Holiday shopping is in full swing with consumers already tackling their gift list and going all out on holiday decorating. It’s a great opportunity for retailers to boost profits as they close out the year. But there are even bigger opportunities for long-term growth. This is not only the busiest shopping time of the year it’s also the best time to build momentum for 2023.
Your first goal, of course, is getting customers through the door. But ultimately, they’re worth much more if come back. Here’s the projected growth for this year, and how you can maximize holiday sales in 2022 and beyond.
Even in an uncertain economy, holiday sales are expected to grow 6 to 8 percent (according to Forbes) as 2022 winds to a close.
While it's down from last year when COVID-shopping was at a peak (2021’s projection was 13.5 percent growth), the spike in sales can still really help boost profits for your business. If you consider current events like inflation and rising interest rates, 2022 should still be a successful year for many businesses.
So, how can you make the most of holiday sales this year? Think big picture by building year-round customers.
In an increasingly digital world, people buy from places they’ve never heard of before. That means you have access to a much wider group of potential customers. However, it also means that it’s easier of them to keep trying new options. To keep them coming back, think big picture. How can you stay in touch and entice every new customer to become a repeat customer?
One important of your business health is the average lifetime value of a customer, CLV. That is the average of how much customers buy from you over a period of time. The higher that number, the better off you are. It’s an indication of how well you doing not only at getting people to come through the door but also to come back again.
The benefits of focusing on lifetime customers include:
Additionally, repeat customers not only spend more at your business, they are also the most likely to be your best brand advocate. That makes them even more valuable. With an eye towards keeping the shoppers you find during the holidays around, here are some ways to increase sales and generate lifelong customers.
Any business that sells or speaks to an audience similar to yours can be of immense value during the holiday season, especially when it comes to finding lifelong customers. You’re already talking to a group of people who like what you do, even if it’s slightly different.
Cross-promotion could mean:
Work with charities or nonprofits to do some good and get your name out there in a different light, too.
One sinking hole in any business “ship”, assuming you have some eCommerce or digital component, is cart abandonment. According to Forbes, cart abandonment can be as high as 80 percent on desktops and tablets.
This could translate to thousands of dollars lost in sales during the holiday season. Worse, people can’t rave about your products or return next year if they never make the purchase. Double-check that your merchant processing system is fast and seamless.
One of the quickest ways to build long-term relationships is by getting personal.
For starters, give people the option to stay connected at their pace. Let them opt in for frequent or less frequent emails. Find out if they want to hear about discounts and special sales or if they just want an update every now and then.
Tailor your email campaigns based on groups of customers. If you have some who are interested more in a certain kind of product, feature those products more often in the emails to them. Offer related products that also may be of interest.
Let people know you care and give them the incentive to return. It’s easy to set up an effective Loyalty and Rewards Program when you have a good POS System. You can tailor the program based on what you want to offer and what your customers will appreciate most.
You could offer points for every dollar spent that can be turned into discounts. Or give a free product after a certain number have been purchased.
Once your program is in place, make sure customers know about it. Put up signs throughout the store and highlight it during transactions.
It’s something a lot of people talk about and for good reason. Businesses can grow revenues from 4 to 8 percent just by prioritizing customer service, according to Bain & Company. It’s a high priority for shoppers, with 93 percent saying they are likely to make a repeat purchase with companies that offer excellent customer service, according to HubSpot research.
Put yourself in your customer’s shoes and walk through the experience of shopping with you. Look for ways to let people know how valued they are. Take the time to listen to customers and find out what’s important to them. Make sure it’s easy to make a purchase with an updated checkout system and frictionless payment processing solution.