With all due respect to Alec Baldwin’s legendary “Always Be Closing” monologue from the film Glengarry Glen Ross, the ABC’s of holiday shopping have improved this year in response to the unique combination of economic conditions currently affecting consumers and businesses alike. .
Just as tight-fisted shoppers and households will have to make deeply personal spending decisions when it comes to what they will buy (and won’t buy) this year and how will they pay for it in the middle decrease in available creditretailers are also moving with the times in an effort to meet customers not only where they are, but also how they feel.
while a an unprecedented flurry of promotional activity has flooded the space For weeks, three new industry data from PYMNTS research released last week have shown how retailers and brands can increase their odds of turning browsers into shoppers in this very challenging year through a trio of trends. which we have labeled as A , B and C.
A is for ASP
Even when the economy is booming and consumers are eager to splurge, the last six weeks of the year are packed with sales and promotions and one-day special events. But this year, literally every brand from Amazon to Zara is doing everything they can to tempt shoppers and get the holidays started.
But to keep the “A” in ASP (Average Selling Price) as high as possible, retailers are increasingly using AI-powered price optimization solutions to help zero in on the right price at the right time.
“Smart retailers with the best analytics need to focus heavily on improving their price perception through winning promotions, well-timed markdowns, and a strong offering of high-value private label products.” Matt Pavich saidsenior director of retail innovation at Revionicsan Atlanta-based machine learning solutions provider that uses global data to drive pricing, promotion and markdown decisions that was acquired by Aptos two years ago.
“Retailers are going to have to absolutely focus on their price perception and provide consumers with great value and deals on the items that matter most to them across all channels,” he added, noting the need for surgical precision to meet consumer demands. budget conscious consumers. .
B is for BNPL
Buy now, pay later may be the “gift that keeps on giving” of the season to quote cousin eddie from the Christmas classic “Christmas Vacation”.
While Eddie was referring to a subscription to the Jelly of the Month Club, new research from PYMNTS shows that the honor can now go to the continued acceptance and expansion of BNPL, the payment method that continues to outperform and steal share from other payment methods. financing by connecting with more retailers and merchants to enable an easier shopping experience for more products.
While not without its challenges, BNPL growth and demand continue to dominate the narrative, found the new report from PYMNTS and Splitit, “Buy Now, Pay Later: The Trader’s Guide to Growing BNPL Revenues.” , which includes statistics showing more than half of retailers increased their conversion rates and increased brand awareness when they offered customers easy BNPL plans.
Add the upsell effect you can generate by encouraging customers to switch to premium products, and the benefits of BNPL for retailers this season seem clear.
C is Card credentials
PYMNTS has already established the importance of the payment experience, with findings showing 90% of customersany one of a dozen points along the path to checkout can not only trip up a transaction, but also put a customer off for good.
Delving deeper into the subject, the recently published report, “How We Pay Digitally: Editing Stored Credentials”, a collaboration between PYMNTS and Amazon Web Services that surveyed 2,102 US consumers, found that a key area of conversion skyrocketed when merchants took one particular action: convincing consumers to store their payment credentials.
As the report found, while 56% of all consumers already prefer the speed, convenience, and time saved by not having to re-enter a 16-digit credit or debit card number and ancillary information that accompanies him, almost half still expressed concern. about safety
In order to convince these credential hesitants to do so, and in turn give retailers the benefit of higher conversion rates and frequency, the study found that discounts of just 5 to 10 % could significantly change the need for consumers to keep their payment information on file, and as many as 84% of certain tech-oriented demographics are persuaded to do so with that little push.
While no solution will work for every consumer in every market environment, at a time when every sale matters and every little bit helps, the ABC could make all the difference this year for peak retail season.
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