The run-up to Christmas is traditionally the golden time of year for retail, but this year it appears stores are not seeing the same volume of sales. Far from creating a surge in sales, Pamela Danziger, Forbes senior contributor for luxury retail, suggested that shoppers avoid the last-minute rush and instead look for discounts at other times of the year, spreading thus the cost of Christmas.
This news comes as a host of retailers, such as Best buyLowes and American Eagle are reducing their sales forecasts for the holiday season due to customer indifference.
The retail landscape is competitive at the best of times, but with fewer people shopping, competition will be strong to attract those willing to spend in the run-up to Christmas.
Stand out
There are many ways that businesses can get noticed, even when their competitors are all competing for the same customers.
1. Remove obstacles
Whether you sell online or in physical stores, it’s important that you remove any barriers between your customer finding what they want and completing the purchase. Making the process as seamless as possible is key to attracting buyers and preventing them from abandoning their customer journey and finding somewhere else to spend money.
For online stores, obstacles can include the need to create an account to make a low-value purchase or a confusing website layout. For brick-and-mortar stores, this could be an inability to touch and inspect the product or long lines at checkout.
Try to see your business as a customer sees it and think about what might be stopping them from completing their transaction. The simpler the process, the more customers will choose you over the competition.
2. Get creative online
Part of the battle to make your business stand out happens before the customer comes to town or starts browsing online. If you can capture your target audience’s attention in advance, they will be more likely to keep an eye on your brand.
Use social media to talk to the people most likely to buy from you. Target them with content that will entertain them, touch their emotions, solve their problems or add value to their decision-making.
By engaging your customers on social media, you establish a connection with them that endears them to your business, thus gaining an advantage over your competitors.
3. Review the data
If you’ve been in business for more than a year, you already have a resource to help you predict customer behavior this Christmas. Review your sales data to understand when shoppers made purchases and what they purchased. Look at what items they bought together and think about where the most popular items were in your online store or on the high street last time.
This year, optimize your layout, promote popular items, upsell products you know work well together, and make sure you have enough stock and staff for when you can expect a rush. Spot trends from the previous Christmas to understand what to expect this year and how to improve that performance.
4. Invest in people
If you have a physical store, your employees thrive in the whirlwind of Christmas shopping. As December progresses, online sales drop and people return to stores. Part of this is a fear that online shopping won’t arrive before the big day, but there is also a romantic view of the happy, festive atmosphere of the high streets. And it’s your staff that makes this easier.
If your employees create a welcoming and warm atmosphere, your business can stand out from your competitors. This means you need to invest in your people and ensure they are happy and motivated, even during this most stressful time of the year in retail.
Make work fun for them and promise them incentives for their hard work, like a team day in the new year.
5. Work with a charity
Christmas is a time to think of others, but this ideal may be abandoned as retailers become more competitive in the run-up to Christmas. By taking the time to highlight a charity drive, contest or donation program, you can show that there are other benefits to buying from you over a competitor.
Highlight a cause you care about so customers can see it’s a real collaboration and not just a cynical ploy. Promote the activity so your target audience knows what’s going on and can help you with your campaign.
Christmas is a great opportunity to generate revenue, but competition is fierce. By finding ways to stand out from the crowd, you can claim your share of this hard-fought event this year.