🚨What to Expect this Black Friday, Cyber Monday 🧐

#HTE 244- Analysis of Trends With 9 Repeat Purchase Examples

November 23, 2023 • Estimated Reading Time: 12 minutes

Happy Thanksgiving! 🔥🥳

Black Friday weekend starts, well, today. You're probably already fielding holiday orders. And it's only going to amp up from here. 📈

Instead of overwhelming you with last-minute tips or big guides, today, let's focus on making your current promotions even better. Look ahead with us for holiday retail outlook 2023: what's coming, early deals, how people shop, and discover 9 repeat purchase ideas to boost your sales.

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🎁 Holiday Retail Outlook 2023: A Comprehensive Analysis of Trends and Challenges 🌟

🛍️ Early Deals and Evolving Shopping Habits 🎉

⏩9 Repeat Purchase Examples That’ll Double Your Sales ✨

🎁 Holiday Retail Outlook 2023: A Comprehensive Analysis of Trends and Challenges 🌟

As we approach the holiday season, retailers are cautiously optimistic, navigating a landscape shaped by various factors. Let's delve deeper into the data and emerging trends, painting a detailed picture of what to expect.

Sales Projections and Nuances 📈💰

The anticipated 3.5-4.6% increase in retail sales (Deloitte) signifies a positive trajectory. However, it marks a slowdown from the robust 7.6% growth in 2022, underlining the shifting dynamics. Online-specific sales, projected to hit $232 billion (Forrester), showcase the continued ascent of e-commerce.

Consumer Confidence Dynamics 🤔💸

Despite inflation moderating, a lingering concern is a perceptible dip in consumer confidence noted by industry leaders. From Martin Hoffmann to Target's Brian Cornell, voices echo a changed sentiment compared to the previous year. McKinsey Partner Tamara Charm's observation about consumers being in a "trade-down mood" adds nuance to the narrative.

Inflation, Budgets, and Shopping Behavior 💲📉

The inflation conundrum is evident in holiday shopping budgets, forecasted to surge over 14% YoY to $1,652 (Deloitte). Black Friday- Cyber Monday projections reveal an average spending increase of 13%, hitting $567. The paradox emerges as 72% of respondents expect higher prices, leading to a strategic shift - opting for fewer gifts and allocating more to gift cards.

Early Deals and Evolving Shopping Habits 🛍️🎉

The trend of early holiday deals aims to capture the attention of cost-conscious consumers. Notably, 41% of respondents engaged in October promotional events (Deloitte). Interestingly, non-gift purchases are gaining priority, witnessing a 25% surge compared to 2022, reflecting a nuanced approach to holiday spending.

Income Disparities Impacting Spending Patterns 💵📊

Analyzing income brackets adds a layer of complexity. Those earning less than $50,000 plan an 11% spending increase to $742, while the $50,000-$99,000 bracket anticipates a substantial 26% boost. Contrarily, the $100,000-$199,000 range expects a modest 2% rise, and those surpassing $200,000 project a significant 22% increase in holiday budgets.

Generational Shift and Multichannel Dynamics 🛒🌐

The evolving impact of millennials is evident, contributing to 43% of Black Friday- Cyber Monday spending (Deloitte). Gen Z's preference for malls (49.6%, JLL survey) and the surge in online shopping (82%, Circana) highlight the multifaceted nature of modern consumer behavior. Retailers must adapt to this omnichannel paradigm, providing a seamless shopping experience.

Small Businesses in Focus 🏪🔄

The emphasis on small businesses emerges prominently. 36% of consumers plan to support small businesses on Small Business Saturday (Shopify & Gallup). Moreover, 44% express intent to patronize small businesses throughout the holiday season, showcasing a shift towards conscious consumerism.

Challenges and Strategies for Retailers 🛍️🔍

Retailers face challenges in standing out amidst heightened competition. Traditional strategies like doorbusters are losing appeal, with 58% finding them less attractive (Deloitte). Retailers must navigate this landscape by innovating promotions and embracing creativity to capture consumer attention in an era of perpetual discounts.

The holiday retail landscape of 2023 is a multifaceted canvas. While challenges persist, opportunities abound for retailers who understand the intricacies of consumer behavior, adapt to evolving trends, and craft strategies that resonate with diverse segments. The holiday season promises increased spending and a transformative shift in how consumers approach the festive shopping experience. 🌐🎄

9 Repeat Purchase Examples to Inspire Your Own:

1. Offer a Next-Order Discount

To boost customer loyalty, consider offering an incentive for their next purchase. While we commonly use the term "discount," it doesn't necessarily mean a direct price reduction. It could be free shipping, a buy-one-get-one-half-price deal, a complimentary gift, or any other enticing offer.

For example, Baron Fig provides customers with a $10 discount on their next order for each friend they refer. This type of promotion is effective because if a customer enjoyed your product, they are likely to make another purchase when motivated.

Research from RetailMeNot highlights the impact of such incentives:

  1. 67% of consumers make unplanned purchases based on finding a coupon or discount.

  2. 93% are inclined to make repeat purchases with retailers offering good discounts.

  3. 69% of millennials feel the need to search for a deal or offer before completing a purchase.

However, it's crucial to be cautious with discounting strategies. Overusing discounts can set an expectation among customers, diminishing the perceived value of your product. This not only affects your profits but also harms your brand reputation.

2. Switch Up Your Repeat Purchase Promotions

To make people keep buying from you again, don't always give the same discounts. When you keep offering the same deal, customers might get bored and look for something else.

A study from the University of Chicago found that changing things up, especially with uncertain rewards, makes people more likely to buy again. Even if the reward is not as good, the uncertainty gets them interested.

So, don't just give the same discount every time. Mix it up! Maybe change how much discount you give or add extra things like free shipping or gifts. For example, ColourPop Cosmetics gave free worldwide shipping on everything, and it worked.

By surprising customers and offering different things, they are more likely to buy from you again.

3. Provide Personalized Product Recommendations

If you have a favorite place you always go to, think about why. Maybe it's not just because the food is good but because they know what you like. In e-commerce, it's the same. If a brand remembers and suggests things you might like, it makes a big difference.

A study says 91 percent of people are more likely to buy from brands that remember them and give them suggestions. So, if someone always buys red dresses, it's smart to show them the latest red dress. Or go a step further and suggest matching shoes and accessories.

4. Ask For Customer Feedback

Another good way to make people buy again is by asking for their thoughts. You can ask how their buying experience was or how much they liked the product. Most people are likely to buy again if they had a good experience. Plus, asking for feedback shows you care about what they think.

So, in your emails or messages, try adding suggestions based on what they like, and don't forget to ask for their thoughts to keep them happy.

5. Start a Loyalty Program

Boost customer retention with a loyalty program, mirroring Estée Lauder's 15% discount for Estée E-List members.

Address concerns about program saturation, citing KPMG research on Millennials' low participation, but highlight the potential – 52% of shoppers are willing to join if loyal to the brand.

Emphasize the positive impact: free program participants spend 30% more, while paid members increase spending by 60%. Consider customization options to stand out in a crowded market.

6. Remind Customers to Replenish Their Stocks

Not every brand benefits from a repeat purchase strategy, especially if selling durable or high-value items. However, for fast-moving consumer goods, sending replenishment emails makes sense, addressing customer needs and encouraging repeat purchases. The key is timing; send reminders leading up to when customers are likely to need a new order. 📅✉️

7. Convert Churners Into Loyal Customers

You can’t please all the people all the time.

Some customers will naturally be happier (and more likely to place repeat orders) than others.

However, you can definitely use data to turn would-be churners into loyal customers.

Take a look at the buying behavior of your most loyal customers:

  • What products do they buy?

  • How often do they place orders?

  • When do they make their purchases?

Now, try to instill their behavior in your less loyal customers.

If you know that repeat purchasers typically buy a certain type of product at a specific time of month, be sure to recommend those products (and timings) to potential churners.

Flat Tummy Co. is one brand that has a knack for reminding its customers to buy again by linking product replenishment to a particular pain point: getting a flat stomach.

With a bit of luck, setting customers on the “right track” will encourage more customers to become loyal repeat buyers.

8. Keep Your Brand At Front Of Mind With Engaging Content

You can't keep telling your customers to buy all the time. It might work for a bit, but eventually, they'll get tired of it. This could make them stop reading your emails, visiting your website, or buying from you altogether. 

To avoid this, mix things up by sharing interesting content without always asking them to buy something. Give them a break from constant sales messages. 🛑📧

For instance, try sharing:

  • Style guides

  • Tips on how to make better use of your product

  • News, features, or opinion pieces that are relevant to your product category

  • Updates on your corporate social responsibility efforts

Obviously, you don’t want to overwhelm your audience with constant attempts to “engage” them.

But if you’re not always demanding some sort of action from your customers, you’re less likely to exhaust or annoy them, while still keeping your brand at front of mind when they’re next ready to buy.

9. Promote Updated Products

Feature a flagship product 🌟, such as an electric toothbrush 🦷, and periodically enhance it. While customers won't buy weekly, an upgraded version with improved features (faster, quieter, longer-lasting) can entice previous buyers to upgrade.

Stay connected with your audience by keeping them in the loop about product developments. Don't just send a mass email when the latest model drops; build anticipation by teasing features and benefits before the launch. Engage your customers in the excitement, and follow up with a full launch announcement. 🚀✨

Wishing you a happy Thanksgiving and a successful start to the busy holiday season! ✨🔥

📰 Top Reads - Real-time news right for you. 📰

Sephora Announces Black-Owned Beauty Grant ~ Business of Fashion, 20th Noveber 2023 

Rare Macallan 1926 whisky sells for £2.2m ~ The Business Spirit, 20th Noveber 2023 

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