Sales strategies to help your small business reach new goals

Small business needs new sales strategies when they set new goals as new goals bring new stress for business owners. Now, more than ever, small business need to do their utmost to survive as their input prices increase in difficult economic circumstances.

“Many small businesses get off to a shaky start at the beginning of the year, but with a bit of careful planning, you can make sure you find your feet and hit the ground running as March, April and the rest of the year rolls in,” says Rene Botha, area manager at Business Partners Limited.

Botha says it is especially important to understand how macroeconomic factors affect your customers, provide solutions for cash-strapped consumers, cut delivery costs where possible, focus your marketing efforts on communicating quality and bring urgency back.

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How macroeconomic factors affect your customers

“Small business owners are experts on their businesses, as they understand the ins and outs of cashflow management, seasonal sales movements and what their business’ biggest challenges are. However, in keeping your eye on the microeconomics of a small business, you can miss out on the bigger picture.”

She says one of the best ways you can equip yourself to beat the stresses that a new year brings, is to understand how macroeconomic factors will impact the buying power of your customers. “The key is to leverage information, understand their frustrations and find strategic ways to solve their pain points.”

According to recent reports, fuel price cuts may ease economic pressures in the first few months of 2023, but high inflation and interest rates will keep South Africans and small businesses under strain. “Depending on the nature of your goods or services, the resulting price sensitivity will affect your business in different ways,” she says.

Providing solutions for cash-strapped consumers

Cash-strapped consumers are looking for solutions. If, for example, you sell groceries or household essentials, be aware that price-conscious consumers are switching to cheaper brands to keep food on the table and incorporate it in your sales strategy.

“Over the next few months, you should therefore opt to stock a few cheaper alternatives to popular brands. This may involve negotiating with your suppliers for discounted rates on bulk purchases of lower-priced alternatives. Alternatively, you could offer markdowns for bundled deals on popular brands or create a rewards system that lasts only for a short period and reward customers with a free product giveaway when they make their usual monthly purchases.”

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Cutting delivery costs where you can

The 2022 South African Digital Customer Experience Report showed that more South Africans are abandoning their shopping carts when they are prompted to pay shipping or delivery costs.

“If you can negotiate with your delivery partner to offer free delivery or even make a few deliveries yourself in your local area, it would go a long way to ensure you close the sale and your customers complete their journey with your business,” Botha says.

Focusing your marketing efforts on communicating quality

She says in a price-sensitive market, value is king in your sales strategy. ‘Value’ relates to how your customers perceive the worthiness of your product or service.

“It is important to remember this is where that ‘worth’ can be thought of in monetary terms, but also in terms of what the product adds to a customer’s quality of life.

“If you cannot afford to compete with your competitors on price over this time, push messaging around the quality and the long-term value of your offering and bring this messaging into all channels of your marketing strategy.” 

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Bringing urgency back

Botha says creating a sense of urgency is something marketers always emphasise as a way of driving sales. Over the festive period, this may have been a strategy used to boost revenue ahead of special days such as Christmas.

However, what can small business owners do about the after-Christmas and January shopping slump, when customers have grown weary of the frenzy and tell themselves they can always ‘buy your product or service next month?’

“The first few months of the year are the perfect time to host flash sales, pop-up stores, limited time offers and last-of-season promotions as a way of mitigating the ‘I’ll buy it later’ rhetoric. This is the ideal time of year to sell excess or old stock that might not have moved fast enough during the previous year.”

She says offering these products at reduced prices for a very limited time might be the best way to simultaneously boost sales and refresh stock levels.