We’re fresh off two of the biggest holiday shopping events of the year—Black Friday and Cyber Monday. While we wait to get more data on how they went for retailers, you’ve still got time to advertise to your target audiences this holiday season, and pull them down the conversion funnel to a sale. Let’s look at now …
Additional Conversions Up for Grabs This Holiday Season
In 2015, the National Retail Federation (NRF) conducted a survey about holiday budgets and spending, and a significant number of participants admitted to spending up to $200 more than they’d originally planned. An NRF poll from fall 2016 found that the majority of shoppers felt they could be convinced to spend $25 over budget this year as well.
The point is, consumers can be persuaded to spend a little more this holiday season. If you zero in on the following areas, some of those extra dollars could come your way.
Sales and promotions attract 51 percent of shoppers who may spend more this season, especially if you’re targeting Generation X, 55 percent of whom will cave to a good deal. Push those discounts!
The perfect product can convince 34 percent of shoppers to grab a gift for someone not originally on their list. Millennials, who have plenty of nieces, nephews and bosses are particularly swayed by spotting a special something.
The concept works for treating oneself as well; 27 percent of consumers said they’d spend more money if they came across something they really wanted. Better yet, if the merchandise is for a limited time, it becomes even more attractive to Millennials.
Accessibility and convenience go a long way toward getting shoppers to spend a little more. Between the parties, guests and last-minute needs, people are often scrambling to ensure everything is covered during the holidays. The faster you can get gifts to shoppers, the better.
Along with that is the convenience factor of free shipping on all orders (to save a trip to the store) and hassle-free return policies (to simplify any follow-up interactions). Shoppers who feel like they’re saving time and money can be willing to spend a little more up front.
Personal touches still go a long way too: Attention and upselling of high-quality products is likely to work on 10 percent of shoppers. Extra help and advice from a friendly salesperson are desired, and reflected in the trends of personal shoppers and subscription services.
3 Extra Steps to Help Boost Conversions
Here are three ways retailers can grab consumer attention in the areas listed in the graph above:
- Sales or promotions: Don’t forget to use all the AdWords extensions available to you. These will help grab consumer attention right from the search results when you have a great promotion or sale. Even during the checkout process, you can use promotions to help add a little more to their cart.
- Free shipping: Again, this is about using your AdWords extensions to highlight the perk. As we’ve learned in the past, free shipping is in high demand and can get retailers a ton of traffic.
- Seeing the perfect gift for someone else or yourself: This is where retailers using personalized shopping methods can help promote the right items. Several companies are using such technology this season, including Target, which is introducing a digital tool to help shoppers find the perfect gifts for the various personalities on their list.
The Outlook for Online Holiday Shopping
The additional conversions up for grabs are also in addition to rising budgets this holiday season, and many of these shoppers will be online, which is promising for search advertisers.
In one NRF survey, 96 percent of participants said they’d purchase more gifts online this year than they did last year. With 43 percent who planned to start shopping in November and only 4 percent continuing into January, there is still time for advertisers to maximize on their toolkit.
Almost 60 percent of shoppers go online to save time and avoid crowds, and over 40 percent will end up actually buying half of their gifts on the internet. Yet, almost 50 percent more will buy online and pick up in the store than in 2015. Consumers seem to want efficiency and to not wait longer than they have to.
Inspiration and trying new things play into this as well. Facebook serves as inspiration for 35 percent of shoppers, and 62 percent will purchase from retailers with which they’ve never done business before. With that many shoppers willing to try something new this season, you need to stand out among the crowd in your online advertising.
Whether browsing in the stores or online, holiday shoppers are ready to spend a little more this season. Are you ready to catch their eye?