3 Tips to Optimize Holiday Revenues
Holiday decorations have already been on display at retail stores for weeks, spreading the holiday cheer over longer than just November and December. Accounting for approximately 20 percent to 40 percent of retailers’ annual sales, it's no wonder they're making an effort to extend the holiday revenue spirit.
In the run-up to Black Friday and Cyber Monday, retailers have few options to increase sales volume and revenue without conducting a major overhaul of their digital marketing strategy. They must think strategically about leveraging assets they already have, as well as after the festivities are over.
1. Leverage your assets. Applying customer data should be a year-round strategy, but it's particularly important during the holiday buying frenzy. Your email list, which was likely opted into by customers who made purchases or visitors who were just interested in receiving deals and updates, is chock-full of data. Using an email address, you know how long they've been a customer, what they purchased, when they purchased, where they're located and if they used a discount code.
Armed with this information, you've got everything you need to send targeted messaging to each individual customer. Send email with subject lines and narrative that are most likely to entice them to open your email, click through to your website and make a purchase. Rather than segmenting on generic demographic buckets, retailers should use their data to offer individually personalized messages via email, social and SMS text.
2. Offer personalized product recommendations. Experian recently found that 70 percent of brands aren't personalizing emails based on collected data, even though those messages are found to drive six times more transactions and revenue per email than nonpersonalized messages.
For the holidays, it's important to use data to offer highly personalized messaging and, just as important, targeted product recommendations. This can be discovered through email clickthrough behaviors as well as educated suggestions (i.e., predictive analytics) based on various segment data. For example, a person with a similar electronic footprint purchased this widget, you might also be interested in seeing details about it. Offering these types of suggestions, in combination with special holiday deals, throughout the month enables consumers to spread their holiday shopping over an extended time period and decreases holiday spending stress.