When it comes to Christmas and the holiday period, most online retailers know what they need to succeed. Visibility, enticing promotions and excellent customer service are always going to be crucial. 

But what does this actually mean? The key for retailers to truly leverage this period is to understand the changing online consumer. What do they want? How do they think? How do they shop? It’s these insights that help online retailers understand where they should be focusing their e-commerce strategy for Christmas 2019 and beyond.

Searching for discounts has become a national pastime, with Aussies flocking to sales events like never before. What’s particularly relevant is that 65% of respondents say they are more confident they will find a bargain online than they would in-store. (5)

What does this mean for your business? Online shoppers have set the benchmark high, and it’s as much about the thrill as it is about the product itself. But what discount is required to convince online shoppers to add to their basket? Recent research shows that on average, 48% of shoppers would buy immediately if a $100 product was discounted by 25%. (6)  Furthermore, 90% of shoppers would buy a $100 product with a 50% discount. (7) Obviously, the exact threshold for a particular retailer and product will vary based on a range of factors, including availability, the nature of the discount, RRP and product category. It does, however, emphasise that given this is a peak discounting period, you need to make your offer stand out to make it worth your while.

In saying that, don’t think you can just wow your customer with what appears to be a generous discount. Overall, 80% of online shoppers will run a price-check. The most common form of price checking behaviour involves looking at more than one other online retailer (49%). (8)

For many SMBs, keeping up with the bigger players seems out of reach. Yet these holiday strategies are just as accessible for smaller businesses as they are for the big-name brands. Whether you’re a start-up or an industry stalwart, visibility is essential. It should come as no surprise that it’s essential to keep up with your social media presence (both organic and paid reach) as well as other marketing tools such as email marketing. There’s no point having amazing promotions if no one knows about them. Use what’s at your fingertips, for example Afterpay’s dedicated assets such as our ‘BE SMART THIS SILLY SEASON’ Christmas campaign on your site, to show you offer Afterpay.

Influencers are another avenue to get the word out. We’re not talking about ‘celebrity’ influencers who may be out of reach. Micro influencers have 10,000 followers or below and are typically found in niche communities with a tight-knit collection of fans. Even Instagram accounts with between 100 and 1,000 followers can fall into this sub-genre of influencers with some of these labelled as Nano Influencers. Have a look at who is already a customer, you may have a micro influencer amongst your customers already.

Australian online retailers have embraced influencers as a marketing tool with over 86% utilising them in some way. (18) The stats show that at least 32% of online purchases made in a one month period could be directly attributed to influencers, and that furthermore, 53% of followers want their influencers to help them find bargains. (19) So, when you’re wondering how to let Aussie online consumers know about your holiday promotions, make sure you look to influencers to find an audience you can speak directly to about your products. Don’t forget to communicate clearly and let your consumers know that you offer Afterpay in your emails and via your social channels. The opportunities are there for you to leverage, including our network of 2.9m active AU and NZ customers with our trending hashtags...

THE ONLINE RETAIL CHRISTMAS SURVIVAL GUIDE.

Christmas is a time you don’t want to be left behind. We know you want in on some of that holiday cheer, which means you have to strategise and plan for success.

Use the Afterpay assets including banners and buttons on your homepage and clearly communicate you offer Afterpay on your social posts, eDMs and website.

Perhaps shoppers are looking for a gift, or maybe they want to take advantage of sales events and discounts. Either way, the (extended) holiday period is the perfect time to engage your target audience. Whether it’s part of a short-term strategy or plays into your long-game, make sure holiday planning is at the top of your Christmas to-do list this year.

Shoppers are looking for you, and your products. Make sure you leverage the Afterpay network and check that you are on our Shop Directory. Reach out to us if you have any questions about how to maximise your presence this holiday period.

GET YOUR DISCOUNT DUCKS IN A ROW 

MISTLETOE AT THE READY!...

'Whether it’s chatbots, live chat or responding to social media enquiries, ensure you have adequate staffing to cover this period.'

You may have noticed that the holiday period has the potential to bring out the worst in people. They are under pressure with work deadlines, the school holiday juggle is approaching, the present-buying list seems to be expanding at a rapid pace, and tension levels are high. This means that you need to be all over your customer service. Whether it’s chatbots, live chat or responding to social media enquiries, ensure you have adequate staffing to cover this period and avenues for your customer to contact you.

Know your stock availability, ensure your delivery timeframes are communicated, and make sure you are wherever your consumer is. The consequences of a negative customer service experience can range from cart abandonment to negative online reviews (which can have far-reaching consequences). Understand the pressures that your shoppers are facing and ensure their brand experience is a positive one.

‘Tis the season and all that fun stuff, but don’t narrow your options to just Christmas. The holiday season is starting earlier and earlier. A key trend noticed by the Australian Bureau of Statistics (ABS) is that major online sales events such as Black Friday, Cyber Monday & Click Frenzy are bringing December sales forward to November, when these sales are held. (9) In fact, when shoppers are asked to name their favourite online-only sales events, there are some clear pre-Christmas holiday winners including Black Friday (49%) and Click Frenzy (41%). (10)  

In 2018, the five weeks from 11 November to 15 December accounted for almost 15% of all e-commerce transactions. The peak for this period was Black Friday / Cyber Monday, which was the biggest online shopping week in Australia’s history, recording strong growth of over 28% year-on-year. (11) This means that online retailers need to understand the exact period of their ‘holiday strategy’ and incorporate these events effectively to capitalise on the enormous ‘web traffic’ and the conversions that they bring.

While the pre-Christmas period might be your peak sales time, it’s still important not to forget the post-Christmas shopping period. Boxing Day may be front of mind, but the holiday period stretches out to January. Christmas gift-recipients may need to make returns, whether it’s a size or colour swap or a total product exchange. How do you turn that return into a positive customer experience for your brand and keep them a fan.

...major online sales events such as Black Friday, Cyber Monday and Click Frenzy are bringing December sales forward to November…

#AFTERPAYKNOWSCHRISTMAS

#AFTERPAYKNOWSFASHION

#AFTERPAYKNOWSHOLIDAYS

It’s vital to ensure your delivery and returns policies are clearly communicated. If your customer is ordering a present from your site in December, will it arrive in time to be placed under the tree? Ensure you communicate the cut-off day for orders for guaranteed Christmas delivery (and communicate when express delivery is required and when standard delivery will get the job done). The last thing you want is disappointed customers come 25 December; it’s bad for your brand, it’s bad for customer loyalty and it’s bad for potential negative feedback. 

While returns are never ideal, it helps for retailers to look at them more as an opportunity than a necessary evil. In fact, Australian online retailers are very clear in their approach to return windows. Increasing the return-time window to encourage product trial and engagement is rated by 18% of Australian online retailers as a particularly successful strategy to minimise returns. (20) This is inline with research which has identified a connection between longer return windows and repurchase behaviour. When purchasing gifts, the more generous (and transparent) a returns policy is, the more confident the shopper will be about making a purchase.

Research...has identified a connection between longer return windows and repurchase behaviour (3)

1 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
2 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
3 Power Retail, Spotlight Series Report: Returns - The Profit Killer?
4 Power Retail, Spotlight Series Report: Influencers, Are Online Shoppers Really Listening
5 https://powerretail.com.au/pureplay/product-price-more-important-delivery-speed/
6 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
7 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
8 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
9 http://powerretail.com.au/hot-topics/december-drop-aussie-retail-sector/ 
10 Power Retail, Spotlight Series Report: Sales Events - Growing and Evolving

11 https://auspost.com.au/content/dam/auspost_corp/media/documents/inside-australian-online-shopping-ecommerce-report.pdf
12 Power Retail, Spotlight Series Report: Buy Now, Pay Later, Fad or Future?
13 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
14 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
15 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
16 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
17 https://www.spaceshipinvest.com.au/learn/just-afterpay-it/ 
18  Power Retail, Spotlight Series Report: Influencers, Are Online Shoppers Really Listening
19  Power Retail, Spotlight Series Report: Influencers, Are Online Shoppers Really Listening
20 Power Retail, Spotlight Series Report: Returns - The Profit Killer?

On average, 48% of shoppers would buy immediately if a $100 product was discounted by 25%(1)

GET AMONGST IT 

THE CUSTOMER EXPERIENCE 

...the majority of BNPL transactions are between $100 and $200.(2)

PAYMENT OPTIONS

The research shows that 66% of Australian e-commerce shoppers are seeking better payment options. (12) In fact, customer demand has influenced 93% of retailers to think about Buy Now, Pay Later (BNPL) as an option for their business. (13) It’s a case of listening to what your customer wants and ensuring you’re staying ahead of the competition (as well as meeting the expectations of shoppers). The results speak for themselves. Of the retailers surveyed, 72% say they have engaged Afterpay and report a significant and positive impact. (14) That’s why you should include Afterpay on your product and checkout pages as well as price breakdowns on your product pages.

When it comes to the holiday season, payment options are more vital than ever, with budgeting playing a major role in the silly season. Retailers report that the majority of BNPL transactions are between $100 and $200 (48%, compared to just 11% for purchases over $500). (15) 

This suggests a strong reliance on using a buy now pay later product for budgeting purposes or multiple small purchases rather than just one-off large purchases. Never is this more important than during the Christmas period, when gift-buying is a priority and when consumers are wanting to take advantage of multiple online sales. Make the most of this. On your website, highlight that you offer Afterpay and explain how it works with a ‘learn more’ landing page or lightbox. 

Once those who shop online have used BNPL at a certain retailer, 71% say they are more likely to shop there again, 65% say they look for other things they can buy from the retailer, 64% say they browse their website more often and 59% choose that retailer over others. (16) The impact of BNPL on e-commerce is clear in these figures and what customers are saying. In fact, Afterpay contributes to 10% of all e-commerce spend in Australia. (17) 

53% of followers want their influencers to help them find bargains.(4)

BE SEEN

DELIVERY AND RETURNS

Ho, Ho, FOMO

THE GHOST OF CHRISTMAS PAST

Analyse your performance during the holiday season last year. Where did your customers come from? What worked? What didn’t? Check the timings of your EDMs. What had the best click-through rate? Which social campaigns had the best ROI. Test, test and test again and optimise for this year.

THE TOP 10 HOLIDAY LOWDOWN

THE ONLINE RETAIL CHRISTMAS SURVIVAL GUIDE.

MISTLETOE AT THE READY!...

When it comes to Christmas and the holiday period, most online retailers know what they need to succeed. Visibility, enticing promotions and excellent customer service are always going to be crucial. 

But what does this actually mean? The key for retailers to truly leverage this period is to understand the changing online consumer. What do they want? How do they think? How do they shop? It’s these insights that help online retailers understand where they should be focusing their e-commerce strategy for Christmas 2019 and beyond.

'Whether it’s chatbots, live chat or responding to social media enquiries, ensure you have adequate staffing to cover this period.'

Searching for discounts has become a national pastime, with Aussies flocking to sales events like never before. What’s particularly relevant is that 65% of respondents say they are more confident they will find a bargain online than they would in-store.(5)

What does this mean for your business? Online shoppers have set the benchmark high, and it’s as much about the thrill as it is about the product itself. But what discount is required to convince online shoppers to add to their basket? Recent research shows that on average, 48% of shoppers would buy immediately if a product was discounted by 25%. 

(6) Furthermore, 90% of shoppers would buy a product with a 50% discount. (7) Obviously, the exact threshold for a particular retailer and product will vary based on a range of factors, including availability, the nature of the discount, RRP and product category. It does, however, emphasise that given this is a peak discounting period, you need to make your offer stand out to make it worth your while.

In saying that, don’t think you can just wow your customer with what appears to be a generous discount. Overall, 80% of online shoppers will run a price-check. The most common form of price checking behaviour involves looking at more than one other online retailer (49%).(9)

GET YOUR DISCOUNT 

DUCKS IN A ROW

‘Tis the season and all that fun stuff, but don’t narrow your options to just Christmas. The holiday season is starting earlier and earlier. A key trend noticed by the Australian Bureau of Statistics (ABS) is that major online sales events such as Black Friday, Cyber Monday & Click Frenzy are bringing December sales forward to November, when these sales are held. In fact, when shoppers are asked to name their favourite online-only sales events, there are some clear pre-Christmas holiday winners including Black Friday (49%) and Click Frenzy (41%).(10)  In 2018, the five weeks from 11 November to 15 December accounted for almost 15% of all e-commerce transactions. The peak for this period was Black Friday / Cyber Monday, which was the biggest online shopping week in Australia’s history, recording strong growth of over 28% year-on-year.

(11) This means that online retailers need to understand the exact period of their ‘holiday strategy’ and incorporate these events effectively to capitalise on the enormous ‘web traffic’ and the conversions that they bring.

While the pre-Christmas period might be your peak sales time, it’s still important not to forget the post-Christmas shopping period. Boxing Day may be front of mind, but the holiday period stretches out to January. Christmas gift-recipients may need to make returns, whether it’s a size or colour swap or a total product exchange. How do you turn that return into a positive customer experience for your brand and keep them a fan.

...major online sales events such as Black Friday, Cyber Monday and Click Frenzy are bringing December sales forward to November…

GET AMONGST IT 

You may have noticed that the holiday period has the potential to bring out the worst in people. They are under pressure with work deadlines, the school holiday juggle is approaching, the present-buying list seems to be expanding at a rapid pace, and tension levels are high. This means that you need to be all over your customer service.

Know your stock availability, ensure your delivery timeframes are communicated, and make sure you are wherever your consumer is. The consequences of a negative customer service experience can range from cart abandonment to negative online reviews (which can have far-reaching consequences). Understand the pressures that your shoppers are facing and ensure their brand experience is a positive one.

48% of shoppers would buy immediately if a product was discounted by 25%(1)

THE CUSTOMER EXPERIENCE 

THE TOP 10 HOLIDAY LOWDOWN

...the majority of BNPL transactions are between $100 and $200.(1)

PAYMENT OPTIONS

The research shows that 66% of e-commerce shoppers are seeking better payment options. (12) In fact, customer demand has influenced 93% of retailers to think about Buy Now, Pay Later (BNPL) as an option for their business. (13) It’s a case of listening to what your customer wants and ensuring you’re staying ahead of the competition (as well as meeting the expectations of shoppers). The results speak for themselves. Of the retailers surveyed, 72% say they have engaged Afterpay and report a significant and positive impact. (14)That’s why you should include Afterpay on your product and checkout pages as well as price breakdowns on your product pages.

When it comes to the holiday season, payment options are more vital than ever, with budgeting playing a major role in the silly season. Retailers report that the majority of BNPL transactions are between $100 and $200 (48%, compared to just 11% for purchases over $500). 

(15) This reflects the strong reliance on using a buy now pay later product for budgeting purposes or multiple small purchases rather than just one-off large purchases. Never is this more important than during the Christmas pod, when gift-buying is a priority and when consumers are wanting to take advantage of multiple online sales. Make the most of this. On your website, highlight that you offer Afterpay and explain how it works with a ‘learn more’ landing page or lightbox. 

Once those who shop online have used BNPL at a certain retailer, 71% say they are more likely to shop there again, 65% say they look for other things they can buy from the retailer, 64% say they browse their website more often and 59% choose that retailer over others. (16) The impact of BNPL on e-commerce is clear in these figures and what customers are saying. In fact, Afterpay contributes to 10% of all e-commerce spend. (17) 

THE GHOST OF CHRISTMAS PAST

Analyse your performance during the holiday season last year. Where did your customers come from? What worked? What didn’t? Check the timings of your EDMs. What had the best click-through rate? Which social campaigns had the best ROI. Test, test and test again and optimise for this year.

For many SMBs, keeping up with the bigger players seems out of reach. Yet these holiday strategies are just as accessible for smaller businesses as they are for the big-name brands. Whether you’re a start-up or an industry stalwart, visibility is essential. It should come as no surprise that it’s essential to keep up with your social media presence (both organic and paid reach) as well as other marketing tools such as email marketing. There’s no point having amazing promotions if no one knows about them. Use what’s at your fingertips, for example Afterpay’s dedicated assets such as our ‘BE SMART THIS SILLY SEASON’ Christmas campaign on your site, to show you offer Afterpay.

Influencers are another avenue to get the word out. We’re not talking about ‘celebrity’ influencers who may be out of reach. Micro influencers have 10,000 followers or below and are typically found in niche communities with a tight-knit collection of fans. Even Instagram accounts with between 100 and 1,000 followers can fall into this sub-genre of influencers with some of these labelled as Nano Influencers. Have a look at who is already a customer, you may have a micro influencer amongst your customers already.

Australian online retailers have embraced influencers as a marketing tool with over 86% utilising them. (18) The stats show that at least 32% of online purchases made in a one month period could be directly attributed to influencers, and that furthermore, 53% of followers want their influencers to help them find bargains.  (19) So, when you’re wondering how to let Aussie online consumers know about your holiday promotions, make sure you look to influencers to find an audience you can speak directly to about your products. Don’t forget to communicate clearly and let your consumers know that you offer Afterpay in your emails and via your social channels. The opportunities are there for you to leverage, including our network of 2.9m AU and NZ customers with our trending hashtags...

#AFTERPAYKNOWSCHRISTMAS

#AFTERPAYKNOWSFASHION

#AFTERPAYKNOWSHOLIDAYS

53% of followers want their influencers to help them find bargains.(4)

BE SEEN

It’s vital to ensure your delivery and returns policies are clearly communicated. If your customer is ordering a present from your site in December, will it arrive in time to be placed under the tree? Ensure you communicate the cut-off day for orders for guaranteed Christmas delivery (and communicate when express delivery is required and when standard delivery will get the job done). The last thing you want is disappointed customers come 25 December; it’s bad for your brand, it’s bad for customer loyalty and it’s bad for potential negative feedback. 

While returns are never ideal, it helps for retailers to look at them more as an opportunity than a necessary evil. In fact, Australian online retailers are very clear in their approach to return windows. Increasing the return-time window to encourage product trial and engagement is rated by 18% of Australian online retailers as a particularly successful strategy to minimise returns. (20) This is inline with research which has identified a connection between longer return windows and repurchase behaviour. When purchasing gifts, the more generous (and transparent) a returns policy is, the more confident the shopper will be about making a purchase.

Research...has identified a connection between longer return windows and repurchase behaviour (3)

DELIVERY AND RETURNS

Christmas is a time you don’t want to be left behind. We know you want in on some of that holiday cheer, which means you have to strategise and plan for success.

Use the Afterpay assets including banners and buttons on your homepage and clearly communicate you offer Afterpay on your social posts, eDMs and website.

Perhaps shoppers are looking for a gift, or maybe they want to take advantage of sales events and discounts. Either way, the (extended) holiday period is the perfect time to engage your target audience. Whether it’s part of a short-term strategy or plays into your long-game, make sure holiday planning is at the top of your Christmas to-do list this year.

Shoppers are looking for you, and your products. Make sure you leverage the Afterpay network and check that you are on our Shop Directory. Reach out to us if you have any questions about how to maximise your presence this holiday period.

Ho, Ho, FOMO

1 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
2 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
3 Power Retail, Spotlight Series Report: Returns - The Profit Killer?
4 Power Retail, Spotlight Series Report: Influencers, Are Online Shoppers Really Listening
5 https://powerretail.com.au/pureplay/product-price-more-important-delivery-speed/
6 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
7 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
8 Power Retail, Spotlight Series Report: Discounting - A Race to the Bottom?
9 http://powerretail.com.au/hot-topics/december-drop-aussie-retail-sector/ 
10 Power Retail, Spotlight Series Report: Sales Events - Growing and Evolving
11 https://auspost.com.au/content/dam/auspost_corp/media/documents/inside-australian-online-shopping-ecommerce-report.pdf
12 Power Retail, Spotlight Series Report: Buy Now, Pay Later, Fad or Future?
13 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
14 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
15 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
16 Power Retail, Spotlight Series Report: Buy Now, Pay Later 2019 update
17 https://www.spaceshipinvest.com.au/learn/just-afterpay-it/ 
18  Power Retail, Spotlight Series Report: Influencers, Are Online Shoppers Really Listening
19  Power Retail, Spotlight Series Report: Influencers, Are Online Shoppers Really Listening
20 Power Retail, Spotlight Series Report: Returns - The Profit Killer?