In 2020, B2C companies everywhere in the world pivoted their methods as customers handled the COVID-19 pandemic.
Not solely did the pandemic drive individuals to stay and work strictly from house, however it additionally put a monetary burden on many households and companies.
Now, as the vacations strategy, each bodily and on-line enterprise house owners are questioning if they’re going to nonetheless get the identical degree of booming enterprise they noticed final 12 months.
Because we (sadly) cannot predict the long run, we determined to survey a pattern of practically 300 basic customers about their vacation buying plans.
Specifically, we requested, “Compared to last year, how will COVID-19 impact your holiday shopping plans?”
As a part of the Lucid survey, members may test all of the bins associated to how their vacation buying can be impacted.
While you will see that among the responses align with research-backed buying predictions, the general outcomes of the survey may shock you:
While you may not be shocked that many respondents are planning extra on-line buying than final 12 months, you is perhaps shocked that just about one-third of them nonetheless plan to go to bodily shops.
Additionally, with 41% of respondents planning to spend much less cash or purchase fewer presents this 12 months, you may surprise if budget-conscious customers will nonetheless spend cash in your merchandise.
Remember, this is only one small ballot of basic customers. Had we zoned in on a particular viewers goal or location, the outcomes might need been very totally different.
However, these responses are nonetheless price retaining in thoughts as you navigate the vacation season. It additionally hints at potential traits that might proceed in 2021.
Below, I’ll stroll you thru the three largest vacation buying pivots customers plan to make this 12 months, in addition to just a few enterprise takeaways for dealing with every shift.
3 Pivots Holiday Shoppers are Making in 2020
1. Despite on-line progress, bodily shops will not be vacant.
As you may anticipate, the primary vacation buying change, cited by 47% of survey respondents, was, “I plan to do more online shopping.”
This is smart. In 2020, customers who weren’t tech-savvy realized purchase virtually every little thing they wanted on-line. Meanwhile, those that already made purchases often on-line embraced it extra closely. Additionally, with vacation buying seasons recognized for carefully packed quarters shops, some customers may choose to remain at house this 12 months to keep away from the crowds.
However, it does not seem to be foot-traffic will stop utterly.
To be taught extra about how plentiful ecommerce can be this season, we requested, “Where do you plan to do your holiday shopping this year?”
As it seems, a number of individuals nonetheless plan to buy in-person this season:
While 33% of customers plan to buy “mostly” or “completely” on-line, 34% plan to do an “even mix of both online and in-store shopping.”
On the opposite hand, 33% % plan to buy “mostly” or “completely” in-store this 12 months.
Although this survey is only one small piece of information, and these outcomes may fluctuate by location, the responses trace that bodily shops may nonetheless get enterprise regardless of elevated on-line buying.
Takeaways for Business Owners
Ultimately, on-line buying is rising — and we see more online purchase revenue with every new vacation season.
Even if our survey outcomes present that folks nonetheless plan to buy no less than partially in shops, you must contemplate constructing an internet presence and — probably — an ecommerce technique.
When it involves constructing an internet presence, you can begin with a enterprise web page on Facebook or Instagram, or a Google My Business itemizing to assist web customers be taught extra about your model and the place you are positioned.
If you are prepared and capable of promote your merchandise on-line, many digital instruments, like HubSpot and Shopify, can assist you create a easy, however efficient on-line retailer.
For instance, when you already promote your model with a Facebook Business Page or Instagram Business profile, you can spotlight and promote just a few of your hottest merchandise in a Facebook Shop. This will assist you to check the waters with ecommerce by promoting just a few choose merchandise on-line. Then, as soon as you are feeling assured in your transport and provide chain, you may launch a full ecommerce website with one among these instruments.
2. Shoppers may not splurge — even on presents.
Due to the unsure monetary instances brought on by the COVID-19 pandemic, customers had been already tightening their budgets and defending their belongings. Now, with plans for in-person vacation gatherings unsure for a lot of people, there are additionally fewer causes to buy presents and different vacation objects.
However, since holidays have been known to encourage people to splurge more than usual, you may assume that this time of 12 months may very well be an exception to present buying traits.
When polling basic customers, 26% % mentioned, “I plan to spend less money.” whereas 15% mentioned, “I plan to buy fewer gifts due to limited holiday gatherings.” In whole, 41% of customers indicated that they plan to spend much less or purchase fewer merchandise this 12 months.
The knowledge above, though unsurprising, nonetheless reaffirms shopper predictions that is perhaps regarding to enterprise house owners.
Takeaways for Businesses
By now, manufacturers have already seen customers tighten budgets and restrict non-essential purchases. Not to say, studies from McKinsey and different organizations predict that buyers will proceed to spend extra frugally by means of 2021.
But, even when you’re updated on the present market analysis traits, you may not make sure grapple with these shopper conduct shifts.
Right now, patrons want additional motivation to purchase costly or non-essential merchandise. While the vacations may give them a motive to splurge a bit greater than they’ve all year long, customers will nonetheless wish to spend money on merchandise with the perfect worth — whether or not they’re shopping for for themselves or their households.
Because individuals are on the lookout for important merchandise they want or objects that provide the perfect bang for his or her buck, focus your messaging on answering questions like:
- “Why does the consumer need this product?”
- “How does this product or service solve one of their problems?”
- “Why is the product worth its price?”
Aside from adjusting your messaging, you may as well modify your content that will help you reply the questions above. For instance, you may put up content that highlights gross sales, offers, and promo codes that folks with extra stringent budgets may use.
If you may’t provide a sale or deal, you can alternatively use testimonials, critiques, or user-generated content out of your present prospects in your advertising and marketing. When you share a contented buyer’s overview or testimonial, you enable prospects to listen to tales of people that benefited out of your merchandise. This can construct a way of authenticity and model belief that finally results in purchases.
3. Shoppers will take social distancing significantly.
Above, we famous that our respondents nonetheless wish to store no less than partially in shops this 12 months. But, a lot of them may also wish to keep away from bustling crowds which have traditionally been seen throughout vacation buying seasons.
Because of this, the third largest vacation buying change — which 33% of respondents cited — was, “I still plan to shop in stores but will be more cautious of social distancing.”
Takeaways for Businesses
While small enterprise house owners would like to see crowds line as much as enter their shops throughout the vacation season, it is clear that issues will probably be very totally different this 12 months. Not solely will prospects be aware about social distancing, however different analysis exhibits that they is perhaps more concerned about their health and safety when buying than ever.
If you wish to embrace in-person foot-traffic alternatives this vacation season, it is necessary to know that folks is perhaps terrified of crowds or getting too near others. Because of this, you must invest in PPE for your staff, whereas additionally considering protective barriers, one-way aisles, and different options to maintain individuals far aside.
While this won’t solely make prospects really feel safer in your retailer, it may offer you a aggressive benefit over outlets that take fewer precautions. After all, customers trust brands that care about them and their security.
Navigating a Unique Holiday Season
While we are able to provide strategies and primary knowledge on how vacation buying will change this 12 months, it is necessary to remember that outcomes may very well be totally different for each enterprise — whether or not bodily or on-line.
Although planning a vacation technique in a pandemic can really feel daunting or practically not possible, retaining just a few ideas in thoughts may nonetheless enable you get gross sales and intrigue customers who’re prepared and capable of store.
- Market your product’s worth: Now — and within the close to future — customers will must be persuaded that your product is efficacious, higher than a less expensive possibility, and value investing in. If your messaging, critiques, or on-line content fail to convey these issues, a budget-minded shopper may very properly purchase one thing from a competitor — or keep away from shopping for any product in your business in any respect.
- Build an internet presence: Even when you plan to depend on foot-traffic this 12 months, you will nonetheless wish to develop an internet presence so individuals can find out about your retailer, the place you are positioned, and any offers you provide. If you are able to step into the world of ecommerce, many easy-to-use instruments can assist you launch a scalable on-line retailer.
- Care about your buyer: This 12 months, prospects are paying additional consideration to how manufacturers deal with them. When a model makes an effort to make sure a nice and protected expertise, customers will bear in mind and belief them extra. Even if your corporation is generally on-line, you may nonetheless present prospects you care by means of useful and responsive customer support, answering buyer questions on social media, and providing offers or content that clear up in your superb buyer.
To be taught extra about how COVID-19 has impacted the general enterprise panorama, take a look at our six-month retrospective fueled by knowledge from hundreds of HubSpot customers.