5 Ways To Holiday-Proof Your Business and Prevent A Summer Cash Slump
Added on 29/05/2019
Where has the year gone? Only a few weeks ago, we were preparing for Christmas. Now we’re getting ready to pack up our bucket and spade and go on our summer holidays.
Speaking of summer holidays, this can be a tricky time for businesses as sales can really tail off in July and August. I’ve put together a few tips and tricks we use here at Face Media Group to ward off the summer slump. I hope you find them useful.
1. Showcase Seasonal Products
The summer is a fantastic opportunity to release limited-edition holiday-themed products. Whether it’s a summer version of your scented candle or a summer twist on your menus, there’s no end to the possibilities.
New products, not an option this year? Give your existing lines a makeover by taking new product photos with seasonal props and summery settings. Use these photos across all your marketing channels.
2. Update Your Key Marketing Materials
Customers are much more inclined to engage with brands and retailers who consistently update their website and social media to match the seasons and holidays.
Refresh your website and social media channels with your summer themed product photos. And take your marketing offline with flyers, leaflets or brochures.
3. Increase The Life-Time Value Of Your Customers
Did you know that a customer’s fifth purchase is on average 40% larger than their first? And that their tenth purchase is 80% larger than their first?
There are so many ways you can encourage the kind of customer loyalty behaviours that lead to repeat business, for example:
- Sending a card or gift to a new customer to say thank you.
- Introducing a customer loyalty programme.
- Using email to remind customers to order again with you.
4. Increase Your Average Order value
This is the average amount of money each customer ends up spending per transaction. You can calculate your average order value using this simple formula:
Total revenue / number of orders = average order value
You can increase your average order value by:
- Bundling products together or creating packages.
- Setting order minimums for free shipping or a gift.
- Recommending another complimentary product which other customers have purchased.
5. Prepare A Cash Flow Forecast
This is something we do weekly, and in our experience is a game-changer. A cash flow forecast is an estimate of the amount of money you expect to flow in and out of your business over the weeks and months ahead.
Think of the cash flow forecast as an "early warning system," a bit like the petrol gauge on the car. It helps you to identify potential cash dips in advance, giving you time to work out how to build up your cash reserves and steer your business out of trouble.
Photo by Michal Prucha on Unsplash
