How does seasonality affect the demand for goods and services?

Seasonality of demand for goods and services Marketing

Each season in its own way affects the development of trade and services. Whether a seasonal business or not, consumers show different reactions depending on the season.

A striking example is the observations of leading marketers who have proven the highest customer activity in the last quarter of the year. In October, November and December, sales increase by up to 40%. This data proves how much the mood of customers is changing.

In order to achieve high sales at any time of the year, it is important to understand and realistically assess the seasonality of demand. Only in this case it is possible to correctly adjust the budget expenditure, promotion and communication strategy in a given season or holiday.

What is the seasonality of demand in business?

Seasonality of demand in business is one of the most significant analytical quantities. Thanks to the analytics of leading marketers, a number of patterns of changes in consumer behavior regarding a particular product or service have been identified. Customers show their interest in the site and products on it depending on the season.

Seasonality of demand is expressed by changes in site traffic. Consumer activity rises or falls depending on what season is coming or if a particular holiday is approaching.

As a rule, patterns and changes in the seasonality of demand are constant, as they are fixed as a result of long-term observations. The increase in income and the overall development of the business depends on determining the seasonality of demand.

Causes of seasonality in demand for goods and services

Regardless of the business area, website traffic, demand for the product or service offered, and company profits change.

The main reasons for the seasonality of demand for goods:

  • Seasons. Depending on the change in weather conditions, the demand for products also changes. In winter, a certain product group is more in demand – down jackets, Christmas trees, hats, etc. In the summer, sales of completely different products increase. Thus, in winter there is no demand for swimwear and shorts, and in summer – for skis and skates;
  • Holidays. Special demand for different types of goods is observed before important holidays and dates. For example, before the New Year or the holiday on March 8, there is a rise in sales for absolutely all categories of goods. But on the eve of knowledge, stationery and school uniforms are in demand;
  • Business activity throughout the year. There are also periods when the demand for goods falls. Such moments are observed during holidays or vacations. It is worth noting that at this time, the demand for leisure goods is growing;
  • Financing of budget programs. In state organizations and large private companies, at the end of the quarter, it usually becomes necessary to use the funds allocated for the purchase of the necessary products. And at the beginning of the period, demand, on the contrary, falls – the budget has not yet been distributed;
  • World events. These are not holidays, but they also affect the demand for certain goods. Such events include the holding of the World Cup or the Oscars.

Attention! Taking into account all types of seasonal demand and its impact on business, you can build a competent promotion strategy that will guarantee an increase in income regardless of the season or global events.

What are the types of seasonality?

There are three main types of seasonality. Their difference is determined depending on the intensity of the decline in sales. Seasonality happens:

  1. Moderate. Changes that relate to the business in the field of sale of consumer goods. The maximum decline in demand reaches 10-20%, which does not particularly affect the company’s profit;
  2. Bright. Applies to seasonal goods. A decline of 30-40% is achieved. It can be summer or winter goods;
  3. Rigid. Goods that are required only in a certain period are subject to it. A striking example is Christmas decorations. Demand falls by 50-100%.

Worth considering! With the correct determination of the seasonality of the search query, it is possible to build a competent website promotion strategy that will lead the company to development and increase profits. Therefore, it is very important to take into account the seasonality of demand.

How to check the seasonality of demand?

In order to determine a website promotion strategy, it is necessary to analyze the seasonal demand for services and goods. There are several services that help you accurately check the seasonality of demand. Each of them has its own characteristics.

Using this service is easy even for non-professionals. Fairly easy to understand indicators accurately indicate all seasonal changes in the demand for goods for potential customers.

Google Trends shows data in a clear graph, where the low point is the minimum demand, and the top is the maximum.

Dynamics of demand in business

The main distinguishing feature of the service is the ability to track up to five requests, taking into account the regional and territorial location. In addition, the service shows statistics on requests for 16 years.

Keyword Planner

The Keyword Planner service has a functionality that allows you to track statistics on the search queries you are interested in exact geographical coordinates (you can track the correlation of demand for a certain area, administrative center or city).

To get started, you need to go to the advertising account and select “Tools and settings”:

How to check the seasonality of demand in Keyword Planner

Query data is available for a manually selected period. In this case, the maximum period should not exceed a period of 4 years.

Query popularity statistics

Key Collector

Using a common semantic design service, you can also track seasonal trends for keywords of interest.

Key Collector will help you determine the influence of seasonality

Key Collector allows you to build a graph of frequency for past periods, and based on them make a forecast. To get advanced statistics data, you need to select the query in the table and go to “Additional statistics” in the panel at the bottom of the screen:

Monthly demand schedule

How to use the influence of seasonality on demand?

In order for a business not to suffer from the influence of seasonality on demand, it is necessary to use it for good. For this, you need:

  • Expand your offer. If your products are designed only for a certain season, try to expand the range and offer consumers products that are not in demand seasonally. If you have a sporting goods store, and the main direction is the sale of skis and skates, you should add products for summer sports – swimwear, balls, and so on;
  • Expand target audience. To do this, you can go both along the path of expanding the range due to related products similar to the one you sell, and attracting an audience through offers in a more expensive or cheaper price segment;
  • Interact with customers. It is very important not only to analyze and know your target audience, but also to constantly interact with it. With this approach, you can offer a customer a discount on a birthday or anniversary. It will also be easier to send a profitable offer to the buyer before the start of the season. If the product is still needed after a certain time, you can buy it in advance at a bargain price;
  • Discounts and promotions. Individual bonuses and special offers are able to motivate the client to buy, even out of season. This motivates buyers to keep track of your offers and wait for a sale at any time. In this case, you can even sell fur coats in summer or swimwear in winter.

Advice! If you use all of the above manipulations, you can not only save your business and increase profits regardless of the season, but also win the loyalty of regular customers, who, in turn, will bring new ones.

Сергей Шевченко
Сергей Шевченко
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