Holiday Shopping: What’s Different in 2021


Holiday Shopping

This week I’m sharing a Q&A session with Suzi Tripp, VP of Insights at Brooks Bell, on holiday shopping and how it’s changed in 2021.   

Last year with brick and mortar shops at limited capacity or even closed, many shoppers only had the choice of shopping online. Will shoppers continue to do the majority of their shopping online or will brick and mortar receive more foot traffic this year?

As we move further into the world of hybrid shopping, we expect online shopping preferences to remain this holiday season. However, there are still circumstances in which shoppers prefer to shop up and down the aisles in-person.

According to our consumer sentiment report earlier this year, a third of respondents said they shopped the same amount or more in-person during 2020 and 76% planned to make in-store purchases post-COVID restrictions. Some shoppers simply enjoy the in-store experience as it provides a real-life person to help the consumer find the item you are looking for, the right size or discuss what products are available. Brands can emulate the elements of the in-store experience by making browsing the website as easy and fun as walking the aisles.

 

What motivates shoppers to purchase online versus in-store?

Shopping online is convenient as consumers can do it from the comfort of their couch. Our recent holiday shopping report found shoppers are also drawn to shopping online as it gives them the opportunity to sift through reviews before purchasing a product. Specifically, 21% of respondents said they check reviews online before making purchases.

In addition, the trend of buy online pick up in-store has prevailed throughout the pandemic, showcasing the desire for options and ease of use among consumers.

One drawback to shopping online is the missed opportunity to see and experience the product first-hand. Brands can mimic the benefits of shopping in-store by the addition of high-res images, highly detailed descriptions, textures and ultra-relevant reviews – giving shoppers a sense of seeing items close-up and in-person.

 

What products are consumers more drawn to shop in-person versus online?

Some people simply want the in-store experience. The ability to experience products in-person before purchasing is something that you can replicate, but not fully experience online. Our report shows 45% of shoppers will venture out to the store versus purchasing online because they want to test out and touch the product.

There are a few items shoppers consistently leave the comfort of their house for, with 64% of consumers heading to their nearest brick and mortar for clothes and accessories purchases. Electronics are another line of products that will bring people to stores as people have access to expert sales people who can offer advice on what product works best for them. Gift cards are also one of the top items people will venture to the store for with 34% of consumers preferring to purchase in-store rather than online, an interesting find that highlights the importance of continually monitoring consumer preference to better personalize experience. Retailers should consider building ways to collect information about the giftee during the redemption process, or pair the location data of where the card was purchased versus the location where it was redeemed. Pairing these online and offline data points can produce unique insights.

 

What is the biggest change in consumers’ holiday shopping we will see this year versus previous years?

Our holiday shopping report revealed that a majority (59%) of consumers said they won’t wait for a promotional shopping holiday and associated deals to shop. This confirms that marketing and promotional efforts are a season-long opportunity, not just a series of fixed holidays — however, the 18-29 demographic is holding tight to the tradition by still planning on big spending for events like Black Friday and Cyber Monday. As businesses plan for 2022, this is a good reminder that the holiday shopping season represents a subset of the customer journey, and that there is opportunity to engage with their customers throughout the year to create richer experiences.

 

We’ve talked about what is changing this year, but what can you tell us about what is staying the same for shoppers this holiday season?

This year, we will continue to see a large amount of shoppers head online for their holiday shopping with 17% of shoppers planning to spend more on online purchases through pick-up- in-store and 22% planning to spend more through home delivery options than last year. But, while delivery channels may change to make shopping even easier, people are people and are mostly concerned with the same things year over year – getting a good price, finding what they want easily, and having their purchases when they need them.

 

With holiday shopping well underway at this point, what advice would you give to businesses to ensure they are maximizing the impact of their increased traffic during this final stretch?

When compared to the overall data set, we find in-store shoppers have more varied expectations than online shoppers, who are primarily focused on price. This shows the powerful opportunities brick and mortar retailers still have to capture customers’ attention. In order to maximize the holiday shopping season, businesses should consider bringing the in-store experience online. You can do that by making browsing fun, easy and intuitive. Let the shopper decide if they want suggestions  or to browse independently by making help available but not intrusive. Ensure your online store is as easy and intuitive to browse as walking down the aisles. And, remember, this is a snapshot in time of a larger opportunity to build relationships with your customers. Think ahead about how you’re going to continue to engage with them throughout the rest of the year.

 


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