2018 Holiday Trends Part 1
The 2017 holiday season was the biggest in history, and all information and data analysis of billions of shopping visits over the last decade show that 2018 is going to be even bigger. Billions of dollars are up for grabs, and the competition will be fierce. How will your business stand out and attract customers during the holiday season? The army with the best information wins the war, and we’ve got the details on key trends that are going to shape the 2018 Holiday Season.
- Online Shopping is a BIG Deal
Cyber Monday 2017 generated $6.59 billion in revenue, the largest online-only sales day ever. It was also the largest shopping day in Amazon’s history, far outpacing their annual summer sales day, Prime Day. Black Friday saw $5 billion in online sales, with customers spending more than $1 million per minute online. Online sales were up nearly 5% from November 1 to Christmas Eve, the largest year-over-year increase since 2011.
Black Friday saw its revenue grow 32 percent year-over-year, retaining its spot as the largest in-store traffic day of the year. For comparison, the second-largest shopping day of the year would have to double its traffic to even get close! Cyber Monday also blew up, showing a 15 percent increase. All told, revenue was up 33 percent from Thanksgiving through Cyber Monday as shoppers bought on their terms, when and where they wished.
- The Holiday Season Begins Early, and Lasts a Long Time
It might sound silly to you, but in the marketing and sales world, the Holiday begins as soon as kids start going back to school. According to RetailMeNot, 70 percent of retailers started promoting Black Friday offers before Thanksgiving. Cushman & Wakefield data says 16% of retailers are marking down prices as early as September, while 46% are introducing holiday promotions before Nov. 1 and 54% start marking down prices after Nov.
After Black Friday and Cyber Monday come “pre-holiday” sales months for November and December. Retailers are creating new holidays such as “Free Shipping Day” or “Super Saturday” deals to continue to push sales into late December. And only then do you get Christmas Holiday sales. Shoppers are researching their holiday gifts earlier and earlier: there was a 31 percent year-over-year growth on Thanksgiving Day shopping. Your company needs to launch their holiday promotions earlier to take advantage. Consumers’ relentless desire for bonuses, sales, and shopping holidays offers an exciting opportunity for brands and businesses to promote unique and personalized experiences to stand out from the competition.
- Personalization Is a Game-Changer
The holidays are about giving gifts from the heart, but that also extends to businesses too. Personalization plays a HUGE role in the holiday shopping season. The holiday shopping season is highly competitive, and consumers want personalized and relevant sales, messages, and interactions from their favourite stores, whether it be in-store or online. In order to succeed, your company needs to integrate personalization into their marketing strategy.
– Personalization delivers as much as a 6x ROI increase compared to non-personalized engagements.
– 83% of shoppers are willing to share personal data to enable a personalized experience.
– 80% of consumers are more likely to do business with a company if it offers a personalized experience.
– Emails with personalized subject lines are 26% more likely to be opened.
– 74% of marketers believe personalization has a “strong” or “extreme” impact on advancing customer relationships.
– 90% of consumers indicate that they find personalization appealing.
– 87% of consumers said personally relevant branded content positively influences how they feel about a brand.
– While only 5 percent of Cyber Week shoppers clicked or tapped on a product recommendation, those shoppers accounted for 30 percent of the week’s revenue.
Despite these clear-cut stats, many retailers used to ignore personalization. Don’t make the same mistake. Personalization can be the greatest tool a retailer has, if used correctly. This year, with advances in technology, connectivity, and data analysis, you will see more and more companies will take advantage of personalization. But remember, your job here isn’t JUST about the sale. You need to offer a full experience, from before the shop, during the purchase, and after the sale.
- You Need To Win The “Weekends War”
During the holidays, the weekends see the bulk of consumer traffic. The 10 biggest shopping days during the holiday season are on the weekend, making up approximately 40% of all traffic. As a retailer, you need to be ready.
While the big holiday days are obviously important, the two Saturdays before Christmas in December 2017 (Dec. 16 and Dec. 23) eclipsed Super Saturday 2016 (Dec. 17), the second-busiest day of that year, in terms of total traffic. During the holiday season, traffic is slow on the weekdays, and hectic on the weekends, so it’s important for retailers to focus their attention on the days that matter.
Tune in to Part 2 of our 2018 Holiday Trends Series to see why mobile, social media, and data analysis can make a difference to your company’s holiday shopping season!
Check out our 2018 Corporate Holiday Gift Guide to see how DCR Strategies can help you win the season with innovative incentives that make an impact
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