Marketing
Seize the new year with 6 lessons from the COVID-19 holiday rush
Mike Chou, director of business development at Harbor Retail, shares six lessons retailers can learn from the COVID-19 impact on the 2020 holiday sales season.
January 15, 2021 | Mike Chou
Labor Day usually spells the beginning of a long shopping season. From back-to-school sales to last-minute Christmas gift snags, it seems like the last few months of each year are a mad dash for retailers and consumers.
But last year, COVID-19 created significant shifts in how big-box retailers operate and in customers' holiday purchasing decisions. In 2020, shoppers spent more on items that helped them create a sense of normalcy at home: think buying inflatable pools rather than visiting a community rec or purchasing a new grill rather than eating at a restaurant. In turn, savvy retailers altered their merchandising to be more practical.
So how can retailers learn from last year's unique holiday season and apply those lessons in 2021? Seizing the new year will involve approaching things a little differently:
1. Get curious about nuanced personas. People had different habits over the holidays and different responses to the pandemic, meaning retailers should be especially attuned to new varieties of shopper personas:
• Are they an online and BOPIS shopper?
• Do they plan far in advance?
• How much assistance do they need? And at what point and via what channel?
At my company, we often talk about the term "harmonic retail." This means giving consumers the flexibility they desire by creating an omnichannel experience — but also ensuring that each touchpoint guides them toward the end of their journey: a meaningful purchase. Harmonic retail is crucial in being able to capture nervous shoppers (holiday or otherwise) and help them move toward a purchase.
2. Use e-commerce to elongate your approach. We're used to Black Friday hitting us like a bomb. No sooner have we consumed the last piece of cornbread or turkey than we're swarming into stores. Last year, longer online sales were key to generating the same holiday buzz. Even massive crowd pleasers such as Target shifted their strategies and closed stores on Thanksgiving, giving customers more opportunities to browse online.
To do the same this year, make your website more than just a transactional experience by adding inspirational elements or helpful tips. Give customers ideas on how to enjoy time "inside," for instance, such as how to hold Super Bowl parties safely. Likewise, encourage off-peak times for at-risk individuals to visit stores for shopping and exchanges. And when the holidays roll around again, remember to also communicate that those times aren't about being decadent, but rather about truly connecting with loved ones.
3. Prioritize staffing and inventory management. 2020's holiday campaign focus often shifted away from creating elaborate merchandise displays and toward human concerns. So this year, ensure you have extra staff on the sub bench if people get sick or need to isolate: Your ability to deliver safe service depends on you having more than enough people. To make sure order fulfillment goes smoothly, staffing is also vital.
That said, check your real-time inventory tracking well before peak seasons hit again and keep operations seamless. Suppose a customer purchases an item online for same-day pickup. In that case, you should immediately ensure it's in stock, email that customer to notify them that the order is in progress, alert them when it's ready for pickup, and give them contact information should they experience issues. Besides this, consider using artificial intelligence to adapt to new patterns affecting stock-keeping units.
4. Tell newer, more personal stories. Smart holiday marketing took on a new tone last year, as 2020's festivities were often smaller and involved hunkering down with a lot fewer folks. Similarly, this year's marketing messages should be carefully tuned to meaningful moments, both during the holidays and beyond. Maybe it's about giving the latest video-conferencing gadget so Grandma can see her relatives, for instance. However you frame your marketing, 2021 still requires a different approach.
5. Take care of the basics. Extra considerations that were usually low priority became top of mind for consumers last year. Restrooms, for instance, are still a main concern for shoppers braving brick-and-mortar stores. If you can't maintain a restroom that's safe to use, word will get out and people will probably avoid your store. The brands that have attracted customers' attention are the ones that recognize the little things are still important. Keep investing in super sanitation processes for your restrooms, and think about other areas where you can improve basic protocols.
6. Make your service game a bit more generous. Companies that put extra love into the service side of their business during 2020 went a long way toward reassuring consumers that they were safe in stores, and we can keep using their approaches. For example, creating a returns policy that's more generous will put customers at ease and encourage them to spend a bit more. Try extending your exchange policy and making return-shipping free. Likewise, you might let shoppers start returns online so they can expedite the process in-store (think of this like a reverse BOPIS experience). Every bit of generosity helps.
2020's holiday season gave us invaluable insights into what makes customers tick during retail's "new normal." To stay ahead of the game, why not continue seizing these lessons throughout 2021?
Mike Chou serves as director of business development at Harbor Retail
