Getting ready for Christmas: online SMBs
It might seem as though Christmas gets earlier every year. Summer is barely over and already there are mince pies on the supermarket shelves. For many, preparing for Christmas this early when it is still so far off is unnecessary and frivolous. But is it true for all? By Simon Black.
For online businesses, preparing for Christmas this early isn’t odd, it’s actually incredibly savvy. Without a doubt, online retail has never been so popular. Research predicts that online spending is set to top £13 billion this December for the first time. Therefore, it is alarming that only 10% of the UK’s 4.5 million SMBs actually sell online. As the UK emerges from recession, this means many independent retailers are missing out on consumers’ newfound confidence.
In order for independent businesses to not only survive but thrive this Christmas, they need to start preparing now. Whereas the big brands, such as Selfridges, can dedicate ample resources to their Christmas preparations, SMEs don’t have the same luxury. However, even the big retailers with their greater resources are not taking any chances and began preparations months ago. While it’s certainly too early to send out Christmas cards, smaller businesses can’t afford to wait until late November to get their online presence in shape in time for Christmas.
Each year we see online shopping records smashed on Cyber Monday; known as the busiest day in the online calendar, last year there were 113 million visits to online shops as consumers made the most of the final payday before Christmas. We’ve created a timeline to highlight exactly what businesses should be doing and when to make sure they’re online-ready ahead of the Christmas rush.
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So what can businesses be doing now? Now is a vital time to spread the word and market a business effectively. Businesses should rethink their social media presence given that many consumers will be scouring social channels for offers and deals. Social is also a great way of highlighting positive word of mouth about a brand – nothing is more effective than customer praise. While re-evaluating their marketing, businesses should also look to refresh their websites. It’s important to put any seasonal deals front and centre, and to think carefully about website navigation – the easier it is for customers, the less dropouts there will be. It’s also good practice to test web pages regularly, as in many cases dropouts can be attributed to an unnoticed technical fault.
November
It’s all very well driving traffic to the website, but businesses need to allocate enough resource to deal with the expected demand. For example, is there enough stock? Are there enough employees to man the customer helplines? This might seem obvious, but it’s of vital importance. Additionally, it’s essential not to underestimate the bandwidth necessary to deal with the influx of customers to a site. Businesses should contact their server hosts about expanding their bandwidth – it’s worth investing in larger bandwidth over the festive season to manage the inevitable influx of site visitors. Ultimately, businesses won’t be selling anything if their website goes down and, chances are, many of those customers won’t come back – they will simply go elsewhere.
The single most important part of becoming online-ready is payment preparation. A single-click checkout helps avoid dropouts and streamlines the customer’s experience. Furthermore, businesses should consider alternative payments types that customers might want to use. Giving customers a choice over payment ensures they have one less reason to shop elsewhere.
Week before Cyber Monday
With so many businesses jostling for shoppers in the week before Cyber Monday, it’s the little things that can make all the difference. This could be something as small as a gift-wrap service or a handwritten ‘thank you for your order’ note. It’s also important to make customers feel valued and to give them a stress-free shopping experience where possible. Delivery options are at the heart of this. In fact, next day delivery is fast becoming one of the major customer enticement tools to convert browsers into buyers. Elsewhere, loyalty schemes and follow-up discount offers encourage repeat custom and should be considered, even if only for the Christmas period.
Finally, businesses need to make sure their backup plan is in place. If things do go wrong, there needs to be a technical team on standby and a simple landing page ready to go with a contact number through which customers can place orders over the phone.
Simon Black is chief executive of Sage Pay.
