The Top 4 Things Brands Should Keep in Mind Ahead of the Holidays
By Richard Jones, Chief Revenue Officer, Wunderkind
The COVID-19 pandemic brought about an eCommerce boom, but with it came a host of challenges such as supply chain issues, and now a cost-of-living crisis. Whilst retailers may feel uncertain about the holiday season ahead, research indicates that online shopping is still king. 71% of US shoppers plan to spend more this Black Friday and Cyber Monday than Prime Day earlier this year.
While brands are gearing up for holiday sales and campaigns, most are likely aware that this year brings new challenges alongside new opportunities, as shoppers will be selective with where they spend their money. Amidst fears of a recession and ongoing inflation, it’ll be the brands that can offer a stand-out experience that’ll thrive during the holiday season. There are plenty of opportunities out there…you just need to know how to reach your customers.
Consumer Behavior and Their Buying factors
So, how are consumers shopping this holiday season? Well, one thing’s for sure, no year is ever the same, and in changing times retailers must adapt their strategies to keep up. This is what we’ve learned about the deciding factors for consumers when making a purchase this Black Friday and Cyber Monday.
With fears of an incoming recession, consumers have become more price-conscious post-pandemic, amidst supply chain issues and ongoing inflation. And who can blame them?
In fact, 82.2% of US consumers see price as the main factor when making a purchase decision this year as they worry about finances. 24.8% of consumers are looking at delivery windows and labeling it a key factor for them when purchasing holiday gifts. Early 2021 supply chain issues meant many customers received items late, and couldn’t get them in time for special occasions such as Christmas. So this year, ensuring a timely delivery means consumers are more likely to shop with you.
As a result of supply chain issues over the past few years, consumers have also become all too familiar with ‘out of stock’ notifications when trying to purchase items. 55.6% of consumers have reported availability is a deciding factor when making a purchase. Over half of consumers will also be looking for what’s readily available.
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Social Standings and Brand values
18-25 year olds and Gen Z, are invested in social and moral issues like sustainability and fair pay for workers. In fact, 31.8% of consumers said that brand values were a deciding factor when purchasing an item. With the pandemic freeing up consumers’ time and money, they are able to research brands more and develop loyalty with those which align with their values. These values are here to stay, as many customers look for somewhere they can make an ethical purchase.
42.8% of consumers said they want to see brands’ efforts around sustainability this year. 38% said that fair wages mattered, whilst 36.4% cared about diversity and inclusion when making a purchase.
Consumers Want Emails
According to Wunderkind research, consumers will rely heavily on emails from brands to learn about their campaigns this year. We found that 79.6% want emails about sales, 74.8% about unique price drops, 76.2% about loyalty programs, 73.4% on coupon codes, and 77.8% want reminders of items in their carts. Don’t leave your customers out in the cold.
Furthermore, nearly seven-in-ten respondents also said emails from brands encourage them to take advantage of Black Friday/Cyber Monday deals, while nearly two-thirds (62.8%) like to be reminded of brands’ Black Friday & Cyber Monday deals via email. With so many shoppers planning to shop online this holiday season, now is the time for retailers to refine their strategy and customize messaging to ensure they foster positive engagement with customers via email.
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Consumers want to save
Giving your customer extra time to shop could be the deciding factor for them this year.
48.8%, almost half, of consumers plan to take advantage of Buy Now, Pay Later options this year as the result of tough economic conditions and a looming recession.
Conversely, consumers plan on buying clothes and shoes the most, with 63.2% saying these are the gifts they’ll be purchasing this holiday. 52.6% said they’d buy gift cards, 43.4% video games and 42.8% said other tech goods including phones, tablets, headphones, earphones, laptops, and monitors. Therefore brands can expect consumers to look out for deals and discounts for electronics and messaging and targeting for this category could prove crucial.
Brands can expect the 2022 holiday season to be bigger than ever. Utilizing these tips will help you stay ahead to ensure you’re connecting directly with your customers and providing them with what they want.