Beat the Post-Holiday Sales Slump with These 3 Tactics
In today’s newsletter:
- Beat the Post-Holiday Sales Slump with These 3 Tactics
- Market Watch, Returns Are a Problem, and Barna’s Year in Review
- New Year’s Resolutions for Kingdom Leaders
For many businesses, January is the worst month of the year, particularly if you are in a B2C enterprise. It’s no mystery why – customers have just shelled out a lot of cash for Christmas, and they’re naturally thinking about taxes, feeling the pressure of debt, and determined that this year, they’ll cut out the nonessentials and get ahead. It’s a challenging environment, but that’s why marketing is more important than ever in Q1. The target may be a bit trickier to hit this time of year, but there is still room to succeed if you employ one or more of these 3 tried and true tactics for this season:
Aspirational Messaging Based on the Data
Too often we can be pushy in our messaging, rather than stepping back, taking a look at where our customers are at, and supporting their needs. In the season of New Year’s resolutions, many people are actively seeking self-improvement, feeling optimistic, and trying to turn a new leaf. Around 1/3 of Americans are planning on making a New Year’s resolution in 2024, and the most commonly reported goals are saving more money, being happy, exercising more/improving physical health, and improving mental health. You can harness these desires and use them to frame your message to the customer.
Be sure not to be lazy or cliché about your messaging, however. “New year, new you,” for example, has proven to be among the worst-performing phrases in digital marketing over the last 7 years. It misses the mark because A) Everyone has heard that phrase a thousand times, and B) It does not really see the customer for who they are and what they are trying to become. It just sort of blithely and generically assumes that you need to be something different.
What, specifically, is your customer trying to become in 2024? Support that vision, and emphasize the immutability of their new path. Phrases like “don’t miss out” and “last chance” perform poorly in email marketing, in part because consumers are tired of being siphoned for money after the holidays, but also because the modern consumer does not like messaging that feels like an ultimatum or a threat of scarcity or regret. Phrases like “tried and true” and “you’re going to reach for this again and again” perform very well because people want to know that their purchases are helping them improve for the long haul. They are looking for value, and they like being treated with appreciation as if you are assisting them rather than using them. Make customers feel like they are already being successful in their aims. Recent research shows that messaging in the past tense is actually more effective than imperatives. Ie, don’t tell your prospects to do something (data analysts like Persado tell us), tell them that it is already done on their behalf.
Your customer is reaching for an ideal – so don’t sell them a pain point in January. Tell them they’ve found that tried and true product to support the changes they aim to achieve in 2024.
Discounting
“You can’t afford to buy this? When I’m done, you’ll say that you can’t afford not to buy this!”
Sure, the above phrase is a little bit of a cliché in sales. However, when done right, it is still a powerful, effective weapon in your arsenal, particularly at a time when people are actively looking to save more money.
Don’t randomly slash your prices – come up with a reason your customer can get behind. Make them feel like they are part of the process of discovering that buying your products will save them money. For example, “Last season’s styles” will catch price-conscious consumers’ eyes. They know that many businesses need to keep up with the trends, so they’ll feel smart after buying up the old inventory. This way, it’s more than just a sign that says “Sale” or “Bargain Bin.” If a customer is following the story, they’re more likely to participate in it.
Additionally, the “tried and true” and “again and again” language can be effective here. Sure, your customers may not want to spend much money right now, but if your product can reduce what they need to spend in the future, they might be willing to reach for that wallet. Take a hard look at how your offering can help customers save over time, and communicate that message to them.
Cross-Selling Suggestions
“All you had to do was ask.”
Seven powerful words, and if you keep them in mind, you can raise the value of your average order (and with it, your January sales figures).
Once your customer is already committed to making a purchase, helpful suggestions of complementary products no longer seem pushy, as long as you don’t overdo it. Not everyone is going to buy the insurance plan when they buy a new phone – but a lot of people will. So ask the customer if they want fries with that burger (a simple message that historically accounted for at least 15% of McDonalds’ total revenue). Think of products that support what your customer has at the checkout, whether in-store or online, and offer a less expensive additional item to go with it. Bagels need cream cheese, and shampoo needs conditioner. Someone buying dumbbells might want workout gloves. Make sure your suggestions are targeted, relevant, and fit within the best practices of cross-selling, but at the end of the day, all you have to do is ask.
TL;DR
January presents a challenging environment for most businesses selling directly to consumers. You can beat the spread by reaching prospects with aspirational messaging that supports their ideal self-image, by showing them how acting on sales can save them money in the long run, and by helpful cross-selling suggestions at checkout.
INDUSTRY INSIGHTS
Market Watch, Returns Are a Problem, and Barna’s Year in Review
Market Watch
Stocks are wrapping up a two-month rally, with the Dow near record highs, and the S&P 500 locking in a 24% gain on the year. Market Watch warns, however, that contraindications are strong, and potentially poor earnings announcements on already overbought stocks could cause the market to swing the other way. In the crypto market, BTC seems to be stabilizing, for the moment, around $45,000, after a rocketing uptick since mid-October, and ETH, likewise, is hovering around $2,200. As 2024 looms, several high-profile court cases could affect both the price and the operating future of crypto, including litigation against defunct Celsius CEO Alex Mashinsky and a slew of SEC lawsuits seeking to demonstrate that crypto exchanges are securities exchanges and subject to their full jurisdiction. Despite uncertainty in foreign markets, oil prices remain stable as the US finishes up its all-time high in oil production, largely due to fracking.
Returns Are a Problem
In 2019, consumer retail returns tallied up to $309 billion (or 8.1% of total consumer retail spending), a figure that includes returns for online purchases. By 2022, consumer retail returns had doubled as a percentage of spending to 16.5% and, according to a revealing report by the Wall Street Journal, that number accounted for $817 billion. In times past, retailers have considered a generous return policy an incentive for shoppers to buy more impulsively and to generate goodwill with the brand, but now, as consumer behavior has shifted so drastically, businesses have begun rethinking their approach. Inevitably, returned items cannot always be sold, as they may have been used, damaged, or now be out of season or style, so many items get liquidated, donated, or sent to the landfill. Inmar Intelligence, an organization that deals with retail returns on a large scale, estimates that a $100 return costs a retailer $27 to process, cutting into profit margins and efficiency. Due to these and other logistics nightmares, some sellers have opted to employ a “keep it” policy which does not require buyers to return unwanted goods in order to receive a replacement or refund. This has started to result in higher prices, lower margins, and some companies charging processing fees for returns.
Barna’s Year in Review
The Barna Group, a Christian research organization dedicated to finding and distributing accurate statistics about the current state of faith, worldview, and culture in the United States and abroad, released its 2023 year in review. Here are some of the highlights:
- The majority of Gen Z want to know more about Jesus.
- The overwhelming majority of Americans have a positive opinion of Jesus… but not of their local church – and only 16% view megachurches favorably.
- New data shows that American pastors have decreasing levels of confidence and satisfaction in their vocation.
- The top things non-believers are looking for in a spiritual conversation with Christians are that they listen without judgment, are honest about their doubts, do not force a conclusion, and care about them as a person.
Sunday School
Q. What is the traditional name for the Book of Revelation?
A. The Apocalypse of John
Luckily for Allen, by the time he realized he’d been fired, his boss Braxton had already left their tech company to pursue a career of posting videos of his cat dancing on social media.
TIPS & TRICKS
New Year’s Resolutions for Kingdom Leaders
Sometimes it really is simple.
Jesus told his listeners to “Seek first the kingdom of God and His righteousness, and all these things shall be added to you.” Admittedly, He wasn’t speaking at a marketing conference, an industry convention, or delivering a keynote. He was giving the Sermon on the Mount, and His words apply to everyone who would hope to follow Jesus. Yet even though His words are not explicitly about business, they do inform us as to how we should run our companies, lead our employees, and what kind of messages we ought to put out into the world.
This is not to over-spiritualize or pontificate. The New Testament doesn’t say whether you should buy stocks or bonds, and Job doesn’t touch on which product line you should emphasize in Q1. What these sacred scriptures do say, however, is what God’s work in the world is, and how we can partner with Him in accomplishing that work.
So don’t let the oft-repeated words like “kingdom” and “righteousness” become empty buzzwords. God’s kingdom is where His laws are observed and in effect, where His resources are readily accessible, and where the people reflect His goodness, mercy, and strength. Righteousness is the right ordering of all things – or, as St. Augustine said, “To love things… in the right order.”
We can love abundance – but we ought to love justice more. We can love the products we create and sell – but we ought to love people more.
Expediency cannot trump virtue if we want to be a light and a witness. The Christian has the potential to do more good in the world because he knows God’s word and can actively guide his endeavors with the love and justice that Christ taught us – but the Christian also has the potential to do far more harm, because if he carries on his business in God’s name and then chooses to be deceptive, oppress others, or betray someone, he dishonors that holy name. So this year, let us dedicate ourselves to the first principles of our faith, get back to the basics, and allow everything else to flow from the understanding that the Holy Spirit would have us walk in.
Resolution #1 – Start Each Day in Conversation with God
We’re all busy, but what we prioritize and what we cut out says a lot about us. In 2024, as Christian leaders, we need to present ourselves before our King each morning and align our hearts with His in prayer. This way, we have a defense against the mission drift that so often plagues us, and we can always remember our first love. This practice does not make us infallible, but it does give us a daily opportunity to get back on the path and set our minds on eternity.
Resolution #2 – Be Fair and Honest in Our Business Dealings
There’s nothing wrong with winning, being the best on the block, or coming out on top, but in 2024, we will take measures to ensure that God can be honored in the way we win. We won’t be afraid of setting aside unlawful or immoral methods that might get us ahead in the short term. We’re seeking God’s kingdom first, which means Jesus is chairman of the board, and the business will be run in such a way that it will meet with His approval.
Resolution #3 – Love People Well
Whether we interact with employees, customers, vendors, or contractors, one thing needs to remain constant: We treat them as people who were created in the image of God, imbued with inherent dignity, and worthy of love. In business, we are bound to have disagreements, find ourselves in circumstances that require us to expect a lot of people, and confrontational conversations are sometimes necessary. But no matter how uncomfortable the circumstance or how hard the task is, we will hold ourselves to a higher standard in 2024. As leaders, we will accomplish our goals without crushing or using people unjustly. We will be humble, fair-handed, decent, and wise in our interactions with others, to the glory of the Lord, as His representatives.
Here’s to 2024 – may it be your best yet.
Quick Hits
- The Biden Administration has taken steps to remove funding from pro-life crisis pregnancy centers.
- Facebook has banned the official Libs of TikTok page in what some are calling pre-election censorship.
- The International House of Prayer Kansas City (IHOPKC) has cut ties with founder Mike Bickle after he confirmed in part and denied in part a slew of grooming and sexual abuse allegations.
- California retailers are now required by law to present toys in a gender neutral aisle.
- Barclay’s downgrades Apple, resulting in a 3% stock price tumble.
Guess the Prompt
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