In Q4 2023, several key trends emerged in marketing and consumer shopping habits:

1. Bargain Hunting and Price Sensitivity: Consumers became increasingly focused on finding deals and discounts due to ongoing economic challenges and inflation. Many opted for off-brand products and sought out “dupes” of popular items to stretch their budgets further. This was especially pronounced during the holiday season, where shoppers were more cautious about spending and often delayed purchases in anticipation of better deals closer to the holidays.

OUR TOP TIP TO MAKE USE OF THIS: Communicate your deals earlier, consider offering fair pricing, and always offer discounts from October to December to avoid consumers waiting for Black Friday and competing for spending. Or better still, offer consumers who sign up to your database a guarantee discount for the whole Christmas period – you get their loyalty and data!

2. Shift Toward Local and Secondhand Shopping: There was a notable increase in consumers supporting small, local businesses and purchasing secondhand goods, particularly in the fashion industry. This trend reflects both a desire to support local economies and an interest in sustainable shopping practices – just look at how vinted grew this year.

OUR TOP TIP TO MAKE USE OF THIS: Consider offering vouchers for second-hand clothes donations, offer ‘defected items’ or ‘returned items’ at a discount or use your outlet to sell old stock for less.

3. Evolving Omnichannel Strategies: Retailers needed to enhance both online and in-store experiences, as consumers increasingly relied on a mix of digital and physical channels for shopping. Social media, particularly platforms like TikTok, played a significant role in product discovery, especially among younger generations

OUR TOP TIP TO MAKE USE OF THIS: Consumers spend more instore – think about inviting people to events instore, consider late-night shopping, free click and collect, free personal shopping or gift selection services instore or provide drinks and nibbles instore on key shopping dates. Only online – think about personalisation to create that instore experience, online.

4. Tighter Return Policies: Many retailers adjusted their return policies to cut costs, transferring more responsibility for returns to customers. While this approach helped reduce short-term expenses, it also risked long-term customer dissatisfaction

OUR TOP TIP TO MAKE USE OF THIS: Sometimes, consumers return items because photography, sizing or quality is paused. Charging to return can mean you lose that consumer. Address the issue for high returns first before charging everyone for returning. Consider tactics like ‘the model wears this size’, incentivising customer reviews of the product, using videos of items over images, allowing one free return per month and finding out why they are returning and using this data to reduce returns in the future.

The 2023 Black Friday and Cyber Monday events revealed several important trends and lessons for marketers and retailers:

1. E-Commerce Dominance with In-Store Resurgence: Online sales continued to dominate, but in-store shopping had a noticeable resurgence. Consumers showed a preference for omnichannel experiences, combining online research with in-store purchases. Retailers who offered seamless integration between their online and physical stores, such as buy-online-pickup-in-store, saw significant success.

2. Extended Sales Periods: The traditional Black Friday and Cyber Monday have evolved into extended shopping events that span weeks. Many retailers began their promotions early in November to capture early shoppers and continued them well beyond Cyber Monday. This trend suggests that consumers are planning and spreading out their holiday shopping, rather than concentrating on the specific days. Don’t forget the importance of September and October pay day plus the first Monday in December – that is always a strong converter.

3. Value and Discounts are Key: Shoppers were highly focused on finding the best deals, driven by economic pressures and inflation. Retailers that offered deep discounts and clear value propositions saw higher engagement and sales. This indicates that price sensitivity is more critical than ever, and competitive pricing remains a key driver of consumer behaviour.

4. Rise of Mobile Shopping: Mobile devices played a crucial role, with a significant portion of sales coming from smartphones. Retailers who optimized their mobile shopping experience, including fast load times and easy navigation, benefited from this shift. This trend underscores the importance of mobile-first strategies for future sales events.

5. Social Media and Influencer Impact: Social media platforms, especially TikTok and Instagram, influenced consumer purchasing decisions significantly during Black Friday and Cyber Monday. Influencers and social media campaigns were key in driving awareness and traffic to sales, particularly among younger consumers. Retailers leveraging social media effectively captured more attention and sales – don’t forget, with our InboxExtend product, you can retarget engagers on email with social or vice versa. Plus, our clever creative formats can drop your social posts into email.

6. Supply Chain and Inventory Management: Managing inventory and ensuring timely delivery were critical, especially given the ongoing supply chain challenges. Retailers who communicated clearly about stock levels and delivery timelines managed customer expectations better and avoided potential dissatisfaction. Communicate your last delivery dates early!

To adapt your advertising and marketing spend for the upcoming year in response to likely trends, consider the following strategies:

1. Prioritize Value-Driven Campaigns

Given consumers’ increasing price sensitivity, especially during economic uncertainty, focus on value-driven messaging in your campaigns. Emphasize discounts, deals, and the tangible benefits of your products or services. This can help attract bargain hunters and those looking to maximize their spending. Use basket builders over discounts and value adds (like free samples) to maintain LTV.
– Recommendation: Allocate a significant portion of your budget towards promotions and discounts, ensuring that your offers stand out in a crowded market. Think beyond 20% off and consider other types of promotions in your toolkit.

 2. Enhance Omnichannel Experiences

With the resurgence of in-store shopping alongside continued e-commerce growth, offering a seamless omnichannel experience is crucial. Invest in technologies that bridge online and offline shopping, such as BOPIS (Buy Online, Pick Up In-Store) and our InboxExtend product, which allows you to target a consumer across all.

4. Leverage Social Media and Influencers

Social media platforms, particularly TikTok and Instagram, are becoming critical for product discovery, especially among younger audiences. Collaborate with influencers who align with your brand to reach and engage these consumers.
Recommendation: Remember that a consumer is loyal to an influencer and not necessarily your brand; consider how you move the consumer from being a follower of an influencer to being a follower of you, e.g., host influencer content on your website and email channels, and have curated shops/feeds on your site rather than platforms like LTK.

 5. Adapt to Extended Shopping Periods

With consumers spreading out their shopping over a longer period, it’s important to maintain visibility throughout the extended holiday season and beyond. Consider running promotions before and after traditional peak shopping days like Black Friday and Cyber Monday.
Recommendation: Spread your ad spend across a longer timeframe rather than concentrating it on a few key dates, ensuring consistent engagement with your audience

 6. Focus on First-Party Data and Personalization

Data Privacy and Targeting:As third-party cookies phase out and data privacy becomes more critical, invest in collecting and leveraging first-party data. This data will be key for personalized marketing efforts and maintaining effective targeting.
Recommendation: Use our first-party data builder to grow your database and double your ROI on ad spend.

 7. Sustainability and Ethical Marketing
Sustainability is increasingly important to consumers, particularly among younger generations. In your marketing, highlight your brand’s commitment to sustainability and ethical practices.

By aligning your advertising and marketing spend with these strategies, you can better navigate the evolving consumer landscape and maximize your ROI in the coming year.