The Holiday Season is rapidly approaching – and not a moment too soon! For retailers and the brands they stock, 2020 has been the most challenging year ever, and so much is riding on how they perform during their busiest season. In our conversations with these companies, they’ve told us that they’re trying to retain share of wallet as they head into the Holiday Season by transitioning their customers’ in-store purchases to online transactions.
They have their work cut out for them.
At first glance, the signs are promising. A recent study conducted by daVinci partners revealed that over 71% of U.S. consumers will be doing at least half of their holiday shopping online. This number increases greatly across Millennial age groups.
This bodes well for retailers that Millennials are loyal to, such as Wish and Amazon. TrueData’s App Ownership data tells us that 15% of U.S. Millennials have the Wish and/or Amazon App on their Android devices to quickly transact. Similarly, this generation uses apps like Ibotta and Groupon to find the best deals online.
Customers who visit leading retailers’ stores tend to skew over 40, so retailers have new opportunities to drive those customers online during the season. Over the past six months, 55.9% of brick-and-mortar Target customers were 45+. Similarly, 62.9% of Walmart and 65.9% of Costco in-store visitors were 45+ (in-store visitors in the past 6 months).
This is where the challenge comes in. How do these brands convert that revenue online amongst these coveted shoppers?
It’s not a foregone conclusion that in-store shoppers will automatically do their online purchasing at their favorite stores’ e-commerce sites. Brands and retailers need to be on guard as consumer behavior has been shifting. The billions of dollars that have been used to build up brands seem to be at risk. McKinsey just delivered a startling wake-up call to brands who are not aware of the dramatic changes in customer behavior in light of sheltering-in-home. In fact, they report that 75% of customers have engaged in alternate shopping behaviors – and intend to continue these practices in a post-COVID environment. This includes buying through new channels and testing out new brands.
So how do marketers reach customers to build deeper relationships while driving e-commerce revenue effectively and efficiently? Here are three key tactics:
TrueData has taken the first step to help you take advantage of these tactics by generating segments you may access directly from the LiveRamp Data Store. Alternately, you can select over 10,000 syndicated and unlimited custom segments in our platform. Check them out in our Partner Portal.
Ready to drive incremental revenue specifically for your brand? Let’s connect to generate custom segments to drive your conversions up significantly in Q4.
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