Specials:
Encourage larger purchases by creating holiday bundles or offering gifts with purchase. Strategically design bundles with related products or popular items paired with new releases. This approach boosts revenue without resorting to significant discounts, enhancing the value proposition for customers.
Stay Engaged and Flexible:
Maintain active involvement throughout the holiday season, avoiding a set-and-forget approach to advertising. Stay flexible by monitoring ad performance, adjusting strategies based on real-time results, and increasing ad spend if necessary to meet goals. Being adaptable during potential turbulence ensures a higher likelihood of success.
Bonus Tip: Don't Ignore Current Customers
Leverage your existing customer base for holiday sales. Utilize tools on platforms like Google and Facebook to create campaigns targeting previous purchasers or build lookalike audiences. Current customers often contribute significantly to revenue during peak shopping periods and serve as a valuable source for discovering new buyers.
In conclusion, by implementing these strategies, businesses can approach the holiday season with a renewed focus and competitiveness, setting the stage for success in October, November, and December. While uncertainties prevail, having tangible goals and a well-defined plan provides a competitive advantage.