E-commerce
Holiday shopping during a pandemic: Trends and transitions
Audwin Cash, SVP enterprise solutions, Atrius, Acuity Brands, explains why consumers, while emphatically embracing online retail, also want a comprehensive shopping experience. That means retailers need to build on proven marketing successes and find new ways to push the digital transformation envelope.
October 16, 2020 by Audwin Cash — SVP, Atrius Enterprise Solutions
With national retailers already announcing their 2020 holiday seasonal plans, it looks, feels and sounds like the holiday season is well underway. While much of what people enjoy, and remember fondly, about the holiday season will remain the same, this year's holiday shopping experience falls under the shadows of the COVID-19 global pandemic. And while stores continue reopening and adjusting operations focused on higher standards of physical distancing and safety, retail leaders understand that holiday planning also needs to account for changes in shopper behavior due to the pandemic.
The last six months presented retailers with challenges and opportunities. While many companies found the abrupt, albeit temporary, end to in-store shopping a tall hurdle, many doubled down on expanding existing online and delivery strategies. Industry executives have had time to recognize where COVID-19 is accelerating known consumer shopping trends and where they need to pivot for the 2020 holiday season.
BOPIS+, a new holiday shopping tradition
Black Friday deals used to be closely guarded secrets, released early November at best, to build shopper anticipation and excitement. This year, some retailers might follow Home Depot's lead, having recently announced their Black Friday deals will begin a full two months early. Introducing Black Friday pricing as early as October means customers will probably start shopping then as well. Home Depot's approach means shoppers can avoid the typical Black Friday store crowds and still find the best seasonal deals. This strategy shows a clear empathy for shopper desire at the intersection of deals and safety.
Expanding online shopping options is another approach to attract consumer holiday dollars. Last month, we introduced the concept of BOPIS+, a way to innovate the standard Buy Online Pick Up in Store delivery method. BOPIS+ explores how retailers can leverage online sales into more in-store purchases when shoppers pick up their items. Directing shoppers to specific BOPIS kiosks that not only house their online orders but also display high value, low cost upsell items can expand revenue opportunities for BOPIS customers. Another option for retailers is empowering associates to suggest add-on purchase items based on what a shopper is picking up, creating another shopper-centric experience for the consumer.
Digital experiences will continue to attract shoppers
Responding to the loss of in-person guests due to this year's earlier widespread shelter-in-place orders, organizations across many industries found ways to remind people of what they love and miss about these businesses. Hilton shared their beloved cookie recipe, Disney put virtual roller coasters on YouTube and many others offered free video conference backgrounds. Innovating tried-and-true digital marketing strategies brought longed-for brand experiences to customers' homes and screens. These ingenious tactics gave consumers their favorite brand experiences at home. Moving forward into the holiday season, it is essential that retailers continue transforming their digital strategies in that same spirit.
Gearing up for the 2020 holiday season, retailers need even more digitally immersive experiences to inspire spending in the absence of in-store seasonal atmosphere and mood. Evolving pandemic-shaped consumer shopping behaviors means more retailers need to follow the leads of those engaging consumers "from the couch" or safely within stores. In Home Depot's instance, they are continuing to leverage the growing trend of mobile shoppers by offering customers early access to seasonal deals directly within their app. Others have invested in recreating traditional in-store programs and launch campaigns as live streaming and virtual events. No matter the approach, operationalizing rich analytics and performance data is essential to planning the holiday 2020 strategy.
Retailers can also personalize digital experiences by examining shopper analytics and store performance metrics. For example, during a holiday season when a higher proportion of consumers are likely to shop online, analyzing historical in-store traffic patterns for high-demand areas helps retailers optimize their ecommerce experiences with hyperlocal, seasonal data. Typical ecommerce analytics platforms can shed light on the paths to purchase for online-first shoppers during a Black Friday rush. Pandemic-driven changes in consumer shopping behaviors suggest retailers can expect some, or most, seasonal customers to shift to ecommerce or BOPIS. Stores can adapt to this change by analyzing in-store purchases and performance to tailor an online shopping experience. But, in-store holiday shoppers think differently – evidenced in part by their usual willingness to brave long lines and crowded parking lots. This year, however, will be different.
Despite the pandemic changing customer behavior, some retail elements remain the same. E-commerce continues to increase dramatically, showing unlimited growth potential. Consumers, while emphatically embracing online retail, also want a comprehensive shopping experience. They want customer service, aisles — or pages — to wander and easy checkout options. This season, stores need to build on proven marketing successes and find new ways to push the digital transformation envelope.
Audwin Cash is SVP Enterprise Solutions, Atrius, Acuity Brands.
About Audwin Cash
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