Top 10 Problems I Observe In My Projects: #6

Problem #10 = New Items Are Too Expensive
Problem #9 = Discounts Drive Down Price Of Existing Winners
Problem #8 = Relying On 1-2 Customer Acquisition Channels
Problem #7 = Has To Be Right
Problem #6 = Seasonal Misalignment

There are all sorts of seasonal misalignment problems - too many to count. Here's the most common problem.

1. Business is seasonal (gardening in Spring, gifts at Christmas).
2. Disproportionate volume happens in the primary season (Spring or Christmas).
3. Disproportionate customer acquisition happens in the primary season.
4. Biggest discounts/promotions happen at the time when the most profit should be generated.
5. Too few new customers are acquired in the 1-2 months prior to the primary season.
6. Customers acquired in primary season have the lowest lifetime value.

(5) is a big deal.

If your primary season is Christmas, you should have a disproportionate focus on new customer acquisition between September 15 and November 15, so that you have hotline buyers who are ready to purchase for a second time at the time when customers are most likely to purchase (Christmas).

If your primary season is Christmas and you acquire a customer on December 13, when exactly is the customer going to purchase for a second time? A year later? Yup. And that's no good, because by then the customer has nearly "lapsed".

Align your customer acquisition efforts and promotional efforts just prior to your primary season, so that you acquire customers who are then highly likely to buy during your primary season.