• by Jack Loechner , Staff Writer @mp_research, October 1, 2018

When it comes to the holidays, some things never change, and your Customers Holiday Expectations do not change from year to year. If your plans for holiday readiness haven’t changed much over the years, you may miss out on opportunities to increase year-over-year sales during the time you need them most.

Every year, retailers roll out special offers for the holiday season to keep their customers interested. While retailers reporting excellent Q4 2017 results expect to replicate similar strategies in 2018, all retailers need to deliver even greater results than before. Success on today’s complex, competitive landscape requires this growth, says the report from eTail..

With changing customer expectations come changing trends. Retailers that understand consumer habits must start now to adjust their strategies accordingly. Are you transforming internally to deliver new, ideal customer experiences, asks the report.

“The [2017] holiday season contributed almost 15% of our annual revenue. We were able to capture data on the likes and dislikes of customers and we will use that to make 2018 a bigger success than last year.”

Director, eCommerce at global clothing and fragrance retailer

The new Rules of Holiday Readiness features key insights and data from 167 retailers as they prepare for Q4 2018. The survey has tapped leaders from the best brands in the business, Ralph Lauren, Best Buy, ACE Hardware, and more, for their insights on the most important new approaches for holiday retail success. 

Finally, we’ve leveraged study results for our easy-to manage checklist, the greatest gift a holiday retailer could ask for, says the report.

• 35% of retailers consider their sales performance during the 2017 holiday season to have been only adequate, in need of improvement, or poor, meaning they fell short of all expectations.
• 64% of retailers are preparing internally to meet customer expectations this holiday season by transforming marketing to become more agile and customer-focused.
• 79% of retailers will use video to drive engagement, acquisition, and conversion during the holidays; among them, 15% of retailers will use video for this purpose only during the holidays.

Researchers in this study measured a comprehensive landscape to identify prevailing trends and received direct responses from leaders representing multiple verticals. Most of our 167 respondents identify their retail sectors as: 

• Specialty retail (18%) 
• Apparel (16%) 
• Hardware, electronics, and appliances (11%)
• Home furnishing (9%).
• Entertainment, food, and travel (8%)
• Department stores (8%)

Fewer retailers identify their retail sectors as: 

• Sporting goods (6%)
• Supermarkets (4%)
• Toys and hobbies (4%) 
• Telecommunications (3%)

Almost half of retailers (48%) receive 25% or less sales revenue from digital sales throughout the year, among which 4% sell only in physical stores. Most other retailers receive either 26 – 50% (25% of retailers) or 51 – 75% (12% of retailers) sales revenue from digital sales.

 Here’s What Retailers Learned From Last Year

• Nearly all respondents made a point to note their specific setbacks from Q4 2017. But these retailers also shared how they are learning from those shortcomings, taking steps to ensure they have healthier results in Q4 2018. They acknowledge a need to ramp up their efforts for a more robust customer experience, and stick to all schedules established as part of their holiday strategies.
• Still, most retailers (65%) report positive results. Nearly half of retailers (46%) claim they hit all of their KPIs, and 19% claim they exceeded all expectations
• 35% of retailers consider their sales performance during the 2017 holiday season to have been only adequate; in need of improvement; or poor. Among them, 23% claim they saw passable results with few improvements from previous years. Eleven percent missed their KPIs, and 1% claim they fell short of all expectations.