It’s the most wonderful time… to shop. With the season of giving inspiring shoppers to buy more, retailers are seeing a high volume of web traffic, spikes in sales, and some of their largest profit margins. Last year, retailers saw unprecedented growth during the holiday season. What drove that growth and how can brands shape their holiday strategy this year to capitalize on these seasonal shopping trends? Using the purchase insights we receive from 1 in every 2 card swipes in the U.S., here’s what we know…
Capture your customer ahead of the first chill
Every year it seems like the holidays start earlier and earlier. That’s no different this year, especially with some consumers concerned about potential supply chain-related shipping delays. One major seasonal shopping trend that we see year over year is that advertisers benefit the most by engaging with consumers early in the season. Our insights show that customers who shop earlier in the fall are 10 times more likely to return compared to the natural holiday walk-in rate. Those who engage their customers early will be rewarded with loyalty later in the season.
One-stop shops reign supreme
Last year, mass merchandisers saw the largest spend share increase, growing +3 points from 2019, suggesting shoppers consolidated their brand shopping. This was the largest increase amongst all observed categories with mass merchandisers taking share from apparel, shoes, and health/beauty.
The ease and convenience of buying products across multiple categories at one store is perhaps exacerbated by the pandemic’s influence on social distancing, limiting time spent in stores. As we enter the second pandemic holiday season, it’s reasonable to expect that these shopping habits will continue.
Consistent with what we’ve seen in other analyses, the omnichannel customer is more valuable than the single channel customer. On average during last year’s holiday season, omnichannel customers spent $1,811 while in-store customers spent $810 and online only customers spent $899.
It should come as no surprise that omnichannel marketing has really taken off. Last year, online shoppers represented 35% of total holiday spend. With consumer spending increasingly moving online, implementing an omnichannel retail strategy should be at the top of every marketer’s to-do list.
Open for business 24/7
Encouraged to stay home, consumers took to ‘clicks’ instead of ‘bricks’ to satisfy their holiday shopping needs in 2020. Compared to pre-Covid behaviors, online retail is up 131% showing customers have moved online and are staying there. Growth in online spend was accelerated by increases in number of purchases rather than basket size, proving the convenience of online shopping. It’s safe to say that omnichannel retail marketing must be the new normal. Consumers can make as many purchases as they want, whenever they want, even after hours. By adopting an omnichannel retail strategy, marketers are not just getting ahead of the game, they’re meeting their customers’ expectations to be able to shop when and how they want.
Cardlytics sees $3.6T in annual consumer spend
Because of our view into spend, Cardlytics can deliver provable return on investment in as little as 45 days. It’s time for marketers to leverage these seasonal shopping trends so that they can drive tangible revenue. Together, we can drive holiday loyalty through repeat purchases so that your brand can drive sales, increase customer loyalty, and grow market share. Contact us today to learn more!