Tricks of the trade: Tips for SMEs to get the most out of this festive season
The festive season stimulates consumer sentiment greatly — increasing demand for goods and services across segments.
According to an analysis by Axis My India, 48% of consumers tend to spend more during festive days compared to any other time in the year. It also revealed that 20% of consumers plan to shop more during this festive season compared to last year.
A sense of optimism surrounds this festive season as businesses across sectors can witness a quantum jump in sales figures on the back of consumers’ willingness to spend to make the season memorable.
For small and medium enterprises (SMEs), it is an opportunity to harness the potential of the festive season and grow their customer base excessively.
SMEs—who play a vital role in contributing to job creation in India—have gained significant popularity due to their contribution to the nation’s Gross Domestic Product (GDP).
In the last two years, while the pandemic did deter the sector’s growth, the government’s focus on uplifting SMEs through several programmes and financial inclusion brought them back on their feet.
This year, the festive season brings a lot of opportunities for SMEs, especially creating job opportunities for millions of Indians who are otherwise unemployed during the larger part of the year.
According to an employment survey, consumer-facing companies in the retail, gifting, and hospitality industries have stepped up their recruitment by 25-30% in anticipation of strong demand recovery.
To make their businesses more profitable this festive season, SMEs should consider some of the below-mentioned tips:
Understand the changing market dynamics
The market constantly evolved during the pandemic and has changed drastically during the year. There is a constant change in customer sentiments, and SMEs need to understand the ongoing mood in the market.
Investing time in understanding the changing dynamics, especially when digital is taking the front seat, will be beneficial for SMEs to streamline their business strategies this festive season.
Ensuring a well-trained staff
Customers are the backbone of any business, and in an era where customers’ experience is vital to the growth of any business, having a well-trained staff that understands their customers’ desires and how they can contribute is equally crucial.
Since traffic and customer demand are usually high during the festive season, SMEs should ensure to remove all bottlenecks in delivery, sales, and payment processes. They should also ensure that the staff is highly proficient in dealing with the technology.
Create opportunities to sell online
In today’s era of new technologies, where ecommerce is leading the marketplace, having opportunities to sell products online is equally important for SMEs.
Technology is also important for SMEs as it helps them to expand their customer base more effectively and compete with large competitors in the same market.
There is no denying the fact that every business today needs a web presence, and once it’s achieved, it makes even small-scale businesses expand their horizons and grow their customer base and sales effectively.
For the festive season, SMEs should think of investing in digital advertising on platforms their target customer base visits frequently.
Ensure to effectively market yourself
Marketing with a well-placed strategy, especially during the festive season, is crucial for the sales growth of SMEs. They should ensure to engage with their existing set of customers. At the same time, touch base with potential customers.
This is easily possible through several social media channels as it is inexpensive and offers multiple avenues to reach the market.
SMEs should also focus on building websites or updating existing ones, especially for the festive season, which can be amplified with the help of search engine optimization (SEO) to reach a large gamut of customers effectively.
Edited by Suman Singh