The uncertainty of the economy is affecting more than just the American consumer's mindset, it's affecting how retailers are reaching out to fickle consumers. This is especially true for online retailers. And, guess what, we win, but you might want to shop early!
According to Shop.org’s eHoliday Study, released on October 22, 2009, conducted by BIGresearch, shoppers will see changes in retail marketing and promotions this holiday season
With an understanding that many of today’s shoppers use Facebook and Twitter regularly, and because these tools are more cost-effective than traditional advertising, 47.1 percent of retailers surveyed will be increasing their use of social media this holiday season. More than half of retailers said they have added or improved their Facebook page (60.3%) and Twitter pages (58.7%) this year, while two-thirds (65.6%) have added or enhanced blogs and RSS feeds. In addition, to provide consumers with an extra incentive to start shopping, one-third of retailers (34.3%) say they will offer holiday deals earlier this year.
The social media sites give the consumer a valuable source of information regarding price comparisons, product reviews and other information to find great gifts at great deals.
In addition, free shipping offers will abound this holiday season:
- 79.4% of online retailers will offer free shipping with conditions sometime during the holiday season
- 57.4% also plan to offer free shipping without conditions
- 35.7% said their budgets for free shipping are higher than last year
- 30.0% said free shipping offers will start earlier than a year ago.
Scott Silverman, Executive Director of Shop.org, says "Retailers... have created promotions and incentives to help Americans save money this holiday season... combining new initiatives with tried-and-true tactics to make their companies stand out."
Finally, online retailers are also compensating for the economy by making operational changes to help them protect their profits. According to the survey, 41.4% of retailers have scaled back on inventory levels and 22.9% have hired fewer people in their stores.
Here's the lowdown based on this study, deals won't be hard to find ... people want the deal because they plan to spend less overall ... inventories are lower ... many are already shopping/comparing ... when the deal is done, it's really done. So Mr./Ms. Gift Giver this is the year of the early bird because you still get the deal and don't lose the gift that someone special really wants. That's my thought, what's yours?
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