A slow season affects all businesses, both online and offline, as there are periods when people tend to visit your store less frequently. It can cause lower cash flow and profitability, leading to operational reductions and stress for business owners trying to keep their employees paid and doors open.
Many factors can cause slowdowns, from operational difficulties and falling short of your revenue goals to global pandemics and economic downturns. Regardless of the reason, it's important to remain calm.
This article will guide you on the slowest months for online sales and provide you with strategies you could use to thrive during your quieter seasons.
What Are the Slowest Months for Online Sales?
In general, many sellers agree that the slowest months for online sales are January and February. They consider this the slow season since the Christmas hype fades and holiday promotions end.
The graph from the Philippines Statistics Authority shows how seasonality causes sales to fluctuate predictably; quiet seasons follow busy ones, more often than not. The best and worst months for retail sales will depend on your business and industry.
For instance, a seasonal business that sells Halloween decorations will naturally have a slow season for most of the year until October. Likewise, a seasonal business that sells beachwear experiences can expect a sales slump during typhoon season.
Source: Philippines Statistics Authority
Moody's Analytics finds that the retail industry tends to experience a dip in its sales in Q1 (after the holidays) and Q3 (around summertime). Similarly, Kantar finds the Philippines' fast-moving consumer goods (FMCG) industry plateaus by Q3.
Data from the Greenwich Capital Group (GCG) about the food and beverage (F&B) industry suggests a dip in performance post-Christmas season, taking a few months to recover.
Source: Greenwich Capital Group
How Seasonality Affects Business Sales and Performance
Seasonality affects your business in many areas, with cash flow being the most evident. Low revenue, site visits, or foot traffic can result in a sales slump, necessitating workforce restructuring and expense reduction to remain open.
Your business can slow down for many reasons outside of your control. The pandemic, for example, caused massive sales and performance slowdowns across all industries.
Inflation could be another reason why business is quiet. Yale School of Management's Ravi Dhar suggests high inflation rates make many customers more conservative in their spending. It's what makes them choose products that are on sale rather than those that aren't.
Your business can slow down because of the temperature outside, too. A 2021 study on Chinese buyer behavior found that hot weather reduced Chinese customers’ purchasing.
It's important to remember that slow seasons are often unique to your business, and some industries are more sensitive to seasonalities than others. But regardless of how they come about, you must develop strategies to help you thrive when business is slow.
What to Do When Business is Slow: Tips and Strategies
Going through the slowest months for online sales doesn't have to be unproductive. You can use the time to develop strategies to have an even better, busy season later in the year.
Below are a few tips to avoid off-season slumps and strategies to keep your sales up during a slow season.
- Create seasonal campaigns or collections
Seasonal marketing can still work with the right approach. You can group similar products and offers under a theme, making it easier for customers to make purchasing decisions. For instance, an F&B brand can run a summer promotion on specific meals to catch customers' attention during a slow summer, while also incorporating a special collection or campaign for Mother's Day to cater to customers looking for thoughtful gifts for their moms.
- Be present and active on social media
Social media is a great way to stay connected with your customers anytime, making it an important component of any successful business strategy. Continue posting on your social media profiles and promptly respond to customer queries online. This strategy will help your brand stay top-of-mind even during a slow season.
- Review your past performance
To what extent are you experiencing slower sales because of internal factors? Sometimes, it might not be buyer behavior or the economy causing a revenue drop. Instead, it could be that your marketing isn't effective or more customers are unsatisfied with their products.
Take the quieter time to review your past performance. You may find areas of your business you still need to improve.
- Find new business partners
Likely, your business isn't the only one experiencing a slow season. Partner with other eCommerce stores for joint promotions or events that appeal to your shared target audiences and revitalize your sales. Likewise, you can ensure your inventory is well-stocked by sourcing from alternate suppliers in preparation for your next influx of customers.
- Revise your budget
While revenues may slow down, bills and payroll will remain the same. Set aside money from your busy season earnings to help you cover your slow season expenses. You can also eliminate unnecessary costs to help you keep your finances in order.
Strategically planning your budget can help your business thrive during slow seasons. For instance, suppose your slow season is from April to June and your peak season is from July to September; you can allocate more marketing budget to slow seasons to maintain momentum from your busy period.
- Refresh your products and brand
The slow season allows you to focus on improving your store and eCommerce branding to accommodate traffic during busy seasons. You could slowly introduce new products and services, refresh your website’s front-end or back-end, or even revisit old blog content to ensure it remains relevant and search engine optimized.
These changes and updates can help you stand out in the digital space.
- Reward your loyal customers
Leverage your customer loyalty program by rewarding members who continue to support you during your off-seasons. It can include discounts on birthdays, running exclusive buy-one-take-one (BOGO) promos, and offering them limited-time vouchers.
- Develop new business strategies
Is your business still on track to meet your goals? Or have you found new targets to aim for? Use the quieter time to revisit your strategies and adjust your operations to ensure you’re still progressing towards your business objectives.
- Run a giveaway or contest
Giveaways and contests can increase your brand awareness and generate traffic, which is crucial for your business during your off seasons.
Remaining flexible is crucial during a slow season. Failing to adapt to the changing market is one of the most common mistakes retail brands make. Regardless of how busy or slow your business is, you must look for ways to improve and attract more customers.
Thriving in the Slow Season
Whether you're running an eCommerce or a brick-and-mortar retail business, you'll eventually experience the effects of seasonality on your business's sales and performance.
Seeing your revenue and traffic drop can flip you into survival mode, but you must remain calm during these times. You can still navigate these changes easily by understanding how your business operates during certain periods of the year. Doing so can ensure you have enough resources to keep your operations running smoothly.
Your most loyal customers can play a significant role in keeping your business afloat during the slow seasons. RUSH is an eCommerce platform in the Philippines that allows you to engage with and reward loyal customers through an effective customer loyalty program. Book a demo with RUSH today to learn how we can help your business even during the slow season.
