Article

Using data to spike holiday shopping traffic

Three ways retailers and manufacturers can accomplish greater loyalty and sales during the busy holiday season.

December 15, 2014

By Melissa Amedeo, business development director, emnos U.S.

The holiday season is upon us and while retailers held their breath in anticipation of the biggest sales period of the year, the results may not be what they expected. Prior to the holiday, a survey conducted by the National Retail Federation expected the average consumer spend to be up 5 percent for the season. However, according to a recent report from the National Retail Federation, sales for last month’s four-day shopping extravaganza, “aka Black Friday,” sank by 11 percent with shoppers only spending an average of $380.95, down 6.4 percent from last year. That said, the reason for the decline over the 4 day post Thanksgiving time frame can partially be attributed to sales coming earlier with overall positive November sales numbers.

With sales coming earlier and online sales increasing, holiday shoppers are avoiding long lines to spend additional time with family — especially now that retailers are offering a number of discounts throughout the month of December and they can conduct a fair share of price comparisons, both online and in-store. The Wall Street Journal even has a Christmas list tracker to keep an eye on the fluctuating prices of some of the season’s hottest sellers.

With this unique change in consumer behavior, the holiday season offers an opportunity for retailers to offer meaningful messages and connect with consumers in new ways that expand beyond door buster deals and discounts. Yet, many enter the holiday race, focused solely on the price war, without acknowledging the shopping evolution, which, in turn, could leave a piece of the pie on a competitor’s plate.

To turn the tide, retailers will need to supplement the general deep discount offers and offer deals and promotions on items that matter to their most loyal customers. Below are 3 ways retailers and manufacturers can accomplish greater loyalty and sales during the busy holiday season:

You have a year’s worth of shopping data — Listen to what it’s telling you

Does your target consumer have a family? What purchases have they made over the past year? What interests can be gleamed to help make your consumer’s holiday list less daunting? These are all important questions for retailers to consider as they look to draw shoppers into their stores.

What differentiates offers in one retail outlet from another and why should shoppers want to go to a particular retailer?

Every major retailer slashes prices on the most trendy items, from TVs to toys. Consumers have a long list of options, so what will differentiate a retailer? The ones who take a closer look at their data to truly understand customer behavior — what they love, why and how they buy and what earns their loyalty. Offering the right discounts to the right shoppers on the right items is crucial and data is key.

Tis the season, so surprise and delight your most valuable customers

Give them an offer they can use at their own convenience. The holiday season is already chaotic so reward the most valuable customers by taking the stress out of shopping and allowing them to redeem a special offer at a time that works best for them. It’s also one sure way a retailer’s destination stays on the list of its most valuable customers.

Customers provide year-long data footprints that provide deep insights into their holiday shopping expectations. The key to offering the right messages and discounts during the most important sales periods of the year is in that data — it all depends on how you decode and leverage it.

Melissa Amedeo works for emnos U.S. at the firm’s Chicago office. She has over 27 years of experience in retail, marketing and analytics. (Photo by Jim Robinson.)