The biggest opportunity in 2020 is quickly approaching.
Monday, November 26, 2018 (Cyber Monday), went down as the biggest day in online sales in American history.
But sales continued to increase in 2019, as consumers spent $601.75 billion online with U.S. merchants, up 14.9% from $523.64 billion the prior year, according to the U.S. Department of Commerce quarterly e-commerce figures.
Online sales are expected to surpass 2019 by an additional 18%.
This holiday season has the potential to be the largest yet, with a huge percentage of sales poised to come through online channels.
The only question is, how are you going to maximize your brand’s profits this holiday season?
There are two options (one which is likely to earn you a much higher ROI than the other).
Just like the rest of the year, your options are to reach out to new leads or nurture your existing ones. Let’s explore both.
Option 1: Acquire new leads.
It’s always important to move new leads into your brand’s universe. Reaching more of your market isn’t a bad thing.
However, it becomes incredibly costly around the holidays. That’s because the competition is high. This means higher ad costs, yes, but also more competition for free and organic searches as well.
Every other brand suddenly becomes your competition because they’re competing for your customer’s time, attention, and hard-earned cash.
Plus, consumers are more likely to purchase from brands that they have had a relationship with before purchasing from brands that they first interact with during the holiday season.
This makes this option incredibly expensive, leaving you with a lower margin if choosing new leads as your most targetted audience this holiday season.
Option 2: Capitalize on Existing Leads
The cost of selling to existing leads is far, far less than acquiring new leads. But, that’s in normal times. During the holiday season, that cost differentiation is even greater.
Klaviyo, an email service provider that specializes in e-commerce (and my recommendation if you’re an e-commerce store owner), analyzed top-performing stores during the 2018 holiday season. They found that 48% of 2018 BFCM sales came from customers first active between Q1 ’17 and Q3 ’18.
Email was a top driver of these sales.
In fact, one of Klaviyo’s biggest takeaways was that focusing on acquisition at the expense of tapping into your existing email subscribers is a costly mistake.
Now that BFCM is approaching, it’s time to tap into that lead base that you’ve grown all year long.
Hands down, the best way to do that is via email marketing.
Email allows you to connect with and nurture your existing leads at a very low cost.
So… what’s your plan for this holiday season? Do you have the resources and strategy in place to maximize your 2020 profits?
If not, it’s time to take action.
Reach out to book a consultation to discuss your BFCM plan. We’ll map out a plan to maximize your sales over the next 90 days.