Strategies to Bolster EOY Sales and Considerations for 2023 Planning
This holiday season has been a huge success for brands. Take a look at these numbers for a YoY comparison. Looking for vertical specific data? Please refer to the bottom of this blog!
To help our clients finish the year strong and to set up 2023 for further success, the Growth Strategy department here at MuteSix would like to gift the following thought-starters for your consideration:
One way to show your appreciation with existing customers is to host a Customer Appreciation Sale. This gives you an opportunity to re-engage your best customers and give your sales a little kick before year’s end. We recommend utilizing your lifecycle marketing channels for this effort.
Test Out of Diminishing Returns:
With post-iOS 14 privacy changes negatively impacting the advertising industry’s ability to access audience data for targeting and attribution, brands need to move towards a full(er) funnel media approach in order to efficiently win net new customers. With recent wins with clients taking this approach during BFCM (for instance, one brand saw a 44% increase in net revenue from FTCs with 23% less media spend YoY), the audience scale and qualifying that a full funnel media approach provides is also the strategic play that will ensure sustainable long-term growth.
Focus on net new customers, not immediate net sales:
Covid, supply chain issues, and the growing concern around inflation all had a major impact on consumer preferences. This has left a number of businesses with excess inventory whether due to changing consumer demand or price sensitivities. To move more inventory and to set yourself up for more success, companies with customers that have strong repeat purchase behaviors should consider an end of year sale of specific items to drive new customer acquisition. Instead of focusing on immediate revenue, brands need to understand that the name of the game in e-commerce is customer lifetime value. By encouraging more first-time experiences with your brand, brands will have a larger pool of customers to re-engage with upsells and cross-sales through lifecycle marketing channels in the new year.
New Year, Better/Refreshed Me:
For the same reasons that businesses may have excess inventory, the past few years have seen a disruption to the daily routines and habits of people everywhere. This disruption is an opportunity for brands to win new customers by showcasing how products/services enable specific routines and habits while addressing the new realities around cost-of-living pressures. Areas of creative messaging opportunities:
Self-care: How can brands empower routines that help people take care of themselves (physically, mentally, emotionally)?
Self-confidence: How can brands help people become more sure about themselves and their choices?
Self-identity: How can brands enable people to unapologetically be who they are?
Self-discovery: How can brands contribute to your customers’ personal journey?
Measuring Success in 2023:
As previously mentioned, post-iOS 14 changes to consumer privacy have reduced the ability to track/see people’s behaviors on their iPhones. That represents 50% of the US population, or 150 million people whose data is no longer available within platforms. This will only grow over time. This is why channel attribution is no longer possible and measurement companies that still provide this offering are sharing an inaccurate view of paid media contribution to revenue.
Brands that are looking to succeed moving forward need to acknowledge the new realities and become familiar with solutions that do not depend on pixels. Marketers who are setting up their businesses for success are now looking to statistical modeling-based solutions such as Marketing Mix Modeling (MMM) to plan and make data driven investment decisions. To learn more about MMM, please reach out to your Client Success Manager to get connected with our Marketing Data Science capabilities.
It’s been a pleasure partnering with you in 2022 and we’re excited to help you strive for even more success in 2023. Growth Strategy has been behind-the-scenes with your teams future-proofing your media investment strategies. If you’d like to learn about additional capabilities, please contact us.