Consumers are set on stashing their money as the holiday shopping season approaches. This is what retailers can do to encourage sales and win customer loyalty.
Americans are tightening their belts as the pandemic continues to impact almost every facet of life. The U.S. personal savings rate hit a historic 33% of disposable income back in April, according to the U.S. Bureau of Economic Analysis. And that savings trend has continued ever since. As people increasingly stash away money and continue to follow social distancing guidelines, the holiday shopping season will look profoundly different for retailers this year.
“Retailers will probably go into the holiday season with some trepidation,” sticky.io CEO Brian Bogosian told PYMNTS.com.
With more consumers heading online since the pandemic, retailers need to make it easy for customers to complete their holiday shopping lists without entering a brick-and-mortar store. And since some shoppers will be more reluctant to spend than in past years, retailers also need to create an irresistible online experience to attract new customers and retain existing ones.
Here are a few ways retailers can win over online shoppers, even during uncertain times:
Appeal to the price-conscious shopper by offering free shipping. An efficient ecommerce platform should enable merchants to offer free shipping based on a variety of scenarios, like on a first-time purchase or when a customer spends a certain amount.
Holiday shoppers might not be your usual customer base. (Think of an aunt visiting an online shop to buy a dress for her niece.) Make it easy for new customers to purchase by optimizing your ecommerce website for mobile devices, simplifying navigation and creating a one-page checkout.
Do not let potential customers forget about you when the holidays get hectic. Send them an automated email if they did not purchase an item in their online shopping cart. You can integrate your ecommerce platform with an email marketing solution to ensure you are targeting the right customers at the right time.
As consumer sentiment remains uncertain and the holiday shopping season approaches, retailers need to adopt new approaches for reaching customers, while leveraging the ecommerce technology to drive results beyond the holidays.
As Bogosian told PYMNTS.com, “We have a lot of bright lights within our economy and I think certain industries will do well.”
Read the full PYMNTS.com article here.