The cost of Christmas and 21 ways to make it count

A typical household in the UK spends over ￡2,500 each month. But in the run up to Christmas our spending habits change dramatically.

To begin with we buy a lot more! A typical household spends over ￡800 extra in December.

The increase in our spending reveals a lot about what we get up to around Christmas.

It won’t come as a surprise to learn that we spend a lot more on going out, eating food and drinking alcohol. We also of course spend money buying gifts for our family and friends.

How much more do we spend in December compared to a typical month?

1. Food + 20%
2. Alcohol +30%
3. Gifts + 85%

How has our spending at Christmas changed over time?

The most popular Christmas presents from over the years are now seen as classics of their time: Rubik’s cubes, BMX bikes and Tamagotchis.

Others seem to be timeless. When the original Star Wars film was released more than 30 years ago, the Millennium Falcon cost around ￡20. Fast forward to The Rise of Skywalker in 2019 and the toy is still in the bestseller lists at around ￡75.

But the way we buy things is changing. The value of online shopping has nearly doubled over the past five years. It now accounts for ￡1 in every ￡6 we spend.

And new events such as Black Friday and Cyber Monday mean we spend more in November too, particularly as many shops have moved from one-day to week-long events to tempt us to buy gifts earlier.

So, I’ve put together 21 Ideas to help you Dominate the Festive Season

In nearly every retail sector, the holidays are a huge boost to the year’s sales. But how do you stand out from the crowd when every business is fighting for consumers’ attention? Even if your NOT in the retail sector!

• Start promotion early (your already VERY late)

Some stores literally start putting up Christmas items for sale in July. That can be frustrating for people who feel pressure during the holidays. No one wants to feel that kind of pressure for half a year.

Think of ways your early holiday promotion can be helpful to the customer so that the holidays are less stressful. For example, you could make it easy for people to create “wish lists” or put things on layaway (an old practice that has made a bit of a comeback in some industries).

You could offer a service where you help them with products or services for their holiday parties, rewarding them for starting early but not forcing them to finalise specifics until closer to the date.

However, subtle in-store marketing is key; no one wants to see Santa next to Halloween decorations.

• Spread the love and promote other local businesses

Join up with other willing local businesses to promote each other’s sales and services. It might be as easy as tossing a few coupons or sales information in the customer’s shopping bag. Or, you might offer reduced prices or rewards when customers shop at participating businesses.

Even better, partner with a business whose product or service ties into what you offer. That provides a real service to your customer. For example, if you are a catering service, perhaps you could partner with a cleaning service and advertise it as helping customers with their Christmas parties before, during, and after.

• Reward your top customers

The holidays are a time to give gifts, and you can do the same for your most loyal customers (learn more about how to retain customers here). Offer them deeper sales and savings, extra perks, or even open the doors of your business outside of regular hours so they can have a personalised shopping session.

• Help word-of-mouth advertising along

If you have local websites or bloggers that talk about your industry, connect with them months before the holiday and see if you can partner with them. They could review your products, obviously, but it would be even better if you could make it a win for them (help them grow their readership and traffic).

For example, offer up a blog contest prize that can be redeemed in your shop. Bloggers have to comply with laws and inform their readers of reviews that they’ve been asked to give, but it is still a way to get a real person talking favourably about what you have to offer.

• In a digital world, paper stands out

The holiday season is a time when many people find the onslaught of promotional emails to be absolutely overwhelming. Black Friday, Cyber Monday, Giving Tuesday–all come with a wave of emails from every mailing list a person is on.

How do you get your promotion to stand out? How to you even communicate with customers at the holidays and get them to see it?

When everything is digital, the personal and physical object stands out. Send real holiday cards or postcards. Send actual coupons and gift cards. Nostalgia for printed photos and media is growing; tap into it.

• Create a shopping event

Whether you decided to make the event last through most of the holiday shopping season, or on special sale days, you can turn your store into a go-to location. Local musicians, mince pies, mulled wine –whatever you choose to do, make the act of coming to your store a reward. Have giveaways to reward those who come.

• Create kid-friendly events

Parents are always looking for events that they can take their kids to and hosting a free event of that nature at your shop is a great way to get parents in the door. Have colouring contests, photo booths, cookie decorating–whatever is appropriate for your location. Make it easy for parents to do some shopping while their kids are having holiday fun.

• Consider pet-friendly events

If your business is in an industry that would allow for it, create an event for pet owners. In 2018, pet owners spent almost ￡34.5 billion on their pets. For some, their pets are their kids. Consider an “best dressed dog” contest, or a “tackiest festive dog costume” contest. Give away dog treats with every purchase to anyone who comes in with a dog.

If you’re giving away prizes throughout the holiday season, make one geared for dog owners.

• Make your store friendly for the non-shopper

Create an area in your store where children can relax while parents’ shop. A book corner, with tables and toys, works great. Or, create an area where people who are tired of shopping but are with someone who isn’t can take a seat and relax. Offer holiday treats or punch.

• Capitalise on holiday traditions

There are many holiday traditions, and your marketing can capitalise on them. Instead of the “12 Days of Christmas”, you might have twelve days of sales. Depending on your industry and customer base, you will want to gear your promotions around the most attractive traditions for your audience.

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