It’s beginning to look a lot like… Christmas Shopping is tough on everybody. It’s in the fine print, no one tells you up front. But, we all know about incremental budgets. And maxed out credit cards. And surprisingly large traffic. Yeah, we really get it.
You wouldn’t say, but the hot topic around the office this time of the year is Christmas plans and preparations; and the AYG Secret Santa this Friday; and the non-secret Santa you play out for your family and friends; and winter activities, such as ice-skating and boiled wine drinking; and the looped Christmas carols on the radio that we’ve learned by heart. There’s a whole, quite complex and emotional mood flowing around. Did you notice how, besides the latter example, all other moments imply spending money? I know, right? Who do you think has the time to do all that off-line?
If you’re extra busy this year, just like all of us, here are your Key Learning Points from this article:
- Christmas, maybe more than other holidays is an emotional one. Use this strong, trending idea to start your emotional targeting strategy for 2017
- The Red Brick Wall of Christmas Shopping is actually a list of how our customers want to feel
- How we make decisions is the root of all conversions. Understand that and you’ve cracked not only conversions but loyalty and looping customers
- Christmas Shopping Behavior is based on 5 main trends that trigger certain feelings in us. Read on to see both facts and figures and how they determine emotions.
- Lastly, as a reward, we’re giving away an Optimization Tips cheat sheet for shop owners to help you convert better this year.
The Red Brick Wall of Christmas Shopping
Zoom-In on how we’re always clicking from hyperlink to hyperlink and you’ll notice quite an interesting and logical journey. Which is not surprising. At all. We’re generally on a hunt for the “perfect everything” – the perfect product, the perfect gift, or the perfect service. But during Holiday season, probably even more than the rest of the year.
Now, breath in for a sec and ask yourself – What does this really mean? How Do I Know I’ve Gotten The Perfect “Anything”?
Well, your best match makes you feel a certain way. Whether it makes you feel satisfied because the product meets all your functional requirements; or it induces happiness, content, and pleasure to see your friend’s smile on their birthday; or whether it fills you up with a sense of freedom when you go on your long-desired trip.
As @TaliaWolf – Conversioner CEO and CRO Specialist – would say, everything we buy has an emotion attached to it!
Moreover, it adds a new perspective to eCommerce and online store owners. The breadcrumbs trail I mentioned a bit earlier – it’s a run for a sum of core desired emotions that we’re more or less aware of.
So, to identify what phases our customers go through when Christmas shopping, we’d be wise to follow the red brick walls of feelings they want to feel during the holiday season.
This Forbes article highlights how the love, excitement and sharing translate a bit differently to marketers and providers in general. Thus, our main goal becomes to inspire those sentiments in order to trigger purchasing decisions. At this point, choices are the root of all conversions.
You want to be aware of your customers’ Red Brick Wall because Christmas shopping is the most emotion-based purchase journey of the entire year. And as I already pointed out in an earlier article, the Holiday season returns 30 to 50% more sales than the rest of the year. Now, I wouldn’t want to miss on 2 months that increase my rest-of-the-year revenue by half. Would you?
Christmas Shopping Behavior or What are the Top 5 Feelings Customers want to experience this Christmas?
As I stated here before, in terms of spendings, the Holiday season is more of a marathon rather than just a sprint. It’s teased by BackToSchool campaigns when fall takes the ground floor. Then, it slowly debuts at Halloween, goes through Veteran’s Day, Thanksgiving and Black Friday only to peak on Cyber Monday. It then goes on with Christmas and ends right after the New Year’s party. And yes, these spendings are all driven by feelings!
So, understanding the range of sentiments our customers go through not only explains why they buy a certain product or service, but it motivates why they choose your brand, in particular, . This is valuable to you because it shows what to keep being – at the core (corporate identity) instead of the surface (tactics).
Again, let’s stop for a sec and ask ourselves How Do We Make Decisions at Christmas? Or, to be even more specific, What Affects Do We Base Those Decisions On? To answer, let’s start with the beginning.
Behavior #1: We spend 1/3 of our Christmas Shopping on Gifts!
How did we get to celebrate Christmas? (Yes, that beginning *smiling)
Christmas is a Christian holiday celebrating the birth of Christ. The term comes from ‘The Mass of Christ’, a special service to praise the birth of Jesus.
BTW, Jesus wasn’t actually born on December 25th. It was the Western Church which, sometime in the 4th century, decided on this date to celebrate the Messiah. The reason was simple – it lined up perfectly with other festivals they would keep/throw back then. One of them, the Winter Solstice, just as Christ did, would symbolize new life. Hence, the overlay. Later on, it was Pope Julius I who officially declared commemorating the birth of Jesus on December 25th.
Nonetheless, Christmas as we know it today – with Santa Claus, the red and green as official colors, and the tree – is a mixture of traditions and old stories. But the central one is the story of Saint Nicholas. He was known as the protector of the poor and less fortunate and he would bring them presents.
Do you know about the Christmas myth according to which mean kids would get charcoal instead of presents? Busted! It’s just that – a myth. Saint Nicholas would give the poor kids charcoal, not as a response to their negative behavior, but so they’d keep warm on the cold winter.
Anyhow, because he was one of the most loved Saints, people kept offering presents one another, even after his death, as a way to remember and honor him. Which brings us to…
As the Saint Nicholas story suggests it, the most intense and expressed emotion at Christmas is generosity. We spend a third of our monthly income on Christmas gifts. According to the Deloitte 2016 Holiday Survey data below, in 2015, the average person spent around $487 of their Christmas budget on gifts and $976 on non-gifts necessities. This year, the difference between the two categories shortens because consumers decided to cut down on their non-gifts shopping.
Though Americans tend to trust their economy and Trump’s eminent administration for that matter, planned budgets this year are a bit lower. However, this won’t pare down on gift spending. In comparison to last year, the same Deloitte Study shows that Americans are planning to spend $426 on offerings, but drastically reduce non-gift spending in 2016.
If that wasn’t enough, a ThinkVine article notes that 1 in 3 people strongly consider that choosing the right gift tops budgets concerns. These numbers best illustrate Emotion #1 – Generosity.
Behavior #2: We’re suckers for Gifts Cards!
Have you heard The Gift of the Magi Story by O. Henry? It’s a moralistic happening highlighting the meaning of Christmas gifting. One year, this poor, but deeply in love couple decide to buy Christmas gifts one for the other. The wife sells her long hair to get a pocket watch chain for her husband. At the same time, the husband trades his pocket watch to offer his wife hair combs.
You might argue that the value of Christmas shopping gifting stands not in the gift, but in the togetherness and the (Mastercard’s) priceless meanings and symbols. And, if you asked me, you’d be right.
Two years back, though, a BankRate press release mentioned that 84% of Americans have received a gift card and 72% of them had given one.
So, how do we explain allocating almost 23% of our presents dedicated budget to gift cards and certificates? What does it mean that 1 in 5 giveaways is an ”IOU” kind of coupon?
- We might not have the time to buy the actual gifts
- We might not know exactly what people need, but we know what they like – possibly even their favorite brands. We know what to associate them with.
- We don’t want to be wrong at interpreting our friends’ personalities. In 2014, Rakuten, an online retailer posted here that nearly 3 out of 4 (71%) of Americans don’t really like their Holiday presents.
- We don’t know our friends as we used to. Social Networking has both diminished the amount of time we spend face to face and reduced the substance of our conversations. Thus, we now build different relationships – ones that hinder/flaw our ability to truly understand people’s preferences. They’re listed on their profiles, anyhow.
When studying the evolution of how we spend money on gift categories, the same Deloitte study points out the above percentages. Though not the greatest idea, gift cards or register a slight increase in popularity over last year. The top gift we’re going for this year is still some sort of a clothing article. This year, we’re spending more on presents such as books, food and liquor and jewelry. I mean, everybody likes a good read, right?
These data support Emotion #2 – Security, which includes reciprocity, approval, and acceptance as secondary feelings. We’re cautious and we want to feel safe this Christmas and make sure we’ll belong to the same groups next year, as well.
Behavior #3: This year, we’re gonna be a lot more active online!
In 2016, Americans are planning to increase their Christmas shopping online. Notice how Deloitte’s study surprises an uprise from nearly 45% in 2014 to 50% of people planning to shop online? Also, Americans’ Christmas shopping intent for the online has overcome the one for department stores by 7%.
Yes, it’s actually a worldwide phenomenon. eMarketer reports an even higher percentage of Americans planning to shop online this year – 67.4%. RubiconProject mentions 77% of UK will buy online and SearchEnginePeople points to 56% of Canadians taking it online.
Judging by the start of this Holiday season, retailers will want to prepare for massive online traffic.
Why do we prefer online instead of offline? Emotion #3 is Comfort!
Behavior #4: We’re Mobile, as well!
We’ve gone through this all year. Mobile Shopping is the greatest. (Yes, I’m being a bit sarcastic) Christmas shopping keeps the trend going – 78% of buyers, will use a smartphone for Holiday shopping and only 66% of them will opt for a tablet.
What’s interesting here is noticing what exactly do we use them for.
- Locating Stores: In more than half (61%) cases we’re using smartphones to do it – to map out physical stores.
- Get Product Information (technical data, reviews, comparison, etc.): Though tablets still lead in this area, we can notice an increase in the amount of time we use smartphones for this, as well.
- Purchase: 43% of online purchases are made from a smartphone; 55% from a tablet; and the percentage rises for desktop buyings.
I very much like this two-way relationship that hints to a greater trend. We tend to search for product information on smaller devices, but purchase from wider screens. Seems that, when it comes to the last conversion, we trust desktop considerably more than tablets or smartphones. Or is it that we’re used to it?
86% of shoppers intend to research online before buying in stores. But, for most of the items that we research online, more of us end up finalizing the transaction online rather than offline.
The three most important reviews we’re paying attention to are:
- Customer reviews on retailer website – 66%. I mean, have you noticed how much original content does Amazon create? None. Amazon’s strategy is based on UGC, because they’ve gotten the hint that you’re supposed to create content that helps people buy.
- Recommendations from our family, friends, peers, people we know and trust – 56%. As I was pointing out in this article, as well, the human factor is still important to us when researching online. Thus, we tend to find an equivalent to talking with the vendor or calling our best friend to ask how does x or y fit us, etc.
- Other customer reviews on independent websites – 55%.
Petite devices and the out-bulleted reasons from above tap into Emotion #4, which is Dynamic Actuality! We want to feel informed, up to date, included and on top of trends and new happenings.
The greater hint, though, takes us to…
Behavior #5: We’re bouncing from on to offline; and the other way around, too!
Let’s put two and two together.
This year, we plan to do more than half of our Christmas shopping online. At the same time, the no. 1 use we attribute to smartphones is locating offline shops. We browse on smaller devices, but we buy on larger ones. Though it first seems that brick-and-mortar might suffer traffic loss in favor of eShops, this hints that on and offline stores are supposed to mutually reinforce and synergize instead of competing. In the end, we’re all under the same brand. On top, big retailers, such as WalMart, Target or BestBuy could use from solidifying their online presence. I mean, take a look at how far behind Amazon they are: (*wink)
In terms of online or offline preferences, 35% of shoppers prefer the online environment, whereas 29% still prefer to finish their buyers’ journeys in-store.
We usually prefer online because it gives us increased flexibility and speed we might not access in stores (unless we’re able to teleport). Later on, we translate the two in terms of comfort. Online shrinks our efforts, thus we are more inclined to buy there. WebFitters states that over half of the internet searches take place on mobile.
Pretty close, indeed. That’s why we tend to combine the two.
- 66% prefer Webrooming – seeing the products online and purchasing them in store.
- Opposed, only 50% of shoppers prefer Showrooming – researching in stores and purchasing online.
This brings a new trend to life. Buy Online, Pickup in Store. Customers increasingly expect and demand the possibility to pay for a product online and then collect it in store, when they’re available. According to our Deloitte study, almost half of the holiday shoppers – 43% – expect this freedom.
Yes, Emotion #5 we want to feel this Christmas (and more and more all year round, actually) is Freedom of Choice!
Christmas Shopping Behavior or How Online Shop Owners can follow the Red Brick Wall to increase conversions?
Remember the Hook – Anchor – Loop System I was proposing a few articles ago along with the AYG Cart Abandonment Recovery Program? We apply it here the same way:
First, we Hook customers by grabbing their attention. When Christmas shopping this, usually, translates to listening and caring more about them and their needs.
Emotions to appeal to at this stage: SECURITY
Safety and continuous (Omni-) presence are the two main ingredients to start building online trust. You want to make your visitors feel safe on your site. Safe to browse and safe to shop, as well.
You to do that with the help of a warm, professional design – since that’s what they first encounter – and optimization.
Last Minute Optimization Tricks for Christmas Shopping:
- Overplan stock coverage. There’s nothing more annoying than wanting to buy something that’s out of stock.
- Make sure your site is stable. On Christmas, people tend to be less tolerant. Set the core parts of your Customer Journey and do a lot of load testing. Figure out what happens to your eShop under extreme traffic conditions. For instance, you could try tuning databases, adding server memory or even renouncing certain features.
- Use colors and imagery that invoke the Christmas atmosphere. As crazy as it may sound, not everybody likes Christmas. So, tease them with red and silver stars here and there, but try to refrain from elf or reindeer pictures, for example. This makes them feel safe if they don’t like Christmas because it’s less invasive.
- Make sure you answer their questions – either in pages (FAQ or About Us page) or in blog articles and demonstrate how you meet their needs. They now know why to buy from you and it adds to them feeling secure.
Secondly, we Anchor customers by empowering them to read and research on your shop.
Emotions to appeal to at this stage: COMFORT & GENEROSITY
Make it easy for them to navigate your site, to compare products, pay for them, etc. We buy online because it’s comfortable for us. Generosity sparks when you showcase it yourself. You offer discounts, customers buy. Reciprocity works that easily.
Last Minute Optimization Tricks for Christmas Shopping:
- Polish your Product Descriptions. Offer detailed, structured and story-like descriptions. Add “How To Use” their preferred product videos. They now know what they’re buying and ensures that even if they don’t know how to make it work, you’re there to show them.
- Optimize Product Categories. “Gift for” is one of the most Googled phrases this time of the year. You could, for instance, segment all the information you get from your visitors’ behavior into gifts categories, such as gifts for mom, gifts for travelers, gifts for Harry Potter fans, etc. Also, you’ll want to make sure you add gift wrapping options.
- Focus on Bundles & Gifting and set up gift cards, promotions and key messages of your own. Additionally, set up affiliate promotions with other stores via offer codes. The most important characteristic you want to focus on now is being clear. Give extra details to make sure you’re on the same page with your visitors. For example, fairly state how long will delivery take in extreme weather conditions.
- Pay extra attention to your Delivery & Returns Policies. This time of the year, customers are incredibly sensitive to delivery and returns.
Lastly, we ensure Looping customers by converting
Emotions to appeal to at this stage: DYNAMIC ACTUALITY & FREEDOM OF CHOICE
We feel actual and free to choose right after we’ve analyzed all our options.
Last Minute Optimization Tricks:
- Talk to them on Social Media after their order. Set up a dedicated section where to gather feedback on your site. This makes them feel like they belong to something, to your story. Answer to all their suggestions and complaints on Facebook (or any other network of their choice). This makes them feel important. Quickly implement their recommendations. This makes them feel valuable.
- Offer Vouchers. They come in handy for last minute Christmas shoppers and they can redeem it in January.
- Create Christmas Donation Campaigns. One very good reason for customers to remember you and come back to your online shop is to give them a cause they’re being part of. Partnership with an NGO on this and send 5% of all their purchases to that organization.
It’s an emotional Christmas. Not just because we’ve got egos and we’re attached to the stories we’ve heard, past experiences, different meanings, and traditions. But because we’re desire lead beings. And maybe now more than ever we’re striving to get noticed, heard and accepted as who we are, what we want and the choices we’re making. There’s this Red Brick Wall we, as online shop owners, would want to follow to get most out of our last minute Christmas preparations.
Consumer Behavior sits on the following 5 pillars. Each of them appeals to a specific emotion they feel, for which we put together an actionable list of tricks for a Christmas conversions boost.
- Customers spend 1/3 of their Christmas Shopping budget on gifts! It’s the most Googled term in Holiday Season. This sparks generosity in them. Read above to find out where does this behavior really spring from.
- Customers prefer Gifts Cards! It’s easier than being judged for not hitting jackpot on that present. It’s an easy way out that allows us to feel safe as if we’re not upsetting anyone. Read above to find out about The Gift of the Magi story.
- This year, customers will be a lot more active online! Everyone points out how online shopping went through the roof this year. Christmas, definitely keeps the rhythm going. eShopping is comfortable for us.
- Mobile activity and purchasing increases, as well! Mobile and all the other gadgets build on and support our feeling of dynamic actuality. We want to feel present like we’re part of all that’s happening (remember FOMO?) and relevant. Wanna know what we really use our smartphone and tablets for? Read up! *smile
- We’re bouncing from on to offline; and the other way around, too! Whether we’re webrooming, or showrooming, or both, this Christmas we’d like to feel free. Free to choose the best gift and payment option at the same time. Find out the new trend in combining on & offline functionalities from above.
Christmas Shopping Cheat Sheet
The last section of the article is an 11 Tips Cheat Sheet on Last Minute Conversions:
- Overplan stock coverage
- Do traffic overload testing
- Use colors and imagery that invoke Christmas
- Make sure you answer all their questions
- Polish your Product Descriptions
- Optimize Product Categories
- Focus on Bundles & Gifting, offer gift cards and set up affiliate promotions with other stores via offer codes
- Be clear on your Delivery & Returns Policies
- Talk to customers on Social Media after their order
- Offer Vouchers they can redeem in January
- Create Christmas Donation Campaigns
Well, hoping that you’ve enjoyed this, let us know how Christmas preparations are going for you. Oh, and Merry Christmas!
