How retailers are looking to drive holiday success in a season of uncertainty

It seems that every year the holiday shopping season is pushed earlier. This year, that means holiday shopping will coincide with a great deal of economic uncertainty — fears around the effects of gas prices, inflationary pressures and overall consumer confidence are all weighing on retailers. Using insights gathered from a recent CommX report, Bloomreach take a look at the strategies they plan to employ in order to remain competitive in this current climate, and how e-commerce and marketing teams can prepare to drive success this holiday season.

Consumer confidence

Last year, all anyone could talk about was the supply chain – the effects of which rolled over into the holiday season and left retailers scrambling to fulfill orders and sufficiently staff their warehouses. Looking at the 2022 holiday season, it’s apparent that those fears are no longer top of mind. Instead, a new set of fears and obstacles have taken course– an economic downturn and inflationary pressures have retailers and brands fearing how consumer confidence will fluctuate over the holiday season. According to a CommX report that spoke to e-commerce and marketing executives at major retailers, 63% of respondents fear that consumers will spend less on gifts and holiday products in the upcoming months.

In response, retailers are doubling down on reliable channels for attracting and converting customers, while also exploring new ways to meet shoppers where they are.

Email: The tried and true channel

Email has remained a top channel for marketers to connect with customers, and that won’t change during this holiday season. Survey respondents cited this as a leading retention strategy for this holiday season.

In addition to being cost effective, this channel offers retailers a substantial opportunity to stand out from the crowd with personalization. Using customer and product data, retailers have the ability to understand what a customer is searching for, related items they might like, when they’re most likely to buy it, and so on. Then they can use this information to tailor email communications accordingly. Providing that type of relevance answers customers’ call to “know me, guide me, wow me,” which ultimately allows brands to drive conversions in the moment in addition to lasting customer loyalty.

SMS: The rising star

SMS is becoming an increasingly significant channel for retailers looking to hit their goals this holiday season. Over half of the respondents in the CommX survey noted that SMS will drive the most sales this holiday season for businesses of all sizes. And two-thirds of retailers stated they would rely on SMS to fill out their marketing strategy this holiday season, compared to 58% who made this claim last year.

SMS marketing is extremely accessible and immediate, in addition to complementing a brand’s connected, omnichannel strategy. Most shoppers use their phones consistently throughout the day, so a text about a company’s upcoming sale or a pair of restocked shoes have a high probability of being seen. In fact, the SMS open-rate surpasses email’s at 98%.

However, it’s only successful when the messaging is personalized to the right customer, at the right time, with the right content. Using zero and first-party data obtained by your company to personalize the messages and incorporate SMS into an omnichannel strategy will not only generate returns but also create a seamless consumer experience that will engage customers far beyond clicking from a text to the site. And in this holiday season, that communication and seamless customer journey could be the difference between a purchase and an abandoned cart. As retailers inch closer to the height of holiday shopping, leveraging SMS will be essential to driving customer engagement and driving revenue throughout the shopping period.

Inflation meets incentives

Promotions remain a consistent tactic for retailers during the holidays, but this year, they plan to double down on this even more with the help of newer channels like SMS. Consumers are looking for deals now more than ever, and offering shipping incentives, discounts, and promotions ahead of the holiday will allow retailers and brands to drive engagement, increase sales over the next few months, and most of all keep their competitive edge. Providing promotions and shipping discounts now and well into the holiday shopping season also encourages consumers to shop earlier, another benefit for retailers.

Retailers will also need to tailor and personalize their omnichannel strategy when it comes to promotions. With 61% of consumers actually enjoying weekly promotional emails and 38% wishing those emails would come more frequently, leveraging promotions with email especially is an opportunity that retailers should capitalize on to drive success.

Wrapping it up

This year marks the first holiday shopping season since the start of the pandemic that shoppers will be returning to stores in person in full force, making it a pivotal year for retailers and brands alike. But transitioning back, despite the economic pressures, should be an opportunity for marketers and e-commerce professionals to leverage their tools and strategies to their fullest potential. The holiday season starts now, and it will be more essential than ever for your team to be prepared for whatever it has in store.