Who’s Buying? How Retailers are Responding to Changes in Holiday Shopping Behavior
Updated November 21, 2019
The National Retail Federation forecasts that sales will be up 4 percent in the 2019 holiday shopping season, with younger consumers making up the largest percentage of the more than 165 million people who are expected to shop over the five-day holiday weekend.
Wait—did you say younger consumers? The ones who are buying everything online?
That’s right: Younger consumers are significantly more likely to shop over the Thanksgiving weekend. Among those aged 18-24, 88 percent say they are likely to shop over the five-day weekend, particularly because they enjoy the social aspect of shopping. This trend is just another example of how customer’s shopping behavior keeps changing, and how retailers are continuing to adapt. While Black Friday is still the busiest shopping day for stores kicking off the holiday season (with an estimated 114.6 million customers), the number of people who are actually visiting stores is in decline.
This doesn’t mean that people will be buying less. Instead, it points to how customers are shopping differently. Online, mobile, or via apps—or any combination of these. Spending time with family and friends is becoming more important than shopping in store.
For retailers—like any other product-selling business—it’s becoming more crucial than ever to:
- Reach their buyers via targeted online and social media campaigns
- Provide relevant and trusted product content across their sales channels
To compete in the five-day Thanksgiving holiday weekend deal jungle (Thanksgiving Day to Cyber Monday), the customer experience must be seamless, personalized, emotionally engaging, and hyper-consistent across all channels.
A recent report from Aberdeen says that master data management (MDM) and master data-fueled business applications (e.g., Product Experience Management or Product Information Management) can help companies reach their goal of delivering seamless customer experiences.
The Aberdeen study also indicates that survey respondents using MDM to manage their product data achieve greater annual performance growth, decrease costs, and drive revenue growth. Plus, a single view of content helps them establish operational efficiencies.
As opposed to non-users, companies using MDM see results such as:
- 76 percent greater annual revenue growth
- Five-fold decrease in costs for annual services
- A 3X bump in their per-customer annual profit margin
Here are three key takeaways from the Aberdeen report that’ll help your business deal with changing customer expectations and deliver consistent omnichannel experiences all year-round–not just during Black Friday and the holiday season.
1.Build a trusted master data-fueled view of product information
Build a trusted master data-fueled view of product information throughout your business. This will allow you to achieve significant performance gains, including growing brand awareness, reducing shopping cart abandonment rates, increasing customer spend, and decreasing costs.
2.Content is key
Content is key for companies to deliver engaging omnichannel customer experiences. Without providing rich, up-to-date, relevant product information to B2B customers or end-consumers, companies can’t truly personalize customer interactions. However, managing the growing complexity of product data stored across various disparate systems—such as ERP, digital asset management, and e-commerce—is no easy feat. Research shows that firms using MDM are far more likely to alleviate their challenges in using product information to do their job.
3.Use the right tools
To unleash the greatest performance results, business users (e.g., supply chain managers, marketers, and commerce employees) need the right applications to collect and use the right data that MDM will integrate across the business. As you keep an eye on building a single view of your multidomain data, also ensure that your employees are empowered with the right tools to create, collaborate on, and manage this data.
Learn more about how you can transform insights into customer joy.