Eighty percent of consumers are more likely to shop with brands this holiday season that send them relevant and personalized offers, according to research by software provider Redpoint Global.
The research, which is based on a survey of more than 1,000 U.S. consumers, also found that more consumers plan to use a mix of both online and physical channels for their shopping needs. In fact, only eight percent of consumers plan to solely shop online, while 16 percent plan to shop exclusively in physical stores. The remaining share of consumers plan to engage in both online and in-store shopping experiences this holiday season.
But before consumers start shopping, online research will continue to play a critical role in the buying process, as 29 percent of consumers turn to online search before purchasing in-store. In addition, a high share of consumers are also looking for more convenient and cost-effective experiences, with 60 percent of consumers planning to use buy online, pickup in-store (BOPIS) options. However, only 15 percent of consumers plan to use BOPIS in the future.
As consumers gear up for this year’s holiday season, inflation and supply chain issues are key areas of concern. In fact, 70 percent of those surveyed indicate that global supply chain challenges remain top of mind, while 77 percent are concerned about product shortages. Many consumers are thus looking to shop early. According to Redpoint Global, as of September 1st, 2021, 26 percent of consumers have already begun their holiday shopping. Thirty-seven percent of consumers, meanwhile, have budgeted for potential cost increases and are expecting to pay more for gifts this holiday season due to inflation.
The research also revealed that transparency, relevance and personalized communications are going to be key factors for retailers to win consumers’ business this year. Consumers are looking for retailers to not only be transparent about any potential shortages and/or product issues but also be transparent about how they plan to collect and use their personal data this holiday season. Retailers who ensure transparency are more likely to see sales as 85 percent of surveyed consumers said they are more likely to shop with such businesses. Additionally, the research found that nearly 78 percent of consumers find it frustrating when a retailer’s communications and marketing messages lack consistency, whether it be in-store, online, social, call center and/or app.