A forecast by the National Retail Federation predicts a 4% increase in holiday spending in 2017, bringing up spending to an estimated $682 billion. In terms of occasions to spend, friendsgivings and ugly sweater parties are just a few of the trendy occasions to get together with friends and family in addition to traditional holiday events this time of year.
We polled 3,080 consumers on their motivations and planning process for putting together a holiday party. Here is a quick breakdown of the demographics of the audience: 82% of respondents were female, 18% were male. 28% were millennials, 18-34 year old; 45% between the ages of 35-54, and 27% were 55+.
Below you will find some of the key insights we learned as well as some actionable ways to make an impact this holiday season and beyond.
When it comes to planning, consumers are looking towards trusted content sites for party ideas this holiday season. 73.8% of consumers said they were using digital destinations — Pinterest, Dailybreak or BuzzFeed — for inspiration. The remaining 25.2% of responses were looking towards mediums like TV, Facebook and radio. In order to stay top of mind with your consumers this year, consider creating useful content, like party setup hacks, DIY decorations or unique recipes and distribute it in places where consumers are already browsing.
What does it take for a consumer to put your brand on their list? It comes down to either offering them an incentive or building trust. 47% of consumers say they make a product decision based on a coupon or discount whereas 39% say they pick a brand they trust. The additional 14% of decisions come from either researching the brand or impulsively grabbing the first thing they see at the store. What all of this shows is that the pre-shop journey is now more important than ever. This data shows that 97% of brand decisions are realistically made before a consumer reaches the aisle. Be sure to utilize solutions where you can both tell your brand story to build trust and offer up a discount or incentive to buy.
How much are consumers spending on holiday parties?
The NRF says consumers will spend an average of $967 this holiday season. The large majority (84%) of our respondents told us that they will spend between $50 and $200 on a holiday party. Eleven percent say they will spend between $300 and $500 and 5% are willing to go above $500. With a tight budget to divvy up between all of the fun and necessary party needs, be sure to make the case to get on the shopper’s list before they buy. You can also look into implementing a simple one-click-to-cart solution, like the one provided by Smart Commerce, to add an e-commerce layer to any holiday focused content your team is producing.
How do brands break through the holiday clutter and penetrate new households?
Discount and offers still take the cake: 67% of respondents say that is the best way to win them over. “Make me laugh, educate me on the product, and show me emotion” (in that order) make up the remaining responses. Many marketers worry that one-time discounts this time of year won’t truly acquire a new long-term customer. One solve? Consider the various loyalty offerings in the marketplace provided by companies like Savingstar and Snipp that allow your brand the ability to incentivize purchase over multiple shopping trips while building a longer-term, loyal shopper.