The holidays are seen as a time for gift-giving, but for a large number of consumers the gift recipient is none other than themselves. More than half (55%) of holiday shoppers plan to purchase new clothing for themselves. Additionally, 49% shop for the ingredients they need to bake or cook the festive dish they plan on making, according to data from Kiip. Retailers need to maximize every conversion opportunity to make the most out of the season.
In addition to gauging who the consumer is shopping for, retailers also need to be aware of consumers’ budgetary concerns. It’s a good idea to keep price-conscious consumers in mind when retailers plan promotions, as they are the largest single group among gift-givers:
- 26% of shoppers will spend less than $50;
- 12% will spend $50 to $99;
- 23% will spend $100 to $199;
- 21% will spend $200 to $500; and
- 18% will spend more than $500.
Personal Incentives Can Complement Gift Buying
Holiday shopping can be stressful, and most shoppers are inclined to get themselves a little something during the process. Budgets for personal purchases are significantly smaller than gift-buying budgets, but show that shoppers are willing to spend a little more money to treat themselves:
- 39% of shoppers will spend up to $20 on themselves, while;
- 20% will spend between $21 and $50 personally, compared to;
- 18% will spend between $51 and $100;
- 10% will spend between $101 and $150; and
- 14% will spend $151 or more.
Retailers should work to surprise and delight shoppers during their trips to encourage these purchases. Customers can be incentivized to reward themselves with discounts for making other purchases, or through encouragement for meeting other goals, such as personal wellness milestones.
“Retailers should lean into messaging that says, ‘Take a little time for yourself, think of yourself during the holiday season,’” said Lauren Farricker, Director of Data Strategy & Consumer Insights at Kiip in an interview with Retail TouchPoints. “What we found is that most consumers are definitely planning to spend a significant amount of money on themselves.”
In-Store Advice Turns Partygoers Into Purchasers
Holiday parties represent another opportunity for retailers: 89% of shoppers say they bring gifts to these events. Edible offerings are the most common:
- 16% of guests bring food dishes;
- 12% bring baked goods;
- 22% bring wine; and
- 16% bring another kind of alcohol.
Retailers, particularly supermarkets, should be prepared to assist with last-minute purchasing decisions: 19% of shoppers buy groceries for celebrations the same day, while 16% purchase them just a day in advance, and they may be rushing to the store without a plan. To encourage purchases, retailers can provide advice, recipes and ideas, according to Farricker.
Non-food retailers can still take advantage of holiday celebrations with experiential retailing. Tutorials and samples can encourage shoppers with a party on their mind to come inside, browse and maybe even buy a gift.
“Knowing that it’s the season of holiday parties and those kinds of things, anything that you can do from the experience perspective is extremely important,” said Farricker. “People are being social, or people are with families, and they want to look their best. There are very simple experiences, like getting a styling from someone in-store or cocktail-making tutorials, that can support your brand.”
Making the most out of the holiday season means giving shoppers a reason to make purchases beyond traditional gifts. Keeping opportunities like rewards and experiential retailing in mind can help companies reach their full sales potential.