Consumers are placing a focus on discounted goods this holiday shopping period, according to recent data from Salesforce. Savvy shoppers are trading down and buying discounted merchandise, with only 15% of consumers making no tradeoffs based on price.
Although almost half (47%) of shoppers report buying the same amount as in 2023, many are taking on more debt, using high-interest credit cards to manage the impact of inflation, and setting aside more disposable income for savings.
In addition to seeking lower prices, 53% of shoppers are interested in using generative AI to find the perfect gift, highlighting a significant shift in consumer expectations and experiences. By capitalising on this, retailers stand to drive nearly three times better conversion rates by embedding generative AI.
Retailers face pressure to absorb shipping costs as free shipping remains a top incentive for consumers. Over half of shoppers are more likely to buy online if delivery is free, emphasising cost over shipping times and return policies.
With digital marketing costs rising, 46% of shoppers prioritise loyalty points, making these programs more valuable. Close to two-thirds (63%) of shoppers are making more purchases from stores where they can earn and redeem points.
Salesforce APAC regional vice president for retail and consumer goods, Roula Psomiadis said, “As consumers continue to navigate economic uncertainties, these findings highlight a fundamental shift in their shopping behaviour. This season will be incredibly competitive, particularly as shoppers become more savvy, prioritising value for money over anything else such as loyalty programs, free shipping, and cost effectiveness.
“Generative AI also poses an opportunity for retailers looking to attract customers in the lead up to Christmas. Last year, 17% of online purchases were influenced by AI throughout the holiday season – both predictive and generative. This technology will be key to attracting customers looking for the right presents at the right prices.
“Black Friday and Cyber Week are continuing to be a beacon of hope for retailers’ bottom line. Now is the time for retailers to tap into their customer data for guidance, looking into what customers want to ensure loyal customers continue to buy more from them ahead of, and as we enter the peak Christmas sale period.”