The ecommerce industry continues to thrive, but the holiday season brings unparalleled competition. To help businesses navigate this critical time, Mitchell Chapman from MTC Marketing recently shared his insights with Saltbox members on September 29. His discussion focused on key strategies to stand out during the holiday rush, offering practical tips to maximize results during this crucial season.
While some brands, like REI, choose to forgo Black Friday and give their employees a break, and others like Apple remain neutral, many brands rely heavily on the holiday period to boost sales. With increased competition and a crowded marketplace, it’s essential for brands to approach this season with a well-thought-out marketing strategy. Chapman identified three key factors that can help businesses excel during the holiday rush.
Crafting the Right Offers
The success of a holiday promotion often hinges on the type of offer presented to customers. Contrary to popular belief, offering the highest discount doesn’t always result in the best conversions. Instead, testing different types of offers can help determine what resonates most with customers. Here are two types of offers to consider:
- Price Discounts: This is the classic approach, offering a percentage or dollar amount off the regular price. However, brands shouldn’t feel pressured to provide the steepest discounts. As Chapman notes, “The highest percent off doesn’t always equate to the highest conversions.” Testing different discount levels can help pinpoint the sweet spot.
- Cash Back and Rewards: Consider offering incentives like “gift with purchase” or product bundles. These types of offers can create a sense of added value for customers without eroding margins.
Other popular offers include free shipping or “buy one, get one” deals, which can drive conversions and appeal to price-conscious shoppers.
Timing Matters
In today’s ecommerce landscape, the holiday rush extends beyond Black Friday and Cyber Monday. Many promotions start as early as November 1, creating an opportunity for brands to engage customers throughout the month. Determining when to launch your promotions is crucial:
- Early Release Strategy: Launching deals early allows brands to capture early sales and get ahead of the competition. It can be especially effective as many shoppers have limited budgets and may commit to purchases sooner. However, there is a risk of “promotion fatigue” as consumers may grow weary of ongoing offers, potentially impacting sales during Cyber Weekend.
- Tiered Release Strategy: Alternatively, brands can stagger their offers over several weeks, saving their most attractive deals for Black Friday and Cyber Monday. This approach can build anticipation among customers, but it comes with the risk that some may have already spent their budgets by the time the biggest discounts arrive.
Choosing the right strategy depends on a brand’s specific goals and customer behavior, making it crucial to analyze past sales patterns and adjust accordingly.
Leveraging Email and SMS Marketing
With the overwhelming volume of promotions during the holidays, email and SMS remain powerful tools for cutting through the noise. Chapman emphasizes that these channels are crucial for driving holiday sales.
- Email Marketing: A successful email strategy involves optimizing deliverability, targeting specific customer segments, and maintaining a consistent cadence. Encouraging your most engaged customers to “whitelist” your emails or move them to their primary inbox can help improve visibility. Including clear calls-to-action (CTAs) in every email is vital for boosting click rates.
- SMS Marketing: If you haven’t already incorporated SMS into your strategy, now is the time. With a 96% open rate, SMS has proven to be an effective way to reach customers directly. Chapman suggests promoting early access to holiday deals as an incentive for customers to opt into SMS updates, ensuring your message reaches them instantly.
Extra Tips for Holiday Success
Here are a few actionable tips to optimize your holiday strategy:
- Align your offers across all channels to maintain brand consistency and ensure a smooth customer experience.
- Refresh email opt-ins and pop-ups to capture interest from new visitors.
- Focus on segmenting your email list to target the most engaged users with special offers.
- Most importantly, test your offers and messages frequently. Understanding what resonates with your audience can make a significant difference in your holiday performance.
While Chapman’s talk focused on Black Friday and Cyber Monday, the strategies discussed apply to any peak sales period, making them valuable year-round.
For those interested in a more tailored approach, Mitchell Chapman offers private consultations through MTC Marketing, providing personalized guidance to help businesses succeed. Reach out to Chapman for insights that align with your unique business needs and maximize your holiday sales potential.
