Are you ready for Retail’s Most Competitive Season? | + WEBINAR
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Black Friday, Black Week, Black November, … Black Season?
As retailers prepare for the most critical (and potentially lucrative) time of the year, understanding exactly when your customers begin their shopping journey could make all the difference in maximizing your success.
The 2024 holiday season will be defined by changing consumer behavior, economic pressure, and a new, elongated spending pattern.?
Let’s dive into what you need to know to win big this year. ??
Economic pressures are reshaping consumer behavior?
Retailers across key markets, particularly in Germany and the US, are feeling the ripple effects of economic uncertainty, inflation, and rising costs.?
While Germany has shown signs of recovery since a tumultuous Q2, consumers across Europe and the US remain cautious, leading to more deliberate and spread-out spending.
According to McKinsey, consumer optimism saw a slight uptick over the summer, but uncertainty remains high. Retailers must recognize that this year's shoppers are savvier, more cautious, and less likely to make impulsive purchases, instead prioritizing value and essential buys.
What does this mean for you? Retailers need to adjust their strategies to address this shift in consumer sentiment. People are still shopping, but they are more selective about when and how they spend their money.
Emerging trend: “Spread the spend”
While Black Friday traditionally marks the apex of holiday shopping, recent trends show a more even distribution of spending across October to December, a shift that accelerated post-pandemic. Many consumers start holiday shopping as early as September, capitalizing on early deals and spreading their spending across months to manage tight budgets.
Why the change? Shoppers, uncertain about their ability to afford luxuries later in the season, are shopping earlier and searching for deals ahead of time.?
They are prioritizing value over impulse buys and making calculated purchasing decisions. This trend demands a different approach from retailers: one focused on consistency, value, and agility.
Actionable Insights for Retailers:
?? Launch early campaigns:?
Ensure your holiday promotions go live well before traditional Black Friday events. By having deals available earlier, you can engage those early-bird shoppers who are looking to spread their purchases over a longer period.
??Maintain momentum:
It's not enough to focus all your efforts on Black Friday. Keep a consistent promotional calendar running from October through December to capture those customers who may be waiting for specific deals throughout the season.
? Key tactics to succeed in the “New Normal” Peak Season
With consumer spending patterns evolving, here’s how you can stay ahead of the curve and thrive during this year’s extended shopping period:
?? Start early, stay visible
Consumers are bargain hunting earlier than ever, making timing critical. Launch holiday promotions ahead of Black Friday to capture shoppers spreading their spending throughout the season.?
A steady flow of updates keeps your brand relevant as consumers look for deals. Shoppers are comparing prices and waiting for the right moment to buy, so staying in front of them with fresh messaging increases your chances of converting at different stages of their journey.
?? Leverage your multi-dimensional business data
Your best-sellers will always matter, but peak season demands more tailored promotions. Segment products based on multi-dimensional factors like seasonality, stock levels, and margins—not just past sales performance. This approach ensures you promote the right items at the right time.?
For example: Seasonal products might do well in early promotions, while high-margin items could be prioritized closer to Black Friday to hit peak profitability during retail’s most important shopping day.
?? Target ROAS that fit your goals
Maximizing ROAS is important, but during peak season, it's essential to target them more strategically to stand out from the crowd. As competition heats up, rethink your ROAS targets to align them with your overall business goals.?
In some cases, it may be more beneficial to actually lower your short-term ROAS target to drive higher overall profits for your high-margin items.?
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?? Price competitively AND profitably
In an environment where consumers are deal-hunting, pricing becomes crucial. However, it’s a balancing act. Incorporate real-time inventory data to avoid unnecessary discounts on high-demand items with low supply.?
Tiered or bundle pricing strategies can also attract deal-hunters while maintaining profitability. Offering larger discounts on bulk purchases or product bundles can increase Average Order Value, allowing you to meet both customer expectations and revenue goals.
?? Pro Tip: Adaptability is your superpower this Peak Season
The 2024 holiday season will likely be one of the most competitive yet, with consumer spending habits shifting faster than ever. However, with careful planning and a focus on adaptability, you can still capitalize on this opportunity.
Key Takeaway: Stay agile and responsive. Consumers are still spending—but they’re being more strategic about it. Those retailers that can quickly respond to shifts in demand and tailor their offerings will be the ones who come out on top.
WEBINAR: Holiday Season Action Plan
Between inflation making an unwanted comeback and the heavy hitters from East and West ready to dominate the markets, online retailers face their toughest challenges yet.?
But that doesn’t mean you can’t secure your profitable piece of the pie!
?? Prepare for the most competitive season ever!
This webinar is your golden opportunity to unlock the full power of your ads and stand out from the crowd.
From maximizing your margins to increasing your AOV and identifying and catering to customer demand, Mike Ryan will equip you with the insights and real-life examples to thrive during the most critical season in online retail.
Even in a tighter, more discerning retail climate.
?? Uncover your campaigns’ hidden potential!
In this webinar, Mike Ryan will cover:
?? Make this your most profitable Holiday Season yet!
As always, Mike will answer your most pressing Holiday retail questions during an insightful Q&A session.
So sign up now and prepare for an actionable webinar that's all about getting the most out of retail's toughest season!
??September 24, 2024
??3:00 pm (Vienna) | 2:00 pm (London)
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