Without another round of government stimulus to buoy sales, retailers just need to target the right customers.
Christmas and holiday shopping isn’t going to be easy this year. While the numbers are slowly turning, the reality in this country is that many people are still unemployed, and with less dollars available, marketers will face even more competition for them. What’s worse is that hope for a second stimulus package for struggling Americans has all but dried up. Obviously the pandemic has disrupted everything, and we are now living in an age where “going to the well” is no longer a viable way to conduct successful marketing. Consumer preferences have changed as well.
Renewed federal pandemic relief — both before and after the election — has been dashed, thus undermining any hopes for a rejuvenated holiday shopping period that could buoy not only the wellbeing of individuals, but spark the kind of spending wave that could boost sagging retail sales as well.
The languishing uncertainty that continues to define the coronavirus pandemic will all but complete the hampered consumer shopping habits that typify 2020. This holiday season will see a continued shift to ecommerce from all consumers, but without a $600 per-week federal unemployment supplement that expired all the way back in July, to trickle into their marketing strategies during this protracted holiday shopping season, what can retailers do?
A new $2 trillion relief package would be great, with retail giants like the CEO of Walmart saying it would undoubtedly boost holiday shopping. The data seems to suggest that would be the case. Twenty-five percent of consumers say they can’t afford gifts this year, while 30 percent say they’ll spend less in the current economic atmosphere as a result of the country’s pandemic response.
But that doesn’t mean there will be no spending at all. U.S. consumers spent $21.7 billion online in the first 10 days of the holiday shopping season alone, and we’re set to see an additional $40 billion in online holiday shopping revenue drop over November and December 2020 — a level of ecommerce engagement that retailers weren’t expected to hit until 2024.
With the majority of consumers avoiding brick-and-mortar locations and buying more online due to the pandemic, marketers should leverage ecommerce in order to be best set up for success, while it will be up to retailers to target the consumers spending those digital dollars.
This is where solutions like RevTrax come in to connect the dots between digital behavior to online purchase data, and empower the integration of digital marketing channels. By relying on this treasure trove of data, such strong omnichannel efforts lead to higher and more frequent sales and drive higher margins on targeted consumers to help retailers capture the right customers at this make-or-break time.
It's possible that a second stimulus check could still go out before the clock strikes midnight on December 31 — but it's pretty unlikely. And with news of a vaccine potentially turning the tide next year at the earliest, smart retailers will make it through this high-potential season with typically huge sales by making sure to keep the best customers in their corner.
Interested in learning more? We would love to help with your promotional marketing needs. Learn how RevTrax's solutions can help your brand during this holiday season by speaking with a specialist today.