I was on a call this morning with a founder who is losing sleep over December revenue.
"We need to hit our Q4 number. Should we run another flash sale? Maybe 25% off everything?"
I get it. It's December 18th. The clock is ticking. Every brand is screaming discounts into the void.
But here's what I told him:
If you're only thinking about this month's revenue, you're setting up a brutal January.
Because here's the trap most ecoms fall into after December shipping cutoff dates pass:
They burn through their margin to juice short-term sales. They train customers to wait for discounts. And they start the new year with a list full of bargain hunters who ghost them the moment prices go back to normal.
So let's pivot for a minute.
What if you could boost year-end purchases and set up Q1 retention at the same time?
There's a tactic I've been using with clients that does exactly that.
It's dead simple. It costs almost nothing. And it doesn't train discount behavior.
Here's how it works:
Instead of slashing prices, you offer a bounce-back gift code with purchases.
"Buy now, get a $15 credit for January."
Notice what's happening here:
You're not discounting the current purchase. You're creating a reason to come back.
The customer isn't thinking: "I got a deal."
They're thinking: "I still have something there."
That's a massive psychological shift.
Here's what happened when we tested this with a supplement brand last year ...
They were stuck in the same year-end panic. Inventory to move. Revenue targets to hit. The usual.
We replaced their planned 20% off sitewide sale with a $30 account credit offer (which required a repeat purchase to redeem).
The results:
December sales stayed strong (no revenue drop from removing the discount)
34% of customers came back in January although only about 5% actually used their credit (so it didn’t really cost the brand much)
Average order value on those return purchases was higher than the original order
About $2 per December order during the promotional period (based on the actual redeemed codes in January) instead of 20% off each order (AOV $100 = $20 off each order)
They hit their Q4 number and started Q1 with momentum instead of a hangover.
Why this works (and why most founders resist it)
Most founders hear "gift code" and think: "We're just giving money away."
But that's not how the math works. And it's definitely not how the psychology works.
Tomorrow I'm going to walk you through the hidden mechanics of why this tactic is so cheap and so effective.
Spoiler: The fact that most people never use their credit is actually the whole point.
I know that sounds backwards. Stay tuned.
In the meantime, hit reply and tell me: Are you planning any last-minute year-end promotions? What's your biggest worry about January?
See you tomorrow,
Jeremiah
P.S. If you're reading this and thinking "but won't everyone just redeem their credit and tank our margins?" … that's exactly what I'm covering tomorrow. The data will surprise you.
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