Financial periods are referred to as quarters, each comprised of three months throughout the year. We often hear companies mentioning things like Q1 revenue or Q3 profit, these are simply reports on how the business has done during that specific period of time.
However, what if we told you that there is a secret, hidden period of time? One that many companies and marketing teams are completely unaware of. We’re talking about the ‘fifth quarter’, or Q5. Let’s take a look at what and when Q5 is and then discuss how best to target this unique period in your marketing campaign. Keep reading to find out more.
What and when is Q5?
For many businesses, Q4 represents the most important time of year. It falls over the festive period, which is a time when consumers begin spending heavily and will be actively looking for new products, services, and special offers. Increasing sales and revenue during Q4 will also mean companies can end the year on a high note and with a positive attitude as they head into the new year.
You would be forgiven for assuming that business completely dies down immediately after Christmas. It’s natural to think that, after the festive rush, consumers are less willing to spend and instead will be relaxing at home in that strange twilight period between Christmas and New Year.
However, marketing experts have identified this as a crucial period. One where consumers don’t stop spending, but where we see their habits, preferences, and behavior change significantly.
This is what’s known as Q5. It encompasses the transition period between Q4 and Q1, beginning immediately after Christmas and running until around mid-January. This extra quarter presents a unique opportunity for businesses to take advantage of rapidly shifting consumer desires and give sales an early boost as the new year begins.
How do consumer habits change in Q5?
In what may come as a surprise to some, a significant portion of surveyed consumers reported that they continue to shop in the days and weeks immediately following Christmas. While the festive period is all about buying gifts for friends, family, and loved ones, Q5 can be seen as something of a reaction to this, with shoppers looking to purchase goods for themselves, perhaps as a treat for making it through the stress of Christmas time.
Perhaps they are spending money they received as a gift, or maybe they are looking to pick up a present that they were expecting to get bought for them. Regardless, Q5 shopping trends represent a notable shift from the weeks preceding Christmas.
New Year’s Resolutions play a big role in Q5 consumer spending as well. Many people see the new year as a time to improve themselves, be that their health, fitness, or looks. They are likely to spend heavily on these kinds of products and services, so businesses working within this industry should strive to take advantage of this unique opportunity.
How to target Q5?
The cost of digital ad space can see a dip in the period after Christmas, so this is the perfect time to increase the range and scope of your marketing campaign. What’s more, January often represents the highest month for app downloads, so you could have the chance to access brand-new audiences and demographics.
Your marketing campaign should be geared towards appealing to the consumer tendency to shop for themselves during Q5. Demonstrate how your product or service can be used to improve their health, fitness, or looks, and how you can help them achieve their goals and resolutions for the new year.
The fifth quarter is a short period of time but can prove incredibly lucrative should you manage to market and target it correctly. To do so, you should have a plan drawn up and ready to go well in advance, ideally a month or more beforehand. This will allow you to make the most of the opportunities available during this hidden fifth quarter.
For many businesses, the focus will be on ending Q4 on a high before preparing for the next year. However, having a plan to optimize your marketing strategy for the Q5 period can give you a fantastic boost as you enter the new year. Follow the steps we’ve outlined above and ensure you are making the most of the fifth quarter.
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