The holiday season is nearly in full swing. How will it be different than past seasons? The most striking difference is not in what consumers are buying, it’s how they are shopping.
Consumers have been gravitating toward digital over the past decade, but this year, shoppers have indicated that they will pass a new threshold. For the first time, they anticipate making the majority (51 percent) of their holiday purchases online, according to a study by Synchrony Financial*. This has been steadily increasing over the past three years, up from 47 percent in 2015 and 49 percent last year.
Which devices will they be using to make these purchases? Consumers indicate that one in five holiday purchases will be made on their mobile device. So, not only is shopping trending toward online purchases, many shoppers are planning to do it on-the-go.
Shoppers like mobile because, quite frankly, it’s easy and always around. The mobile device is with the shopper continuously. Whether riding on a bus, waiting in line for coffee or binge watching your favorite Netflix show. If you think of the perfect gift for Aunt Helen, you can order it immediately. And, not to worry about keeping track of your purchases — half of mobile shoppers say they use mobile because they can easily view the confirmation in their email.
And, discount hunting via mobile is ubiquitous. More than one-third (36 percent) of shoppers say they will shop via mobile during the holiday season because they can more easily link their email offers and coupons to their purchases. So, bargain hunters don’t have to worry about missing out on a good deal. The ability to scan available coupons and download offers gives shoppers confidence that they are getting the best price.
With the ease of shopping online and the widespread availability of next-day shipping, consumers may be less rushed to get their shopping done early this holiday season. Only 44 percent of consumers say they will be shopping earlier this year. Last year, 53 percent said they would be shopping earlier than in the past.
And, shoppers are less likely to be “hunting for a deal” on specific days like Thanksgiving, Black Friday or Cyber Monday. This is perhaps due to the prevalence of deal hunting throughout the season. Consumers have been less hooked on shopping on specific days, if they are certain they can find the best price on any given day.
How are retailers responding to these trends? One way is having websites that are optimized no matter which device consumers use — laptop, tablet or mobile. Retailers are spending time and resources building websites that are easy to navigate and intuitive. The experience is important — the top reason shoppers delete a retailer app is due to poor functionality, according to the Synchrony Financial 2017 Digital Study.
Also, shipping will be a big element of the online shopping experience this year. Many retailers have graduated from two- to three-day shipping to one-day, or next-day shipping. And, since shoppers say they will be shopping later in the season, this will be a big deal this year.
Finally, and perhaps most important, bargain hunting remains a key ingredient in the shopping habits of consumers, whether they are early bargain hunters or last minute deal seekers. The ability to check product reviews, compare prices and use coupons is a key part of the holiday shopping experience. If the consumer can do it all on one website, great! If not, off they go to the next retailer.
* Note: The views expressed in this blog are those of the blogger and not necessarily of Synchrony Financial. All references to consumers and population refer to the survey respondents from the Synchrony Financial 2017 Pre-Holiday Study unless otherwise noted.