When you’re a small business owner, there are certain times of the year when you can hope for an increase in sales, and one of those times is the holiday season. Without a doubt, your business can experience more sales during the holiday season than at any other time of the year.
In fact, the National Retail Federation suggests that sales in November and December make up 20% of annual retail sales. That’s a significant percentage of money coming from two months, but it makes sense. November and December are about holiday parties, traveling, and spending time with loved ones, and all of these activities usually involve pulling out your wallet.
For Christmas alone, people spend, on average, $997.73. Around 64% of the money goes towards gifts, while 23% is for non-gift items like food and decorations, and 11% is for other non-gift purchases for family or friends. Ultimately, there’s a lot of opportunity for your small business to make money, and that’s also true if you own a B2B company.
If you sell a service, you can still have success during the holiday season by offering special deals to prospects. The festive time of year isn’t solely for B2C companies. Everyone can succeed. However, success in 2022 may require a little more work than normal.
Cautious spenders head into the holidays
It’s no secret. Inflation has been a major issue in the U.S. and will continue to be during the holiday season. According to global consulting firm AlixPartners, holiday sales may increase between 4% and 7% in 2022, which is significantly below the 16% growth that businesses saw in 2021. The fact that inflation is above 8% means businesses could see a considerable decrease in sales.
Of course, experts still say it’s too soon to know for sure whether shoppers will hold tightly onto their money during the holidays. But the loose expectation that holiday sales may be below average is concerning, especially if you’re counting on this time of year to generate more revenue.
The good news is that there are ways you can increase your chances of attracting holiday shoppers even when inflation is an issue. Here are seven ideas you can use.
1. Create a gift guide
Not everyone knows what to give their loved ones during the holidays, which provides the perfect opportunity for you to suggest ideas. Creating a gift guide will allow you to recommend a variety of different products or services for people to buy. The list should include some of your offerings, but make sure to propose options from other brands so that people don’t think you’re being overly promotional or self-serving.
2. Customize your website
Since the holiday season is such a big time of year, you should update your website to focus on it. Revamping your home page with relevant holiday designs, festive pop-ups and banners, and great promotions will not only excite your audience but also pique their interest enough to browse your website and see what you have to offer for the holidays.
3. Provide free shipping
What’s something every shopper loves? Free shipping. Offering this will be just what you need to appeal to cautious consumers who don’t want to spend much money. However, to ensure you still make money when providing this offering, you can give free shipping to shoppers who reach a certain price point. For example, if people spend $50 or more, you can give them free shipping.
4. Provide early access
Do you have any VIP customers? Maybe they’re a part of your loyalty program, paying a certain amount of money every month, or continuously buying your products. These people are active fans of your company that you can easily attract during the holiday season, but you still need a creative way to approach them. That’s where early access comes in. By offering your loyal customers the opportunity to get a discount before everyone else, you’ll make them feel special and excited to shop at the same time.
5. Play off your holiday events
Perhaps you’re having a few holiday events. It can be a networking event, happy hour, or something for the community. In either case, when promoting your holiday festivities, mention a discount that attendees can use on specific products or services. You can even provide an early-bird deal to people who purchase tickets well in advance of the event.
6. Do a social media giveaway
One great method to increase excitement around your products or services is with a social media giveaway. Many brands implement this strategy because it’s cost-effective and can help you find new followers who may be interested in purchasing something from you. This tip is also extremely easy to implement. All you have to do is ask followers to comment, share, or like a post to enter the giveaway. Then, you can randomly pick a winner.
7. Be personal in your marketing
This advice is important to consider every month of the year, but it’s especially critical during the holiday season. In November and December, your audience will be swimming in marketing messages, advertisements, and emails from brands. If you want to stand out, you must take a personalized approach.
In all of your communication, speak to the needs and concerns that your customers may have during the holiday season. If they want to buy gifts but have financial fears, suggest your more cost-effective products or services. If they’re looking for gifts for family, friends, and coworkers, recommend something for each type of recipient. Your audience should feel like you know them personally, which will give them a reason to purchase from you versus competing brands.
The best time of year
The holidays can be the best time of year for your business. Even when there’s inflation and other economic concerns, your company can still experience success in November and December. You just have to approach your target audience strategically, so don’t be discouraged by the assumption that holiday sales will be lower than usual in 2022. Instead, use the tips above to increase your chances of attracting eager shoppers.