How Seasonal Factors Affect Business Performance

Never fight against seasonality. Here's why... Every product category has low and high seasons. You need to figure out the months of the year when your product is naturally in higher and lower demand. Why? Because you need to change gears depending on demand. Periods of low demand can feel frustrating, and the instinct might be to push harder to "make up for it." This leads to the common mistake of pushing marketing dollars during low-demand periods. Instead of spending your limited resources trying to turn your low season around, save the money for high-demand periods when customers are more likely to convert so that you get a higher ROI. The slower seasons are the perfect time to prepare for the next surge. Shift your focus to internal projects—improving product quality, streamlining operations, or developing new marketing assets. Use this time to invest in your business's foundation so that you're better prepared and even more competitive when the next high season arrives. Lastly, learn to accept that quieter periods are part of the business cycle; you'll avoid the mental burnout that can come from chasing growth at all costs. Seasonality isn't an obstacle to overcome—it's a reality to manage.

Outbound marketers panicking about getting more out-of-office replies this month are completely missing the bigger picture. July always has higher OOO rates. So does August. And June. This doesn’t mean cold email is broken or that your campaigns suddenly stopped working. This is literally just how the calendar works every single year. After running campaigns for 400+ clients across 5 years, I can tell you exactly when to expect performance drops and when to prepare for recovery. January - May: Peak performance season. Fresh budgets, new initiatives, and decision makers are actively looking for solutions. This is when you should be going hardest on outbound. June - August: Summer slowdown hits hard. Budgets get tighter, people take vacations, and response rates naturally drop. We typically see 20% decreases from May to June, and that's completely normal. September - mid-November: Performance picks back up. People are scrambling to hit end-of-year goals and often have budget they need to deploy before losing it. Mid-November - December: Holiday season brings another slowdown. Decision makers are focused on wrapping up the year, and not starting new vendor relationships. The solution isn't to panic or completely overhaul your campaigns when you hit these seasonal dips. The solution is to increase your volume during slow periods to maintain the same number of qualified responses. If your reply rate drops 20% in July, send 25% more emails. If you're running multi-channel campaigns, lean harder into LinkedIn and cold calling when email gets slower. You have to understand that outbound is a numbers game that follows predictable seasonal patterns. Plan for the dips instead of getting surprised by them, and you'll maintain consistent pipeline all year long.

When I learned that Canada produces 75% of the world’s maple syrup in just a few weeks, I felt a strange kinship. Why? Our business at Guidant once operated with the same intense seasonality, and it nearly broke us. Canada produces over 200 million pounds of maple syrup in only four to six weeks in March and April. All 600 million dollars of production crammed into less than two months—a barren wasteland of dry pancakes for the remainder of the year. Maple syrup season in Canada is like tax season at Guidant—chaos, stress, and a ton of pressure all crammed into a tiny window. But it used to be worse. In the early days, every one of our 401(k) plans shared the same tax deadline. Every client was a small business owner. Paperwork? Not exactly their favorite flavor of freedom. So, by the time the tax deadline loomed, our workload went from “manageable” to “let's all consider a career change.” Seeing an unsustainable trend, we significantly changed almost twenty years ago. We decided to set up our plans with two different default tax year ends to help spread the work throughout the year. It hasn’t eliminated seasonality from our business, but it has spread out the load, allowing us to keep a steady, experienced team instead of scrambling to hire and train new people each tax season. Reading about Canada’s maple syrup production reminded me that seasonality is just a reality for many industries. But it’s also an opportunity—especially for business acquirers who think creatively. For example, a good friend bought a tradeshow exhibit company. The company was hectic during the tradeshow season. At other times during the year, they had inventory and people sitting around. So, my friend created a marketing and sales plan focused on specific tradeshows that fell during their off-peak times. He’s acquired clients for those shows, better balancing his team and assets, and has become more profitable as a result. The business has become more valuable as a result. And that opportunity exists in other companies that suffer from seasonality. If you’re acquiring a business, don’t just look for growth during the busy times. Look for ways to smooth out the peaks and valleys. Seasonality doesn’t have to be a burden—it can be a hidden opportunity to drive profitability and stability. At Guidant, it helped us lower expenses, retain great people, and build a better business. For my friend, it transformed his slow season into a competitive advantage. The opportunity to even out seasonality might just be your best lever for profitable growth.

Seasonal volatility isn't a business model problem, it's a strategy problem. How do founders fix it? As the seasons shift this has been top of mind for a lot of DTC and Ecom founders. I was even speaking with one recently whose business does 60% of annual revenue in Q4. "It's just the nature of our industry," they explained. But is it really? After working with dozens of "seasonal" businesses, I've seen something interesting I wanted to share: The most successful ones don't accept seasonality as inevitable. They engineer stability through deliberate strategy. The brands that maintain consistent growth throughout the year follow four distinct approaches: First, they develop complementary product lines. When sunscreen sales naturally dip in winter, they don't just accept the decline. They develop and market moisturizers that address winter-specific skin concerns. Second, they shift their marketing focus seasonally. Instead of reducing ad spend during off-seasons, they redirect it to different messages, audiences, and value propositions aligned with current customer needs. Third, they leverage creative bundling strategies. By thoughtfully combining seasonal and non-seasonal products, they maintain average order values even as individual product demand fluctuates. Fourth, they build recurring revenue streams. Subscription models, loyalty programs, and service components create predictability that transcends seasonal patterns. What's most revealing is that these approaches succeed across vastly different industries: An outdoor furniture brand that developed indoor accent pieces. A holiday gift company that created "everyday occasion" offerings. A summer beverage brand that introduced warm drink alternatives. Seasonality in business is real. But its impact on your growth is more optional than most realize. The question isn't "How do we survive our slow season?" It's "How do we eliminate the concept of a slow season entirely?"

What I learned turning Broadway's (NYC) slowest months into a thriving revenue channel. Here’s the story of building Broadway Week and how to mitigate downturns and seasonality in your business: If you’ve ever faced a seasonal dip in your business, I hope you’ll find this story to be helpful! Context: I spent 6 years working with the New York City Tourism + Conventions and marketing team under NYC’s Mayor Michael Bloomberg and some of the most brilliant minds in branding and partnerships. So, in the world of Broadway, the busy holiday season often leads to quieter January…with audiences opting to nestle at home rather than venture out to shows in the cold. The challenge was clear: how could we overcome the January lull and keep the lights shining on Broadway stages? To overcome this challenge, we created Broadway Week! Shopaholics have Black Friday, foodies have Restaurant Week and hardcore theatergoers have Broadway Week Broadway Week in NYC is a ticket deal offered by Broadway producers and New York City Tourism. For a limited time, it lets you buy two tickets to most Broadway shows for the price of one. The result? Everybody wins: The productions get full houses, and audiences get cheap Broadway tickets. Key Takeaways (that apply to any business with seasonality): 1/ Understand User Mindsets: Dive deep into your users' mindset and headspace. Understand what matters most to them at different times and anticipate areas of resistance or disengagement. 2/ Understand Seasonality: Recognize the seasonal patterns in your industry and how they influence customer behavior. 3/ Adapt Marketing Strategies: Tailor your marketing campaigns to match the mindset and needs of your audience during different seasons. 4/ Introduce Special Initiatives: Implement creative promotions and events to drive engagement and boost sales during slow periods. Not all slow periods have to be slow periods. They’re only slow if you let it be a slow period… --- Here is an image from one of my all time favorite shows, The Lion King. Have you seen it? Did you love it, too? Or, are you one of the many that preferred Rent, Hamilton, or one of the many others!?

One consistent error I see Amazon sellers in seasonal markets make is not adapting to seasonality cycles. 😅   During Off-Season, They: - Set aggressive sales goals - Overspend on PPC - Neglect product line development and listing optimization - Maintain excessive inventory levels   During Peak Season, They: - Underutilize their advertising budget - Face inventory shortages - Lack new products ready for testing   These missteps significantly impact both their scaling potential and profitability.   A Jewelry brand we support did $247,968 in January sales, and then did $242,677 in the first 15 days of February alone.   The strategic approach in January included: - Conducting a professional photo shoot for bestsellers and updating images across Amazon and their website - Removing slow-moving, low-price-point items to increase Average Order Value (AOV) - Strategically capping their budget to prepare for February   In February we implemented a focused strategy including: - Removed all budget constraints while maintaining ACOS below 25% - Maintained sufficient inventory for Valentine's Day demand   If you're a seasonal brand - review your historic sales volume, and your categories trends.   Change your plan and goals based on what season you're in.   This will help you 'win' on Amazon! #Amazon #ecommerce #seasonality #digitalmarketing #digitaladvertising

Do your products have seasonalities in sales? Mine certainly do. Hotpot Queen started strong at the beginning of the year, but I noticed a gradual decline in purchase orders starting in April, with a significant dip in May. Though Hotpot Queen launched in March 2023, we didn’t see any significant orders until late August. Since I haven’t experienced a full sales cycle yet, I was unsure if the decline was due to a decrease in demand for our products or if it was a general trend in the CPG world. I consulted with Dwight Richmond and here’s what he shared: ⭕️This past May was one of the worst months in retail and grocery in recent years. ⭕️Summer generally slows down for grocery stores, with the weeks following the Fourth of July through the end of August being particularly painful 😦 ⭕️However, three categories do well in summer: beverages, snacks, and BBQ-related products. （That's why we are launching Sichuan Triple Chili Powder for the BBQ season this summer!） ⭕️Starting in early September, as kids return to school and routines normalize, business picks up again. Okay, so I'm not alone. Whew... Here’s my yearly strategy based on the seasonality of our products: 🎯January-May: I focus on attending every existing distributor’s trade shows and selected national expos (namely Expo West and Fancy Feast). Most category reviews happen at the beginning of the year, so I put all effort into getting into more doors or securing a second placement in existing retail chains with new products. 💪 🎯June-August: Time to relax! I'm visiting Hawaii and Japan this July to spend time with my family. Startup founders are human too; we need to recharge when the business is slow. 😉 🎯September-December: I focus on activities that can drive sales in existing channels: promos, demos, trade spend, PR, and anything that can boost sales. The last four months of the year account for more than half of our annual sales. 🏃♀️ What’s the seasonality of your products, and what are your strategies? I’m curious and would love to learn from you. 🫶 #CPGTrends #RetailStrategy #SeasonalBusiness #ProductManagement #ConsumerGoods #SalesCycle #BusinessInsights #Entrepreneurship #RetailInsights #MarketStrategy

They tell you that once you graduate and start working, there’s no such thing as summer break. While this is true (as a founder I work all the time) with Crowded, I get to retain the idea of seasonality. The majority of Crowded's nonprofit users are on the school/summer calendar - organizations like middle school marching band booster clubs, to university fraternity chapters, to our 100 summer camps - use Crowded heavily for only some months of the year. Recognizing the seasonality of this business is becoming increasingly crucial for our success. Here are a few reasons why: - Catching the right marketing/sales cycles - Decision makers have more time during the summer to consider adopting a new platform for the next school year and vice versa for camps. We can plan when to budget our resources for different verticals accordingly. - Forecasting Revenue - From month to month, the highest revenue source can completely change (ie. tax season in May, camp activity in July, dues collecting in September). Knowing which season is approaching allows us to forecast revenue more accurately. - Roadmapping Accordingly - We can develop features for certain verticals ahead of their busy time of year, ensuring happy customers! - Understanding Customer Success - If an account has been inactive for a month, we can understand if it is a cause for concern or simply seasonality. Does anyone else also plan by season? How do you leverage seasonality?

Seasonality isn’t a surprise.  But how you plan for it makes all the difference. At Searchbloom, we take a collaborative approach to seasonal budget adjustments because, let’s be honest, almost every business has some level of seasonality. Here's how we do it: Step 1: Identify the seasonal trends upfront. Before we even start working with a partner, we ask about seasonality during onboarding.  We need to know when their peak and slow periods happen so we can build a proactive strategy. Step 2: Shift budgets strategically (not just cut them). Slashing ad spend during slow seasons is a common mistake. Instead, we often redirect budgets toward top-of-funnel brand awareness campaigns.  Why?  Because people don’t just need to see your ad seven times anymore. They need to see it 700 times. Consistent exposure during lulls ensures that when peak season hits, your brand is already top-of-mind. Step 3: Build momentum, not just react. Instead of scrambling when demand spikes, we help brands stay visible year-round. That means when customers are ready to buy, they’re choosing you and not the competitor who just started running ads yesterday. Seasonality can be a huge opportunity to play the long game.

What should you do when e-commerce goes on vacation? July is a tough month for most brands. People are outside, soaking up the sun, not scrolling through their phones. And you see a nasty dip in performance. But you don't have to accept this slump. You can fight back. Here's what you can do: 1️⃣ Recognize your reality Some brands can't fight seasonality. For example, If your brand sells hoodies. Summers aren't the right time for it. You can use this slow period to: ~ Work on your business ~ Refine your offers ~ Review your stock ~ Plan out your Q4 strategy ~ Upgrade your website Downtime isn't dead time. It's prep time. 2️⃣ Counter the slump For everyone else, it's time to get creative. Counter low demand with high incentives. Here's what works: ~ Launch summer-specific sales ~ Create limited-time offers ~ Introduce new products Think like those swimwear brands. They don't whine about summer. They own it. 3️⃣ Prepare and pivot Seasonality isn't a surprise. It happens every year. So plan for it: ~ Launch collaborations  ~ Build a calendar of seasonal events ~ Prepare targeted campaigns in advance ~ Be ready to pivot based on performance July's slump is only a problem if you let it be. There's no such thing as a "slow season"—only unprepared brands. How was your summer? #summerseason #dtc