Wouldn’t it be fantastic if we had a supernatural guide, like Ebeneezer Scrooge, to reveal the secrets of the upcoming holiday season (without the spooky stuff, naturally)?

Sadly, we don’t have a time-traveling phantom to illuminate the path. However, we possess a treasure trove of data from past holidays and earlier in 2023 to provide valuable clues for marketers aiming to maximize the season’s potential. Through a thorough examination of this information, we’ve identified four prominent themes. Some are recognizable, while others suggest adjustments to our 2022 strategies.

Let’s delve into the data to uncover the holiday marketing trends it predicts and explore practical steps to capitalize on these emerging patterns. No spectral visitations required!

Soaring Inflation Makes Discounts a Must-Have

This first trend is quite logical. When the economy feels shaky, people tend to guard their wallets more closely. Given that inflation continues at a faster pace than in recent years, we find ourselves in this very situation this holiday season.

Savings Are a Top Priority for Shoppers…

Numerator conducted a comprehensive consumer survey, and the results were clear: 88% of respondents indicated that inflation would impact their holiday spending to some degree. Within that group, a significant 67% revealed their inflation-fighting plan involved seeking out substantial discounts (in contrast, only half planned to buy fewer items).

Our own survey participating in a separate study echoed this sentiment. They emphasized that lower prices were the most influential factor in their shopping destination decisions. Retailers are preparing as they grapple with inflation’s effects. Many are scaling back orders for luxury goods and streamlining their overall inventory. Furthermore, a substantial majority (67%) of retailers anticipate the need for significant discounts to attract holiday shoppers in 2023.

…And You’ll Need to Start Promoting Those Savings Earlier

Back in 2022, many sellers held off until the holiday shopping season was well underway. They often held back their best deals until peak shopping days. However, this year, Amazon might just compel retailers to launch holiday promotions earlier than ever before.

In August, the retail giant announced, aptly named Prime Big Deals Day, slated for October. These exclusive events grant Amazon Prime members access to substantial discounts on thousands of products.

Amazon’s influence on the retail landscape is undeniable. When it makes a move, most other sellers feel compelled to follow suit. Neil Saunders, Managing Director of Amazon Global Data, aptly told Retail Dive, stating, “For the broader retail sector, Amazon’s decision is disruptive, pulling spend forward and upending the traditional discounting calendar.”

Riding the Wave of Early Discounts

Given consumers’ penny-pinching mode and Amazon’s early deal strategy, you might want to revisit the timeline and themes of your holiday promotions.

Start by finalizing your holiday marketing plan promptly, as other brands and retailers are likely to embrace the early discount trend.

Next, consider shifting some of your most appealing bargains to earlier in the season. Make a grand spectacle of every saving opportunity.

If outright discounts don’t align with your brand, explore other ways to promote more value. For instance, offer gift cards with purchases, include trial sizes with full-size purchases, or create enticing product or service bundles at special prices.

The Rise of Social Shopping in 2023

Shoppers are increasingly turning to social media to discover the ideal gifts. As they become more socially adept, they’ll demand high-quality content and seamless purchasing experiences.

A Strong Social Media Presence Is Non-Negotiable

Virtually every data point confirms it: more and more people are flocking to platforms like Facebook and Instagram for purchase inspiration and product information.

In the first quarter of 2023 alone, traffic referrals from social media channels surged by 27% compared to the same period the previous year (source). Our survey further reinforces this trend, with three out of four shoppers revealing their intention to leverage social media for product research.

Even if your primary sales channel is a physical store, a robust social media presence is essential. Salesforce’s data shows that “in the past three months, over half of consumers reported visiting a physical store specifically to see or purchase products they discovered through their social media feeds.”

The significance of social media marketing this year cannot be overstated. Salesforce’s holiday report predicts that social media advertising will drive ten times more holiday traffic to online stores than traditional marketing efforts.

That’s a lot of potential growth packed into those festive holiday posts.

Video Reigns Supreme

In case you haven’t heard, video is incredibly engaging. A recent HubSpot report showed that viewers typically watch short-form videos for at least 40% of their total duration, with 30% of videos boasting an average watch time exceeding 81%.

What’s even more compelling is video’s ability to captivate shoppers and drive action. A report from last year found that nearly half of TikTok users had made a purchase influenced by something they saw on the platform.

Livestream videos could be even more potent. Rob Illidge, CEO of social media agency Social Republic, recently shared that consumers spend three times longer engrossed in live videos compared to pre-recorded content.

These viewers aren’t just passive observers. The livestream e-commerce market is poised to explode, projected to triple in size and reach over $37B in 2023.

As you might anticipate, younger shoppers are spearheading these emerging buying trends. Gen Z consumers said that, apart from direct recommendations from friends and family, TikTok videos hold the most sway over their purchasing decisions.

Source

Making Social Media Your Holiday Sales Engine

Go all in on social media. If you haven’t already, develop a comprehensive social media strategy. Incorporate a blend of organic posts and targeted paid social ads to maximize reach and conversions.

Simplify the buying process by seamlessly integrating shopping posts. For example, leverage Instagram’s shopping features by adding shoppable tags or stickers to your feed posts, Reels, or Stories. With Instagram Checkout, you can even enable holiday shoppers to complete their purchases without leaving the platform.

If you haven’t already, seriously consider TikTok to capture holiday sales. Partner with influencers, share informative videos, and utilize paid ads to engage potential buyers effectively.

Generating a constant stream of holiday-themed content can be draining. Here are a few resources to make the process smoother:

• 64 Cliche-Free Holiday Copywriting Ideas & Examples
• 34 Clever & Catchy Holiday Marketing Slogans
• 60 Perfectly-Worded Christmas & Holiday Greetings

Shipping and Return Policies Take Center Stage

Policies don’t usually scream “marketing magic,” but shoppers have made it clear that they’ll reward brands offering convenient delivery and hassle-free returns with their holiday spending. So, shine a spotlight on these policies to capitalize on this trend.

Flexible Shipping Options Are a Must

As holiday shoppers hunt for deals, shipping costs will be a prime target. They not only want to save on getting those gifts delivered but also crave a choice in how those items arrive. Shopkick’s 2022 holiday survey highlighted free shipping as the most desirable perk for gift-givers, with a staggering 91% of consumers emphasizing its importance.

Buy online, pick up in-store (BOPIS) is another crucial convenience shoppers will expect. BOPIS gained widespread adoption in 2020 as retailers adapted to heightened safety measures. The ability to shop online and instantly pick up purchases proved to be a winning combination.

Salesforce’s holiday report suggests that 39% of consumers will seek out retailers providing BOPIS. Remarkably, the report also indicated that retailers offering BOPIS experienced seven times faster growth than their counterparts who didn’t. A 700% growth spurt would make even Scrooge crack a smile.

Building Trust Through Return Policies

Perhaps it’s the need to safeguard their finances, but shoppers have never placed more emphasis on a company’s return policy (assuming it’s customer-friendly, of course).

Salesforce’s report revealed that 93% of consumers research a brand’s return policy before committing to a purchase. Moreover, a significant 78% will abandon their shopping carts if free returns aren’t an option. The message is clear: to cultivate repeat customers, make returns easy.

Leveraging Shipping and Returns in Your Marketing

Fast, free, and flexible shipping are practically non-negotiable for attracting holiday shoppers in 2023. On the marketing front, emphasize these offerings clearly and prominently.

While your return policy might seem as exciting as Aunt Edna’s fruitcake, don’t shy away from featuring it in your holiday promotional posts. This is especially crucial for seasonal emails targeting existing customers and brand enthusiasts, preventing them from straying to competitors while they tackle their gift lists.

Authenticity and Purpose: Keys to Winning Gen Z Hearts This Holiday Season

Gen Z is emerging as a holiday shopping powerhouse deserving of your undivided attention. Here’s why:

• They number a staggering over 68 million strong.
• Zoomers are less hindered by inflation.
• A remarkable 72% of Gen Zers eagerly anticipate holiday shopping.

They are also the most diverse generation in history and are less susceptible to slick marketing tactics. To connect with this vast pool of enthusiastic holiday shoppers who prioritize brand values over price, prioritize authenticity and diversity.

Seeking Genuine Connections

Every generation desires relevance and authenticity, but Gen Z possesses the tech savviness to discern how marketers deliver these qualities online—and they’re willing to make trade-offs.

For instance, research from Tinuiti indicates that Gen Zers are three times more likely than older generations to consent to Apple’s App Tracking Transparency prompts and similar tracking requests. Furthermore, they are less inclined to clear their browser cookies or rely on ad-blocking technology.

In exchange for allowing online tracking, this youngest adult generation expects marketing that feels grounded and relatable. Nishat Mehta, President of IRI Media Center of Excellence, wrote in Forbes, stating, “Our survey demonstrated that Gen Z values honesty and straightforwardness more than any generation since their grandparents and great-grandparents (The Silent Generation).”

While Gen Z remains receptive to influencer marketing — with Marketing Dive reporting that 75% of those surveyed made a purchase based on an influencer’s recommendation in the past year — authenticity is key. Younger buyers are more likely to connect with micro-influencers who reflect their lifestyles rather than out-of-touch celebrities.

Marketers play a pivotal role in cultivating brand authenticity. Three-quarters of Gen Zers expect brands to actively respond to feedback and view this responsiveness as a hallmark of authenticity.

Diversity Takes the Throne

Numerous studies, including one from Creatopy, confirm that Gen Z expects brands to take a stance on social issues.

As the Gen Z is the most diverse generation to date, diversity and inclusivity are likely to be high on their list of causes they want brands to champion. Data from Pew Research substantiates this sentiment. It demonstrates that Gen Z, more so than other generations (though Millennials are close behind), views racial and ethnic diversity as a positive force in society.

Resonating with Gen Z This Holiday Season

If you haven’t already, consider implementing an influencer marketing strategy. Even collaborating with one or two influencers to share content like gift guides can be impactful. The key is selecting influencers who genuinely resonate with your target Zoomer audience. Think relatable individuals rather than flashy celebrities—people who embody the language and lifestyle of the consumers you aim to reach.

Next, prioritize direct engagement with Gen Z shoppers. Respond to social media comments and address reviews promptly.

Create a holiday-themed referral program to encourage the word-of-mouth recommendations Gen Z values.

Given their diversity, Gen Z is likely to celebrate a wide array of traditions. Consult a holiday diversity calendar to pinpoint opportunities to promote various events authentically.

You’ll discover numerous faith-based, cultural, and cause-related holidays to highlight. The key is ensuring your holiday messaging rings true.

Ensure your visuals showcase a tapestry of individuals. Go beyond ethnicity and strive to represent people of diverse abilities as well.

This kind of representation holds immense significance for individuals who identify with those images and resonates deeply with the socially conscious Gen Z demographic.

While not all of these strategies are holiday-specific, they will enhance your brand’s appeal and relatability to Zoomers as they search for the perfect gifts for their loved ones.

Illuminating a Brighter Holiday Season with Data-Driven Insights

While we can’t predict the future with absolute certainty, we can glean invaluable wisdom from past patterns. By understanding shopper behavior from earlier this year and recent holidays, you can position your brand to resonate deeply with consumers.

To maximize the upcoming holiday season, keep these key takeaways in mind:

• Promote discounts prominently and early in the season.
• Go all-in on organic and paid social media marketing.
• Integrate shipping and return policies into your marketing messages.
• Connect with Gen Z through authenticity and inclusivity.