Pandemic Purchase Patterns Shake Up Holiday Performance Marketing Campaigns10-Dec-2020
Every industry has experienced a range of unique challenges in 2020. Arguably, the biggest challenge for performance marketers is planning Black Friday, Cyber Monday and annual holiday campaigns pre-pandemic.
Although this year has seen consumer habits change drastically, performance marketers aim to hit or exceed the total amount of last year’s revenue from public holiday sales, which is about $730 billion. Thankfully, data from Cardlytics, a purchase-based data intelligence platform, shows where consumers are spending their money, thus proving to be an invaluable resource to marketers in campaign planning.
Cardlytics provides transaction-driven marketing solutions to make marketing more relevant and measurable. It collects, analyzes and shares data of annual consumer spend valued at more than $3 trillion. The company partners with different financial institutions like Bank of America to provide deals on what they’re already buying.
According to Angie Amberg, Cardlytics Vice President of Communications, ‘’Cardlytics has visibility into where, when and how consumers spend across industries. And we have been using these insights to help marketers like Starbucks, Amazon, Walmart and Airbnb drive commerce.’’
One of the puzzling revelations made by Cardlytics is that records of spend between March 12 and October 15 show that most purchases were made in brick-and-mortar stores. Although sales slumped generally due to the pandemic, spend in local stores only went down by 14 percent year over year, leaving the in-store buying as the No. 1 conversion location. Admittedly, the statistics didn’t really show much difference from the previous year as about 75 percent of 2019 holiday purchases occurred in physical stores, according to transactions from Cardlytics’ 157 million bank customers.
Going forward, revenue from online shopping increased 25 percent year over year during the pandemic but most shoppers were loyal to their favorite brands. Physical store brands with an online presence grew faster than other retail channels with more than 75 percent during the same period.
Consequently, these brick-and-mortar dot coms experienced speedy growth than the slow 4.4 year over year rise that Cardlytics discovered proprietary sites recorded pre-pandemic. Furthermore, retailers have had to adapt quickly to the changes in customer behavior even before they happened as a report released in January 2020 by the National Retail Federation (NRF) showed that 9 in 10 online shoppers preferred to pick items themselves. Some wanted to pick up deliverables in physical stores at the register, curbside, via trunk delivery or by using a locker code.
The federation also added that consumers will opt for this arrangement more during the holidays of 2020. Data from the previous year indicates that the demand for BOPIS (Buy Online, Pick Up In Store) has been rising and the pandemic may push it higher some more.
In summary, Amberg opined that online sales are going to increase and that performance marketers planning holiday 2020 campaigns need to be aware of that. In-store spend is already skyrocketing on items that appear to be related to staying and examples of these products include garden items [up by 14.2 percent year over year] and pet products increased (5.8 percent.)