Creating a product line extension for holiday soap making or other beauty products can boost your profitability and increase average order values throughout the season. And the best part is that you don't have to heavily invest in new products or expose your business to financial risk. Instead, use data-backed research to grow your holiday product offerings in a way that is smart and effective. Here's how to do it.
Do Your Homework
Before choosing your best product extension ideas, analyze what brings customers to your business—and what keeps them coming back. Research on customer loyalty reveals there are four emotional drivers behind repeat purchases:
- Love: How they feel when they’re in your store, using your product, or participating in a hobby.
- Pride: Feeling like they scored a major bargain or attained exclusivity because of an association with your brand.
- Guilt: Engaging with your brand eases feelings of negativity, such as using biodegradable packaging.
Identify what needs your business currently fills for your different customer segments, and how a product extension could add to those categories. Additionally, consider how a product line extension could attract a new audience whose needs you haven’t yet met, whether due to the product itself, its purpose, its ingredients, or simply its price. For instance, you could add a sustainable ingredients line. Or you could position trial size products as stocking stuffers at a lower price tag
Ensure the New Product Line Fits Your Business Goals
Examine your sales trends and goals to evaluate how a product extension such as a holiday soap line could prove beneficial for your business. One example goal would be to boost your average order value. Adding a line of stocking stuffers could help you realize that goal, especially if that add-on helps your customer qualify for free shipping.
Another goal could be building customer loyalty. When introducing a holiday cosmetic line, you could give your valued customers the opportunity to earn a free premium item when they either purchase a qualifying item or make a minimum purchase. Experiment with different structures and track your sales goals to see what's most effective.
Also research your direct and indirect competitors to discover where you may fill an existing void and to ensure that your pricing is reflective of the marketplace.
Optimize Your Product Launch Timing
Launching your new holiday product line can help exposure, but your timing matters. On Pinterest, for example, user behavior skews heavily to “pins” in the Food and Craft category on Sundays. Similarly, websites and blogs in niches related to lifestyle, parenting, and saving money typically start covering the idea of holiday spending and gifting soon after Halloween.
Make sure you pitch your product line extension in a way that's relevant to your target audience. Story ideas can include things like “clever stocking stuffers you won’t find at Target” or “hostess gifts that will wow the party.” Get creative to present your brand as a resource for helpful ideas, while also positioning your products as a solution.
With just a few extra steps, you can successfully launch a holiday soap making line that delivers on your business goals and also makes your customers feel great about their purchases.
