By Alicia Fiorletta, Senior Editor
Can you hear Santa’s sleigh bells ring? Can you smell the gingerbread wafting through the air?
The holidays are practically around the corner! Are you prepared for the most wonderful, yet competitive, time of the year?
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Social, mobile and e-Commerce all are hot topics, with retailers across sizes and categories vying to craft optimal strategies combining all three — and more — channels!
I recently spoke with Ethan Decker, PhD, VP of Insight & Strategy, and Laura Davis-Taylor, SVP of Omnichannel Experience at The Integer Group, to discuss some of the top trends buzzing within the retail community.
Retail TouchPoints (RTP): What challenges will retailers of all sizes face this holiday season?
Decker: Even though Deloitte expects holiday sales will be up about 4% this year, retailers of all size will be under increased price pressure, as shoppers can comparison shop with a click of their finger. Small businesses in particular will struggle, as they don’t usually have the economies of scale to be able to compete strictly on price.
Davis-Taylor: It’s a matter of breaking through and being “the choice.” Never has it been harder for a retailer to be the top destination for holiday shoppers. The industry has caught on that if you get closer to people’s individual needs and preferences and make it super easy to shop with them, you up your chances for conversion. But that goes beyond the expected stuff — free shipping, bonus gifts, deep flash discounts and, in some cases, even same-day physical delivery. How on earth can some of these smaller guys keep up? Retailers need to do whatever they can to provide “amazing experiences” to consumers. But keep in mind that sometimes the best experiences are the simple ones, like remembering a customer’s name or doing something unexpected but genuine. That’s where small businesses can truly excel.
RTP: What role will different marketing outlets play in consumers’ browsing and buying behaviors this year?
Davis-Taylor: TV will continue to be the shout-out awareness mechanism. But my peers at The Integer Group and I are betting on online and mobile being the top drivers, with social driving hot deals and products.
Decker: While mass media and major manufacturers will still drive what’s hot during the holidays, Integer and M/A/R/C research shows that e-retail is now a more popular way to shop than even visiting mass merchants, with 30% of shoppers saying they’ll do the majority of their shopping online.
RTP: Should businesses focus solely more on digital than other channels?
Davis-Taylor: Although digital solutions offer great techniques and tools to help retailers can better engage shoppers, digital can’t do the “human stuff.” Nothing can capture the emotions of the season like a great holiday store experience peppered with the sounds, smells and energy of the season. If stores can focus on that stuff, it makes the cheap and easy allure of online a bit less enticing. The ticket is creating positive experiences and emotions and mitigating those that bring people down, like grumpy associates, long checkout lines and unkempt stores.
RTP: Are there any lessons learned from the 2013 holiday season that retailers should take note of?
Decker: Last year, with M/A/R/C Research, we found that 54% of shoppers took advantage of free shipping deals, which most mass retailers offer. It seems like table stakes now for wooing savvy shoppers. Small retailers will have to find ways to match that offer, or else counter it with exclusive products, amazing in-store experiences, or in-box bonuses and treats.
RTP: Are there any final tips or best practices you have for merchants as they develop, refine and roll out their holiday marketing strategies?
Decker: Merchants and manufacturers should assemble staff to respond to user ratings or criticisms. It’s clear that user ratings have a snowballing impact on the success or failure of a product or retailer. But recently, Bazaarvoice found that if a company responds — respectfully and thoughtfully — to critical comments, they can actually turn around perceptions of the brand.
Davis-Taylor: Make it easy, make it compelling and go the extra mile. Ask yourself: What’s happening in my community, in my category and in my channel? What pain or friction are my shoppers dealing with right now? What can I do to ease it or just make them happier? And how will this lead to them choosing our store?
