Cardlytics has released a new report revealing key consumer shopping trends for the upcoming holiday season.
The report incorporates transaction history data from millions of U.S. consumers to provide retailers with unique insights as they prepare for the increasingly competitive selling season.
The extensive study found that American consumers are procrastinating more than ever with their holiday shopping. In the final week before Christmas 2014, consumers spent 12.2 percent more overall and 26.6 percent more online when compared to the same week in 2013.
As more U.S. holiday shoppers take advantage of reliable shipping and last-minute sales, Black Friday spending is shrinking. Black Friday 2014 dropped in share of holiday spend by 0.8 percentage points whereas the week before Christmas increased by 2.0 percentage points.
Using insights drawn from bank transaction data, Cardlytics segments shoppers into four distinct profiles for retailers to take special note of:
- Early Birds – The smallest segment of holiday shoppers, Early Birds make up 17 percent, shopping from October 30 to November 19, sacrificing deals for a greater degree of efficiency. The Early Birds generally spend the least every year, but have the highest average individual transaction size at $74.76.
- Black Friday Deal Hunters – Making up the second largest segment, Black Friday Deal Hunters account for 26 percent of holiday shoppers, as they hunt from November 20 to December 10 and are most willing to splurge on great door buster promotions. With the average transaction reaching $67.95, Black Friday Deal Hunters jump on Black Friday deals and are most easily drawn by attractive promotions.
- Last-Minute Shoppers – The largest holiday shopping segment is the Last-Minute Shoppers, a group of consumers who make up 36 percent of total holiday shoppers and do their gift buying between December 11 and December 31, but spend more than their counterparts by visiting stores more frequently as the holiday deadline looms. Last-Minute Shoppers contribute to 34 percent of overall holiday spending, with an average transaction of $64.34.
- Slow and Steady – Comprised of 21 percent of holiday shoppers, the Slow and Steady consumers shop consistently throughout the season, taking advantage of deals as they arise. As patient comparison shoppers, these consumers are willing to purchase from a wider variety of distinct retailers. With an average transaction size of $58.18, these shoppers hold 26 percent of the yearly spend.
“As more consumers spend their holiday budgets closer to Christmas, the challenge for retailers is to engage shoppers at every opportunity,” said Dani Cushion, Chief Marketing Officer, Cardlytics. “Retailers should plan accordingly and adjust their strategy to offer variety in their deals, specifically targeted to each shopper profile throughout the holiday season.”
Additional insights and actionable takeaways to maximize this year's holiday retail strategy can be found in the full report here.
Source: Cardlytics
