In addition to cheer, merriment and goodwill, Christmas also has another meaning for business owners, particularly those with products and services that can be framed as a gift. It is a huge opportunity for sales while also being the most difficult time of the year as well.
The challenges it presents come from inflated seasonal marketing costs and the number of competitors vying for their slice of the pie. It is true that there are more people willing to buy, but the cost of getting noticed in the crowd can become brutal – especially on platforms like Facebook. It is therefore crucial that once you have the attention of a potential customer, you are able to convert their interest into a sale in order to justify the increased marketing spend and turn a higher profit.
1. FAST DELIVERY OR FULFILMENT
If your customer is online searching for a Christmas gift with less than a week left until the big day, they will be more willing to purchase from someone who can offer fast delivery. How quickly are you able to deliver your product, or your service? If you’ve got a physical product you should be offering fast delivery during the Christmas period and effectively communicating that throughout your marketing.
When weighing options between you and your competitors, having fast delivery will give you an advantage. Being able to guarantee 1-3 day delivery will even potentially let you increase your price a little bit to compensate for the ads spent to generate leads. It also builds trust when consumers are given a guarantee that if they order today, they will get it before Christmas.
It is important that this message is front and centre. Test using it in your ad copy, within the product descriptions on your website and on your landing page to increase conversions.
2. TIME-RESTRICTED OFFERS
Another important point is to let the customer know that the offer isn’t something that is only available for a certain time period. If you’re offering fast delivery, let them know that they need to order by a certain date in order to get their gift on time. This will increase the chance of them ordering then and there, rather than shopping around.
Other examples of time restricted offers could be pre-Christmas discounts, limited edition 2-for 1 deals or value packs.
Essentially, offering something special for a limited time will help you edge them over the threshold and get them to make a buying decision.
Scarcity is the golden rule of marketing. In fact, nothing stimulates sales like the fear of missing out. So if your offer is fast delivery on a special Christmas gift pack (or fast fulfilment if you have a service), let your customers know that there is only a limited amount available.
They key here is being as specific as possible. Saying your special offer is only available for the “next 50 customers” is far more impactful than saying something generic like “while stockst last”.
Doing so generates urgency within the buyer’s mind and feeds into the concern of missing out on a bargain.
As you can see, here we’ve stacked 3 conversion tactics on top of each other, so that each layer makes your offer a seemingly better choice. Each one of these things is very much focused on the customer and designed to hit them on an emotional level and to encourage a decision. Christmas is the time of year when you can expect impulse purchasing decisions, so finding ways to appeal to emotion will help generate more sales. We’re also less price sensitive at Christmas so you can afford to offer something at a slightly higher price if you can package it with the right set of inclusions.
4. INDIRECT TARGETING
If you’re putting money into paid campaigns you’ll know that cost per clicks are going through the roof at the moment with so many people vying for attention.
This means it’s time to get savvy when it comes to targeting your paid ads.
Now think about it, it’s Christmas, are you buying presents for yourself? Probably not. So what you can do to drive more traffic from platforms like Facebook is indirect targeting.
Let’s say that you’re selling Christmas socks for men. Rather than targeting men, you target wives and mothers who will be buying the gifts for them. Advertising platforms like Facebook will allow you to get in front of these audiences by narrowing down who sees your ads by age bracket, gender and relationship status.
Christmas socks are just one example, but you can literally use this indirect targeting tactic for anything.
So when you’re setting up or tweaking your next campaign, rather than thinking about who uses your products, try to put yourself in the mindset of your customer and their social circle. Ask yourself ‘Why would someone buy my product for someone else and who would that person be?’
The final trick is finding ways to generate more revenue from people who are already buying from you. Since Christmas is a highly competitive period, generating leads and sales generally costs businesses a lot more than it would at other times of year.
You might be selling a lot more… but if you’re spending more on paid advertising, your profit margins might not be as high as you think.
An easy way to overcome this is by employing up-selling techniques that encourage your customers to purchase more.
Let’s go back to the Christmas socks example for now.
If a customer has put a pair of men’s socks in the shopping cart, why not suggest a pair of fun festive boxer shorts at a special package deal price at check out? Your customer has already made the initial purchase decision, so if you make the up-sell compelling, it could increase your profits and justify the higher marketing costs of the holiday period.
There are different kinds of up-sell techniques you can use as well depending on your product or service. One idea would be the lateral up-sell – where you choose a product in the same vein as the original product. Selling hair dryers? Add heat protectant. Selling appliances? Add in extended warranty. Essentially the rule is to choose things that compliment the original purchase and are a logical partnering.
Now time to make some sales!
We hope this list was helpful and gave you some ideas around how to increase your profits this Christmas. This topic was originally covered in a live Facebook session with Zane Bacic, our growth marketing specialist here at The Entourage and we have many more live sessions planned in the future.
These sessions are designed to showcase what we do here at The Entourage and how we can train you to build great businesses.
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