Permission granted by Sezzle
By Sezzle
Source: www.retaildive.com, October 2024
This year’s peak season is shaping up to be one of a kind. From the election to inflation, a number of distinctive factors are coming together to create a never-before-seen retail environment. And with a shorter window between Thanksgiving and Christmas this year, consumers may feel an additional squeeze when it comes to finding cash that’s available to spend.
Predictions for Holiday Season 2024
A new report from Deloitte holds some cautiously optimistic news for this year’s peak season: It indicates that holiday sales are expected to return to pre-pandemic levels for the first time. Consumers are also predicted to spend more than they did last year.
This is especially true for Gen Z shoppers between the ages of 18 and 27, with 40% saying they plan to increase holiday spending this year. Approximately one-third of Millennial shoppers between the ages of 28 and 43 expect to spend more this year as well.
But Deloitte’s data also reveals that these consumers will be more actively comparing their shopping options this year to stretch their hard-earned dollars as far as possible.
The factors they consider when weighing shopping options could include:
- Pricing from retailer to retailer
- Online reviews and ratings
- Availability of promo codes and loyalty programs
- Deals available during sales events
- Availability of flexible purchasing options, such as buy now, pay later (BNPL)
4 Ways to Get Ready for What’s Ahead
What can retailers do this year to stand out from competitors so they’re the top choice among fastidious consumers this holiday season?
1. Begin campaigns early as shoppers start holiday buying
With the pinch of inflation and limited cash flow, some consumers may have no choice but to start buying early. In fact, a small group of U.S. consumers (16%) started their holiday shopping back in June, so it’s never too early to kick off your campaigns. You’ll attract budget-aware shoppers who are mindful of their spending.
When you launch your holiday campaigns early, you may also reduce the risk of losing sales to the competition, with more time to create meaningful touchpoints with customers.
2. Offer more ways for consumers to pay
No two shoppers are alike, and they all have payment preferences. In fact, many will go elsewhere to shop when their preferred method isn’t offered. For example, a 2024 survey by Sezzle and Retail Dive’s studioID found that the availability of BNPL influences where 51% of consumers shop. In that same report, 58% of consumers have wanted to use BNPL to make a purchase in the past, but couldn’t since it wasn’t offered as a payment method.
Another industry survey reveals that 69% of shoppers may simply abandon their online carts when retailers don’t offer their preferred payment methods for checkout.
Offering different payment choices, such as BNPL, can cater to shoppers’ preferences and help them shop in the way that works best for them this holiday season.
“Retailers need to be agnostic when it comes to payment forms,” explains Nancy Eichler, who joined Sezzle as senior vice president of marketing after spending more than a decade in retail sales leadership. “It’s all about accessibility. If you’re not providing accessibility to your products by allowing consumers to shop using the form of payment and the BNPL platform they choose, then that’s a disservice — not only to the consumer but also to you as a retailer. They don’t get to buy products in the ways that work best for them; meanwhile, you miss out on sales.”
3. Deploy more than one BNPL platform to give consumers choices
In many cases, offering a single BNPL platform is no longer enough for consumers. Each platform offers unique perks and benefits, such as flexible financing options or the ability to build credit through reporting to the major bureaus.
In addition, a large majority of consumers (74%) say they’re willing to use more than one BNPL platform.
By offering multiple BNPL options, you can reach a wider group of customers and potentially improve loyalty when these customers recognize that you enable them to make purchases with the platform they prefer and trust. Attracting a wider audience can increase sales and average order value, too.
“Today, people want to see BNPL in all types of locations,” says Eichler. “They want to take it everywhere. There are currently four big credit card companies, and BNPL is set to become just as prolific as those. Consumers expect to be able to use it as easily as they can use their debit or credit cards.”
4. Leverage technology to personalize the shopping experience
Gather and use customer data to personalize your campaigns. Depending on the data you have available, and the capabilities of your systems, you could personalize things like:
- Product and service recommendations
- Offers that align with real-time shopping
- Messages about sales on their favorite products
- Promotions based on preferences and purchase history
- Alerts about soon-to-expire loyalty points or offers
BNPL: A Win for Merchants and Consumers
If you put plans into motion soon, you can be ready for this year’s unique holiday shopping season.
By offering BNPL to holiday shoppers, you connect them with more purchase options that make budgeting and cash flow more manageable during this expensive time of year. And offering more than one BNPL platform option not only makes your products and services available to a larger group, but also gives your company a greater lift in sales.
