This holiday season, brands face particular challenges because of today’s volatile business environment and dramatic shifts in consumer behavior. While the holiday season brings significant revenue opportunities for businesses, how they navigate these changes will determine their success.
This guide highlights new customer shopping behaviors, the factors contributing to these shifts, and what your business can do to prepare for this year’s holiday shopping season.
Factors Affecting Customer Holiday Shopping Behavior This Year
The effects of the pandemic heavily influenced holiday shopping consumer behavior in 2021. As businesses transitioned to digital platforms and consumers turned to online shopping, e-commerce experienced massive growth. When comparing holiday shopping behavior in 2020 versus 2021, it’s clear that online shopping and curbside pickup options were essential to shoppers.
Is this still the case for 2022? Let’s look at the top contributing factors affecting customer behavior this year.
- Increasing Cost of Products: As inflation rises, selling prices will likely increase for the rest of the year. As a result, consumers may buy lower-priced items to ease the strain on their wallets, particularly when shopping for products with a high substitution rate. For example, if beef becomes too pricey, consumers may shift to buying more chicken.
- Supply Chain Disruptions: Pandemic-induced inventory challenges have made shoppers more willing to switch brands. Retailers mitigate this risk by preparing their products early and investing in supply chain technologies and solutions.
- Omnichannel Shopping: Shoppers are purchasing across different platforms, and social media influence is heavy among younger consumers. Social commerce is growing in relevance, presenting a new opportunity for businesses.
5 Holiday Shopping Behaviors to Watch Out for in 2022
To help your business navigate this year’s holiday shopping season, we’ve compiled the top customer behaviors to anticipate in 2022.
1. Early Shopping Season
Inventory issues, supply chain disruptions, and inflation have shifted customer behavior around the holiday calendar. Customers will shop earlier to combat potential price hikes and avoid shipping delays.
According to Salesforce Research, 42% of customers worldwide and 37% of US consumers plan to buy gifts earlier. To take advantage of this trend, brands can launch their holiday deals earlier and leverage cross-channel marketing to reach customers across all platforms.
2. Social Media Influence on Shopping Behavior
In the season of festivities, consumers are turning to social media for shopping inspiration. Social media’s unique mix of ads, content, and creators is increasingly affecting the buying decision of consumers. The holiday season is a prime opportunity to leverage creator marketing and social media advertising to drive sales conversions.
3. The Rise of Social Commerce
Social commerce is rising in popularity as a convenient way to purchase products through social media. This trend continues to influence online shopping customer behavior, with more than half of US adults purchasing through social media this year. This holiday season, social commerce will most likely contribute to sales revenues.
Video content is vital for social commerce, with more consumers using videos for shopping research. Creating effective social commerce strategies on your brand’s existing social media platforms is key to leveraging this trend.
4. Price and Value Over Quality
Rising product prices and inflation will drastically shift holiday shopping behavior. To save money, customers base their purchase decisions on price rather than quality.
They will actively seek discounts and better deals to match their current budgets. Brands can stay competitive by crafting pricing strategies that match their customers’ unique preferences.
5. BNPL (Buy Now, Pay Later)
Consumers are more likely to seek BNPL options to manage their cash flow this holiday season. Considering the effects of inflation on the price of products and services, the advantages of BNPL are more compelling than ever. Brands can consider adding BNPL to make their offerings more accessible to consumers.
How Your Brand Can Prepare
Shifting holiday shopping behaviors encourages brands to rethink their marketing strategies to remain competitive in the market and capitalize on this critical time of the year. We’ve compiled key tips to help your brand prepare for the holiday season.
1. Create Robust Online Campaigns
As online shopping and social commerce become part of the norm, it becomes imperative for businesses to create effective digital campaigns to establish their online presence. Leveraging the power of social media, video content, and creator marketing is crucial to stay ahead. With YouTube recently being named the most trusted platform for social commerce, this highlights an opportunity for brands to use it to educate their customers and drive revenue.
2. Incentivize Early Shopping
The fear of price surges and inventory stock-outs will encourage shoppers to start their holiday shopping early. They will expect early discounts, deals, and marketing efforts from brands. Meet your customers halfway by beginning promotional efforts early and communicating with them actively on social media platforms.
3. Create Customized Experiences
Leverage the power of data and analytics to reach out to your customers. Contextual targeting can help your brand offer personalized customer experiences and promotions. Leading third-party companies like Channel Factory help brands create optimized and targeted advertising content to maximize investments and drive conversions.
Optimize Your Marketing Strategy by Partnering with Channel Factory
The current business and economic landscape are shifting holiday shopping behaviors, and brands that don’t adapt will miss out on critical opportunities. Don’t let this be the case for your brand by partnering with Channel Factory today.
At Channel Factory, we specialize in contextual targeting to known demographics, helping our clients to reach brand-suitable audiences and boost sales. Reach out to get started today!