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BizReport : Advertising : September 21, 2020

Reports: How shoppers will spend, what marketers can do to engage

Several new reports out this month shed light on what consumers are looking for as we begin counting down to the 2020 holiday season, and what marketers can do to capture shoppers' attention in a digital space that continues to become more and more crowded.

by Kristina Knight

First, data out from Inmar Intelligence indicates returns may be a more important part of the holiday season that ever. That's because most (81%) of those polled for the survey say they'll be doing more online shopping than in the past; just over one-third say they'll do all of their holiday shopping in the digital space this season.

Many of these shoppers are going online because of fears about COVID-19, and most say they'd like shipping options for returns from holiday buying. Just over two-thirds (67%) say they would prefer shipping holiday returns rather that in-store returns options for this season.

"Retailers will need to be especially diligent in preparing for higher volumes of individual, shipped returns packages this holiday season. The shift to e-commerce during the pandemic demands solid returns management processes and a smooth customer experience, while reducing costs and eliminating waste," said Ken Bays, Vice President of Product Development at Inmar Intelligence. "Maximizing value recovery will be more important than ever with the expected high returns volume, while an efficient, easy customer return experience will be key to increasing shopper loyalty and driving sales."

More Inmar Intelligence data can be found here.

Meanwhile, Pattern89 has been looked at how consumers are already engaging with ads and their data could shed light on tactics that will have the most impact for marketers. One of the more interesting findings is this: free shipping continues to cut through the noise of the online ad space. According to researchers ads with 'Free Shipping' offers show Click-through rates that about about 2x higher than ads showing simple 10% or 20% off ads.

More data from Pattern89 can be accessed here

Data out from Adelphic may seem a bit bleak for some merchants. According to their new report more than half (57%) of shoppers say the COVID pandemic has changed the way they'll shop for the upcoming holiday season, and just over 70% say they'll spend less this holiday season, making every ad dollar all the more important for merchants and brands. On average, shoppers say they'll spend about $818 this holiday season.

Overall, Deloitte's 2020 holiday retail forecast suggests flat growth for the season, at a 1%-5% increase, with the overall spend totaling about $1,152 billion (November to December). The bright spot will be the digital space, which is expected to see spending increases between 25% and 35% YoY.

"This year, one of two holiday scenarios will play out. Regardless of the scenario, however, the consumer's focus on health, financial concerns and safety will result in a shift in the way they spend their holiday budget," said Rod Sides, vice chairman, Deloitte LLP and U.S. retail and distribution sector leader. "For retailers, this holiday season will continue to push the boundaries on the importance of online, convenience, the role of the store, and the criticalness of safe and speedy fulfillment."

More data from Deloitte can be found here.

Tags: 2020 holiday forecast, 2020 holiday retail, Adelphic, advertising, Deloitte, ecommerce, ecommerce trends, Inmar Intelligence, Pattern89

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