Slicing off a Piece of the Christmas Season Money Pie
The Christmas Season is an important time of year for many businesses. More than 19% of the total retail industry makes 20%-40% of their total yearly income in the months between November and December. There are many ways in which business can make money during the Christmas Season, but no matter what the path, the main goal this season should be to get customers. In her article, “Small Business Success.” Rhonda Abrams outlines the main ways to bring customer attention this holiday season. She says the number one goal to make any small business profitable is to get customers and one can do that by starting incentive plans and though social media.
Coupons, though once perceived with a negative stigma, are becoming more popular. They are a great way to encourage potential clients to try a service or a product. According to Abrams, 61% of households with yearly incomes over $100,000 use coupons. In order to make coupons work the hardest for small businesses, there are some strategies. First, the coupons should have a cap on the number of deals available, both in the total number of coupons offered and the number that any one person can redeem. Secondly, a good strategy is to have deals on bundles of higher price point items. Thirdly, make sure the discount only apples to high profit margin items. Try considering making discounts available for both new customers and to loyal, returning customers.
Another strategy to get more customers is though social media. Websites such as Facebook, Twitter, and Pintrest provide a great platform to reach more people. 76% of people look up a business on the Internet before visiting it. More interesting, 72% of people trust online reviews; so it comes as no surprise that 52% shop at businesses with higher reviews. Adams suggests that time should be given to a business’s social media presence. Online review sites should be checked weekly; and someone should respond to both good and poor reviews. She says that a good online persona is key and businesses should post on Facebook around 3 times weekly and tweet once a day. The best time is midday.
Knowing which social media sites attract which group of people is vital to a successful online campaign. For example, Pintrest’s user base is 82% female while Youtube and Google+ have more male users, 54% and 71% respectively. Rhonda Adams points out that more than half of Facebook users visit the site everyday. Just think of the impact a well thought-out social media advertisement campaign can make.
The last way to draw in more customers is to offers gift cards. Gift cards are good for every business that uses them. It is a promise that someone will spend money with a particular business. Adams reports that 55% of customers shop more than once to redeem the full amount of a gift card, giving that business more chances to make a good impression and maybe transform them into a lifetime customer. Even more surprisingly, 40% of gifts cards are never redeemed for the full amount.
The Internet is a great place to reach a wide array of potential customers, and to advertise promotions to spike their interest. The more familiar you can get a potential customer with your business through promotions, advertising, and good reviews before they even spend a dime, the more likely they are to think of your business this holiday season.