Editorial
The Gist
- Season spanning. The holiday shopping season is no longer a day event but a weeks-long sales marathon.
- Shopping evolution. Holiday shopping trends reflect a shift to multichannel, digital-first consumer habits.
- Sales forecast positive. Holiday shopping statistics indicate a steady increase in post-pandemic spending.
Black Friday and Cyber Monday deals are no longer single-day phenomenons. Now, consumers can expect season-long sales and promotions as retailers strive to capitalize on early holiday shoppers.
And despite the aftermath of the COVID-19 pandemic, the National Retail Federation stated that in 2022 holiday sales grew by over 5% compared to the previous year, and in 2023, sales are expected to rise between 3.5% and 4.6%, according to Deloitte.
Let's take a look at what the holiday shopping season is going to look like.
So, what's shaping these figures, and why is this year set apart from the last? While spending is projected to increase, it hasn't reached the heights of 2022. Shifts in consumer behavior due to the tough economic climate appear to be the primary driver.
Moreover, we're dealing with digital-savvy, privacy-aware shoppers who choose to back only the brands they trust. Bearing this in mind, here's what you should understand before this year's holiday season and how to modify your marketing approach:
Holiday Shopping Season Trends
Today’s Shopper Is More Multichannel Than Ever
Marketers: it’s time to get your omnichannel strategy in check for the holiday shopping season. The average shopper utilizes several channels per shopping trip, and retailers must learn to close the gap between offline and online experiences. Ensuring that you understand your customers whether in-store, on your website, or in-app is imperative to closing this gap; and data can help.
For example, a recent PwC report found that 56% of surveyed consumers utilize mobile apps for pre-purchase decision-making, with 31% leveraging social media for research. To meet these customers where they are, brands should zero-in on their mobile app strategy to ensure a seamless, convenient, unparalleled experience. Overall, collecting the right data points through all of these channels will help you provide relevant, personalized experiences.
Related Article: Unwrap the Secret to Keeping Customers Coming Back All Year Round
Real-Time Data Is the Real Difference-Maker in Today’s Competitive Landscape
Customer expectations are higher than they’ve ever been this holiday shopping season, and it takes more than one coupon or promotion to get their attention. Every touchpoint a customer engages with requires the right data available to make the right decision in real time. Irrelevant product suggestions and slow customer service experiences will no longer be accepted.
The silver bullet lies with harnessing the power of real-time data. It’s clear that there’s a direct link between a thoughtful customer data strategy and operational excellence. Creating targeted campaigns, reacting to customer interactions as they happen, or providing the utmost quality customer service about a purchase, are just some of the possibilities. This ultimately leads to more scalable customer acquisition and shortened reaction time to identifying and engaging customers, which is critical to keeping customers around.
Related Article: Maximize Your Customer Data Management for Holiday Seasons to Come
The Influencer Revolution Is Accelerating, and So Should Your Ad Strategy
Has anyone else made an Instagram or TikTok Shop purchase recently? Social media will continue to influence consumers with more than a billion people using these apps during this holiday shopping season.
To put it in perspective, a recent Influencer Marketing Hub report predicts the influencer marketing industry to hit $21.1 billion this year, which is extremely opportunistic for brands to get a piece of the social media pie. But as brands leverage these channels for strategic marketing, measuring ad campaign success can be tricky.
To get the most out of your digital ad campaigns, brands should leverage Conversions APIs (CAPIs), which can improve Return on Ad Spend (ROAS) and provide deeper visibility into ad campaigns — both online and offline. Conversion APIs also help in accurate attribution modeling, which is essential for understanding the customer journey and the effectiveness of your marketing campaigns. You can see which touchpoints contributed to a conversion and adjust your marketing strategy accordingly.
Related Article: Holiday Crunch Time: 5 Tips for Better CX and Support
Final Word on the Upcoming Holiday Shopping Season
Like any relationship, trust should be at the center. A recent Active Campaign report found that nearly 50% of consumers surveyed said one of their top motivators to engage with a new brand is its trustworthiness and transparency. Consumers today are more conscious about how their data is being used and will only buy from brands that respect their privacy.
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Establishing a data strategy that is privacy-centric from the very start — collection — and carries throughout the entire customer journey will not only help you earn customer loyalty and trust, but it will also keep your organization compliant with legal regulations.
Today’s consumer is more digitally savvy than ever before, and a holistic view of your customers and relevant experiences are critical in establishing a successful strategy for this holiday shopping season.
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