As we draw closer to the end of the year, brands are readying their holiday campaigns, looking to draw attention from eager shoppers with appealing holiday sales. Retail/CPG brands heavily rely on the holiday sales season throughout November and December to meet goals, to introduce new products into the market and to close out their year on a strong note.
This year, retailers are preparing for a softer holiday season due to shoppers looking to avoid crowds and minimize their in-person shopping trips, but brands are also preparing for a shift to e-commerce for holiday shopping needs.
With consumers growing more comfortable and familiar with buying online over the last eight months, it is predicted that “US consumers will spend $190.47 billion this year on holiday e-commerce buys, up 35.8% from 2019. In-store holiday sales will decline by 4.7% to $822.79 billion. But online gains will make up for these losses, resulting in growth of 0.9% for total holiday season sales, to $1.013 trillion,” according to Emarketer.com.
As you’re gearing up to launch your holiday marketing strategies, here is some food for thought from our expert strategists at Morgan & Co.:
Extending Digital Deals
In previous years, brands pushed holiday sales on key shopping days such as Black Friday and Cyber Monday. But this year, with the rise of e-commerce, brands are promoting their products earlier and are not limiting opportunities to just certain major shopping dates. With retail site traffic levels at an all-time high, consumers who are searching for bargains will likely be open to spending more if they can find a good deal. Additionally, social media marketing grows to be even more important – it is predicted that 10% of mobile orders will be through social channels (with peak days reaching between 12%-15% of mobile orders), ranging from products to gift card purchases.
Buy Online Pickup in Store (BOPIS) has gained popularity over the years, but this holiday season, it will be pivotal. Although fewer shoppers are visiting physical locations, stores remain an important asset for contactless fulfillment via store pickup — curbside, inside, or drive-through. Brands promoting the benefits of contact-free shopping and the convenience of curbside pickup through ads or via updated SEO have an opportunity to build shopper confidence and fulfill buying needs.
This year, we may see new categories or increases in some categories around health, wellness, work/life balance. Another category that will likely grow is digital products and services that bring friends and family together over physical distances. For self-purchases, sales are likely to lean towards home improvements and decorating, plus a surge in new outdoor, indoor and Christmas tree decorations to make this holiday season extra special. Lastly, there is a bigger focus on small and medium sizes businesses, as local shops have taken a hit this year. Shopping small allows consumers to both find great new local products and services and support their local economies. When shopping locally, $68 for every $100 stays in the community, as opposed to $43 when shopping non-locally.
Any retail brand knows there is more value in shoppers who are already loyal to your brand, and shoppers who fall into the store’s high value, high affinity consumer base, over low-ticket transactional customer. To honor your loyal customers, there is potential to offer special demos, hours, access to specials. Also, personalizing the customer experience is a huge payoff so their inboxes aren’t swamped with junk. These personalized communications prove that the company understands the individual customer and isn’t just lumping them together with a whole bunch of others based upon some vague data point.
It is true that this holiday season will look a little different , but with targeted and thoughtful strategies backed by data, brands can look forward to capitalizing on the season. If you’re looking to update and enhance your media strategies to keep up with the latest trends, contact Morgan & Co. today.