It’s almost the most wonderful time of the year – and companies should be giddy.
Shoppers are ready to spend, spend and spend some more this holiday season, putting brands and companies in a strong spot to capitalize during Q4.
This is projected to be the strongest holiday season since 1999 due to a 10-13% increase in retail sales from last year’s holiday season
88% of consumers plan to spend the same or more this year
53% of consumers plan to start shopping before Oct. 31 (Halloween)
JLL’s survey reveals consumers are planning to spend 25.4% more this holiday season ($870), which is in line with pre-pandemic projections. It’s projections mirror Alixpartner’s survey in that 50% plan to shop before Thanksgiving, an increase from last year.
That survey also says that 73% of consumers will shop at an online retailer.
These are great signs and projections for companies, particularly those with a focus on e-commerce. Here are tips to help ensure you capitalize on consumers’ willingness to spend.
READY. SET. GO.
With Halloween in the rearview mirror, it’s go time for your company.
Using AlixPartners’ projection that 53% of consumers plan to start shopping before Halloween and JLL’s protection that 50% plan to begin before Thanksgiving, it’s clear that you need to have your holiday campaign in full gear ASAP. The earlier the better.
No longer can you just wait for Black Friday while December nears. You need to be targeting the early days of November to capitalize on this increased appetite for early deals.
This is especially critical due to the rise in Facebook CPM’s last year, according to adexchanger.com. This puts an onus on getting in front of the surge.
Starting your sales and campaigns early also allows for extra time should there be any shipping delays like last year. Leaving room for error and delays is a good strategy, since you don’t want consumers associating your company with delays or remembering the negatives.
Having momentum heading into Black Friday will help ensure a successful quarter, and put you in a position to further capitalize when the focus shifts primarily to online shopping.
You want to ensure your company is ready for each stretch, whether it’s Black Friday, Cyber Monday, or the crazy push from the week leading into Christmas.
THE K.I.S.S. STRATEGY
You know what the K.I.S.S. acronym stands for.
Don’t over-think these campaigns. The simpler, the better. You want to sell simplicity to your consumers and make it as easy as possible for them.
Here’s one easy suggestion: Consider site-wide promotions if you have low-price Stock Keeping Units (SKU) and perhaps tiered offers for high-priced SKUs. The tiered offers encourage consumers to spend more while helping raise your average purchase order.
A consumer may be more enticed to spend a little extra, knowing they will get that value back by reaching a certain quota. It’s a win-win.
The key is to make sure you consistently are alerting your customers to these deals and start early. The more time they have to capitalize on these deals, the better for both parties. If customers know your appealing offer from the beginning, they will be sure to follow up.
FIND THE RIGHT MIX
There are so many social media platforms that your business can tap into, and it’s important to find the right ones that fit your budget and plans.
Facebook’s CPM’s are rising, as mentioned before, which may push companies to look into other platforms they had not considered before.
Perhaps Pinterest, whose users are inclined to shop, provides the right customer base for your brand and can allow you to reach a new audience. TikTok has a younger demographic and offers the chance to partner with a brand or influencer to increase your reach.
There are so many options that can fit within your budget and target the right audience. Try to have a wide variety of different mediums you use to build your consumer base.
Want to talk to an expert? Get In touch.
Digicom is a boutique digital marketing agency based in New York City. We are a team of versatile growth marketers with the ability to turn early-stage companies into household names. We act as a high-touch agency, managing the growth of our clients' marketing channels and advising across all aspects of their customer acquisition programs.