By Jessica Bledsoe
It’s November, and you know what that means – holiday shopping season has officially arrived!
It’s no secret that many businesses, especially brick-and-mortar and/or product-based businesses make (or need to make) enough in November and December to carry them through the slower months of January and February.
In an effort to capture as many sales as possible during this season, many businesses resort to slashing prices or providing unnecessary discounts because they believe that’s what the consumer needs to be motivated to make a purchase.
While, yes, customers often expect something during these shopping day events, it’s important to remember that offering deep discounts can negatively impact your bottom line. Alternatively, this could be used as an opportunity to actually increase your average customer spend by leveraging promotions that encourage bundling, upselling, or cross-selling.
Bundling, upselling, and cross-selling are sales techniques that encourage customers to spend more:
- Bundling: Grouping related products or services together at a discounted price. Example: Offering a “Holiday Gift Basket” with a candle, lotion, and soap for a lower price than if purchased individually.
- Upselling: Persuading customers to purchase a higher-priced or upgraded version of the product they’re interested in. Example: Suggesting a customer buy the deluxe version of a product with additional features instead of the basic model.
- Cross-selling: Recommending complementary or related products to the customer’s initial purchase. Example: Offering a matching scarf to go with a coat.
These strategies can increase average customer spend while providing value and enhancing their overall shopping experience.
Understanding Customer Expectations
While customers may expect discounts on Small Business Saturday, they also appreciate value and quality. By focusing on providing unique offerings and exceptional customer service, you can differentiate your business and encourage customers to spend more.
- Offer Exclusive Products: Create limited-edition or personalized items that are only available during Small Business Saturday. This can create a sense of urgency and exclusivity.
- Provide Exceptional Customer Service: Go above and beyond to provide excellent customer service. This can include offering personalized recommendations, or complimentary services.
- Highlight the Benefits of Shopping Small: Remind customers of the importance of supporting local businesses and the positive impact it can have on their community.
By strategically using promotions and focusing on providing value, businesses can maximize their impact on Small Business Saturday and increase their average customer spend without sacrificing profitability.
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