A Guide To Holiday Season Marketing For 2023

Introduction

The 2023 holiday season is shaping up to be a mixed (gift) bag of discounts, savvy spending, and shifts in consumer behavior. As the retail industry contends with last year's lingering economic shadows, consumers in the US and Europe are grappling with the challenges of inflation and the climbing costs of everyday life. European consumers have become vigilant bargain hunters, downtrading and spending cautiously to stretch their wallets. Meanwhile, in the US, consumers are displaying mixed messages when it comes to their perspective on the economy and readiness to splurge.

As the thrifty consumer seems here to stay, 2023's holiday season marketing will be built around efforts by brands to differentiate their offerings and meet consumer priorities for value and convenience. In this challenging environment, it’s more critical than ever for brands to strengthen their connection with customers in the face of some difficult headwinds. To help navigate through the upcoming holiday marketing period, we’ve put together some key insights into the trends that will impact consumer behavior and offer up some holiday marketing strategies to help empower brands during The Most Wonderful Time Of The Year!

Holiday Retail Trends To Watch Out For In 2023

As we move further into 2023, the rollercoaster of consumer behavior continues, with shoppers embracing budget-friendly brands and hunting for deals while still indulging in occasional spending sprees.

On a brighter note, McKinsey reports that economic optimism has been on the rise since last summer as inflation eased, with 46% of Gen Z and 27% of all consumers expressing a more positive outlook on the economy.

As we emerge from a tumultuous 2022, European retailers are bracing for another bumpy ride in 2023, grappling with the steepest rise in business costs in recent memory. Price hikes remain the top concern for 58% of European consumers, who are already adapting their shopping habits by exploring private-label brands, shifting to discount stores, or pivoting to online shopping. There's a silver lining, though: inflation is anticipated to ease throughout 2023, potentially sparking a boost in consumer confidence.

As we look ahead to 2023, despite glimmers of optimism, discounts will still reign supreme in the holiday retail landscape. With consumers showing increased price sensitivity compared to pre-pandemic years, a relentless quest for value will continue to be a key trend for their spending.

With a staggering 81% of all consumers now choosing to research and browse across multiple channels before making their purchases, we can expect the 2023 holiday retail period to adapt to an increasingly omnichannel approach throughout the entire customer buying journey. The demand for convenient ordering and fulfillment models is here to stay, as consumers expect a more cohesive shopping experience across all digital and physical touchpoints.

1

Deck The Halls With Data: Adopt A Seasonal Full-Funnel Approach…. Early!

The NRF and Gartner highlight that 57% of consumers seek discounts ahead of major holiday retail events, while 16% shop for holiday gifts all year. To capture these eager deal-seekers, brands must kickstart data-driven holiday marketing campaign ideas earlier than ever to set themselves apart from the crowd. Key steps to achieve this include:

Start Promotions Early and Prioritize Zero/First-Party Data:

Boost visibility and gather data by launching early holiday promotions, creating engaging social content linked to owned platforms, and initiating email and SMS-based holiday marketing campaigns. In fact, when it comes to driving sales, email beats paid social and display advertising by up to 128% in the U.K., while SMS has a whopping 98% open rate, making them vital marketing channels for engaging customers and collecting zero and first-party data. Holiday promotion ideas include coupons, rebate offers, giveaways, and reward-based games to encourage voluntary opt-ins. 

Aperol Spritz UK’s ‘Merry Spritzmas Cards’

Aiming to inspire impromptu gatherings beyond the holiday season, Aperol Spritz launched a unique 2022 UK campaign featuring three eye-catching orange postcards. Priced at £5, each card offered a complimentary pair of Aperol Spritz at any All Bar One in England and Wales for both sender and recipient (limited time!). This promotion was not only a great deal for festive shoppers but also a clever strategy to collect valuable customer data on both parties.

Cheetos Sweepstakes Program

To boost sales, engagement, and data collection for Cheetos during the holidays, Propac collaborated with Snipp and integrated a SnippWidget into their promotional website, enabling effortless register and photo upload of Cheetos purchases. Valid receipt submissions granted entry into a sweepstake with prizes, including a $6,000 Airbnb gift card and a $9,000 VISA gift card.

Get Granular and Segment Strategically Along the Way:

As the big sales roll on, expand customer datasets and pinpoint preferred channels, shopping days, and times for shoppers to enhance holiday marketing campaigns and channel strategies. Utilize CRM and marketing automation tools to dynamically segment customers to better understand and target them in future holiday promotions.

Coors Light’s Novelty Polish

Coors Light introduced ‘Chill Polish’ over the 2022 holidays, a branded color-changing nail polish that shifts from slate gray to Coors Light Blue at specific temperatures, mirroring the iconic mountains on their cans. As a novelty, holiday-specific product, it engaged women and an increasing number of young men, enabling Coors to broaden its customer base and effectively segment and target this demographic in future campaigns.

Cadbury UK’S Secret Santa

Cadbury celebrated the 2022 winter holidays with a Secret Santa Postal Service, enabling 120,000 people across the UK to send free Cadbury chocolates to loved ones. Through the gamified campaign, participants had to find campaign posters, scan QR codes, and select their desired chocolate bar to share. The campaign not only spread holiday cheer but also collected valuable data on givers, recipients, locations, and product preferences. Brilliant!

Personalize Communications To Connect and Convert:

Brands and retailers can utilize their collected customer data to ease holiday shopping stress with tailor-made promotions. By utilizing advanced analytics and generative AI, highly-targeted recommendations that tap into individual purchase histories, and current basket selections can be offered to consumers. A Forrester survey indicates that almost two-thirds of US adults value such personalized product suggestions from companies.

Optimize for Mobile:

Most customers are not only browsing, but checking out on their phones, too. Mobile accounted for 60% of 2022’s Black Friday sales in the US, and with mobile becoming the preferred shopping channel for consumers, a mobile-first approach is now more critical than ever.

Enable Social Shopping:

43% of Americans believe buying items online straight from social media is convenient and half of Gen Zers choose to buy via social. Instagram is the most popular, with 22% purchasing on the platform, but TikTok is the primary reason social commerce is expected to grow by 29.8% in 2023. Make a holiday catalog shippable via social to tap into this trend.

Consider Shoppable Livestreaming:

2023 can expect to see an uptick in shoppable live streaming, where audiences can purchase directly from a live video feed.

Bloomingdale’s Livestream

Bloomingdale’s dipped its toe into livestream commerce during the 2022 holiday season, with a six-week, 10-episode holiday shopping series. The events focused on gift-giving and styling during the holiday season, offering real-time shoppable content and virtual fashion and shopping advice from host-sellers.

Live shopping via NYC holiday window displays

Live commerce company TalkShopLive deployed live-shopping technology in several retail windows throughout New York City during the 2022 holiday season, with shows featuring celebrities like Gloria Estefan, Dolly Parton, and Drew Barrymore promoting various products. During the shows, consumers could scan QR codes enabling them to purchase featured products.

Tap Digital OOH:

Brands are increasingly investing in programmatic, contextual DOOH campaigns because they can be quickly deployed and scaled up or down based on holiday season marketing needs. Audiences can easily be targeted on DOOH screens in a variety of environments and offered QR codes, URLs, or other call-to-action strategies to drive engagement on other channels.

H&M UK’s OOH Advent Calendar

H&M UK unveiled a giant 2022 Christmas Advent Calendar in Shoreditch as part of its 'Unwrap the Magic' campaign. A key element was a DOOH mural artwork from visual artist Maddalena Carrai, as part of a much broader OOH holiday marketing campaign including additional murals, banner ads with special production techniques, and DOOH advertising in retail locations across the UK.

Add Sparkle With Holiday-themed Activations:

The sights and sounds of the holiday season are like no other, and shoppers flock to retail outlets to be transported and wowed with lavish displays and activations. A prime example is Harrods’ annual ‘Christmas World’ which provides holiday buyers a festive wonderland to walk within, with in-store events and opulent window displays.

Printemps’ Holiday ‘Circus’ Activation

French department store Printemp created an extravagant holiday marketing campaign in 2022 with the theme, "This Christmas, Printemps is putting on a circus." A branded circus parade journeyed across France, making stops at each Printemps location, which were transformed into spectacular theaters for the event. Window displays, spinning Ferris wheels, awe-inspiring trapeze performances, and festive decorations adorned the department stores, creating an unforgettable experience for all.

Coca-Cola's Christmas Truck Tour in Germany

Coca-Cola's red trucks traditionally mark the holiday season in many countries. In 2022 the trucks made eight stops across Germany, bringing festive cheer with a glowing Christmas tree and a walk-in snow globe. Experiences included a VR sleigh ride with Santa Claus and personalized Coke bottles, and as part of the immersion, Coca-Cola gave away the chance to spend the night in a converted Christmas truck, where winners could experience a magical weekend with plenty of culinary surprises.

Embrace Experiential Retail For The Season:

Retailers are embracing the movement toward more ‘Phygital’ retail settings, marrying physical spaces with digital elements like AR and VR to surprise and delight customers. For online shopping, these tools can enable customers to visualize holiday products in their spaces, virtually try on clothes, or even experiment with makeup, potentially helping to reduce return rates.

H&M US’s ‘Concept Space’ Store

Last holiday season in Brooklyn, NY, H&M US launched a ‘concept space’ unveiling a new "chapter" every four to 12 weeks with updated fashion, visuals, and events. Customers also experienced the latest in retail technology for an easy, interactive shopping experience. Using RFID, store employees had full visibility of inventory and size options in real-time, and shoppers could enjoy ‘smart’ mirrors in fitting rooms that provided personalized product or styling recommendations.

Venture Into The Metaverse:

The metaverse provides retailers with unique holiday season marketing opportunities to deliver memorable experiences and personalized engagement for tech-savvy shoppers. Luxury brands are exploring these new platforms to allow customers to “live the brand,” and build loyal communities with the use of Web3 technology and NFTs.

Lacoste UK’s Superheroes AR/NFT Campaign

Lacoste’s innovative holiday marketing campaign in 2022 featured a two-day experiential pop-up with AR elements and a big-screen-linked photobooth in London. Upon signing up, players received two NFTs and a virtual wallet, allowing them to embark on an AR treasure hunt. Discovering NFT drops unlocked interactive AR experiences linked to prizes like Lacoste Polo shirts, fragrance samples, gift hampers, and more. Nationwide NFT availability allowed people across the UK to participate in the treasure hunt and receive a Christmas gift from Lacoste. The AR game could also be accessed through QR codes on digital screens in major UK cities.

Macy’s Virtual Thanksgiving Day Parade

Macy’s has leaned heavily on Web3 and the metaverse in recent years to draw in younger consumers, and last Thanksgiving debuted a virtual version of its annual Thanksgiving Day Parade. Fans had the opportunity to vote on a Macy’s Parade Balloon NFT, which will be turned into a physical balloon at this year’s event. Additionally, users can mint a virtual gallery pass for $50 to gain access to an OnCyber NFT gallery space, all proceeds from which would be donated to Big Brothers Big Sisters of America.

Use Smart Inventory Management:

During high-volume holiday retail periods, accuracy and speed are vital when it comes to restocking inventory to keep up with sales. AI is increasingly being plugged into ordering systems to automatically analyze sales data during peak shopping moments to adjust for increased demand, and to identify shortages to help keep aisles stocked.

Facilitate One-click and Buy Now Pay Later (BNPL) Payments:

One-click online payments and BNPL options are increasingly becoming the norm, as BNPL services saw a 17% increase YoY from October to December in 2022, and more than a third of Cyber Weekend shoppers indicated they would use BNPL to finance their holiday shopping. The introduction of Apple Pay Later is likely to expand the adoption of BNPL in physical retail.

Accommodate Buy-Online-Pick-Up-In-Store (BOPIS) fulfillment:

BOPIS is becoming increasingly popular among consumers and has been adopted by 85% of US retailers. In the final days leading up to Christmas, U.S. companies offering BOPIS grew their online sales nearly seven times faster than those without this fulfillment option.

Make the Return Process Painless:

The continued dominance of online shopping means retailers should prepare for a wave of January returns-- especially among gift buyers. According to the NRF, retailers expect 17.8 % of merchandise sold during the holiday retail season to be returned. Interestingly enough, 92 % of consumers will buy again from a brand if their returns process is easy, so making the return process seamless is crucial for keeping customers on board.

This holiday marketing season, brands should reward loyalty strategically, in some of the following ways:

Provide Early Access To VIP Members:

Allowing members special access to sales and curated experiences help convince them to make purchases ahead of the holidays. Members will feel appreciated because they will be able to get a good deal before everyone else.

Offer Exclusive, Member-Only Deals:

Lure in membership to loyalty programs via exclusive sales that require a customer to be/become a loyalty member. Ace Hardware, Dick’s Sporting Goods, Kohl’s, LEGO, and PetSmart, for example, offered exclusive discounts or bonus-point promotions for their loyalty members last year (e.g., double points on purchases). Others, including Nike, offered free shipping on all orders but only for their loyalty members.

Marks & Spencer’s ‘12 Days of Sparks’

The retailer offered this special promotion for the 2022 holiday season to encourage customers to create a Sparks account. Every day that members logged into the loyalty platform, they would get a new reward, and every day would offer a new surprise!

Make Gift/Cash Cards Accessible For Points:

Gift cards can serve as a means of supporting cash-strapped consumers looking to make the most of loyalty points or rewards. By linking gift cards to loyalty points, customers can save
on essential items like groceries and fuel. Among young Europeans, half prefer money or gift cards for the holidays – a sentiment particularly strong in Germany. To connect with these consumers, brands should prioritize promoting gift cards, aligning with young shoppers' need for pragmatic support during crunch times.

Tesco Clubcard

Grocery chain Tesco catered to customer needs with its Clubcard loyalty program during the last holiday season. Members could save vouchers earned throughout the year, collecting one point per £1 spent in-store and online, and one point per £2 on fuel. Members could also boost their balance by converting cash into vouchers with a Tesco bonus. In November, just before the festive season, account holders received their vouchers, which could be spent on groceries, fuel, gifts, or redeemed with Clubcard Rewards partners for family days out, spa experiences, or more, as vouchers were worth up to three times more through Clubcard Rewards.

Gamify With Giveaways And Sweepstakes:

Gamification is a low-cost way to engage members and generate excitement for upcoming sales events and can run the gamut from hashtag contests to festive quizzes to purchase-based sweepstakes.

Mall of America Holiday Giveaway

Mall of America wanted to continue its annual Holiday campaign to drive basket size and mall foot traffic during the biggest season of the year. MOA leveraged Snipp's receipt validation technology (implemented onto their site via a widget) to power their Holiday 2022 program rewards, where consumers who purchased $250 at any store(s) at MOA could submit a photo of their receipt to earn prizes.

Experiential Rewards:

The homebody economy is softening in 2023, and people are heading out more to eat in restaurants and spend on entertainment outside the home. Loyalty marketers can leverage this trend by offering reward experiences such as concert tickets, travel packages, or gift certificates for spa treatments, enhancing the emotional connection associated with gift-giving.

Campaign with a Purpose:

By championing charitable endeavors as part of the holiday season, brands can encourage shoppers to feel positive about their purchases – every little bit helps!

Brookfield Properties Holiday Charity

Brookfield Properties partnered with Feeding America to empower mall guests in making a difference through a holiday charity campaign. With Snipp's help, Brookfield launched a program where every customer spending $200 at participating stores and restaurants triggered a $20 donation to Feeding America. Guests simply uploaded their receipts online, and Brookfield made the one-time contribution on their behalf.

Marks & Spencer’s ‘Gifts that Give’

M&S’s holiday campaign had the retailer partnering with Neighbourly, a community organization it’s been working with since 2015, to donate 1 million pounds to 1,000 community groups and good causes. At the heart of the campaign was a TV spot set to Harry Styles’ ‘Treat People with Kindness’ featuring real-life UK-wide community groups who will benefit from M&S donations, from Hertfordshire-based bikers to brass bands from Bolton.

LEGO #BuildToGive

Danish brand Lego launched its sixth charitable initiative in 2022, through which families are encouraged to build a gift from LEGO® bricks and share their creations on social media – every entry would be turned into a gift for another child in need, including children in hospitals, children’s homes, or vulnerable communities globally. More than 4.5 million LEGO sets have been donated through the LEGO Group’s #BuildToGive initiative since it began in 2016, with the Company set to make its biggest donation yet of 2 million sets during 2022.

Foster Diversity and Inclusivity:

Major brands are adapting to mounting public pressure to be more inclusive and diverse -- not just in their holiday marketing campaigns, but in their operations.

Ritz’s Celebration of Diverse Holidays

Snack brand Ritz unveiled a multi-channel holiday marketing campaign celebrating the diversity of holiday celebrations and cuisines, tied into the brand’s “A Taste of Welcome” platform which demonstrates inclusivity and commonality through culinary traditions. Ritz also partnered with Bon Appetit to create a cookbook that features stories and recipes from diverse cultures, along with a three-part video series that highlights three immigrant families and their holiday traditions.

Starbucks’ Secular Cups

Starbucks is moving away from putting Christmas at the center of its holiday campaigns by embracing the more secular concept of gifting as the theme. Along with the usual red and green cups, the chain debuted cups last year in a wintry lilac color with a blank space meant to resemble a gift tag.

Emphasize Sustainability:

Environmental concerns increasingly shape consumer choices, even during the holidays. The 2022 Deloitte Holiday Survey reveals that 39% of gift-givers plan to select sustainable presents, while 41% favor retailers with eco-friendly practices. As the holiday retail season, known as 'The Most Wasteful Time of The Year,' sees a surge in packaging waste, especially from online shopping, brands can set themselves apart by providing environmentally conscious packaging solutions and contributing to waste reduction, and also by promoting greening efforts from customers.

Body Shop's Festive Advent Calendars

Body Shop’s annual calendars showcase their Community Fair Trade partners by featuring delightful goodies and sharing inspiring stories of women and girls from these communities. Beyond highlighting their positive impact, the calendars boast reusable and recyclable products, ensuring a sustainable and eco-friendly holiday treat.

SSE Airtricity Ireland's "12 Green Rewards of Christmas"

In response to the recent energy crisis, Ireland’s leading renewable energy provider shifted the focus of its annual holiday marketing campaign, "12 Rewards of Christmas," to focus on sustainability in 2022. Aiming to reward and educate, all prizes featured a green aspect, such as eco-friendly hotel stays, bill discounts, and even solar panel installation. To participate, customers had to answer questions on green energy or sustainability instead of the usual click-to-enter process, fostering an engaging and educating experience.

Conclusion

As we enter the 2023 holiday season, businesses face the challenges of rising costs, margin pressures, and consumer downtrading. In response, effective holiday marketing strategies become crucial for not just boosting short-term sales, but also nurturing customer loyalty that drives long-term success far beyond 2023. To stay ahead in this competitive space, retailers and brands need to captivate customers with seamless shopping experiences that are intuitive, streamlined, and swift. The most promising opportunities lie in harmoniously blending physical and digital channels, crafting AI and data-driven customer interactions, and fostering brand loyalty through personalized and interconnected customer journeys. By embracing these strategies, brands, and retailers can adeptly sail through the ever-changing holiday season marketing landscape and 'sleigh' the competition!

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• https://www.forbes.com/sites/jefffromm/2022/07/20/as-gen-zs-buying-power-grows-businesses-must-adapt-their-marketing/?sh=43d19dcf2533
• https://www.thedrum.com/opinion/2022/11/03/black-friday-2022-shift-planet-people
• https://fashionunited.uk/news/fashion/christmas-2022-round-up-of-the-best-campaigns/2022111666272
• https://www.lego.com/en-no/aboutus/news/2022/november/build-a-gift-to-give-a-gift-with-the-lego-group?locale=en-no