Shopper Behavior Patterns To Watch This Holiday Season 2023
The year 2022 was not an easy one for retailers.
Maybe you had too much inventory on hand if you were in an industry that benefited from the impact of the pandemic or maybe you experienced supply chain issues like everyone else.
In 2023 things are looking different. While shoppers are cautious with their spending habits, sales are looking to rise for the upcoming holiday season.
As always there are caveats, retailers need to continue to be creative, and take ever-changing consumer behaviors and changes into consideration.
Here are 5 patterns to watch in 2023 – don’t wait, make these changes before the real busyness of the holiday season comes around to ensure your business finishes the year on a high note!
#1 Expect Higher Sales
Yes, inflation is on everyone’s mind.
However, there’s light at the end of the tunnel. Concerns about inflation have eased as we approach the end of the year.
The proof is in the pudding, let’s compare 2021 to 2022.
Shopify, the biggest e-commerce platform, reported that 52 million consumers worldwide purchased from independent brands in 2022, which is a 12% increase from 2021.
This means that you should expect to do more sales this holiday season.
Why not capitalize on all the customers that have already purchased from you?
This subset of shoppers already knows your business, and you already know the brands they love. At the very least, you have access to their purchasing data in your point-of-sale.
In this case, combining your sales data and text messaging as a direct and immediate line of communication to your customers can be a game-changer.
Retailers have a unique opportunity to take their sales data and combine it with the power of text messaging and take personalization to a whole new level.
Online or Offline?
Both are equally important to focus on. Let’s look back at previous years.
In 2021, 196.7 million consumers shopped both online and offline, and then in 2022, we saw an unexpected increase of 17 million more consumers than the year before. Experts weren’t expecting to see much growth given the global economic situation at the time.
While offline shopping is very much focused on the in-person experience, the online experience happens in two different ways: desktop and mobile.
Here’s why you should focus on mobile:
Shopify reports that a staggering 73% of sales for merchants on the platform happened on mobile, up 3% from the previous year.
Having text messaging in your toolbox can make all the difference in shopper behavior and help keep your business top of mind when they need to make a purchasing decision.
#2 Keep an Eye on Your Socials
Regardless of the industry you serve, we are in an attention economy.
We know that when it comes to your online presence, going beyond having a website is crucial – consumers need to know who you are.
Which means the importance of social media is undeniable, but it is no longer only about brand awareness.
If your marketing efforts draws in interest, it’s important for scrollers to have an immediate purchasing option. That’s attention economy, which is why:
Social media = the future of shopping.
HubSport reports that, just in the past three months (May, June, July 2023), 41% of consumers have discovered a product on social media.
From influencers becoming the new vehicles that sell products, to customers sliding in your DMs, social media has changed and it is the place to be.
And to nobody’s surprise, when looking at how different generations find your products, Gen Z, Millennials, and Gen X prefer finding you on social media over any other channel.
| Platform | Percentage of Shoppers |
|---|---|
| 36% | |
| Social media | 25% |
| Company website | 19% |
| Other | 21% |
Although Google still dominates given that it is a search engine and most inquiries still start from that point.
Social media is increasingly being used as a search engine by consumers while simultaneously being a marketing tool for retailers.
With this in mind, you can use Ikeono inbox to keep up with all your social media DMs. Not only will you make your team’s life a little easier with a unified inbox, you will enable a whole new communication channel with customers.
Still not sure about business text messaging? Check out this post.
#3 Convenience Always Wins
Convenience comes in all shapes and sizes.
Whether you are creating conveniences for shoppers online or offline, they will gravitate towards the easiest process that gets them from point A to point B.
Shopping experiences took new forms during the pandemic and it has changed shopper behavior forever.
Alternative shopping experiences like same-day delivery and click-and-collect were introduced and now shoppers want you to keep these conveniences, and potentially make them even easier.
Check out how Dexter’s Deli uses text messaging to manage all curb-side pickups. From order fulfillment to customers letting them know the make and color of their car as they wait outside for their order, texting plays an integral role in their sales strategy and the level of convenience they provide customers.
Not only that, but text-based web chat also provides a new form of lead generation for retailers. While browsing on your website, the convenient thing for retailers would be to be able to easily ask you questions and get answers even when they walk away from your website.
Catering To Different Generations
Every subset of customers comes with their own preferences and behaviors.
Here’s the importance of understanding and catering to different generations.
Guess who fueled this growth?
Millennials.
In 2023, Millennials consider their pets as their children. With more disposable income for this generation, whether it comes to food, toys or Yves Saint Laurent dog bowls, Millennials are ready to spend on their fur babies.
#4 Buy Now, Pay Later = Your Strategic Partner
Just like social media is the future of shopping, Buy Now, Pay Later (BNPL) is no longer an option for retailers but an absolute necessity.
The usage of Buy Now, Pay Later increased by 78% in 2022 compared to last year.
Let that sink in.
Imagine those sales that would have not happened if that option was not there.
We are only expecting this number to increase this holiday season in 2023.
BNPL helps eliminate any shred of doubt shoppers might have as they look at their options and make their purchasing decisions.
During Black Friday/Cyber Monday sales in 2022, Adobe reported an impressive 88% increase in BNPL revenue.
In fact, RBC Capital Markets, reports that BNPL has proven to be a powerful conversion tool, boosting conversions by 20% to 30%.
Not only will you be able to provide BNPL options to customers via text message, it is a more secure way for customers to check and an overall easier experience.
#5 Texting Brings the Highest ROI
The benefits of text messaging are hard to ignore.
The benefits of Ikeono, even harder.
While SMS marketing has a time and place, the way Ikeono does things is a little different. We focus on conversational text messaging with the goal of establishing strong connections with customers.
Think of it as modern day loyalty, except with text messaging it feels highly personal and converts way more.
It’s no surprise that the retailers that use Ikeono have a 92 Net Promoter Score.
The global SMS market hit $78 billion in 2022. And it’s only going up from here.
With 98% open rate, and messages that get responded to within 3 minutes, more and more retailers are looking at text messaging to connect with customers that are already loyal to their brand and even slowly build a strong foundation with new customers.
A recent report by Omnisend reveals that certain SMS campaigns achieved an astonishing 2000% return on investment amid the Black Friday shopping craze.
This represents a highly effective strategy capable of significantly enhancing your Black Friday marketing endeavors.
Ready for the holiday season?
The holiday season is not only about slapping discounts on everything.
In fact, you should focus on bringing the feeling of exclusivity to your customers during this holiday season.
It will make them want to take action even more.
Nurture your existing customers with early access to your sales and take extra steps to be ready for the strong holiday season we are expecting this year.