The economic reality facing consumers has taken on a distinctly unfestive disposition. Stubborn inflation and financial unease have shoppers tightening their belts and rethinking frivolous spending. At the same time, they still yearn to uphold the magic and generosity that defines this time of year.
It's a delicate tightrope for retailers to walk as well. How do they provide the value and discounts that cash-strapped consumers crave while also scratching that itch for indulgence and wonderment? Go too deep into a promotional frenzy, and they risk bargaining away the holiday luster. Sit on their luxury positioning, and they alienate huge swaths of budget-conscious shoppers.
The solution will come down to nuance and adaptability. A recent survey by Sitecore partner QEdge illustrates the multifaceted forces shaping shopper sentiments. As a leading Sitecore implementation and localization provider, QEdge helps brands leverage the full power of the Sitecore experience platform. Retailers armed with QEdge's insights can strategize to delight both the deal-seekers and free-spenders. Those still peddling blanket promotions and one-size-fits-all offers, however, risk getting called.
The Pursuit of Value, Value, Value
Let's start with the undeniable: shoppers are actively hunting for ways to pare down their holiday spending this year. Over half are planning to slash the number of gifts they buy and gravitate towards cheaper options across the board.
In fact, many started squirreling away funds months ago to afford a reasonably festive season at all. When they do take out their wallets, promotions and discounts will be priority #1 decision factors as each dollar is stretched further.
Free shipping isn't just a perk - it's practically a non-negotiable for the vast majority of shoppers in 2024. Failure to offer it means potentially driving huge numbers into the arms of competitors, no matter how enticing the product assortment may be.
Perhaps most crucially, people are honing in on hyper-personalized promotions delivered at the perfect psychological moments. Generic "20% off" emails turn shoppers off and feel like errant spam. Instead, they expect deep individualization based on their browsing habits, purchase history, life stage, and overall circumstances.
Leveraging tools like Sitecore's Experience Platform (XP) allows QEdge's clients to orchestrate those tailored experiences at scale. Their discounts feel like delightful little gifts in and of themselves because they're so surgically targeted to resonate. Those still taking a Rip Van Winkle approach to promotions, on the other hand, will be lucky to stay off the naughty list.
