‘It’s the most wonderful time of the year’ for businesses and consumers alike, as the 2024 holiday shopping season begins in earnest. And this year, amid a prolonged cost of living crunch and the popularity of days like Black Friday and Cyber Monday, Australian consumers are embracing an early start to the festive season.
New research from Shopify reveals 53% of consumers anticipated to finalise their holiday shopping lists by October and 58% are set to complete the bulk of their purchasing by November.
While this trend presents an opportunity to capture greater wallet-share, it also poses a challenge: how can forward-thinking retailers maintain customer interest and drive sales across an extended shopping season?
Here are three strategies to help merchants meet changing customer behaviour.
Focus on value-driven strategies
As Australians continue to feel the pinch of inflation and rising costs, the term ‘value for money’ has taken on a new level of importance. Nearly one in three Australian shoppers (31%) are prioritising discounts or reduced-price items, and a further 49% intend to cash in on sales and do the majority of their holiday shopping on Black Friday/Cyber Monday weekend (29 November to 2 December).
But while discounts are a valuable tool to grab attention and drive sales, it’s important to remember that ‘value for money’ isn’t just about reducing the sticker price. Brands should consider how they can inspire brand loyalty by appealing to the budget-conscious customer throughout the shopping journey.
Loyalty programs can be particularly effective during prolonged sales seasons as rewards points or exclusive events can encourage customers to keep coming back and shopping beyond initial purchases. Offering free shipping is another way to appeal to value-driven consumers, with 45% of Australian shoppers saying that free shipping would boost their loyalty to a brand.
Ensuring a brand’s marketing strategy and customer communication spotlight value-based messaging is also beneficial. This can mean highlighting competitive prices, with research finding one in four retailers (24%) ar already updating their messaging to highlight affordability. But value can also mean quality products that last, according to 34% of Australians, meaning retailers who can’t compete on price can still highlight value in their customer communications.
By integrating value-led strategies into business and marketing plans, retailers can establish a stronger connection with their customers and inspire loyalty throughout the longer sales season.
Optimise the shopping experience
In today’s competitive market, improving the overall customer journey can be just as important as pricing. When it comes to features, Shopify found shoppers were most interested in tools like price comparisons (36%), mobile applications (27%) and real-time order tracking (25%) which helped them save money, time and effort.
Ensuring a seamless shopping experience from start to finish is crucial to keeping consumers engaged. For merchants, this means making sure websites have an easy navigation system and a search functionality that returns relevant results. Merchants should also make sure their website offers a seamless checkout experience with an intuitive, one-page checkout, which can help reduce cart abandonment rates. Offering a range of popular payment options can help ensure the checkout process is quick and hassle-free.
As consumers increasingly use mobile devices to browse online and purchase, cultivating an ecommerce experience that is optimised for different devices is imperative. A mobile-friendly experience allows shoppers to interact with the brand effortlessly no matter where they are. By prioritising convenience and streamlining the customer journey, retailers can create an environment that encourages new and returning customers to complete purchases smoothly and confidently.
Expect in-store and online to each pay dividends
Australian shoppers are increasingly blending their brick-and-mortar experiences with online interactions. Two thirds of consumers now conduct online research before completing a purchase in-store and 63% of shoppers purchase smaller items online but prefer to visit stores for larger items, creating a hybrid approach to shopping that emphasises the value of a consistent, connected experience across touchpoints.
For retailers, this means unifying commerce solutions across online and offline channels is no longer just an advantage — it’s a must-have. Adopting a unified approach means retailers have greater visibility and control over a customer’s entire shopping journey, while also consolidating back-end infrastructure to reduce costs. Integrated tools can help facilitate purchases end-to-end, from discovering an item available to purchase on a customer’s mobile device, to checking stock online, and then completing the purchase in-person at their nearest store.
To support this journey, brands should prioritise inventory visibility, allowing customers to know exactly what’s in stock and where. Tools like buy-online-pick-up-in-store (BOPIS) can further help in bridging the gap between digital and physical retail, enabling merchants to meet the growing demand for convenience.
Another essential tool in the hybrid shopping landscape is data tracking as it helps merchants analyse trends in consumer behaviour across channels. In today’s hybrid shopping reality, having a commerce platform with robust analytics capabilities means they have the information to make informed decisions about product assortments, targeted promotions, and inventory management.
Using this type of data strategically can lead to brands being able to better anticipate customer needs more accurately and adjust their approach based on real-time insights, ultimately enhancing the customer experience and fostering loyalty over a prolonged period.
Building connections in an extended holiday season
With holiday shopping periods beginning earlier and lasting longer, retailers have a unique opportunity to build meaningful relationships through tailored, value-driven, and consistent shopping experiences. By embracing early shopping trends, enhancing convenience, and bridging online and offline touchpoints, retailers can make the most of the elongated holiday season.
Shaun Broughton is managing director for APAC at Shopify.