Yesterday’s post dealt with the reasons consumers are not spending more this holiday season. Today, we’ll look at how they plan to pay for gifts this year. Consumer’s planned method of payment can affect not only how much they spend but where they spend it.
• Just one in three consumers will be putting their holiday gifts on credit cards – that is a drop of 30% from 2011
• 15% will use gift cards to make holiday purchases
• 14% are using discretionary income to buy presents – that is down 33% from last year
• 13% will put gifts on store credit cards
• Fewer than 5% of shoppers will delay making mortgage payments or paying other bills to buy holiday gifts
What Does This Mean To You?
When customers are paying for things with cash, they tend to do more research and comparison shopping. This maybe one of the reasons “showrooming” activities are expected to be so high.
To make sure shoppers make their purchases at your location versus your competition, you need to promote the value you offer and the intangibles that make shopping at your location a better experience than making a purchase elsewhere. Promote positive reviews your store has received through social media and reward customers who post virtual endorsements about your location. Take advantage of every opportunity to make a positive impression. Make sure your staff is customer service focused and educated about the products you sell, the offers you have available and the offers your competition is promoting. These are things that will allow you to show shoppers your value. For more information on how you can utilize social media and mobile technology to drive more shoppers this holiday season, please contact:
Source: Mobile Commerce Daily; Accenture