Why Q5 is the Golden Opportunity eCommerce Retailers Can’t Miss

After the rush of BFCM and the busy Christmas shopping period, the days after Christmas can appear quiet in comparison when it comes to spending.

However, retailers are becoming increasingly aware of the high potential for sales from Christmas Day through into the New Year, with this post-Christmas sales period now being termed ‘Q5’.

To keep up with other eCommerce brands as an online retailer, you need to understand Q5 and know how to maximise your sales during this unique time of year.

What is Q5?

Q5 is the post-Christmas eCommerce shopping period spanning from Boxing Day on the 26th of December until mid-January. It’s a time of year unlike any other, with most consumers being away from, or slowly returning to, work and having lots of free time to spend browsing online.

Why is Q5 important?

With more downtime than usual after Christmas, consumers can spend extra time shopping around and comparing your offerings to your competitors. Therefore, you must develop a strong strategy for Q5 to ensure you stand out from other eCommerce brands and withstand the increased scrutiny of these shoppers to win their sales.

How can Q5 benefit your eCommerce brand?

Targeting Q4 shoppers armed with Christmas gift cards and cash allows you to maximise sales in the transitional New Year period and capture customer data that can be used to drive long-term brand growth. It also enables you to clear your store’s inventory, freeing up space for brand-new stock in the new year.

Why Q5 is a golden opportunity

For eCommerce brands, Q5 provides the perfect opportunity to give your end-of-year sales a last-minute boost and paves the way for a successful Q1. There are several factors contributing to Q5 being such a lucrative time of year for online retailers, and these include:

• Continued consumer spending: In place of gifts, many consumers will have received gift cards or cash deposits into their bank accounts from family members, and they will be looking for a way to spend these as soon as Boxing Day arrives.
• Sales surge after returns: Shoppers may have received unwanted gifts for which they will be looking to return and replace, or will be shopping for additional items to pair with their new products.
• Clearance sales: By running sales to clear out end-of-year stock, you can appeal to deal-seeking shoppers whilst also refreshing your inventory ready for the new year.
• Reduced competition: After investing so much in the lead-up to Christmas, many brands will choose to scale back on marketing during Q5, meaning it’s much easier for your marketing efforts to get noticed.

Now you know why Q5 has such a high potential for sales, you can understand why online retailers are beginning to shift their focus to this period. Learning about consumer behaviour in Q5 will help you to stay ahead of the competition.

Consumer trends in Q5

We have already touched on how Q5 is a unique time of year due to increased consumer downtime. However, specific trends in consumer behaviour also arise after Christmas and into the New Year, further contributing to its distinctness.

After the Christmas shopping rush is over, consumer spending trends tend to shift towards:

• Bargain hunting: After the high spending period before Christmas, shoppers will be looking to secure a cheap deal, searching for sales and post-holiday discounts.
• Focus on the self: Once Christmas shopping is done, consumers will no longer be searching for gifts, but instead looking to purchase for themselves. Shoppers are encouraged to reward themselves after the busyness of Christmas, resulting in a shift in focus from ‘you’ to ‘me’.
• Goals for the New Year: It’s well known that the New Year means a ‘new me’ for a lot of consumers. Shoppers will be optimistic about their health and fitness goals, and other resolutions, and will be searching for products that help them to achieve these.

By resonating with shoppers looking to make a post-Christmas purchase, you can drive increased Q5 sales for your eCommerce brand. Read on to discover how you can utilise these trends to design an effective Q5 strategy.

How to create effective Q5 marketing strategies

Now that you are familiar with Q5 and the behaviour of consumers in the weeks after Christmas, you can begin to develop a strategy to help boost your brand’s sales during this time. 

Here are five tips for building a successful Q5 strategy:

1. Utilise promotions and discounts

Many shoppers will have spent high amounts on gifts over the Christmas period, often paying full price to get the products they want. After Christmas is over, they will be hoping to save some money by grabbing a bargain and will be on the lookout for discounted items and deals.

Make the most of these bargain-hunting buyers by running flash sales over the Q5 period, encouraging shoppers to convert quickly to avoid missing out on a good deal. Encourage shoppers to build bigger baskets to increase your AOV by offering a percentage discount or free delivery if the shopper spends over a certain amount.

Utilise tools like On-Site Messaging to remind shoppers about the deals you have available, driving them to make the most of your offers by converting now.

2. Apply highly targeted marketing

Marketing efforts that are highly personalised to each shopper can be a great way to stand out from competitors and drive conversions. Below are a few examples of how you can incorporate targeted marketing into your Q5 strategy.

Segmented email sends

Utilise data collected during Q4 to form highly specific customer segments. This will enable you to send highly relevant messaging that is more likely to engage your customers.

For example, with Email Sequences, you can group together shoppers who purchased Christmas gift cards and send an email suggesting they purchase vouchers for family or friends with upcoming birthdays. Or email people who recently bought gifts from your online store, encouraging them to treat themselves instead.

Retargeting ads for cart abandoners

As most Q5 shoppers will be away from work, they will have the time to explore multiple different sites before making their purchase. This can result in many shoppers abandoning their carts to browse elsewhere.

Bring these shoppers back to your site by retargeting them with ads relevant to the products they were interested in. By reminding shoppers about the products they left behind, you can drive them to return to your site and convert.

Using the information you already know about your shoppers allows you to better connect with them through your marketing efforts, improving the chance of the shopper converting.

3. Manage your inventory

Q5 provides eCommerce brands with the perfect opportunity to clear out old stock ready for the new year. Consider shifting stock from previous seasons by:

• Running clearance sales: Motivate buyers to purchase your slow-moving stock by offering these products at heavily reduced prices. Use phrases such as ‘last chance to buy’ when promoting these sales as this will drive shoppers to buy right away to avoid missing out on a good deal.
• Cross-selling complementary products: Shift old stock while boosting your revenue by showcasing items that pair well with the shopper’s chosen product. Display personalised product suggestions both on-site and in your email campaigns using a Recommendations tool to encourage shoppers to build bigger baskets.

Focusing on clearing out your old stock can give your end-of-year sales a boost while freeing up storage space for brand-new products in the new year.

4. Ensure omnichannel optimisation

Increase the chance that shoppers will come back for more by crafting a seamless experience across your mobile site, desktop site, and even physical stores if you have them. 

Here’s how you can do this:

• Match online and offline messaging: Align your on-site messaging to your in-store signage, as this lets shoppers know they can expect the same high-quality experience at every touchpoint. This can give sales an extra boost as shoppers who purchase from your physical store will trust your website, and will be more likely to make further purchases online.
• Optimise your website for all devices: Check that the mobile, tablet, and desktop versions of your website are functioning properly by making sure the navigation is easy to use and payment is quick and easy. Making the purchasing process hassle-free, no matter the device, means shoppers are more likely to convert.

Taking a step back and considering how your eCommerce brand functions across all platforms can help promote an effortless buyer journey and improve your chance of making a sale.

5. Prepare for key dates

Traditionally, Boxing Day has been the focus of retailers’ efforts between Christmas and New Year. Although the post-Christmas sales period has now expanded into the New Year, the 26th remains an important day for brands looking to drive post-Christmas sales.

Online retailers can expect to receive high traffic on Boxing Day from shoppers looking to spend cash and gift cards received over Christmas. Maximise sales from these visitors by running a Boxing Day sales event and providing deals on product bundles.

The first weekend of January is also a key time for online stores to secure sales as many consumers will be engaging in New Year shopping, looking for items to help them succeed in their new goals. 

Make it easier for shoppers to find these products by highlighting items typically linked to New Year’s resolutions on your website homepage. Use your email marketing campaigns to showcase how shoppers can use your products to achieve their goals. Resonating with shoppers who have a ‘new me’ mindset will drive early-year conversions for your brand.

By implementing these tactics into your Q5 strategy, you can make the most of the unique sales opportunities this period provides and end your year on a sales high.

Long-term benefits of a strong Q5 strategy

While an effective Q5 strategy can uplift your end-of-year sales, it can also help to generate growth for your eCommerce business that extends beyond the New Year.

Investing resources in Q5 can be worth it for your business in the following ways:

• Customer retention: Sending email marketing and offering deals and discounts to your customers during Q5 can help maintain communication, keeping your brand in their minds over the quiet post-Christmas period.
• Build momentum for Q1: Due to the decreased competition from other brands immediately after Christmas, you can more easily grab the attention of new customers with your Q5 marketing efforts. This can help to grow your customer base for the new year, where you can continue to nurture these relationships and deploy retargeting efforts to drive further sales.

By building long-term relationships with your customers through your Q5 strategies, you will promote business success for months and years to come.

Unwrapping Q5

With the Christmas shopping period requiring so much focus from retailers, the potential for sales in Q5 is often overlooked, leading to missed opportunities for boosting both end-of-year and early-year sales.

However, as eCommerce brands are becoming increasingly aware of the profitability of the post-Christmas period, to keep up with the industry, you must have a strong Q5 strategy in place.