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Home»Entrepreneurship»3 ways my business overcame the summer sales slump
Entrepreneurship

3 ways my business overcame the summer sales slump

prosperplanetpulse.comBy prosperplanetpulse.comJuly 5, 2024No Comments5 Mins Read0 Views
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Opinions expressed by Entrepreneur contributors are their own.

We all look forward to sunny summer days and a dip in the pool, but the inevitable drop in sales between June and August can be stressful for business owners.

According to a 2023 survey, two-thirds of B2B companies experienced a sales slump over the summer, with about 75% of affected companies reporting a sales drop of more than 20%. Additionally, one in five companies reported a drop of more than 40%.

If you’re in an industry that expects a summer sales slump, here’s how you can tackle the problem head-on and come out of August victorious. These three tactics have been tested by my team over the years and have led to us achieving $100 million in annual revenue.

Related: 3 Great Ways to Beat the Summer Sales Slump and Get More Customers

1. Mailing postcards weekly increases revenue per lead by 600%.

I built my business on the pure fact that direct mail marketing works. Postcards may not be as appealing as flashy social media ads, but they still leave a lasting impression. People have a tangible card in their hands that they can save for a rainy day. Studies show that direct mail has an average engagement rate of 95% and is interacted with at least four times in their home.

But the effectiveness of postcards isn’t surprising given the rise of digital fatigue: In one survey of 10,250 consumers, 49% said they spend too much time online and would like to spend less.

Direct mail, by its very nature, forces individuals to stop and take the time to read the ad, which gives you a greater chance of attracting leads and closing a sale. Direct mail also gives business owners far more targeting options than digital advertising, making campaigns more effective and delivering better results.

Research shows that 65% of households earning over $100,000 have made a purchase in the past 30 days as a result of direct mail advertising, meaning that not only will your potential customers pay more attention to your direct mail, but they’ll also be more likely to purchase your product or service as a result.

My company regularly mails 232,000 postcards every week promoting our products and services. Last year, we analyzed 114,373 leads that converted to sales in 2023 and found that postcards generated 600% more revenue per lead than digital advertising. Specifically, postcards generated $229.41 revenue per lead compared to $37.09 revenue per lead from pay-per-click advertising. Although you may receive more leads from other marketing channels, they are not as high quality as the leads you receive from mailings.

2. Increase your marketing budget in the last 4-6 weeks to get more leads in your pipeline

My most effective marketing principle is to market like crazy, meaning market more than you think is reasonable. The reason is that how much effort you put into your marketing determines your results. The more you invest in advertising, the more revenue you will generate.

So, right before summer starts, 4-6 weeks before, increase your marketing budget to generate more leads. Go all out: mail out thousands of postcards, create more Instagram and YouTube video ads, hire another salesperson to make outbound calls, texts, and follow up. We hire five high school kids every summer to make more calls to past leads and customers.

Even if you don’t have additional funds, come up with low- or no-cost ways to reach prospects and increase brand awareness. This could be public relations efforts, increased social media posting, email blasts, or even increased call allocations for your sales reps if business slows and they have more free time.

Once summer officially begins, you’ll have plenty of leads to pursue and many more sales to close, helping you get through the lull before your normal purchasing flow resumes in October.

Related: The Growth Hacks My Clients Hate the Most Are the ones that promise the biggest financial gains. Here’s what you need to know.

3. Re-engage past customers and old leads with new offers and retargeting

While capturing new leads is important to help you weather the summer slump, don’t forget about other opportunities to increase revenue, like bringing back customers to make a second purchase or re-engaging older leads who never purchased from you.

For contacts who have been in your CRM for years but have never purchased your services or products, create a list and email them with special offers to encourage a response. These emails can be automated with a Direct Mail API connection. Whether you use SalesForce, Zoho, or any other CRM platform, an API connection to automate these emails can save you time and money.

Don’t think that these old contacts are a waste of resources. I had some prospects in my database who didn’t respond to our postcards and emails for years, but finally got in touch and decided to start marketing services with us. I’m glad we never gave up!

For customers who haven’t purchased anything in a while, segment them into separate lists: one month, six months, one year, etc. Then add them to specific email funnels and mail them postcards with special discount codes that are only available to current customers. If you’re an e-commerce business, run a separate marketing campaign targeting users who abandoned their online shopping cart. Include a QR code in the email to encourage them to return to your website and complete their purchase.

Related: How to Boost Your Business with Direct Mail Automation and Retargeting – A Complete Guide for Beginners

In addition to implementing all of these tactics, you can also use the leisure time of the summer slow season to plan your marketing for the rest of the year. The last quarter is always the most stressful, just like a football game, so put some thought into how you can finish the year strong. With some extra money coming in, you might even want to treat yourself to some margaritas by the pool.



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