Businesses fluctuate all the time. Sometimes of the year are busier than others. And even the most successful and profitable businesses to go through slow spells. But sometimes a drop in sales can indicate that something has gone amiss with your business. How do you distinguish a short-term dip from a true sign of trouble? And what should you do once you identify the source of the problem? If you've noticed some red flags with your design business, now is the time to take action. Here are 4 things to do when you notice a drop in sales!
Analyze the Problem
First things first. Pull up any and all records that measure your business performance. You should be able to get these from your online shop or website statistics. Here's a list of the following information you're going to want to obtain:
Sales records from the previous month
Records of sales from the past year & year-to-date
It also helps to pull up information on your website traffic. This way you can compare your web views to your sales. You may use tools like Google Analytics when it comes to obtaining this information. Not only should you look to see the kind of progress you've made this past year compared to the last. You'll also want to gauge how many web views convert into actual sales. Even if you have more web views last year, that doesn't necessarily mean that you're not improving. If your web views are less but your sales are higher, it can indicate that you're selling more per view.
Understand the Context of the Situation
Analyzing your statistics will help you determine how far the drop in sales extends. But it's also important to take other factors into account. When comparing business years, think about what was different then compared to now. Maybe your sales were higher this time last year because you were running a sale. On the other hand, there may be nothing different. But remember that this business year isn't quite over yet. You may be having a slow month or two. But compared to last year, you may be doing better than ever. But what if you're still a bit behind on your goals? Or, what if you're a new designer who has only recently opened shop?It takes time to build your web traffic when you're just starting out. As the months go by, you'll be able to better gauge at the patterns of your sales. If it seems that your shop thrives during certain times of the year, this is a competitive advantage. And it's all the more reason to capitalize on these times of year and then focus on your slower sales periods.
Review Your Products
You likely already have a good idea of your best-selling products. But what about the products that don't sell as well? First, ask yourself how long the product has been available for sale. If you debuted it a while ago, it's probably lost its appeal over time. But if a newer product isn't performing as well as you anticipated, it may not appeal to your target audience. See if you can recreate existing products and align them more with current trends. It could be the case that you can replace something like the material to give the product a design face-lift. For the products that aren't worth the revamping effort, run a sale or a promotion. It could be the case that buyers have always liked the product but didn't want to pay the full going rate for them.
Reevaluate Your Marketing Practices
Analyzing your web and online shop data can give you a good idea of how well your marketing efforts really are. Which keywords are trending in the home design industry? Are you optimizing your web content with them? And are you opting out of keywords that are no longer trending?What about your social media pages? You may have a significant following on social media... but that's not always a guarantee that your followers know about your website or online shop. Any time you market a new product on social media, review your website and online shop data. This will give you an idea of how to convert your social media marketing to possible sales leads.
Don’t Panic When You Notice a Drop in Sales
A slow period or a dip in sales do not indicate the end of your home design business. By following these 4 things to do when you notice a drop in sales, you'll be able to get to the root of the problem faster.Creators, designers, and makers need constant inspiration. For more tips on how to enhance your business, visit our blog today!