post holiday slump

Keeping the holiday spirit alive: 11 ideas to avoid the post-holiday slump 

11 MINS
Serge John Mahinay

Your campaign was a resounding success for your business during the holiday season. Your revenue spiked due to your efficient marketing strategy, and your customers were satisfied with their purchases.  

But now that the party is over, the holiday rush will eventually fade along with the customer’s enthusiastic spending, causing your increased profit from the last quarter to decline in the new year. What if you can keep up the momentum and avoid the dreaded post-holiday sales slump?  

We’ll explain why losing your sales rhythm can hurt your company and how you can move past the slowest months of the business year. Keep reading and learn how to prolong the magic of holiday sales. 

Post-holiday slump: Why do sales go down after the new year?  

The holiday season brings a large wave of shoppers to businesses in the winter months. According to retail statistics compiled by WebFX, the total global retail sales are projected to reach $31.3 trillion, with $7.4 trillion coming from online sales by 2025. 

However, consumer spending starts slowing down after New Year’s Day. January is commonly the slowest month for most businesses, just as the fiscal year is starting. Many folks are recovering from their holiday splurge, paying their bills, settling debts, and returning unwanted gifts or purchases.  

As a result, many retailers often see a significant slump in sales after Christmas. 

But just because January is typically slow doesn’t mean you can’t do anything about it.   

Proactive strategic planning and adapting to emerging consumer trends can help your business thrive during these quieter times. 

11 effective ways to avoid a post-holiday sales slump  

The post-holiday season can be disastrous if not properly planned. While this is a good time to take it easy after three months of hectic marketing and sales, letting your guard down can take away your growth’s momentum.  

Luckily, you can turn this unfortunate case into an opportunity if you play your cards right. Take the chance to turn your business’ direction around with these effective tips:  

1. Review your holiday campaign 

Now that the holiday rush is behind you, it’s time to sit down and take a good look at how your sales went during that period.  

Debrief on your successes and determine what worked and what didn’t. Check your inventory. You can also examine customer reviews to identify areas for improvement.  

Use the data you collected to elevate your next campaign and avoid the mistakes from your previous experience. If you’re an eCommerce business, use analytics to get accurate data on your performance over the holidays.  

These statistics will be useful when you create your next move and when you start your next holiday campaign.  

2. Prepare for returns and exchanges 

After the holidays, a surge of returns and exchange requests for unwanted, ill-fitting, damaged, or defective merchandise is inevitable. The average return rate for eCommerce is typically between 20% and 30%, while brick-and-mortar stores experience a return rate of about 8.89%. 

Resolving these requests can be expensive and time-consuming, so proper preparation is essential. 

Consider implementing (or updating your):  

  • Customer service protocols. Keep your customer service team ready to handle inquiries promptly and professionally. Implement a streamlined return and exchange process to enhance customer satisfaction. You can even consider implementing AI-driven customer service chatbots to handle routine inquiries efficiently. 
  • Upselling and cross-selling strategies. Use this opportunity to offer alternative products or incentives (e.g. coupons, discounts, store credit or vouchers) before issuing full refunds. 
  • Better product descriptions. Avoid returns and refunds in the future by ensuring your product details, specifications (color, size etc.) and variant options are accurate. Use high-quality images to show product details and actual product size. 
  • Digital returns management. Use tools to automate the return process for your online store. They make it easy for you to handle return requests, generate shipping labels, process refunds and exchanges, and send automated updates to customers.  

Be transparent and authentic about what you’re selling to set the right customer expectations. 

3. Re-engage your customers 

Retargeting and remarketing are best done while your brand remains fresh in your customers’ minds. Recent shoppers don’t need any introduction to your products since they’re already familiar with them and are more likely to make another purchase. Focus on earning revenue from return customers since it costs less money and effort than enticing new ones.  

Engage your shoppers through:  

  • Email marketing campaigns. Get in touch with your customers by sending them an email thanking them for their patronage. You can also promote learning resources that would help them grow their businesses.  
  • Social media posts. Create fun and compelling posts on X, Facebook, and Instagram. Most people online spend their time scrolling through social media sites, so make sure you regularly publish posts that keep them engaged.  
  • Sales and promotions. Offer deals and discounts to encourage purchases. Sales campaigns are one of the most effective ways to spark shoppers’ energy to buy. Make your customers feel that they’re getting their money’s worth when they spend.  
  • Facebook retargeting. Target your ads to people who have shown interest in your products and remind them subtly to encourage purchases. Use Meta Pixel to control your ads and understand your customers’ actions on your website.  
  • Customer surveys. Know your customers’ preferences and opinions by asking them to answer a survey about your business. Use the data you collect to improve your brand.  

4. Pursue abandoned carts 

Online retailers around the globe lose about $4.6 trillion due to abandoned carts. However, abandoned carts can also pose an opportunity to get your shoppers to buy.  

Send them reminders about the items on their carts. Include customers who still need to complete their checkout. All they might need is a little push since they have already shown interest in your product. This tactic lets you stay relevant in your shoppers’ minds.  

Take advantage of their existing brand awareness and renew their interest to drive up sales. 

Send them an email about all the cool stuff they missed, deploy ad campaigns, and offer them special discount codes. Angle it as an ‘opportunity they don’t want to waste’ to encourage impulse purchases.  

5. Encourage impulse purchases 

Speaking of impulse buying, US consumers reportedly make up to 156 annual impulse purchases which can reach up to $5,400 per person.  

Here are some ideas to help spark the customers’ urge to buy:  

  • Use targeted ads. Pay-per-click ads are effective in spreading brand awareness, allowing a more targeted and controlled way of advertising. It also helps drive more traffic to your site. Keep your brand visible while your customers browse online.  
  • Offer sales and discounts. Offer limited-time sales and products. Provide conditional promos and offer discounts with minimum spending. Bring in eye-catching deals to hook your customers into buying your products.  
  • Make your call to action (CTA) buttons accessible. Ensure that your CTAs are easy to read and accessible. Your customers should be able to check out with the shortest route possible. They will have more time to change their mind the longer it takes to check out.  
  • Optimize your site on mobile. According to data from Backlinko, the number of smartphone users worldwide is estimated to reach 5.28 billion in 2025. Make your store streamlined and convenient to use for your customers on mobile. You can use a website builder to build a responsive site if you don’t have experience in coding or professional web design.  
  • Improve your site’s searchability. Use robust SEO tools to improve your site’s searchability online. Ranking higher on search engines lets customers see your brand easily.   
  • Recommend alternative and related products. Before your customers check out, promote your other merchandise, especially those that complement the products in their cart (for example, a battery pack to go with a battery-operated drill). Offer them deals and discounts that come with buying more products.  

6. Start a clearance sale 

It can be a good idea to start the year with a new slate. Clear out unsold items and excess inventory from the holiday campaign  by running a clearance sale. 

Many retailers often launch this as an after-Christmas sale, where they offer bulk discounts, giveaways, conditional free shipping, and special coupons. 

If you’re using an eCommerce platform, you can boost your online sales by sending out digital coupons and promo codes through email.  

Drive more conversions by inviting first-time customers from the holidays into a loyalty program that provides them with incentives and benefits.  

Be creative with how you go about it. Just keep your customers in a post-holiday shopping mood.  

7. Plan for the coming year 

A successful and profitable year comes with good preparation. Start your business’ marketing plans early in the year. Valentine’s Day, Easter Sunday, Back to School Day — the next months are filled with different opportunities for growth and seasons to be careful of. Just as January needs serious preparation, the summer months generate low sales with everyone going on vacation.  

Create a marketing calendar and iron out your goals this year. Figure out the best steps to achieve them. Use the data collected from your previous campaign as benchmarks.  

8. Make the most of the New Year season 

Customers are also trying to start the new year with a clean slate. Ride on the New Year mentality and take this opportunity to connect with your audience. Relate to customers by assisting them with their New Year’s resolutions.  

Anticipate their New Year mindset and values, so you can position your products as essential to achieving their new goals.   

9. Launch a new product 

January is the ideal time to launch a new product. The new year atmosphere is still fresh in your customers’ minds, making it the perfect time to revamp your catalogs.  

Push your brand’s competitiveness by launching something new from your business and riding the sales momentum you started during the holidays. Grab your customers’ attention and take the spotlight.  

Shoppers are always looking forward to new products. New products launched at the beginning of the fiscal year can be a good revenue base for the first quarter and the rest of the year. 

10. Adapt and stay competitive using digital tools 

In 2025, new consumer trends will continue to emerge, and you need to adapt and stay competitive. 

While things are quieter during the post-holiday period, you can evaluate an omnichannel approach to make shopping much easier for your customers. Focus on creating consistent experiences across your digital and physical presence. When customers browse your products online or visit your store in person, they should feel the same level of service and convenience. Make sure your website loads quickly and works well on phones, as that’s where most people shop these days. 

Try using some AI-powered tools, too. It’s estimated that over 80% of businesses will use AI in some form, whether it’s for suggesting items customers might like or making online shopping more seamless. 

You can also offer your customers more ways to pay, such as through digital wallets and QR codes. The easier it is for them to buy, the more likely they will shop from you. 

These digital tools can help your business stay strong after the holidays, as more stores are starting to use them to improve their marketing. 

11. Foster loyalty with purpose-driven customers 

The post-holiday period could also be a good time to start engaging consumers who value eco-friendly business practices and ethical business approaches. 

Some shoppers look for businesses that care about more than just prices. They might choose those that help the environment or do good things in their neighborhood. 

You could try simple changes — like using less packaging or recycled materials. Maybe team up with local groups for community projects. If you do these things, share your story on social media so interested customers can learn about it. 

Being open about how you make products and where they come from can build trust with these shoppers. While not everyone may care about these efforts, those who do often become loyal customers who shop with you year-round. 

Keep your business competitive in the new year  

Many businesses struggle with the start of the year. January to February are typically the slowest months for sales, and letting your guard down during this critical period can be disastrous to your business. Don’t let the post-holiday slump get to you.  

Give your customers time to recover from the holiday fatigue but keep up the flow of activities to increase your brand’s chatter among your audience. Keep these tips in mind and let Web.com’s reliable online solutions help guide you in the new year. 

FAQ 

When does the post-holiday slump begin and how long does it last? 

The sales drop usually starts right after New Year’s Day and continues through January. Most businesses see things pick up again by mid-February when people start shopping normally again. 

What are the most cost-effective strategies to combat post-holiday sales decline? 

The best low-cost ways to keep sales up include sending emails to your existing customers, rewarding loyal customers (which is more cost-effecting and profitable than acquiring new customers), using social media to promote campaigns, clearing old inventory, and sending special offers based on what people bought during the holidays. 

How can small businesses compete with larger retailers?  

Small stores can win customers by giving more a personalized service, getting involved in local events, selling unique items not found in big stores, hosting fun events like workshops, and sharing their story on social media. 

What are key metrics I can track to assess post-holiday performance?  

Keep an eye on your daily and weekly sales compared to the same period last year, noting (1) how many customers come back to shop again, (2) how much they spend per visit, (3) how many of your website visitors are ‘new’ versus ‘returning’, and (4) how many people open and click your emails. 

How do I maintain customer engagement without constantly giving discounts?  

You can keep customers interested by sharing helpful tips, hosting special events, rewarding them for being loyal customers, showing off new products, sharing customer stories, and offering special perks to members. 

  • Serge John Mahinay

    Serge is a Content Writer at Web.com. With his background in SEO Content Writing, he incorporates his technical knowledge and deconstructs complex ideas and concepts into easy to digest texts. Outside work, he enjoys watching anime, playing video games, and learning about the newest AI trends.

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