3 Ways That Retailers Can Win During the 2019 Holiday Shopping Season

3 Ways That Retailers Can Win During the 2019 Holiday Shopping Season

Retail

The holidays are always in season for retailers. Even though holiday shopping traditionally does not begin until the week of Black Friday, advertisers need to constantly anticipate and respond to shifts in consumer behavior and any factors that affect how people shop during the holidays. Here are three ways retailers can succeed in the 2019 holiday shopping season, based on our experience:

1 Be Mobile

According to Adobe, the 2018 holiday season marked the first time that smart phones accounted for more than half of all visits to websites during the holidays. With 51 percent of shoppers using their phones to address shopping needs, retailers better have a strong mobile advertising presence.

To be mobile, brands need to first and foremost capitalize on tools that maximize the value of the mobile format. For example, Google Gallery Ads, available in beta, consist of swipeable images that display on multiple pages on a user’s mobile phones. Shoppers can swipe through the images or click one to expand the gallery into a vertical view that users can then swipe down. At the end of the gallery, a call to action to visit the advertiser’s site appears. A company such as ours that has access to Google can fast track you into using tools such as this one.

In addition, Google has launched tools that make it easier for brands to make your inventory sparkle, such as Google Showcase Shopping Ads. These types of tools are especially useful for making inventory more attractive (and literally shoppable) as people are using their mobile phones to browse for holiday ideas before the season officially kicks off.

Being mobile also means providing a great follow-through experience on your site, whether that site is accessed from a laptop, a PC—or from a smart phone. As I blogged last year, a number of businesses encountered turbulence because their online experience didn’t deliver well after shoppers clicked through on ads to buy things.

Be ready – across the entire mobile journey. (Note: check out this case study about our work with Snapfish for more insight into how we’ve helped a business succeed with mobile advertising.)

2 Prepare for Black Friday Week

Black Friday not just a day anymore. It’s a shopping state of mind.

Black Friday remains the single most important shopping event of the year. But winning retailers understand that Black Friday has become, in fact, an entire week. As the popularity of Cyber Monday shows—four hours on that day were, in 2018, the busiest period of the entire year. People are in Black Friday shopping mode hunting for deals during Thanksgiving Week and immediately afterwards. That shopping rush includes Thanksgiving Day, which incidentally shows buyers relying more on smart phones than they do on Cyber Monday or even Black Friday itself.

To maximize the opportunities afforded by an expanded Black Friday phenomenon, online retailers need to be ready with advertising strategies—paid search and display, for example—that attract customers to buy during the entire week.

3 Compete with Shipping

One of the major stories of the 2018 holiday season was the rise of shipping as a competitive tool: Amazon, Target, and Walmart all tried to outdo each other with attractive shipping offers. Amazon, for example, famously extended free shipping, with no minimum purchase required, for a limited time starting November 5.

Shipping will be a big story for the 2019 season, too. With Thanksgiving taking place later in November, the official holiday season will be shorter. And a shorter season usually means a sense of urgency, as consumers try to make up for lost time by having products shipped to them faster. While smaller retailers may have a harder time matching the efforts made by behemoths like Amazon, it’s important to stay competitive by having your act together and your shipping strategy sorted. Achieving more efficient product fulfillment and shipping may involve hiring more labor. It might also demand tweaks to your online advertising.

Contact True Interactive

Bottom line: brands want to stay abreast of the trends in order to maximize the holiday shopping experience they provide for customers. If you need help, contact us.

Image source: https://pixabay.com/photos/woman-shopping-lifestyle-beautiful-3040029/

Retailers Ramp up Augmented Reality and Virtual Reality

Retailers Ramp up Augmented Reality and Virtual Reality

Retail

Last March we wrote about the increasingly important role that technologies like virtual reality (VR) and augmented reality (AR) have in the marketing field. Since then, major businesses have continued to apply AR and VR to support a number of functions. Retailers have been especially keen to use these technologies for shopping. For example:

  • To capitalize on the uptick in mobile holiday shopping, Macy’s has launched an AR app that lets shoppers see pieces of furniture virtually within their homes, following the successful pilot of a VR experience to make furniture shopping more immersive. According to Macy’s, shoppers using VR headsets to view Macy’s furniture had more than a 60 percent greater average order value than non-virtual reality furniture shoppers.
  • Walmart recently announced the launch of new AR scanning tool in its iOS app to help customers with product comparisons. Unlike traditional barcode scanners (which allow price comparison on one item at a time), Walmart’s AR scanner can be aimed at multiple products on store shelves to view details on pricing and customer ratings.

Some studies predict the global economic impact of virtual and augmented reality to reach $29.5 billion. Although this number may sound overly optimistic, I do believe there is a lot of value in these technologies yet to be exploited. Both VR and AR have the potential to be among the most valuable tools in any marketer’s arsenal simply because they offer intimate and engaging experiences. They allow brands to build a more profound connection with consumers by offering personalized, interactive experiences. In addition, when combined with artificial intelligence, these technologies have the potential to help make life easier by empowering users to take immediate action (like completing a custom order on the spot).

VR and AR Defined

Even though they may look similar, VR and AR are different:

  • Virtual reality: refers to any kind of experience that places the user “in” another world or dimension usually by way of a headset with special lenses.
  • Augmented reality: the term we use when we place content “into” the real world by using cameras (e.g., Pokémon GO)

Although some brands have rushed to experiment with augmented reality on social media platforms, others are using AR and VR to support commerce. One of the cleverest campaigns was that one from the Spanish fast fashion retailer, Zara.

Although their storefronts may have appeared empty to the naked eye, they came to life when people pointed their phone’s camera at the shop’s window (or in-store podiums) after downloading the Zara AR App. This app enabled users to see seven-to-twelve-second sequences of models Léa Julian and Fran Summers wearing selected looks from the brand’s Studio Collection and allowed the viewers to instantly order any of the looks shown at the touch of a button.

 

Tommy Hilfiger is another example of a retail brand that has also deployed AR technology to improve the shopping experience in their stores. By placing digitally enhanced mirrors inside the fitting rooms, Tommy Hilfiger gave customers instant access to information like styles, models, sizes and colors available both in-store and online. The experience also allowed shoppers to request a new size or color without leaving the room and suggested other products to browse. These smart mirrors made product discovery much simpler and promoted sales by helping users find the right style.

iMirror for Retail from Pieter on Vimeo.

But the business potential seems almost unlimited when AR/VR is combined with artificial intelligence. An example is Salesforce’s Einstein AI technology, which was subject to practical testing along with Coca-Cola. As noted in this article from Diginomica:

Einstein was trained to recognize, identify and count the varieties and quantities of Coca-Cola bottles stored in one of its cooler display cabinets, simply by analyzing a photo taken with an iPad or iPhone. […] Einstein can then take that stock count and combine the information with predictions based on known seasonal variations, weather information from Watson [the IBM AI system], and upcoming promotions, to automatically calculate a restocking order.

There is no doubt about the potential benefits of new technologies like augmented reality, virtual reality and artificial intelligence for both consumers and businesses. In the ever-changing and dynamic world of digital marketing, it would be safe to expect tech giants like Google, Amazon, and Facebook to soon develop and introduce new features that accommodate for these technologies in their portfolio of products and services.

The Key to a Successful Holiday Season: Shipping

The Key to a Successful Holiday Season: Shipping

Retail

Black Friday and Cyber Monday deals are just table stakes for retailers to compete in the first-ever $1 trillion holiday shopping season. The real competitive advantage is coming from shipping.

Based on the client work I do, I’ve always known that favorable shipping can help a retailer compete more effectively during the holiday shopping season. Low-cost, rapid shipping caters to the needs of today’s on-demand consumer who want products curated and sent to them and oftentimes at the last minute.

But what’s changed dramatically about the 2018 season is the Amazon effect. Earlier in November, Amazon announced free shipping with no minimum purchase required from November 5 onward. Amazon did not announce a cut-off date, but it will probably be December 22. Now, this change to its shipping policy is huge. Amazon accomplishes two objectives with free shipping during the holidays:

  • Beating Target and Walmart. These two retail giants had announced more liberal shipping and returns policies of their own in October. Walmart had announced it would expand two-day shipping to the entire Walmart marketplace beginning November 1. And Walmart also said that products purchased through its marketplace could be returned Walmart brick-and-mortar stores products purchased through its marketplace. Target had announced free two-day shipping with no minimum purchase or REDcard membership required from November 1-December 22. Amazon trumped both.
  • Luring shoppers to Amazon Prime. Amazon hopes that anyone using free shipping during the holidays will get a taste of what Prime members enjoy all the time – and, presumably, sign up for Prime, where many more benefits await. For example, Prime members get free same-day delivery on millions of items and free two-day shipping on many more. Prime is the center of Amazon’s on-demand world, which encompasses services ranging from entertainment to retail.

Smaller retailers have a harder time competing on those kinds of terms, but try they must. If you’re a brick-and-mortar retailer, advertising on-demand services such as delivery, shipping, and online ordering/in-store pick-up is key to winning this holiday season. It’s important that you manage your online advertising, including your paid search and display, to show how well you service the on-demand shopper. If you need help, contact True Interactive.

Image source: Walmart