Fall is well underway and people are already beginning to prepare for the most wonderful time of the year. As if, the holiday season isn’t already hectic enough, once you add the complications of a global pandemic to the mix, we may be facing one of the most stressful holiday shopping seasons yet. During a year where almost, everyone took some sort of financial hit, this holiday season will look a bit different for people. For retail businesses hoping to make up for some of the losses they experienced, this holiday shopping season is especially important. But, with unemployment hovering around 8% many customers will be tightening their purse strings this season, making retailers work a little extra harder for that sale . Here's how the holiday shopping rituals have changed, and a few ways to help you reach your customers.
The End of Black Friday as we know it…
For decades, the day after Thanksgiving has attracted massive crowds across the country. Well if you’re not a big fan of the whole Black Friday hysteria this year is your year. 2020 might be the year Black Friday finally unravels. TracPoint has conducted a recent survey in which we asked people from multiple generations about their plans for getting their holiday shopping done this year. When asked if they would be more inclined to shop on Cyber Monday this year in order to avoid large crowds, a shocking 82% of Generation Z and Millennial customers said yes. 55% of Baby Boomers said they would be more inclined to shop on Cyber Monday this year rather than Black Friday. The growing comfort level across generations, including Baby Boomers, with online ordering means an early shopping push from people who are still primarily staying at home, and likely big e-commerce wins for the holiday season.
During a pandemic, is definitely not the time for large crowds of shoppers, so holiday shopping most likely be early and online this year, for the most part. A survey performed by TracPoint revealed that 64% of Generation Z and Millennial customers are planning on starting their holiday shopping early this year to avoid large crowds. 65% of customers from the Baby Boomer Generation also said they are planning on starting their holiday shopping early this year. The same survey concluded that 66% of Generation Z and Millennial customers said they are very likely to do their holiday shopping this year online. Whereas, 80% of Baby Boomer customers said they are very likely to do their holiday shopping online this season.
Coupons for the Win!
Coupons and promo codes will play an important role in attracting customers, especially during a time where people are looking to spend less money. According to our survey about 75% of Baby Boomer, Millennial and Generation Z customers have a lower budget to spend on gifts than years past.
Consumer concern about the economy will likely drive holiday shoppers to seek out discounts and promotions. TracPoint found that when buying gifts this year 64% of customers are planning on waiting for a sale to make a purchase. In fact, Generation Z customers in particular, stated that they are 80% more likely to buy a gift if a coupon or promo code is offered. With the dominance of e-commerce, retailers should certainty include coupons and promotions as part of their digital sales strategies.
Social Media could make or break your sales this season
In addition to seeking out promotions, customers are also going to be turning to social media for help on their holiday shopping. Recent additions to social media platforms, like Facebook and Instagram Shops, and Snapchat Brand Profile Pages are going to increase access to turn-key purchasing on mobile across consumer groups, leading to possibly a record-setting year for mobile sales.
With customers paying much closer attention to social media advertisements this holiday season, retailers need to focus on making their content better than ever. TracPoint’s social media management platform, Rallio, allows you to create, store, and distribute your social media content, videos, and ads across multiple locations. You can easily deploy specific content to all stores, or a select one specific store. This season engage your customers with local content and intriguing ads to grow your social media presence and better reach your target market!
The behaviors of customers will largely dictate the trends this holiday season but, like so much in 2020, the holiday season may hold some surprises that will require retailers to stay smart and ready to adjust as needed. Taking a hard look at the current shopping trends and utilizing social media, will serve retailers well as we all prepare for the upcoming holiday season.
Takeaway: About 75% of both Baby Boomer and Generation Z customers have a lower budget to spend on gifts than years past. However, the survey also showed that over 70% of customers are planning on buying the same number of gifts as years past. Approximately 68% of customers revealed that they more likely to buy a gift if a coupon or promo code is offered. Unlike years past, consumers holiday budget is going to be less, yet they still need to buy the same number of gifts. With that being said, this year consumers are going to be searching for deals to justify their purchases. Retailers should focus on offering discounts and promo codes in order to draw customers in and ultimately help drive sales throughout the holiday season.