The festive season is here. Whether it’s Dhanteras, Diwali, or Bhaidooj, every celebration is incomplete without shopping! ECommerce is expected to generate over INR 100-120 thousand crore in gross merchandise value this festive season, which is a 20% YoY growth. You’ve got to be prepared for the increased order. Here’s how to be on the top of your business game during festivities.
Checklist To Help You Navigate the Festive Season
1. Forecasting and Planning: Backbone of Festive Success
A. Analyze Historical Data
Start by reviewing past sales data to identify which products were most in demand during previous festive seasons. For instance, if last Diwali saw a spike in ethnic wear or gift items, you can anticipate similar trends and prepare your inventory accordingly. Don’t just stop at product trends—analyze which regions saw the most orders and tailor your logistics strategy to cater to high-demand areas.
Example: An apparel store may find that demand for traditional outfits peaked in the first week of October last year. Based on this, the store can ensure sufficient stock well before October to avoid stockouts and shipping delays.
B. Trend Analysis and Market Research
In addition to historical data, stay updated on market trends and consumer behaviour. Look for emerging trends on social media platforms or eCommerce marketplaces. If new styles, designs, or gadgets are trending, include them in your product offerings to capitalize on the festive shopping mood.
Example: In recent years, eco-friendly products have gained popularity. Businesses offering sustainable options like biodegradable packaging or eco-conscious gift items can stand out during festive promotions.
2. Inventory Management: Avoid Stockouts, Boost Sales
A. Optimal Stock Levels
Nothing frustrates customers more than seeing “out of stock” notifications on products they want to buy. Proper inventory management is key to handling festive demand. Assess your top-selling products and order sufficient stock well in advance to meet demand spikes.
Example: If an electronics store knows that smartphones are a big seller during the festive season, it should double or triple its stock ahead of time. Additionally, keeping a buffer stock for unexpected demand can help avoid last-minute shortages.
B. Collaborate with Suppliers
Regular communication with suppliers is crucial to ensure that your inventory needs are met in time. Set clear expectations regarding product volumes and timelines. Working with multiple suppliers can also help mitigate the risk of delays.
Example: A beauty brand could work with three different suppliers for their best-selling skincare products. If one supplier encounters delays, the other two can ensure there is enough stock to meet the demand.
3. Staffing: Be Ready for the Rush
A. Seasonal Hiring
Festivals usually mean a spike in customer traffic, both online and offline. Temporary staff can help you manage this surge in demand, from handling customer inquiries to managing in-store operations or packaging orders in a warehouse. Start recruiting early to avoid last-minute staffing shortages.
Example: A popular bakery might hire additional bakers and delivery personnel ahead of Christmas to ensure they can meet the increased demand for cakes and cookies during the holiday season.
B. Train Your Team
Effective training ensures that your seasonal staff are well-equipped to handle the rush. Whether they are responsible for packing orders, managing customer complaints, or assisting in-store customers, make sure your team knows the ins and outs of your business.
Example: An eCommerce brand might offer its seasonal hires quick training on handling customer service platforms, ensuring they can answer customer questions quickly and efficiently during the rush.
4. Customer Service: The Heart of Festive Operations
A. Proactive Communication
Clear and proactive communication is vital during the festive season. Make sure your customers are informed about important details like delivery times, return policies, and stock availability. Use email newsletters, SMS alerts, or notifications to keep them updated.
Example: A fashion retailer could send out automated emails about expected shipping delays during the peak shopping days, letting customers know to shop early if they want their purchases delivered before Diwali.
B. Multichannel Support
Customers expect quick responses to their inquiries, especially during the holidays when stress levels are higher. Offer multichannel customer support via phone, email, social media, and live chat. Automating responses through chatbots for common questions like delivery dates or product availability can help ease the burden on your customer service team.
Example: An electronics store might use AI-powered chatbots to instantly answer customer queries about order tracking, ensuring a smooth shopping experience.
5. Logistics and Supply Chain: Ensure Smooth Deliveries
A. Early Shipping and Fulfillment Planning
Festivals are notorious for causing shipping delays, so plan your logistics well in advance. Switch to courier aggregators that offer support of multiple courier partners to ensure timely deliveries. Prepare for early pickup schedules, look for express shipping options, and streamline fulfilment processes.
Example: A D2C brand could partner with aggregators like RapidShyp to ensure smoother last-mile deliveries, offering customers the option to choose between standard or express delivery depending on their needs, pickup location, and delivery location.
B. Focus on Last-Mile Delivery
During the festive season, delays in the last mile—where packages go from the local distribution hub to the customer’s door—are common. To avoid customer dissatisfaction, work with reliable last-mile delivery partners. Consider enabling live tracking of orders to give customers transparency about their shipment status.
Example: A furniture store might collaborate with third-party logistics providers specializing in bulky goods delivery, ensuring customers receive their festive decor pieces on time.
6. Marketing and Promotions: Captivate Your Audience
A. Festive Offers and Discounts
Nothing entices customers more than festive offers. Create special discounts, bundle deals, or freebies to attract holiday shoppers. Use urgency tactics like “Limited-Time Offer” or “Holiday Sale Ending Soon” to encourage quick purchases.
Example: An electronics store could offer a free pair of wireless earbuds with every smartphone purchase, promoting it as a “Festive Gift Bundle.”
B. Omnichannel Strategy
With consumers shopping across multiple platforms, it’s crucial to have a strong omnichannel strategy in place. Ensure that your website, app, and physical store are aligned in terms of pricing, promotions, and product availability. Leverage social media, email marketing, and SMS campaigns to drive traffic and conversions.
Example: A home decor brand could launch a Diwali collection on its website while simultaneously running targeted Instagram ads and sending personalized emails to existing customers about the latest offers.
7. Payment Flexibility: Offer Convenient Options
Festive shoppers often appreciate flexible payment options, especially for high-value purchases. Offering multiple payment methods, including credit card EMIs, buy-now-pay-later schemes, and digital wallets, can improve the shopping experience and boost conversions.
Example: A smartphone store might offer a 6-month EMI plan with zero interest, making it easier for customers to purchase premium devices during the festive season.
8. Return and Refund Policies: Ensure Smooth Post-Sales Experience
The festive season sees a higher rate of returns, especially for gifts. Make sure your return and refund policies are customer-friendly and clearly communicated. Offering easy returns can enhance customer satisfaction and encourage repeat business.
Example: A clothing retailer could offer an extended return window for festive purchases, allowing customers to exchange or return items even after the holidays.
9. Financial Planning: Budget Wisely for Festive Success
A. Allocate Budgets for Marketing, Staffing, and Stock
The festive season brings not just higher sales, but also increased costs for marketing, additional staff, and stock replenishment. Proper financial planning ensures that your business doesn’t overspend during this period. Allocate a budget for each department and track expenses carefully.
Example: An online marketplace might allocate 50% of its marketing budget towards festive promotions, including paid ads, influencer marketing, and social media campaigns, to maximize customer reach.
B. Monitor Cash Flow
While sales volumes might rise during the festive season, so can expenses. Keep an eye on your cash flow to ensure that your business remains liquid throughout the busy period. Ensure that you have enough working capital to pay suppliers, staff, and logistics providers on time.
Example: A furniture company that offers large-ticket items might need to arrange for short-term credit to ensure smooth cash flow while awaiting payments from customers who opted for EMI plans.
The Bottom Line
By following this checklist, you can streamline your business operations and capitalize on the festive season’s opportunities. From efficient inventory management to smooth logistics and stellar customer service, acing your operations will help you not only meet but exceed customer expectations, setting the stage for future growth.