The holiday season is fast approaching and can be a small retail business’s busiest and most crucial time of the year. Holiday sales can account for up to 30% of a retailer’s annual revenue, so it’s imperative to take advantage of this opportunity and start preparing for the holiday rush early.
In this guide, we’ll explore how to keep up with spiking demand, manage inevitable supply chain backups, and the best way to maximize your marketing strategy for holiday season sales.
Get Ahead of Supply Chain Issues
Supply chain disruptions have been a continuous headache for everyone, including Rhode Island small businesses, and these issues are only amplified by the holiday rush. Delayed shipments, material shortages, and unexpected cost spikes can all derail your orders and impede your holiday sales. Unfortunately, some of these disruptions are inevitable during the holidays, and being unprepared may lead to empty shelves and disappointed customers.
The best way to combat supply chain issues is to plan ahead and secure your inventory early. Looking back at your best-selling products from last year and considering new trends you expect for this season will allow you to try and predict what inventory you’ll need for your holiday season sales.
Plan Your Promotions in Advance
Once you’ve nailed down your inventory, you must promote your holiday sales in a way that reaches your target customers to ensure your Rhode Island small business stands out in the sea of holiday promos. This means carefully planning your campaigns to reach the right audience at the right time and format. Use data to optimize campaigns for the highest ROAS (return on ad spend).
Creating a detailed promotional calendar is the best way to sync up your inventory shipments, marketing efforts, and sales goals. This calendar should cover everything from Black Friday to New Year’s Day, with plenty of time scheduled for spreading your message. Many customers plan their holiday purchases well in advance, balancing their gift spending with their other expenses, so it’s essential to ensure you’re on their radar at least a few months in advance.
Effective Marketing Channels for Small Retail Businesses
Whether your store is entirely online, a temporary pop-up, or a fully operational brick-and-mortar storefront, you’ll want to explore a few different avenues to reach your intended customers. While you may have found a marketing method that works well day-to-day, expanding into other channels for significant events like the holidays may be a winning strategy.
Some marketing channels to consider include:
- Social Media: Platforms like Instagram, Facebook, X (formally Twitter), and TikTok can help build buzz around your holiday offers. Use eye-catching visuals and shareable posts to highlight special promotions, gift ideas, or exclusive deals. Engage with commenters, promote your products live, or even experiment with a giveaway to create more interest and grow your following.
- Email Marketing: Sending personalized emails to your customer list is one of the most effective ways to promote holiday sales. Segment your list to target specific groups with tailored offers, and don’t forget to send reminders about special events like Black Friday or Small Business Saturday.
- Website Content: Ensure your website is up-to-date with holiday promotions, gift guides, and easy navigation. Customers are likely to browse online before purchasing, so having clear calls-to-action (CTAs) on your website is crucial. Add a temporary pop-up banner to highlight your upcoming holiday sale, and temporarily move any limited holiday-edition products to the homepage until the season ends.
- Mailers: Sending a well-designed flyer or postcard to local customers can remind them of in-store promotions or special holiday hours and is a great way to reach offline customers. This is also an excellent opportunity to send special discount coupons to encourage new customers to try your business.
Measure the Success of Your Holiday Season Sales and Promotions
The holiday season will feel like a whirlwind, but it’s essential to monitor your performance to measure the success of your efforts. Track key metrics like website traffic, sales conversations, email open rates, and social media engagements to understand what worked and what you can adjust for next year. Look at your data to zero in on who your customer actually is (it may be different than you think!) and what offers are most attractive to them. This will give you a better view of your overall success beyond your sales numbers alone, and you can carry this data into future campaigns.
Part of this step will include tracking your marketing efforts’ return on investment (ROI). Maybe the money you spent on Facebook ads wasn’t worth the website traffic those ads could drive, but your mailer coupons were so successful you could double the number for next year. Or your physical mailers were unsuccessful but your email marketing was a huge hit. Understanding what delivered the best results for the amount of money and effort it required is the best way to fine-tune your strategy for the following holiday season.
Start Preparing for Your Holiday Season Sale Today
The holidays may still be a few months away, but it’s essential to start planning now. By addressing supply chain issues early, plotting your marketing campaigns, leveraging multiple marketing channels, and monitoring your ROI metrics, you’ll set yourself up for success during the most critical sales period of the year.
The RISBDC is here to support you through this hectic season, from helping you plan your inventory to offering marketing insights to drive customers to your store for holiday shopping. Reach out today to schedule time with one of our experts and get ahead of the holiday rush.
The Rhode Island Small Business Development Center at the University of Rhode Island employs a dedicated, experienced, and knowledgeable staff of business counselors and administrators who can assist you in growing your business. Register now for free, confidential business advice from our advisors here—call (401) 874-7232 to schedule a counseling appointment or attend our free webinars.
