It’s no surprise that today’s consumer behaviors are a departure from how shoppers have historically made purchases. The shift in spending habits and return to in-store, coupled with navigating new economic environments, means the guarantee of a brand loyalist returning to make a secondary purchase is not so guaranteed any more. There is an uptick in cart abandonment and a decrease in lifetime value, all while brands are pulling back on marketing spending. So, what does this mean for marketers this holiday season when budgets are more scrutinized than ever before and efficiently driving revenue outcomes is essential?
In the process of analyzing the past year of consumer behavior while supporting campaign strategies for some of the world’s largest brands, five standout themes emerged that marketers should definitely be coming to terms with as they finalize their Q4 plans. Supported by market research, these best practices will help you increase your share of wallet this holiday season.
1. Playing to win (and keep!) your customers
The status quo is no longer acceptable for shoppers. When thinking about how to turn heads in Q4, get creative and work with partners like Button who will approach your marketing plan and budget with the strategic placements necessary for your content to stand out, while stretching your dollars to their fullest potential. Today’s savvy shoppers are no longer sticking with one brand; they are looking for the highest quality products at the best prices.
In fact, McKinsey & Company’s recent spending survey reported that 46% of US consumers recently switched brands in 2022, and about 90% plan to incorporate these new behaviors into their shopping routines. Button can help retailers get innovative with their offers and marketing media buys to ensure your brand stays top of mind.
2. Providing seamless experiences both on- and offline
With even the most loyal consumers shopping around, you can bet that translates to both ecommerce and brick-and-mortar, as consumer habits begin to normalize from the pandemic era. McKinsey & Company’s survey shows that ecommerce spend increased 27% year-over-year from March 2021 to 2022, while in-store purchases increased by 8%. With shopper attention harder to grab and retain than ever before, brands providing seamless experiences both on- and offline have become table stakes.
Given this, it’s no surprise that Forbes reported that mobile sales accounted for 45.9% of holiday sales in 2021, with the figures for 2022 only expected to rise. As retailers navigate this new normal, it’s critical to continue to engage and re-engage your customers with compelling reasons to continue visiting your websites and apps.
3. Stretching today’s dollars doesn’t necessarily mean less spend
With today’s macroeconomic pressures, Deloitte reports that 77% of consumers are concerned about rising inflation. You have probably witnessed firsthand that the dollar doesn’t stretch quite as far as it used to. However, according to a recent interview with Fortune, major FinTech Visa says there’s “no evidence of a slowdown in consumer spending.”
In fact, WSJ reports that banks are doubling down on marketing to boost surging credit card sign-ups as card spending hits records, despite recession fears. With ecommerce expected to hit $1 Trillion in spend in the US alone, it’s safe to say that consumer spending is still alive and well as we head into the holiday season.
4. Pulling back budgets can hurt your bottom line
Due to inflation, holiday shopping is likely to start earlier than ever before, meaning strategic partnerships and innovation need to be at the forefront of your media spending this season. Although today’s economic pressures are scary, pulling back on media dollars would be a mistake. According to Analytic Partner’s ROI Genome Intelligence Report, more than half (60%) of brands that increased media investment during the last recession saw ROI improvements.
What’s more, the report found that brands who increased paid advertising grew incremental sales by 17% and those that reduced spending risked losing sales to competitors by 15% — missing out on these shoppers and share of wallets. Needless to say, where one brand pulls away another invests and wins. This dynamic is contrary to the conventional wisdom that marketing should be the first to cut budgets during times of financial hardship.
5. Owning share of wallet with the right technology partner
In times like these, there is not a one size fits all approach to owning your share of wallet, but one thing is evident: Shoppers are not going to stop spending money. They want the right things, at the right prices, so it’s important to be that retailer who shows them you are still in front and investing in driving them to your website and apps.
By partnering with innovative technology providers like Button, you can trust the dollars you are spending today will not only get you in front of the right audiences, but most efficiently impact your revenue outcomes tomorrow. When considering whether or not to pull budgets back this holiday season, it’s important to evaluate the lifetime impact of another brand swaying your loyal current or future shopper away.
To learn more about how Button can tactically help secure media inventory in Q4 and beyond, reach out today.