As summer officially passed into fall, that means the all-important holiday season is nearly upon us. As companies bring various strategies to the holiday season, loyalty marketers always seek any advice that will help them create better customer engagement and customer loyalty during this crucial time.
Loyalty360 caught up with Adam Miller, Vice President, Retail Industry Strategist at Epsilon, to find out his thoughts on the impending holiday season.
Can you talk a bit about how consumers plan to show their brand loyalty during the upcoming holiday season?
Miller: With the hustle and bustle of the holidays fast approaching, consumers’ time is dwindling. For holiday 2016, consumers will sustain their loyalty to the brands they frequently purchase from for their holiday shopping. While price sensitivity is a factor notably on key shopping days like Black Friday and Cyber Monday, consumers prefer trust, familiarity of the brand, and convenience when shopping. Retailers who deliver a seamless omnichannel shopping experience will gain loyalty from consumers.
How has the holiday season evolved in recent years from a customer engagement/customer loyalty perspective?
Miller: The enhanced digital shopping features, such as the ‘Digical model’ will help to drive engagement this holiday season leading to loyal customers. Savvy retailers will use smart shelves that interact with customers this holiday season. Additionally, we’ll see an increase in retail associates using tablets to help fulfill the consumers’ ‘immediate need’ if the item he/she is shopping for is out-of-stock, not available in the preferred color or style, etc. and to engage them in that moment. Further, retailers will include ‘surprise and delight’ elements within their shopping experience. And, we’ll observe an increased use of artificial intelligence, especially in the digital channels, to assist online shoppers.
What are some of the trends you foresee this year as it relates to the holiday season and do you foresee any other trends in the future?
Miller: Shoppers are buying earlier this year as blending the seasons and taking advantage of other specials/deals continue to be an important trend. From Epsilon’s 2016 Holiday Voice Shopper’s Voice® survey, we learned:
87% of respondents are still very likely or somewhat likely to purchase at stores this year which further signifies cross-channel shopping remains engrained into consumers shopping behaviors
Respondent sentiments:
• Enjoy being able to see, touch try it on in store
• Convenience of getting in and out of the store knowing they have the right size
• Knowledge that a specific store will have the items available
Respondents continue to leverage digital and mobile devices to access online sites and/or emails to learn about the best deals before starting their shopping journey — 47% are those who said “Yes, regularly” in 2016. The net of all “Yes” was 90%.
Respondent sentiments:
• Immediate gratification receiving an email and checking out the item right away
• Likely to purchase when a discount or sale is offered
Social usage is increasing
About 65% of those who are ‘very likely’ to use Pinterest for gift ideas/gift shopping indicated it was because ‘the ideas that I see are relevant to me’
Using the source very often and being convenient to use were the other two mentions with high incidence across the three platforms (Facebook, Instagram, Pinterest)
Seeing deals on the site was more associated with Facebook and Instagram
Respondent sentiment:
• Great forum for getting new ideas for gifts for all ages
• Survey findings indicate that smartphone ownership is up 73% in 2016 versus 67% in 2015
72% of respondents have already bought or plan to buy gift cards in 2016
54% of respondents look in stores or show-rooming before going online to find the best deal
Respondent sentiments:
Ease of comparing several stores at once
Online can make shopping more efficient by knowing what items are available where and at a good price
Enjoyment of browsing online
What are some tips for retailers to sustain their brand loyalty during the holidays?
Miller: Think digital and mobile. Digital remains a priority this year as many retailers will look to win back market share from Amazon and other pure-play digital retailers. Mobile is also critical to your holiday marketing plans, as shoppers are increasingly using their smart phone and tablet to research, review, and price compare to stretch their spending power. The non-linear path to purchase is a real challenge for marketers and they must meet consumers in the moments that matter most to sustain brand loyalty during the holidays.
How early should brands start their holiday push?
Miller: In October. The week prior to Halloween is the optimal time. As consumers are preparing for their last-minute Halloween outings, they are starting to think about ‘what’s coming next.’
What are some of the main differences you foresee during this year’s holiday season, compared to the past couple of years?
Miller: An increase of in-store purchases. Consumers will prefer to buy in-store this holiday season as opposed to online. They are, however, still exhibiting cross-channel behaviors as they’re doing research online and buying in-store.