Customer Service

Data key to adapting to consumers’ new COVID-19-induced holiday traditions

Blake Burrus, SVP of data and analytics, Quotient, explains how data-driven insight can help retailers provide shoppers with relevant content and ideas that suit new holiday traditions. It's an approach that lets retailers better connect with customers now and in the future.

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December 15, 2020 by Blake Burrus — SVP Analytics, Quotient Technology

In a year filled with new holiday traditions, brands are looking for ways to quickly adapt to customers' evolving shopping habits. Easter, the first major holiday following the pandemic, inspired consumers to focus on creating the best at-home experiences possible, including DIY projects. On social media, search queries increased for "Easter egg kits" (+34%) and "crafts" (+27%) while eggs enjoyed a sales lift of 45% and pie crust mix rose 122% .

Mother's Day proved to be a celebration filled with women's fragrances (37% sales lift), bath products (+42%) and candles (+171%) rising significantly above a similar period in 2019. "Self-care gifts" (up 34% in social media engagements) and "family video calls" (+525%) also received notable attention . And in the 14 days leading up to the Fourth of July, sales of cocktail and margarita mixes increased 51% when compared to the same period a year earlier. Potato chips (+75%), tortilla chips (+76%) and premixed alcohol cocktails (+128%) saw notable increases as well as more consumers stayed home instead of partaking in their usual traditions.

These results serve as a reminder that the upcoming holidays will be different for both consumers and the brands they support. More consumers will search for ways to enjoy the season without leaving the house. By using data-driven insights to provide shoppers with relevant content and ideas that suit their new holiday traditions, brands can better connect with them now and in the future.

New trends, new buying habits

At least some of the shopping trends we have observed are likely to continue through the 2020 holiday season. Thanksgiving, for example, was already a time of home-cooked meals. Brands should expect this to go into overdrive as shoppers skip large gatherings. Instead of bringing one dish to a relative's house, more people are likely to stay home and cook an entire feast for themselves.

This is highlighted by the increase in social media engagements for "holiday recipes" (+16%) and "cook along" (+64%) . Social media engagement for "Christmas shopping" (+93%) is even higher, but our data puts "virtual holiday" (+1,146%) extremely top of mind season .

Shoppers are also searching for value and convenience. Some are finding it in through eCommerce, which experienced a sales increase of 155% compared to pre-pandemic levels . Forty percent of those who used eCommerce at the beginning of the pandemic (March through April) made additional purchases in the months that followed . They made an average of seven additional orders, doubling the retention rate achieved in 2019 . And nearly 25% of eCommerce transactions are now accompanied by a digital coupon .

By taking note of these evolving trends and other market factors, CPGs can position themselves well for the holiday season.

New ideas for new norms

Many brands started their holiday promotions much earlier than normal, and with good reason. Spreading sales over a longer period helps ease the burden on supply chains and ecommerce platforms, as well as manage store crowds.

CPGs can amplify their campaigns by offering fresh ideas to inspire new norms — or enhance current traditions — during this atypical holiday season. They should rely on the aforementioned social trend data to identify shoppers who are already looking for ways to make the season a special time regardless of the current climate. Influencers may also play an important role in connecting brands and consumers, setting the stage for success throughout future holidays. That means that 2020 could be a particularly pivotal year for brands to immerse themselves into consumers' new traditions.

In devising a strategy for the holidays and beyond, brands should continue to be flexible and remember that the climate can change at any time. They should be ready to get creative and adapt to the current COVID-19 conditions and rely on demand data to guide and optimize their plans on an ongoing basis. And by offering multiple media touch points that can be quickly and dynamically updated, brands can more easily transition to meet consumers' needs.

Make it a holiday to remember

The 2020 holiday season is going to be unlike any other in recent memory. As a result, it will be important for CPGs to meet shoppers wherever they are, and that means having a strong digital presence this year. Brands should start to think about advertising, sponsored search options and other avenues to improve their position in the market.

They can also serve new and prospective customers by offering personalized experiences that seamlessly adapt to shopper behaviors. In doing so, brands can show that they are ready to serve their customers with great products, ideas and support in any climate.

Blake Burrus is SVP of data and analytics at Quotient.