Most businesses have sales cycles that include peaks and troughs. For many, the annual pre-Christmas peak runs any time from October onwards and is often followed by a January Sale. How you plan, prepare and manage these peaks, and the inevitable troughs, will impact cash flow, inventory, staff and your customersā experience.
New businesses will find it especially hard to predict their sales cycle whereas established ones will have data that can provide a steer on when their seasonal peaks and troughs are likely to occur. Regardless of industry, the majority of businesses can expect to see random or regular highs and lows throughout their financial year. However, there are strategies to reduce their impact.Ā
Plan Ahead
Retailers can typically see anything from 30% to 50% of their annual sales between November and December. Black Friday in November produces an average online retail spend of a staggering Ā£1.49 billion. For retailers, Q4 is notoriously challenging ā itās frequently make or break time. Everyone is stressed: drivers, subcontractors and staff are all affected. So, what can be done to relieve the pressure?
Scale your operations
Itās important to plan for seasonal peaks and troughs at least three months in advance. Review your data (see DDDM below) and wherever possible engage with clients to ascertain their needs in advance. You need to scale-up for peaks and streamline your operating costs when things go quiet
Combat quiet spells with offers and promotions
If youāre expecting a quiet spell you can take steps to mitigate its impact. Reach out to existing customers offering loyalty discounts and special offers for a limited period. This can be done on a planned basis, e.g. a January sale, or, with most eCommerce platforms, as a more ad-hoc āFLASH SALEā, e.g. for a weekend.
Use DDDM
Data delivers a wealth of insight and business intelligence that you can use to predict, plan and even take advantage of peaks and troughs. For example, during a notorious quiet spell, you can save money cutting back on any unnecessary expenses and plan new business drives for that period.
Outsource your logistics to specialists
Fulfilment is the area that can suffer most during seasonal challenges, and a serious failure can have devastating consequences. Inventory management, order turnaround, and overall customer satisfaction all rely on devising and implementing a well thought out logistics plan.
Outsourcing to specialists not only helps relieve this massive challenge but will also yield further benefits such as greater operational efficiency and savings – visit our specialised Third Party Logistics page to learn how EC Group can benefit you!
Develop your sales and marketing strategy
Seasonal troughs are the perfect time to develop your sales and marketing strategy. Take advantage of quiet spells by staying in touch with clients, upselling and planning your tactics and strategy for the next twelve months. Sales and marketing campaigns can combat quiet spells and grow your customer base.
Get some protection
Industry experts can help to protect your business from seasonal peaks and troughs. If your in-house logistics is over-budget and under-resourced ā EC Group can help. Our experienced team will tailor the correct logistics solution for your business, making light work of peaks and reducing costs during troughs.
To discuss the correct logistics solution for your business, please get in touch with one of our experienced team members here!
