As the holiday season approaches, retailers are bracing themselves for the retail juggernaut known as Black Friday and Cyber Monday. With eMarketer predicting a 4.5% increase in holiday retail sales this year, now is the time for brands to maximize this revenue potential.

Recent research from Wunderkind, utilizing five years of historical data, provides some insights on the trends set to redefine this year’s holiday shopping experience.

In short, here is what we are watching:

1. Gen Z: The Shopping Powerhouse

Gen Z consumers are poised to be the driving force behind this holiday season’s consumer spending spree, with 78% reporting no plans to curtail discretionary spending despite economic uncertainties. With an estimated collective spending power of $360 billion, now is the perfect moment for brands to laser-focus their marketing efforts on this demographic group. Utilize purchase triggers, like back-in-stock notifications, to reach them through their preferred channels. Gen Z is a pivotal audience to incorporate into your Cyber Week strategy.

2. Cart Abandonment: A Double-Edged Sword

While Black Friday and Cyber Monday witness a surge in conversion rates, they also experience skyrocketing cart abandonment rates. Black Friday’s cart abandonment rate exceeds that of other November days, closely followed by Cyber Monday. Prioritizing list growth before the holiday season kicks in can help brands identify potential customers for follow-up. Capture first-party data during the holidays to target potential customers with tailored messaging and retargeting strategies, ensuring a seamless and conversion-optimized experience.

3. Median AOV Surge

The median average order value (AOV) during Cyber Week has been on a steady rise, increasing by 26% from 2018 to 2022 and hitting $144 million last year. This upward trend is expected to continue into 2023. To stand out and boost spending, brands should leverage personalized messaging, exclusive offers, and discounts at scale. Encourage upselling higher-ticket items through one-to-one messaging channels like email, text, or onsite ads. While discounts are enticing, they can also be an opportunity to sell more expensive products in larger volumes.

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4. Email and Text: Your Winning Combination

Owned channels such as email and text messaging remain critical for brands due to their scalability, efficiency, and high returns. While text messaging conversions have surged by over four times since 2018, email still leads the pack with 19.2% of total conversions, surpassing Google Ads by a substantial margin.

5. The Rise of Mobile Commerce

Mobile commerce has come into its own, first outperforming desktop in 2021 and accounting for 53.4% of conversions last year, a solid 8% higher than desktop. Brands must ensure their websites are mobile-friendly and provide an optimized user experience. Creating a seamless mobile journey, including abandoned cart reminders, personalized product notifications, and a simplified three-click purchase process, is essential for tapping into the mobile-savvy consumer base.

6. Identity Resolution: The Key to Long-Term Success

While Black Friday and Cyber Monday offer the perfect opportunity to attract new customers, it’s equally crucial to retain these customers throughout the year. Brands without an identity resolution provider often miss identifying about 95% of their web visitors. Your website holds the key to brand perception, with 46% of customers trusting brand websites as the most reliable source of product information. Focusing on building a robust brand image and using owned channels to engage higher-spending consumers can help you maintain a positive brand perception.

This year’s holiday shopping season promises to be one for the books, and brands that adapt to these trends will undoubtedly reap the rewards. By staying ahead of the curve and incorporating these trends into holiday strategies as the season approaches, retailers can position themselves for a highly successful Black Friday and Cyber Monday in 2023.

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