Leanplum, which is a multi-channel engagement platform announced the results of a new study that shows consumers are shunning brick-and-mortar stores this holiday season with over 95 percent choosing to buy half or more of their gifts online.
Younger Americans (Millennials and Gen Zs) are on the cutting edge of the online shopping trend and over 16 percent are “only” shopping online this holiday season.
As shopping online and via mobile devices quickly becomes the new normal for consumers, personalized communication becomes even more crucial to brand success. With 80 percent of those responding reporting that they shop on their mobile phones, brands need solutions that enable them to reach their customers at appropriate touchpoints. Brands must successfully connect the right way and at the right time with their customers.
According to the report, “Three-quarters of shoppers find it helpful to receive emails from retailers regarding deals and promotions. Interestingly, 74 percent of those surveyed said they were “excited” to receive notifications from retailers about offers/sales. After receiving a notification from a brand about a deal, almost 70 percent said they would check out the offer and probably purchase the item.
“However, 75 percent of respondents said generic messages from retailers annoy or bother them. Consumers have a preference for when and how they would like to receive messages from retailers. It is imperative retailers communicate with their consumers regularly regarding topics that are useful to them and in the form that they are most comfortable engaging with, to ensure consumer satisfaction and retention.”
“Personalizing customer experience and communication is the cornerstone of everything we do at Afterpay,” said Frazer Adnam, CRM marketing director at Afterpay, a Leanplum customer. “Christmas is a key trading period for Afterpay and the retail sector, so it’s imperative we deliver a world-class personalization experience to our customers and make trading seamless.”
Across every income levels, consumers reported sales as the primary reason they opened notifications from brands and retailers. Surprisingly, even those who earn $150,000 or more annually stated they are most excited to receive push notifications from retailers regarding sales.
The report continues “Gone are the days of coupon clipping, instead consumers prefer to receive discounts and deals from brands via email. In fact, two-thirds of respondents reported they open emails from brands they believed contained product deals or sales.
“When asked about favorite shopping apps, the Amazon app dominated with 82 percent of the vote. Walmart was a very distant second with five percent of the vote, followed by second-hand marketplaces (eBay/Poshmark/ThredUp) at four percent and Target at three percent.
“Consumers had opinions about how brands communicate with them as well. Sweden’s H&M handily beat out other brands with 19 percent of the vote. Urban Outfitters (12 percent), Asos (four percent), Zara (four percent) and Brandy Melville (two percent) rounded out the top five best brands at communicating with consumers.”
“As shopping habits shift online and away from brick-and-mortar stores, brands must adjust to communicate with their customers via mobile,” said Momchil Kyurkchiev, CEO and co-founder of Leanplum. “Through our research, we see that it’s important that brands provide a personalized experience for each customer. At Leanplum, our core mission is to enable our customers to consistently deliver relevant, timely and personalized communications to their end users.”
The report also offered the following statistics:
- Nearly half (46 percent) of respondents said that they’ve bought a product because it was shown in an app or sent in an email
- Over half (52 percent) of Millennials and Gen Zs will shop on Cyber Monday and Black Friday compared to just over a third of Gen Xers and Baby Boomers
- About two-thirds of respondents that make $150,000 or more annually plan to do most of their holiday shopping online this year
Download the complete survey report for additional tips and insights.
Kevin Price, who is Editor at Large of The Times USA — and host of the nationally syndicated Price of Business show asked friends of the program their thoughts on this topic. It was interesting to see how big the move is towards online for every demographic:
Mary Ann Faremouth of Texas wrote “This article tugs at my heartstrings! I am of the “Boomer” generation where Xmas was all about tradition! By that I mean we saved up our money to go to our favorite stores like J.L. Hudson’s, Jacobson’s, etc., in MI and bought special gifts for the family. Now, I am one of those that does buy online, but I do miss the tradition. And also, with all of the store closings that we read about lately, it saddens my heart. But I am a very busy person and online is so much more convenient. I do miss the HUMAN element, but I also know the only constant is change! I live in Houston and I hate to admit the Amazon delivery guy knows me by my first name!” Faremouth is a regular on the Price of Business show.
Debbie Shepherd Campagna of Michigan wrote “All my life I’ve enjoyed every second of choosing the wrapping paper, ribbons and name tags and then matching them to each present, reflecting the personality of the receiver. Online shopping is seductive because it is convenient, fast and you can get most anything you want! The sales may be huge, but it will never take the place of the cookies, the wrapping, the careful tufts of color in layers of tissue paper, the smell of fresh tape, the placement of bows, the heart of Christmas: Love”
Wendy S McClellan of West Virginia wrote “I usually do a good third of my shopping online. I still prefer to go to the stores and actually see and touch the offerings. I tend to shop between thanksgiving and Christmas. What I don’t enjoy about shopping in person is the parking. But once I’m there it’s fun for me. I use amazon for the rest of the year. Sometimes I take advantage of online offers. More and more often I am unsubscribing from stores sending me sales flyers. It’s just too much.’
Carla Brannon Economos of Texas wrote “I do all my shopping online! I despise crowded malls and people rushing around frantic pushing through crowds and knocking people around. Also, it’s very difficult to find parking. I prefer to spend my traditional holiday festivities looking at neighborhood Christmas lights sipping hot coco, watching traditional holiday movies and enjoy wrapping presents with all the fancy paper and accessories! Peace, Love and Joy to all.”
