Given that a significant portion of merchants’ revenue comes from holiday and Christmas sales, it is not unexpected that the post-holiday period is characterized by a sharp decline in sales activity.
Consumers are less likely to be exploring eCommerce websites or go to stores once the gift-buying rush has passed. As a result, many retailers report a notable decline in sales during Q1. Let’s check out 5 essential after Christmas sales tactics for eCommerce stores.
Reasons for a business to run a post-holiday promotion
A company could decide to execute an after Christmas sales campaign for at least three different reasons.
- Increase sales for January. The first quarter, particularly January, may either seem like a refreshing break or a stone block for many retail firms. The busiest shopping period is over, and people are worn out. Income is limited.
- Make money. The merchants still need to make a profit despite the lesser volume. Offers of the buy-now-pay-later variety may promote purchases while preserving profits.
- Clear off inventory to free up cash. Even at a per-unit loss, closing down seasonal products makes room on the shelves and brings in money.
5 essential after Christmas sales tactics for eCommerce stores
Consider which client groups will most likely aid in achieving your objective once you have one.
Targeting your top customers with door-buster bargains communicated via tailored email communications can help you sell many goods quickly. Yet if you want to boost sales in January without reducing your margin, reaching out to your less engaged customers with coupons or free shipping offers can be more successful.
Consider the timing and message
Your promotion’s timing is crucial for both practical and psychological reasons.
To beat out the competition, you could choose to launch your offer on December 26. But, shoppers might not be in the mood to spend then. Depending on who your audience is.
You might also plan to buy something for yourself during a bargain on December 26. You could say: “Did you not receive what you wished for this Christmas? This is your chance.”
Take deep discounts early
If you have the margin, it may sound odd, but if you want to sell a lot of inventory, you should think about giving the biggest discounts first.
Here is the reasoning. Customers who are drawn to clearance-level discounts are also probably deal hunters who keep an eye on the marketplace. These buyers will probably wait it out if you extend the sale with an excessive discount. Yet if you get off to a fast start, you might generate an urgency that encourages conversions.
Increase cross-selling suggestions
Cross-selling occurs when online merchants suggest products to customers while they are buying. These recommendations are frequently made based on products that customers have recently explored or that complement those that they have previously added to their shopping basket.
Cross-selling aims to enhance the likelihood that consumers will find new products and persuade them to make more purchases, raising the Average Order Value and resulting in more money.
Launch new loyalty promotions
There are two major advantages to adding some new bonuses to your loyalty reward program following the holiday sales. Programs provide brands with a lot of short-term levers to pull when sales begin to decrease.
Yet, over time, a flurry of member-only discounts and benefits spreads the word that customers can obtain the greatest bargains by signing up, encouraging additional sign-ups.
Brands must adopt a proactive strategy to promote after-Christmas sales and utilize a number of levers to drive demand, as opposed to waiting for customers to come to them. You need to persuade customers that it’s worthwhile for them to pay attention to your activities when they aren’t in the mood to make a purchase. Contact us to learn more about how to implement it in your business!