Your small business countdown to sales season
We’ve made a list (and checked it twice) to help streamline and simplify the holiday season for merchants.
The countdown to Christmas is a time of festivities and frivolity for most people, but for retailers it means one thing: the biggest and busiest period of the year.
“On average more than 30 percent of all retail sales are done in the November to January period,” confirms Brian Walker, CEO and founder of Retail Doctor Group. “It’s a huge opportunity for retailers to make record sales, and it’s also an opportunity to sell through stock, increase cash flow, and continue to build a loyal customer database.”
Last year, holiday shoppers spent $USD1.14 trillion online worldwide, with the majority of shopping occurring early and late in the holiday season, coinciding with sales events. Cyber Week (in late November) accounted for 23 per cent of global online holiday spend, followed by another sales rush between December 18 and 31.
The takeaway? The holiday shopping season is a huge opportunity for merchants, whether you’re an e-commerce business or bricks-and-mortar store. But there’s a lot to consider, including inventory, staff onboarding, markdowns, marketing and more.
To streamline and simplify the sales season, we’ve compiled a detailed checklist for retailers, covering both the lead-up to the sales (which kick off in late November) and the final countdown to Christmas. Consider this the 12 weeks of retailing Christmas.
“On average more than 30 per cent of all retail sales are done in the November to January period.”
Key holiday retail dates in 2022
Black Friday (November 25)
Cyber Monday (November 28)
Pre-Christmas sales (December 22 - 24)
JULY - OCTOBER
24-12 weeks until Christmas
Assess inventory and ensure all supply orders have been made.
Choosing and ordering products to sell during the holiday season should be completed as early as possible – up to six months before sale season begins.
Use reports from your e-commerce software to find out which products sold well in 2021 during the same calendar period and ascertain what quantities you’ll require. Remember, an “out of stock” message on your product page will mean missed sales and could leave a bad impression on potential customers.
Generally, ordering stock for Christmas involves some calculated risk. It’s probably safe to increase order quantities on year-round best-sellers, but if you overstock a festive or Christmas-themed product, you’ll be left dealing with storage and cash flow issues.
Decide on your markdown strategy
Discounts are a major sales driver during the holiday sales period, but small businesses need to be strategic in the promotions and deals they offer.
Jane Magoffin, head of e-commerce at global retail marketing agency Reload Media, suggests defining your business’s holiday season objectives before creating a markdown strategy.
“Are you trying to target new customers or retain a certain amount? Or are you targeting a certain amount of spend per customer? Do you have a set revenue figure you want to hit this year? Knowing this will dictate what kind of sale or promotion you run during sales season. Is it a bundle? A product launch? A standard percentage discount?”
When marking down products, your aim is to find a middle ground between attracting customers, staying competitive and being profitable. Tiered discounts – based on how much a customer spends or how many items they buy – are a clever way to increase your average order value, while attractive holiday bundles will help get rid of unsold stock. But there are plenty of other ways to discount.
Amp up your visibility online
There is a steady increase in customers searching for “Christmas gifts” from late August onward, which means it’s important to be visible from this month. “They’re not necessarily buying yet, they’re… taking note of the brands who have what they want,” says Magoffin.
Use this time to test and assess marketing tactics and start driving more shoppers to your e-commerce store. Your aim is to capture leads, showcase your products and plant the seed for future sales.
Some strategies to try:
- Supercharge your SEO
Searches for gifts and products will surge over the sales period, so it’s worth taking the time to improve your website’s SEO ranking. Get specific and utilize seasonal keywords like “personalized Christmas gift ideas,” “Christmas gifts on a budget,” “fast shipping for gifts” or “holiday discount code” for your best chance of success.
- Invest in social media ads
“Ad costs are increasing and the closer you get to sales season, the more expensive it gets to gain customers’ attention - and there will be more advertisers competing for the same space,” says Magoffin. As such, if you’ve allocated budget to social media ads over Christmas, aim to get in early.
- Send engaging EDMs
According to data from Salesforce, 68 percent of shoppers pay more attention to emails from companies during the Christmas period. Throughout October, make sure you’re sending regular EDMs that engage your audience, show off your product offerings and keep your brand top of mind, so that audiences are primed to spend when sales season begins.
Read more tips on acquiring new customers here.
“Ad costs are increasing and the closer you get to sales season, the more expensive it gets to gain customers’ attention - and there will be more advertisers competing for the same space”
10 weeks until Christmas
Optimize your website
Sales season means an enormous surge in customers shopping online, with e-commerce sites likely to see increases of between 22 percent to 110 percent in traffic. That’s why it’s crucial to ensure that your website is (literally) up to speed.
Make sure you’ve fixed any bugs, tested the load speed across all devices and optimized the customer checkout experience (this applies to brick-and-mortar stores, too). For example, is your gift-card redemption system set up, and will you be accepting flexible payment options like Afterpay?
Next, streamline usability and optimize your website’s design. “Popular items should be clearly displayed and easy to find,” notes Walker. “Be thorough in terms of your layout so that buying from you is an enjoyable experience.”
You may also want to create some seasonal banners and website assets that capture the holiday spirit – the equivalent of visual merchandising for an e-commerce store. These will go live in November and December (find free, printable templates on Canva). Or take a look at Afterpay’s marketing resources center for more templates and tips.
“Popular items should be clearly displayed and easy to find.”
Recruit new staff
The busiest time of the year naturally comes with an increased demand for staff – both working the store floors and behind the scenes.
“You’ll have an influx of people [asking questions] in your direct messages and sending comments and queries — so make sure you have enough hands on deck for that,” says Magoffin. “Equally, warehouse and logistics staff will be integral. Recruit now [in October] if you need more resources.”
The catch? Amid a global labor shortage, recruiting is notoriously difficult. To attract a larger pool of candidates, streamline the application process, highlight your strong company culture, offer benefits and perks, and allow as much flexibility in the role as possible.
NOVEMBER
8 weeks until Christmas
Re-engage with potential customers
As you move into November, it’s time to nurture the leads you’ve already attracted and start getting potential customers excited for sales season.
“Engage with those customers who found your brand when they were building their wish list weeks ago,” advises Magoffin. “Retarget them on social media and launch your [holiday sales] email marketing campaign – let your customers know whether you’ll be putting products on sale, so they know what to plan for and look forward to.”
Set your shipping strategy
A convenient shipping and delivery policy could be the difference between securing a sale and losing it.
Review your shipping methods and pricing and revisit whether the strategy is working for both the business and for your customers. Consider comparing your shipping policy to that of your competitors (as your customers are likely to do). Then, communication is key. Display your shipping policy on your website, at checkout and in order-confirmation emails, and be realistic with customers about when they should expect their deliveries. Also emphasize the cutoff date for shoppers to receive orders before Christmas.
“Engage with those customers who found your brand when they were building their wish list weeks ago."
7 weeks until Christmas
Finalize creative assets and continue online marketing
At this point, the start of sale season (Black Friday) is just three weeks away. “By now, you want all of your sale season assets finalized – that is, creative for your EDMs, social ads and even physical stores – with your sale proposition super clear,” says Magoffin.
You can also start dialing up your paid ads and increasing ad spend to retarget customers who have previously engaged. Your EDM campaign should start to include strong sales and Christmas messaging, and you might want to send teaser emails hinting at your upcoming Black Friday and Cyber Monday promotions, or themed gift guides.
Onboard new staff
“The bugbear of many consumers during sales season is that staff in physical stores don’t know a lot about the product,” says Walker. “Ensure your staff are well set up and coached in your product and how best to deliver it. By mid-November, you want them trained and ready to go.”
Training should also be complete or nearly complete for any new customer support and warehouse staff.
6 weeks until Christmas
Go live to VIP customers
Christmas might still be more than a month away, but it’s less than two weeks until Black Friday. Use this time to reward your most loyal and valuable customers. “Make sure they feel important and valued,” says Magoffin, who recommends offering VIPs exclusive access, early-bird offers or added value around two weeks before Black Friday.
“As they are already your most engaged customers, you have an even greater chance of converting them with a ‘beat the rush’ style offer. If you can find a way to personalize it, even better.”
Ensure your store looks enticing
By mid-November, your physical storefront should make people want to step inside. Your decorations or festive theme should be apparent, and your promotional offers should be clearly posted.
“Merchandising adjacency is also hugely important – increase the average spend by placing similar items together, like socks next to shoes, for example. This is very valuable for online retailers, too,” says Walker.
Offering in-store add-ons, such as gift wrapping, can also enhance customer experience.
"Make sure [customers] feel important and valued."
Incentivize staff
Sales season is an important time for retailers – and it can be a stressful one. “Keeping staff engaged and motivated is really important,” says Walker, who suggests introducing incentives to help gamify the experience and drive them to exceed targets.
Ensure you’re strongly promoting your top performers during the busiest periods - and encourage everyone to have fun. “It’s Christmas, after all,” adds Walker.
5 weeks until Christmas (and 1 week until sales season!)
Go live with your sales
While Black Friday falls on Friday, November 25 this year, Magoffin suggests launching your sales one week earlier. As the saying goes: the early bird catches the worm.
“If you wait until Black Friday to launch your sale, you’re going to lose so many customers,” she says. “Brands are going live earlier and earlier each year. One week before is the strongest time as it’s close enough to the sales season that customers won’t be holding out for a better deal, but early enough that they won’t already be overwhelmed.”
"If you wait until Black Friday to launch your sale, you’re going to lose so many customers."
DECEMBER
4 weeks until Christmas
Test and assess your sales strategy
By now, you’re in the thick of sales season. Amid the frenzy, take some time to examine the market, size up your competitors and review your own promotions.
Says Magoffin, “After the first big bang, you’re testing the efficacy of your campaign… What is more effective for your customers, EDM or SMS? What’s going to move the needle? When you have high volumes of traffic like this, you can gain valuable information quickly – and make better decisions faster.”
2-3 weeks until Christmas
Refine your sales strategy
After the Black Friday and Cyber Monday mayhem have settled, make any necessary changes to your strategy for the upcoming pre-Christmas rush.
“During the sales season you’re assessing and refilling your shelves as much as your stock will allow,” says Walker. “Look at what’s been moving quickly, and what you’d like to move faster. Ensure your store is looking pristine once more and re-merchandise if you need to.”
Consider whether you can add extra value to your customers, such as free express shipping. Is there any way you can incentivize last-minute purchases?
"Ensure your store is looking pristine once more, re-merchandise if you need to."
1 week until Christmas
Lure last-minute shoppers
This is the time to promote last-minute purchases, such as gift cards, and to cater to shoppers who are time-poor and will welcome suggestions for extra gifts.
“Ensure you’ve implemented merchandise adjacency,” says Walker, who explains that retailers can identify any stock they want to clear and discount it as part of a gift bundle.
Give customers a reason to buy from you again
The final sales rush will flow into Christmas – a day of reprieve for retailers. But your sales strategy doesn’t stop here. “The sales season brings such an influx of new customers — don’t let it go to waste,” says Walker. “Now that you have them in your database, you can nurture the relationship and encourage them to come back and ultimately retain them as loyal customers.”
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