\n\t\t Entrepreneur \t<\/p>\n
The holiday sales projections are coming, and unfortunately, they\u2019re not great.<\/p>\n
An S&P Global Ratings report expects holiday sales (November-December) will grow 4% in 2025 from 2024, but thanks to weaker consumer confidence on the \u201cuncertain macroeconomic outlook,\u201d those researchers say it\u2019ll be because of increased prices to make up for tariffs, not volume.<\/p>\n
Consulting giant Deloitte is projecting that holiday retail sales will grow between 2.9% and 3.4% in 2025. But this is well below the 4.2% from last year\u2019s growth and below the 10-year average of 5.2%. And the National Retail Federation admits that holiday sales will increase between 3.7% and 4.2% compared to last year. Unfortunately, their forecast is below the 4.3% growth achieved from 2023 to 2024.<\/p>\n
Related: 5 Underrated Tips for Brands to Boost Holiday Sales<\/b><\/p>\n
Many small businesses \u2014 particularly merchants \u2014 rely on a good holiday season to support them through the entire year. A recent Constant Contact study found that as much as 50% of a small company\u2019s sales can come from between Thanksgiving and Christmas. But does it really have to be that way? I don\u2019t think so.<\/p>\n
Having your livelihood tied to just one season in the year is a risky model. If things don\u2019t go right during the holidays, a small business owner could find themselves significantly challenged to show a profit for the year. Being so dependent on this time of year is a concern.<\/p>\n
But it doesn\u2019t have to be that way. How many stores have you browsed but didn\u2019t purchase anything? You liked the products, you may be interested in buying, but not just now. Do you remember that store? Maybe. But what if that store kept in contact with you throughout the year? What if you received interesting deals or an enticing offer in June rather than December? Would you remember that store? Maybe go out of your way to buy there? For me, that would be likely. And I know I\u2019m not alone.<\/p>\n
The holidays aren\u2019t just for holiday sales. If you\u2019re like some of my smartest clients, you\u2019ll use the holiday season as a way to grow your business throughout the year.<\/p>\n
How? It\u2019s all the data. And it\u2019s all about using the holiday season to collect data.<\/p>\n
For starters, make sure your store has a good loyalty system. You can Google or ask your AI Assistant to recommend a few good mobile apps where small merchants can offer discounts and other incentives to shoppers who frequent their store. Make sure your staff is trained to encourage anyone who enters your store \u2014 regardless if they buy something \u2014 to sign up for your loyalty perks.<\/p>\n
Hold at least one \u2014 hopefully two \u2014 events during the season. It can be anything to draw customers into your store. Demonstrations of products. Educational sessions. An expert from the industry. An open mic night for singers or comedians. Serve food and a little wine. But make sure there\u2019s a guest list. Everyone who comes needs to be registered, either in advance or at the door.<\/p>\n
Create a newsletter and ask for signups at checkout. Tell your customers that not only will they get great tips and insights for using the products you sell, but there will be special coupons only for subscribers. Consider extending the newsletter to include other like-minded shops on your street and ask them to do the same. Collect those names.<\/p>\n
Related: 3 Tactics to Turn One-Time Holiday Shoppers Into Year-Round Buyers<\/b><\/p>\nAsk<\/h2>\n
Finally, can you better track the people who actually buy from you? Asking them for their email or mobile number to send a receipt opens up the opportunity to message them separately and request an opt-in for your newsletters and loyalty programs after they\u2019ve left. Matching these opt-in acceptances with the sales dollars spent at your store allows you to target bigger or more frequent customers to come back for even more deals and discounts.<\/p>\n
I do not want to sugar-coat these strategies. They all come with a cost. Loyalty apps will require you to offer money back to customers who keep coming back. Your event will require you to buy food or hire an entertainer. Your newsletter will require you to sell certain products at a discount. People want stuff for free. Or at least at a discount. They want a deal. You\u2019re going to have to give something away in order to entice those prospective customers into your shop.<\/p>\n
Related: Don\u2019t Bank on Holiday Sales to Save Your Bottom Line \u2014 Here\u2019s How to Engage the Discount-Driven Customer Year-Round<\/b><\/p>\nGet a CRM system<\/h2>\n
All of this information goes into your customer relationship management (CRM) system. Don\u2019t have one? Just Google or ask your AI Assistant. There are very affordable offerings for small merchants from a number of mainstream platforms. Your point-of-sale provider probably has these capabilities. Take some time to learn about these applications. Why?<\/p>\n
Because as you gather your data \u2014 contact information \u2014 during the holidays, you\u2019ll build your database for after the holidays. You are doing this because after the holidays, that\u2019s where the selling really starts.<\/p>\n
Because these visitors have opted in, you now have permission to send email and \u2014 yes, physically mail \u2014 offers and announcements throughout the year. You know that the traffic through your store will be greater in December than at any other time of the year. People enjoy seeing what you sell. But if they don\u2019t buy now, you can be doing more to entice them to buy something later.<\/p>\n
The holiday season is a very important sales season. But it\u2019s also a very important data collection season. Half of your annual sales shouldn\u2019t come from just this time of year. With the right amount of hooks, you can get the information you need from both buyers and potential buyers to continue to drive more sales throughout the year.<\/p>\n<\/p><\/div>\n