Author: Annette Malave, SVP/Insights, RAB
With Thanksgiving behind us, it means that the holiday shopping frenzy is just beginning, or is it? If you are following consumer sentiment reports, it is anyone’s guess as to how “frenzied” it will be. Retailers will need to be diligent about product promotions and sales and where they promote them.
A recent article (based on survey responses) from McKinsey & Company examined consumer economic sentiment, holiday shopping plans and retailer considerations. Survey results show that consumers are being selective about what they are purchasing – “trading down” – and buying less expensive alternatives compared to what they had purchased last year. Better prices and promotions are what matters to most consumers with nearly seven out of 10 consumers stating that this is one of their top shopping considerations. Additionally, consumers are less likely to overindulge in gift-giving this season – whether that gift is for others or themselves. According to the McKinsey & Company survey results, only 35% of adults plan on spending big in 2023 – down from 2022 (at 39%).
Similar to other research findings, options matter to consumers. Delivery and payment options created out of necessity during the pandemic have carried over and are expected by consumers. Curbside and same or next day delivery are still important options for consumers – 44% of consumers expect one of these options. While 71% of consumers prefer to use credit cards to pay for holiday gifts, 19% plan on using a “buy now, pay later” plan.
These consumer preferences should be taken into account by retailers when targeting potential shoppers. Local retailers should especially take note appealing to these consumers since 72% of holiday shoppers plan to purchase from small businesses this holiday season, per a Bankrate and YouGov survey. Survey respondents believe that small businesses offer a better experience, service and unique gift ideas. Additionally, they believe that small businesses provide a sense of community.
Promoting options for gift giving and fostering a sense of community are traits behind a medium that can also help drive sales for local retailers during this time. That medium is broadcast radio.
Fifty-one percent of AM/FM radio listeners prefer shopping at local, independent stores. Specialty stores can also benefit from using broadcast radio to target potential shoppers because 45% of radio listeners prefer specialty stores because they believe that employees are knowledgeable about the products sold. Why do radio listeners buy gifts? Sixty-nine percent purchase gifts as a way of expressing gratitude.
Retailers looking for ideas to promote gift ideas and sales might want to consider watches, perfumes or colognes. Radio listeners are 3% more likely than the U.S. population to give either of these as gifts per MRI-Simmons.
It doesn’t matter how you wrap it, broadcast radio delivers traffic and sales for businesses every day.