As we come to the end of summer, inching our way toward the holidays, many eCommerce brands will experience a very counterintuitive trend: a slowdown in consumer spending. It generally happens during the 8-10 weeks before major holiday sale events, notably Black Friday and Cyber Monday known as BFCM.
If you’ve seen a sales slump, or the performance of your reviewed ads has slipped, well, you’re in good company. It’s an age-old, documented trend with consumer behavior-and, importantly, it’s nothing worth worrying about.
The Calm Before the Holiday Storm
Consumer purchasing is strategic, with the holiday now full on the radar consumers know that major discounting and special promotions are on the horizon and — knowing this — they hold off on buying, waiting for the rock-bottom price. This brief reprieve from spending is part of the typical eCommerce roller coaster and merely reflects a smart shopping mindset that has only escalated with the advent of digital retail.
Why This Happens
The main factors contributing to shoppers becoming stingy about spending in the weeks leading up to the holiday season are as follows:
Anticipated Discounts: Shoppers have grown accustomed to significant mark-downs and deals during BFCM and other holiday shopping campaigns. “A lot of people will wait for that sale before buying something at full price or even if there is a smaller sale price.
Budgeting for the Holidays: As consumers go through these planning motions for holiday spending, they tend to be more budget-minded. This may even involve setting aside holiday money for gifts, travel, and general expenses related to the holiday. It withholds from buying what is not really needed so as to have enough pooled for the time when real deals come.
Promotional Fatigue: After a summer of sales, back-to-school promotions, and everything else marketers could throw at them, consumers experience a condition known as promotion fatigue. They may stop just to get a break from the never-ending flow of promotions, instead waiting for the heavy, heavy discounts around the holiday.
What This Means for Your eCommerce Business
For brand owners, the pre-holiday slowdown is nerve-wracking if you’re not aware of it. It’s easier to grapple with when you realize that this is basically part of the consumer cycle and to be prepared and adjust your strategy according to the occurrence.
Don’t Panic: The biggest takeaway here is not to panic. Everything slows down but it is expected and temporary. Your sales and engagement should surge right back almost immediately when the actual holiday season gets underway.
Plan Ahead for BFCM: Use this time not just to prepare for the rush around the upcoming BFCM. This might mean refining your marketing strategies, ensuring your website is up to par in the case of a traffic spike, and scheduling through your holiday promotions. The more prepared you are, the better you will be able to maximize the surging demand from eager shoppers.
Engage Your Audience: People are still consuming content, and in most instances planning for that holiday purchase. Take the opportunity to nurture your audience with valuable content, offer sneak peeks of upcoming deals, or early access opportunities. The idea can create anticipation and keep your brand top of mind as the holiday season arrives.
Analyze and Adjust: Take this opportunity to analyze your current performance data and adjust your strategies if needed. Consider testing new creative ideas or ad copy that might resonate with consumers as they start to think about holiday shopping.
Final Thoughts
The weeks leading up to the holiday season are very special in the eCommerce calendar cycle. If the pre-holiday slow period does cause you any anxiety, just know, it’s an elementary step in the general flow of consumer behavior. Mastering this trend and then using it to your brand’s advantage is what will position you most advantageously as the BFCM season kicks into high gear.
Take a deep breath, hold your course, and get ready for the holiday rush.
The best is on the horizon!
