Consumer psychology after the “endless sale”
Most businesses experience a revenue drop after holiday promotions, especially Tet, around the beginning of January next year (on the lunar calendar). The main reason is that “January is a month of fun” for the retail industry because customers have less demand after the holiday shopping season.
In the previous period, consumers had experienced “endless sales” and fell into a state of being “out of pocket.” The current state of mind of consumers is to reduce the need to buy instead, so they can have savings for themselves. But if skill fully approached with the right messages, businesses can still “push the start button” to promote the new shopping cycle of customers.
Trigger customers with effective promotional campaigns
Promotion is still the most effective tool to start any marketing campaign. Deals like “buy one, get one” and “save 20% when you spend X amount” are a great way to keep driving sales. Even though customers have just gone through a shopping season, if they realize the promotion is in their favor, the approach and sales are always effective. Suggested campaigns are as follows:
- Inventory Reduction Sale: No matter how well you plan for the holidays, there will always be some unsold backlog. January (on the lunar calendar) is the perfect time to drop the price on those so you can convert them to cash as soon as possible. Nothing new, but this is a campaign that has always worked thanks to the sale of 80–90% of the products that lead customers to the store. No one can refuse when standing in front of a product labeled “Inventory Reduction Sale”. According to the experience of the PangoCDP team, the purchase rate can increase by up to 50%, which means that the customer will buy another product instead of the one on their mind.
- Reward Customer Loyalty: Sometimes you don’t need to find more customers to make more money. Probably the easiest way to increase sales is to earn more money from people who have already shopped on your website/store. Increasing average spend can be done in a number of ways, including “bundling” and “upselling” other products in your inventory to customers while on your website. Starting by selecting a segment of customers and offering double and triple bonus points for first-year orders will encourage this customer group to use the offer. Please send an email inviting them to participate in exclusive promotions for loyal customers.
- Create a campaign with products to improve customer appearance or health: Customers’ psychology wants to find products to take care of themselves as well as others after a period of rest during a long holiday. At this time, customers will eagerly receive products such as functional foods, treadmills, sportswear, sports equipment, health care packages,…
- Launching new products: Based on the New Year’s mentality that everything will have to be better, customers will tend to buy products that help them refresh themselves. If the business has a new product launched during this time, with the New Year’s messages, everything needs to be refreshed.
Every business wishes to expand. With the experience of PangoCDP, retailers should not be “silent” for long. Being in the minds of customers is always important to maintain engagement; customers also want to hear new things coming from the business. So, even if you don’t set a goal to boost sales, your marketing campaigns must be prepared and ready to launch after a long holiday.