Brick-and-mortar retailers can offset the loss of sales at stores over the holidays by getting consumers to spend at their online and mobile platforms through distinct targeted messages, according to a report from marketing data firm Cardlytics.
Dani Cushion, the company’s chief marketing officer, said share of spend at physical stores fell nearly 2 percent between 2016 and 2017 as more consumers choose to make their purchases online. Despite the decline, the company’s study indicates that 80 percent of the holiday spend is still at a traditional store.
Cushion said retailers that grab the most holiday spend are those that use “smart, targeted marketing campaigns to offset this trend and drive shoppers both to their physical and digital retail locations.”
The cmo said purchase data shows four holiday shopping groups: early birds, or 19 percent of all holiday shoppers; Black Friday warriors at 21 percent; procrastinators at 20 percent, and steady shoppers at 40 percent.
With the four distinct groups comes different messaging opportunities to get them to spend. According to Cushion, the early birds are all about efficiency and do their spending before Black Friday. Promotion and exclusive deals, in-store and online via email or a mobile app, are keys to getting the attention of the Black Friday warriors. Guaranteed online shipping grabs the attention of procrastinators, while ongoing marketing campaigns all through the holiday season help retailers stay top-of-mind when targeting the steady shoppers, who typically spend upwards of $2,000 a person and drive the most holiday spend.
Cushion also said that with Black Friday and Cyber Monday declining in significance given that 30 percent of holiday sales last year occurred the month before Black Friday, retailers should extend their holiday marketing before and after the Black Friday and Cyber Monday weekend. That will emphasize both in-store and online convenience, as well as take advantage of holiday customers’ “tendency to shop with new retailers in the final weeks before Christmas,” she said.
The cmo added the study, which takes a look at the trillion-and-a-half-dollars in annual spend, shows that consumers are much more likely to try a new brand for the first time during the holiday season. That in turn creates a huge opportunity for retailers to acquire new customers, Cushion concluded.
The study said that retailers can strengthen their online and mobile channels with convenience factors such as price matching, gift guides and free shipping. To get more customers to shop in a store, retailers can play up the value of a hands-on experience, verifiable quality and easy gift returns.
Cardlytics partners with the largest U.S. banks to help retailers target likely buyers and drive sales by delivering personalized rewards to customers through their bank’s online and mobile channels.