Recently, we had a post that talked about consumer spending during the holiday season. Many consumers are still struggling with economic issues and are questioning their holiday spending plans. New research has been made available that looks into why consumers are not spending more this holiday season vs.
• One-third say their living expenses have risen – there has been an increase of over 40% in people gave a rise in living expenses as a reason they are not spending more this year
• Another third said that they have less discretionary income this year
• Just over 20% say they have less in savings
• 11% say they have less job security
What Does This Mean To You?
Less than 15% of consumers said they are spending more this year vs. last year and shoppers are looking to save money wherever they can. As a business, you need to find ways to get shoppers into your store and have them spend their money with you. Creating efficient communications and delivering valuable offers are paramount in creating customer traffic.
What kind of offers are shoppers looking for?
Free shipping is the most sought after form of discount. Many consumers said they shopped on Cyber Monday because historically that’s when retailers offered free shipping. Gift with purchase has been another offer that works well – especially with gift cards.
The value of the offer is often determined by who the shopper is. The more you can target your offers, the more valuable they are. This is where loyalty programs can help. The more information you can gain on a customer – what they like and don’t like, they types of products they buy and how much money they spend can help you create offers that bring consumers into your stores. For more information on strategy to help your business have a profitable holiday season, please contact:
Source: Mobile Commerce Daily; Accenture