As small business owners gear up for the pivotal Black Friday-Cyber Monday (BFCM) season, understanding the shifting trends of consumer behavior is essential. With recent data from a survey of 12,000 consumers and 4,800+ businesses spanning continents, we dive into what this season holds for retailers.
1. The Age of AI in Shopping A substantial 69% of consumers believe AI will simplify their quest to discover new brands. This sentiment is stronger among high-earning individuals. Importantly, Shopify’s recent initiative, shop.ai, exemplifies how AI aids consumers. As Miqdad Jaffer, Director of Product at Shopify, points out, integrating AI across platforms can indeed simplify business complexities.
2. Technological Advancements Seal Customer Loyalty Businesses leveraging technology in their shopping experiences find favor among consumers. Data indicates that 39% are inclined to buy from such brands, with 1 in 5 claiming brand loyalty. Particularly, consumers planning to splurge above $1,200 with this BFCM are twice as likely to employ emerging tech tools like spatial commerce, chatbots, and AR/VR shopping experiences.
3. The Lure of Personal Touch in Purchases Consumers are veering towards smaller, more meaningful purchases. 78% indicated intentions to make purchases offering everyday satisfaction. Notably, younger age groups (25–44) are especially keen on spending on experiences. Thus, businesses offering customization options stand to gain, catering to this sentiment.
4. The Thrill of a Bargain With 72% of consumers aiming to capitalize on BFCM deals, retailers need to strategize. Given the rising inflation and global cost-of-living surge, 84% of consumers will actively compare prices. While massive discounts might not be viable for all, businesses can employ strategies like product bundling to increase sales.
5. The Boom of Social Shopping Social platforms are transforming from mere product discovery tools to purchasing hubs. 33% of respondents showed a readiness to shop on Instagram, with Facebook and TikTok trailing closely. This trend points towards a future where businesses might witness higher sales volumes from social media than their online stores.
6. The Charm of Physical Stores While digital is rampant, physical stores remain a favorite for product discovery, with 34% of consumers preferring brick-and-mortar experiences over online ones. The pandemic-induced restrictions augmented this desire. While maintaining an independent store may not be feasible for all small businesses, pop-up stores or collaborations with local businesses can be a lucrative alternative.
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7. The Art of Pre-Engagement Businesses can’t underestimate the power of proactive communication. 71% of consumers stressed the significance of brands reaching out with offers ahead of BFCM. This calls for an active engagement strategy using tools like email marketing.
For small businesses navigating the BFCM terrain, aligning with these trends can make a difference. Whether it’s harnessing the power of AI or creating immersive physical shopping experiences, staying abreast of consumer sentiment is paramount. As the holiday season approaches, the challenge lies in marrying innovation with the timeless charm of retail.
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