The Christmas period is quite a challenge for marketers. Given the fact that we start searching for gifts as early as October, marketers should ALREADY be preparing their marketing and sales strategies so they can respond to their customers' needs while getting the most out of it.
Every year, the gift-buying moment is one of the most profitable periods for many brands. The festive atmosphere in brick-and-mortar stores can already be felt right after Halloween. According to the Deloitte 2017 Holiday Shopping Report, about 23% of purchases were made in November.
Criteo, an advertising platform, has created a report called Festive Season, in which it notes the increasingly early start of Christmas shopping and also offers advice for marketers and others on what to pay attention to when planning a marketing strategy for the upcoming Christmas. The following tips are based on 2017 data on consumer behavior and shopping habits.
1. Holiday online browsing will start earlier than ever
Holiday surfing earlier than you think
Last year, many brands, including John Lewis, began promoting their offers as early as the beginning of November, without even waiting for the popular Black Friday, which will be discussed in later points. Consumers followed a multitude of gift trends available online, which resulted in purchases far removed from traditional Christmas gift models.
2. Mobile phones and the apps available on them are becoming the most popular shopping channel
Apps rule mobile shopping
More than 50% of online transactions are made from within apps. Shopping apps also generate higher conversion rates – in some countries 3 to 5 times higher than mobile web. Globally, the share of in-app transactions rose by 48%. December 23, 2017 was a historic day for mobile commerce in the United States, as 48% of all online purchases were made using a smartphone.
3. Top-list gifts dominate
Based on last year's purchases, analysts identified the 3 most popular categories: old-school toys in a new guise, the latest consumer electronics, and products that became known thanks to YouTube. According to Criteo, similar gifts can be expected this year as well.
4. Black Friday will continue to grow stronger
Black Friday still drives growth
Black Friday is a crazy day of price cuts originating in the USA. It has already taken over the whole world. On that day, buyers are driven to shop through gift cards or offers valid only that day. Criteo is convinced that Black Friday will achieve ever greater sales success year after year, both online and offline. According to data from across Europe, last year sales on that day rose by 371%.
5. Cyber Week, or the second Black Friday
Cyber Week extends the power of Black Friday
Cyber Week runs from December 25 to the end of the old year and is, in other words, an extended version of Black Friday. Last year, the United Kingdom between December 26 (Boxing Day) and December 30 recorded a 28% increase in AOV (average order value).
6. Building more data = stronger customer relationships
Marketers should consider how to better reach and connect with customers as they move between different sites and apps. Most marketers are not entirely certain that they have strategies backed by numbers that will ensure a winning position. Only 3 in 5 marketing directors collaborate on data sharing, and only 1.3% of marketers are confident about their data strategies delivered by analysts.
7. Marketing strategies will be built around moments
According to Criteo, the best marketing strategies will be built around moments, because that is where the power of the festive period lies. Below, Criteo presents 5 ways to create the best, most memorable moments for customers:
• Develop a consistent strategy for commerce at any time
• Optimize for mobile and in-app transactions
• Maintain a strong marketing strategy during Cyber Week
• Gain access to more data
• Create more important moments
Summary
Marketers must start preparing for the holidays now, because consumers begin searching for gifts much earlier. According to the Criteo report, more than 50% of online transactions take place in apps, and their share is growing by 48%. Black Friday and Cyber Week sales will also be key.
An interesting fact is December 23, 2017, when as many as 48% of American online purchases were made using smartphones. Companies such as John Lewis start their campaigns as early as November, showing that every "holiday" click counts.
