The New Ways Consumers Are Shopping For Holiday in 2023
Research shows that while 35% of consumers intend to increase their holiday expenditure, 67% are seeking discounted holiday gifts and 62% maintain a budget-conscious approach. Thus, the upcoming holiday season is poised for success, but also necessitates a dynamic marketing strategy that captures increased consumer demand without alienating the price-sensitive segments of the market.
When walking this fine line between capturing increased demand and still catering to the price-sensitive consumer, the inevitable question arises: How should brands respond? Let’s dive in.
How can brands take advantage of new consumer buying behavior and pivot their mindsets on consumer interaction?
Promotions are the name of the game in 2023. Price remains the primary factor influencing consumer purchase decisions, making promotions a crucial component of your strategy. This poses a unique challenge for brands and marketers alike: How do you make your promotions stand out amongst the crowd?
To maximize the value of your promotions, start holiday sales early. Getting ahead of the competition will allow you to differentiate your brand from the noise. Moreover, it will save you from paying sky-high CPMs that you would in November and December.
When you don’t have promotions running, think about bigger discounts for value exchanges. If you normally offer 10% off for signing up for a loyalty program or CRM, why not make it a larger initiative?
Consumers don’t just want discounts, they want free and fast shipping. If you can’t offer promotions on sales price, consider ones that align with faster or free shipping.
Refocus gift guides for profitability by offering greater discounts on high-margin products. That said, remember consumers are still looking for value and not just cost.
Highlight flexible payment options for all price points. Buy Now, Pay Later (BNPL) is still seeing substantial growth across the board, specifically for everyday or low cost purchases including grocery (which saw 40% growth!).
How should brands think about their media mix? How will brands have to treat media differently this year?
In 2023, brands need to expand their omni-channel approach to their media mix. This means ensuring that your DR workhorse channels are properly funded, as well as experimenting with new and emerging formats.
With walled garden walls getting higher and higher, consumers are more fragmented and competition is becoming more intense. It's important for brands to be present wherever their consumers over index, and also use messaging that makes them stand out.
Once a brand’s DR workhorse channels are properly funded, they should look towards the following formats to help them stand out: Short-Form Video, Influencer Marketing, and CTV.
The importance of building brand awareness now while consumers are starting to research holiday shopping cannot be stressed enough. Getting your brand into their consideration set early will give you the best opportunity to convert customers when they are ready to purchase. Ideally, brands can find ways to collect first-party data (emails) and get them to sign up for newsletters or special offers in order to speak directly to them during the holidays.
Recommended Timeline for Holiday Campaigns
If consumers are price sensitive, how do you pivot messaging to capture demand but remain sensitive to their recessionary mindsets?
Even with a price-conscious mindset, shoppers are not solely on the hunt for cheaper options. In fact, we have found that consumers are more willing to spend money on products and brands that offer real value to help them achieve their goals.
Brands should focus their efforts to ensure their creative stands out from the competition and that their messaging addresses the following areas:
What value does your product or service bring to the consumer?
Will your brand be contributing to charity with every purchase or make customers feel like they are doing good in the world?
Will customers get VIP access to special sales and drops?
Does the messaging feel personalized to the consumer and help them solve a problem?
The 2023 holiday season calls for a dynamic marketing strategy that appeals to both spend-happy and budget-conscious consumers. It's not just about offering discounts, but delivering real value that makes your brand stand out. By striking this balance, brands can optimize their reach and profitability heading into Q4.
To get in touch with one of our digital strategists and perfect your holiday approach, please reach out to marketing@directagents.com.
Corey Levine, VP of Integrated Media, Direct Agents
Monnica Farag, Director of Growth Strategy, Direct Agents
