Elevate Marketing to Ring in the Revenues


The Gist

  • Holiday shopping trend. Online and in-app platforms dominate the holiday shopping season, with $12.8 million spent per minute on Cyber Monday 2022.
  • Rethinking discounts. Substantial discounts may not be effective; lower discounts (20-30%) drive higher engagement and sales during holiday shopping.
  • Emotional engagement. Marketing with emotional appeal and AI-driven ad creatives boosts sales, with video ads playing a key role in converting shoppers.

Mobile and apps sit at the epicenter of customer experience, driving interaction in the all-important moment of inspiration when shoppers seek advice, assistance and even coupons. According to Adobe Analytics, the channels also account for the lion’s share of holiday shopping, a spree that saw consumers spend peak at a high of $12.8 million per minute on Cyber Monday in 2022. 

Clearly, the holiday shopping frenzy has moved online and in-app. But the more significant shift is in the spending timeline. Black Friday is no longer the “tentpole of the holiday shopping season.” The window of opportunity remains wide open well into January when many consumers who got new devices as a holiday present have the downtime and desire to explore shopping apps and offers.

A holiday shopper sits at their laptop with credit card in hand and holiday lights visible in the background in piece about the holiday shopping season.
The holiday shopping frenzy has moved online and in-app. FornStudio on Adobe Stock Photos

Tapping App Exhaust to Anticipate Shopper Behavior

While the jury is out on whether consumers encounter hundreds or even thousands of ads daily, the competition to capture attention is constant. But the noise during the high-volume, high-stress period of holiday shopping makes it even harder for brands and businesses to stand out. 

It’s natural for retailers to be tempted to wash, rinse and repeat many of the approaches that worked last year. However, catering to price-sensitive shoppers with substantial discounts is one tactic ready for a rethink. 

This is the view of Aampe, a new breed of marketing automation platform for mobile apps that wields what Jim Laurain, VP of growth, calls the “digital breadcrumb trail” of user activity to predict future actions. This includes event stream data from apps, which shows how consumers interact with apps and push notifications. It’s a bottom-up, adaptive approach that ingests data to determine what users are most likely to do next and predict what messaging content and tone will have the biggest impact. 

To help marketers deliver messaging that anticipates, not just answers, shopper requirements consumers across the extended holiday shopping season, Aampe has drawn from internal data and a survey of push notifications delivered by major retailers, including Walmart, Macy’s, and others. The results, provided exclusively to CMSWire, reveal a mix of best practices and some real surprises. 

Related Article: The Emotional Impact of Holiday Shopping

1. Discounts Can Miss the Mark

A whopping 81% of all messages Aampe studied led with deals and discounts, offering shoppers savings of 50% and more on purchases. However, the data, which can see message content and conversions, reveals that lower discounts drove higher engagement and increased sales. The sweet spot for deals was somewhere between 20% and 30%, a level that caught shoppers’ attention, Larain tells me. “But even lower discounts offering 15-20% savings actually drove more conversions.” 

Why shoppers didn’t gravitate to significant savings is beyond the scope of Aampe’s study. But Laurain says Aampe has observed high discounts drive consumers to window shop — but not take the plunge. “Shoppers are drowning in a sea of offers, and it’s getting harder for retailers to engage customers just by offering a bargain.” 

The bottom line: While most retailers have set their sights on pre-holiday bargain-hunting consumers, offering an abundance of messaging emphasizing deals and discounts is a mismatch that can cause retailers to waste money, not make it. A more innovative approach harnesses user behavior data to develop a customer-led approach to segmentation that adapts messaging (in this case, the discount amount) to the propensity of audiences to take action.


Source link