The second edition of the Techeconomy Business Series, titled Maximising Profitability through Seasonal Sales: Strategies for Success, convened a panel of experts on Friday, 8 November 2024, who delved into effective tactics for seasonal sales optimisation.
The program included Morolayo Igeleke, country marketing manager at UPS; Isaac Akanni, customer growth manager for Africa at Infobip; Omolara Olarerin, founder of PocketFood; and Success Ajilore, business analyst and founder of the Success Transformation Network.
The session, which was moderated by Imoh Anselem, IT product manager and customer success specialist, highlighted methods for customer engagement, cost management and leveraging technology, among other topics to enhance business sales.
Understanding Customer Needs and Managing Costs
Morolayo Igeleke stressed the importance of understanding customer needs while balancing discounts and profitability. He noted flexible payment options as a strategy, explaining, “To help you sell during this season while maintaining your discount and profit margin, consider offering customers instalment payment options. Although it carries some risk, allowing customers to pay over time—say, in two or three instalments—could make a big difference. Many SMEs can benefit from this approach. You could even offer a 10% discount as an incentive, which would be appreciated and help stimulate their payment structure.”
This approach, he stated, allows businesses to attend to customer affordability without sacrificing margins.
For customers focused on affordability, Igeleke gave the option of alternative products rather than discounts. “Why don’t we look at a cheaper alternative product? That way, your customers will run to you better,” he said, adding that UPS had introduced a more economical shipping service for price-sensitive Nigerian clients.
Boosting Value with Product Bundling
Isaac Akanni highlighted the effectiveness of product bundling during peak seasons. He gave an example: “What can I add to these shoes just for this December period to increase my sales?”
He also illustrated how Infobip customises tools like SMS and WhatsApp chatbots to enhance product value. “At the end of the day, you’re not just selling your product; you’re providing a service,” he added.
Personalised Marketing as a Key Driver
Omolara Olarerin, founder of PocketFood, stressed the value of personalised marketing. “You can’t really go far without marketing,” she stated, advising business owners to utilise Instagram, Facebook, and WhatsApp ads and to build community connections.
“As a business owner, you should be able to have a community where you can share your product and get your feedback.”
Olarerin further highlighted the power of personal branding, noting that customers “always trust the business that has a face to it.”
Data-Driven Decision-Making for Future Success
Success Ajilore of the Success Transformation Network emphasised the importance of data and feedback in refining sales strategies.
“You cannot succeed in the future without understanding your past. We learn from hindsight,” she stated, urging businesses to gather feedback using tools like Google Forms and SurveyMonkey to measure satisfaction.
Ajilore further advised on tracking customer ratings to identify popular products and improve marketing and inventory decisions. “Encourage customer reviews and ratings… You can start a strategy, maybe invest more in what satisfies the customer,” she advised.
Ajilore explained that effective business strategy requires year-round planning, ideally preparing for the next year to leverage seasonal opportunities.
Analysing customer and sales data helps tailor marketing and services to meet customer needs. Pricing should cover all expenses, including promotions, to avoid profit loss during high-demand seasons.
Utilising Technology to Drive Efficiency
In discussing operational cost savings, Igeleke pointed to the role of technology. “For example, advertising—though often expensive—can become more affordable with social media and AI, allowing you to reach audiences with minimal spending.”
He explained how UPS leverages AI-driven tools, including robots and forklifts, to reduce labour costs and simplify logistics.
Competing Through Disruptive Innovation
Akanni talked about the idea of “disruptive innovation” by Clayton Christensen, which suggests that smaller businesses can find opportunities by focusing on areas big companies overlook.
He pointed out that large companies often miss certain needs or types of customers—not because they don’t want to, but because it’s hard for them to serve everyone.
He encouraged small businesses to pay attention to these overlooked areas by listening to customer feedback and checking online reviews to help them grow strategically.
Handling Seasonal Demand Peaks
Addressing the challenges of seasonal demand surges, Igeleke shared UPS’s experience in managing increased workloads during peak periods. “We had to hire more contract staff to help us sort things out, it’s a good problem to have,” he commented, emphasising the importance of strategic staffing during high-demand periods.
Olarerin further explained that seasonal pricing strategies should adapt to the industry and profit margins. For low-margin industries, buying in bulk to secure lower supplier prices can allow discounts without cutting profits.
“Communicating with suppliers for discounts is essential, especially in high-demand seasons; if they don’t offer competitive rates, consider switching suppliers.
“Businesses should protect their profit margins by adjusting based on sales volume—higher sales can offset lower per-item profits. Genuine discounts build credibility, whereas “fake” discounts can backfire.”
Seasonal discounts work best on high-demand products, as these can maintain profitability through increased sales. Conversely, discounting less popular items may not yield sufficient sales and could risk profitability.
Incentivising Positive Employee Behaviour
The speakers recommended incentivising employee behaviour to improve customer satisfaction. “If employees get no customer complaints, they might earn points or a bonus. Or if they get a customer to return and spend a certain amount in December, they could earn a reward,” Akanni explained.
He shared how Infobip has successfully used this approach to motivate employees by tracking and rewarding good customer service, incentivising behaviour tracking.
“Find out the things you want your staff to do, what are the behaviours you want them to emulate, then find a way to incentivise that behaviour,” he concluded, pointing to the benefits of a results-driven reward system.
The session wrapped up with each expert reiterating the importance of customer-centric approaches, technology, and strategic marketing to enhance seasonal sales success.
