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Insight on kicking a 2016 retail strategy off on solid ground

It's a good idea to review consumer patterns and data from the past year to make sure retail strategy plans for the new year are on track from the start.

Courtesy of Target

December 17, 2015 by Ethan Whitehill — CEO, two west inc

Holiday planning begins in the summer, and rightfully so, seeing as the season's purchases make up 20 percent of annual industry sales. What's even better: the National Retail Federation forecasts this holiday sales season to be strong, though consumers continue to make measured, thoughtful purchases. That said, it's a good idea to review patterns and data from the past year to make sure your plans are on track for the upcoming retail season.

Below, we'll take you through some of the top trends and suggest how you can put them to work for you.

People are marketing early and more

The number of shoppers who hit the stores Thanksgiving Day, Black Friday and Cyber Monday rose from 58 percent to 67 percent. But that doesn't mean retailers should feel handcuffed to those dates. Major brands like Amazon and Walmart kicked off online sales as early as July. Business operators typically review purchasing data from previous years to stock shelves and avoid supply chain problems. Keeping your conversation going moving forward into the winter season is important. Half of today's shoppers check Facebook in stores, and a quarter of them search online for deals. With blended data from multiple sources, you can tailor in store mobile interactions and improve personalization across social channels. After all, many real-time engagement is one secret to conversion.

Getting personal with e-commerce

In 2014, last minute shopping, aggressive promotions and extended shipping deadlines lured customers online. Just like last year, e-commerce continues to be a strong source of holiday sales. But this year, it's been critical to strengthen online loyalty through personal relationships with shoppers while boosting customer benefits. With access to behavior patterns and other data, you must get to know your shopper inside and out. Then you need to tailor promotions and social media engagement to give them exactly what they want, when they want it.

Discover the gift-ing spirit

This season, we're seeing a renewed emphasis on loyalty programs and gift cards, both plastic and virtual. After a drop in 2013, sales of in-store gift cards rose by 9 percent last year and are expected to keep climbing. Gift cards are presenting a range of new marketing opportunities, while enabling existing chains to improve organization across channels. Companies like Clutch and Raise are using technology to reinvent how gift cards are marketed, bought and sold, whereas the loyalty programs at Dunkin' Donuts and Subway help reinforce consistent shopper experiences online and in stores. With such versatile impact, it's important to identity your company's pain points before deciding on an approach that’s right for you.

Top 4 brands to watch and why

Brands that are bringing it for the holidays:

1.           Target: The upscale discount retailer recently launched an online Price Match Guarantee to fight consumer price sensitivity and beat out competitors. Now all Target shoppers, whether online or in-store, can request a price match within 14 days of purchase. The goal: win over comparison shoppers during the holidays and beyond.

2.           YouTube: A newcomer to e-commerce, the video hosting giant announced viewers soon will be able to shop directly from videos. Ad placement will be determined by Google and can appear in the top-right corner on any video. YouTube hopes the newly "shoppable" site will add up to a thicker company wallet.

3.           Express: For the holidays, the apparel brand is revamping its mobile app to simplify the buying process. Customers can shop trends, get styling tips, read reviews, access loyalty points, explore social channels and check out. All through a single app. Doesn't get much easier than that.

4.           Raise: The online saving portal lets consumers sell prepaid gift cards from more than 3,000 brands at a discount to bargain seekers. Buyers can search by store name, category, price or card type to see what discounts are available. Raise has saved shoppers more than $27 million this year and it ain't over yet.

About Ethan Whitehill

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