Retailers and shoppers alike are gearing up for the holiday season. Brands use a variety of marketing channels to reach out to consumers during the busy time of year, but which ones work best?
Here are five things to keep in mind.
1. Marketers appreciate email’s effectiveness
A survey about the 2016 holiday shopping season found 66 percent of marketers mentioned email as the most effective channel. But, that’s not the case when sending identical messages out in gigantic batches. Personalization was a factor cited by 40 percent of respondents as a crucial tactic to increase success.
Also, Campaign Monitor ran a poll that investigated email marketing more broadly than the holiday season and found 59 percent of respondents said email delivered the largest return on investment — more than any other digital channel.
An analysis of more than 10,000 holiday season emails sent by the top 1,000 retailers revealed people were most receptive to messages that offered percentages off or dollars off. Plus, many retailers sent “extension” emails after landmark days like Black Friday and Cyber Monday. Those messages announced that some sale prices were still in effect a week or so later.
2. App push notifications could increase open rates and sales
A 2016 study looked at more than 1.5 billion app notifications and found personalizing them could increase user engagement by more than 800 percent. Specifically, people were more likely to engage when the notifications reflected the ways they used the app or featured details like usernames or favorite categories.
People still engage with apps now, and they’ll continue to during the holiday season. For best results, marketers must remember that app notifications interrupt people, and if they’re not enticing, individuals will only view the notifications as annoying and want to clear them off of their screens as quickly as possible. Timing the notifications to appear when people are historically most likely to open the apps could be a smart approach.
If apps facilitate buying things, strategic notifications could urge people to tap their phone screens and purchase items that way, thereby boosting sales.
3. Loyalty programs could influence where people shop
Offering a customer loyalty program is one strategy brands use to get people interested and sometimes have a domino effect by encouraging their friends to sign up, too. Such referrals are crucial during the holiday season and at other times throughout the year, especially since statistics show that referred customers spend 13 percent more annually than non-referred customers.
Kohl’s is ramping up its loyalty program this holiday season. It’s providing perks like points earned for every dollar spent and the ability to spend those points on anything in the store with no brand exclusions. Moreover, the Kohl’s app has a digital wallet that syncs with the loyalty program and allows redeeming points at the checkout. When loyalty programs are user-friendly and cater to the ways members shop,they have positive effects that could make people more thoughtful about where they buy things and may increase engagement long after the holidays are over.
4. Augmented and virtual reality connect with experience-driven shoppers
People aren’t always content to buy things without having an idea of what it’d be like to own those items. Apple’s physical stores are rampantly popular, in part because they let people try MacBooks and iPhones to experience them before buying. The stores also feature mobile point-of-service terminals operated by sales associates as another tech-centric detail.
Augmented reality (AR) and virtual reality (VR) offer other ways for people to try things before buying them, especially for wearable products. In early 2018, Cover Girl launched the first AR app for makeup that didn’t require an app download. People could then buy the cosmetics from Walmart’s website. The goal was to reduce the gap between when a person feels inspired and when they follow through by making purchases. It’s easy to see how that approach could be especially effective during the holiday season when people are starved for time and constantly on the go.
Also, GOAT, an online marketplace for authenticated, brand-name shoes has an annual Black Friday raffle. This year, it’s bringing AR into the equation by allowing people to earn more raffle tickets by doing specific actions at designated landmarks. This marketing method helps people combine experiences with shoes they love.
On the VR side of things, the technology could boost excitement about buying gifts that involve taking trips or indulging in other experience-based presents. According to Deloitte’s 2018 Holiday Retail Survey, people plan to spend over $400 on things that allow them to socialize away from home, such as hotel stays and dining out. VR could stimulate people to buy those things by offering content that tells them what to expect.
5. Marketers must carefully coordinate their multichannel efforts
Data about marketing activities attempted during the 2017 holiday season show that advertising professionals were especially careful about how much they spent across multiple channels, and when they focused on each one.
The top ten retailers last year spent most of their budgets on TV ads. They also devoted financial resources to Facebook, but to a much lesser degree. Last year, multichannel timing was crucial. For example, TV ads spiked on Thanksgiving Day. They decreased on Black Friday because the hope was that people would be shopping and not watching TV.
Then, just before Black Friday and Cyber Monday, marketers upped their dependence on Facebook ads to capitalize on connecting with consumers. This research shows it’s not only the type of marketing channel that matters but using more than one with varying intensity is often what’s necessary.
Some things remain consistent
Although the preferred marketing channels may shift slightly with each holiday season, other things don’t change. For example, shoppers typically look for convenience and good value while shopping for holiday presents.
If marketing methods show awareness of those ideals, they should resonate with consumers.
