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We’ve got the insights so that you can smash goals, not baubles

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It’s here and it’s fresher than gingerbread straight out of the oven: exclusive insights from more than 1500 Australian shoppers about how they plan to spend this festive season.Filled with ideas, information and inspiration, <a href="https://business.afterpay.com/rs/539-RJA-633/images/2023_Festive_Forecast_Report_by_Afterpay.pdf" rel="noopener noreferrer" target="_blank">Afterpay’s 2023 Festive Forecast</a>* aims to help you have your merriest holiday season yet. Here’s a sneak peek.&nbsp;<h2>Shoppers are cutting back. But the festive season looks strong.</h2>Yes, inflation is impacting holiday spending, with 46% of shoppers cutting back on general purchases. However, 19% of shoppers still plan to spend more, and others are finding ways to get around cost-of-living pressures, by looking for deals, buying presents earlier and utilising Buy-now-pay-later services like Afterpay.&nbsp;Tree-mendous tip: Make sure to let your customers know that you offer Afterpay, both online and in-store.<h2>Christmas is coming early</h2>It pays to start strategising for the silly season now, as two-thirds of shoppers will have finished their holiday shopping by the end of November.Gen Z will be leading the charge to the checkout, with younger shoppers much more likely to get their festive shopping done&nbsp;Tree-mendous tip: Different demographics will shop at different times. When planning your BFCM marketing, for example, your primary audience should be Gen Z.<h2>What will sell this silly season</h2>Gift cards are working overtime this Christmas, topping the shopping lists of many consumers, followed by clothing and accessories.&nbsp;But it’s worth remembering that nearly half of all shoppers (47%) wait until they’re in-store for inspiration to strike. So it’s important that your store entices shoppers in and then offers appealing visual merchandising and curated collections.&nbsp;And if you really want to get shoppers’ attention? Half of all Aussies say that noticing that an item is on sale will persuade them to purchase.&nbsp;Tree-mendous tip: Do you offer gift vouchers? Now is the time to set them up if not.&nbsp;Want to more festive tips? Download our complete <a href="https://business.afterpay.com/rs/539-RJA-633/images/2023_Festive_Forecast_Report_by_Afterpay.pdf" rel="noopener noreferrer" target="_blank">Festive Forecast</a> and head over to our <a href="https://www.afterpay.com/en-AU/festive-forecast" rel="noopener noreferrer" target="_blank">Festive Strategy hub</a> now.&nbsp;*Source: All data has been taken from Afterpay Festive Forecast research 2023 Australia.

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We've got all the festive insights and tips

Discover how shoppers will spend this festive season - from when they'll shop to what will sell this silly season.

How Aussies Will Shop And Spend This Festive Season 2023

How Aussies Will Shop This Festive Season 2023

Festive Forecast report 2023

Your guide to making the most of Afterpay Day 2023. Discover tips, tools and insights to boost your bottom line.

Whether you’re a brick-and-mortar shop or an online business (or a mix of both), it’s time to start planning your Afterpay Day strategy.Why? Because this year, Afterpay Day is set to be bigger than ever, according to <a href="https://business.afterpay.com/rs/539-RJA-633/images/Afterpay_Day_Unlocked_Report_August_2023.pdf" rel="noopener noreferrer" target="_blank">a new survey</a> of more than 1000 Australians and New Zealanders*.<h2>Afterpay Day is a big deal – literally.</h2>Not only is awareness of Afterpay Day at a record high, with two-thirds of consumers aware of the event, but 81% of those are planning to shop.And they are serious shoppers, with 72% spending up to $500 in previous years, and 36% planning to spend more than ever in 2023. In fact, Afterpay Day has the highest conversion rate of any major sale including Black Friday. The bottom line? This is a sale merchants shouldn’t miss.<h2>Prep starts soon.</h2>Planning is more important than ever this year. As consumers continue to feel the economic squeeze, more shoppers (one in two) are researching and planning their sale purchases than ever.What does that mean for merchants? Not only is this a huge sales moment, where prices will drop but sales will soar, but retailers need to start preparing now. Start by putting the sale date – August 17 – in your calendar; we know Australia Post has. The next step is to <a href="https://form.jotform.com/231011123458341" rel="noopener noreferrer" target="_blank">submit</a> your offer (by August 2) and start planning your promotional strategy.<h2>What you need to know about shoppers’ plans.</h2>The vast majority of people will be shopping Afterpay Day to take advantage of discounts (70%) and get value for money (54%). Fewer people than in previous years will be buying treats for friends and family (16%).Fashion, beauty and wellness continue to top shoppers’ wish lists, but electronics, tech, furniture and homewares have shot up in popularity.About three-quarters of shoppers will shop at least partly online, but 51% will shop at least partly in-store and there was also a sizeable growth in people planning to do their shopping in person.<h2>How to create an offer that converts.</h2>Most shoppers (80%) prefer fixed discounts – ideally 20-30% off. Spend and save (66%), a free gift with purchase (64%) and buy one, get one at a discounted price (63%) are also popular, according to our survey.Once you’ve decided on your offer, it’s time to start spreading the word – on our channels and yours. Your first step should be <a href="https://form.jotform.com/231011123458341" rel="noopener noreferrer" target="_blank">submitting your offer</a> so it appears on Afterpay’s Shop directory (after all, 67% of shoppers will be looking there).After that, the fun really begins; from August 14 it’s time to build hype.&nbsp;Remember that Afterpay customers are looking for great deals; make it easy for them to find yours. Ensure your Afterpay Day offer is visible on your homepage (85% of e-commerce shoppers will look there) and social media channels (29% will be looking there). And if you’re a brick-and-mortar merchant? Start stocking up on visual merchandising assets.<h2>Consider us your sale support team.</h2>At Afterpay, we want you to enjoy your best Afterpay Day yet.&nbsp;To help you promote Afterpay Day, we’ve created a suite of customisable marketing templates, from social media posts to website banners and in-store print assets.Whether you want ready-to-go assets or the option to customise your images or offers we’ve got you covered. Discover our marketing toolkits for <a href="https://www.afterpay.com/en-AU/afterpay-day-merchants/marketing-toolkit-online" rel="noopener noreferrer" target="_blank">online</a> and <a href="https://www.afterpay.com/en-AU/afterpay-day-merchants/marketing-toolkit-instore" rel="noopener noreferrer" target="_blank">in-store</a> promotion and learn the best ways to use Afterpay Day creative assets with our <a href="https://docs.google.com/presentation/d/1no1ursQQAkK_TLdToPQg8c1gWteiBxIJK-_MgZ9ZcFU/edit#slide=id.g111fc88946c_2_34" rel="noopener noreferrer" target="_blank">merchant guide</a>.&nbsp;Our support doesn’t stop there. We’ve asked merchants who have seen their sales soar during Afterpay Day for their tips for success so you can learn from their experiences. You can also read the full <a href="https://businessgrowth.afterpay.com/rs/424-IAB-218/images/Afterpay_Day_Unlocked_Report_August_2023.pdf" rel="noopener noreferrer" target="_blank">Afterpay Day Unlocked</a> report for extra insights.&nbsp;From August 14, merchants are encouraged to start promoting their offers. It’s time to get excited! We know your customers will be.&nbsp;

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*Source: All data has been taken from Afterpay Day Research ANZ August 2023.

Your guide to making the most of Afterpay Day 2023. Discover tips, tools and insights to boost your bottom line.

How retailers can make more sales during Afterpay Day 

Unlock more sales this Afterpay Day.

Afterpay Day Unlocked August 2023

Discover exclusive insights into how Aussies and Kiwis will shop and spend during this key sale moment.&nbsp;

It’s the end… the end of the financial year, that is. But the EOFY sales could be the start of something beautiful, as long as retailers can make the most of this key retail moment.That’s why Afterpay has released a new report, aimed at helping merchants get to grips with what shoppers are thinking and how they will spend. You can view the <a href="https://business.afterpay.com/rs/539-RJA-633/images/Afterpay_Consumer_Insights_EOFY_Report_2023.pdf" rel="noopener noreferrer" target="_blank">full report here</a>, or read the top takeaways below…

<h6>Don’t snooze on this retail moment</h6>It may be nearly winter, but this is no time to hibernate. Seven in 10 Afterpay customers are aware of the EOFY sales and half have shopped the sales before. That means customers require little education about the EOFY sales and are poised to spend. One way to maximise high awareness rates is to re-target customers who shopped with you last year with an EDM or targeted social media advertising.<h6>Make it a Millennial moment</h6>Afterpay’s data shows that younger shoppers – in particular Millennials (born 1980 to 1994) – were most engaged with the 2022 EOFY sales. In fact, of the Afterpay customers who purchased during the sales last year, 43.8 per cent were Millennials, 26.3 per cent were Gen Z, 22.9 per cent were Gen X and seven per cent were Baby Boomers. When it comes to marketing, make sure you’re communicating your offers in ways (and channels) that resonate with Millennials.

<h6>Consider paid ads</h6>Online search topped the list of places that shoppers search for deals, followed by retailers’ emails, retailers’ websites and Afterpay’s website and app. For retailers, this is a great opportunity to ensure your website is up to speed (and that deals are easy to find) and invest in paid search ads to ensure your products pop up in Google searches.<h6>Make your offer enticing</h6>Afterpay’s data shows that the most popular type of EOFY deal is a fixed discount, with 84 per cent of shoppers favouring this type of promotion, followed by Buy One, Get One Free (59%) and gift with purchase (57%). When creating your EOFY offers it also pays to think big: Afterpay’s survey found that a 35 per cent discount would convince shoppers to spend.

<h6>Fashion is first, but office supplies are on the up</h6>Whether they’re shopping online or in-store, Aussies and Kiwis see the mid-year sales as the perfect excuse for a mid-season wardrobe update, with apparel and accessories the top category in the 2022 EOFY sales. This was followed by department stores, home and garden, and electronics. However, office and art supplies, and party products, are emerging as fast-growing online categories.

<h6>Your shortcut to success</h6>Afterpay is here to help! We’ve prepared <a href="https://www.afterpay.com/en-AU/trade-activity" rel="noopener noreferrer" target="_blank">a toolkit of templates</a> to ensure that your EOFY sales offers stand out online and on social media. You can also submit your EOFY offers via <a href="https://form.jotform.com/200846749193868" rel="noopener noreferrer" target="_blank">this link</a> throughout June to be featured in Afterpay’s shop directory.

For more insights into how shoppers will be spending during the 2023 EOFY sales, view the full EOFY report <a href="https://business.afterpay.com/rs/539-RJA-633/images/Afterpay_Consumer_Insights_EOFY_Report_2023.pdf" rel="noopener noreferrer" target="_blank">here</a>.

How to make the most of EOFY sales: ads, special offers, and more.

Discover exclusive insights into how Aussies will shop and spend, plus tips on driving more sales including via paid ads and an enticing offer.

End Of Financial Year Sales: how retailers can smash targets

How to smash your EOFY sales targets!

It’s one of the biggest dates in the retail calendar. Here’s how retailers can make the most of the Boxing Day sale.

Before Black Friday, before Cyber Monday, before Single’s Day, there was Boxing Day.And while Boxing Day may no longer be the biggest sales event in Australia (that distinction goes to Black Friday), it is still beloved by bargain hunters, who spend nearly $3 billion every year, online and in-store.And in 2022, after several summers of bushfires and pandemic restrictions, hopes are high for spending during the festive season and beyond (up until <a href="https://www.afterpay.com/en-AU/business/access/boosting-profitability/preparing-for-inflation" rel="noopener noreferrer" target="_blank">inflation</a> and soaring interest rates impact consumer confidence in 2023).Here’s how to get the most out of this year’s Boxing Day sales:<h2>Be prepared, early</h2>Bargain-hunters take Boxing Day very seriously. That means long queues outside stores and surges in online traffic. For retailers, it’s important to get prepared well ahead of time.In 2021,<a href="https://www.finder.com.au/boxing-day-sales-times" rel="noopener noreferrer" target="_blank"> Finder.com.au</a> found the vast majority of online shopping occurred between 6am and 2pm on December 26. There was also a two-hour surge in online traffic between midnight and 2am, as shoppers logged on to be first to bag bargains.In the weeks before Boxing Day, retailers should prepare in-store signage, online banners and pop-ups, as well as social media posts alerting customers to discounts and deals, and schedule emails and posts to go live when the sale starts.<h2>Cut through with comms</h2>Shoppers are likely to be inundated with Boxing Day sales promotions, so it’s important to ensure that yours stands out with strong, clear offers and discounts.At such a noisy time of year, it’s also worth considering creative ways to capture customers’ attention. For example, you could encourage shoppers to spend their Christmas gift cards with you or offer VIP customers extra loyalty points or benefits.Decide the most appropriate channels for your customers – whether that’s email, SMS or social media (or all three) – and consider personalising offers to different customer segments or sending targeted emails to online shoppers with abandoned carts or wishlisted products to alert them that the item is on sale.Don't forget to visit the Afterpay holiday toolkit and download your free Boxing Day assets for web, social and email and more.

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<h2>Forecast demand</h2>Want to know what shoppers will be searching for in the Boxing Day sales? Start by looking back on historic sales data to identify what sold well in previous years, and also check which products are popular among customer wishlists, as many customers pre-plan what they’ll buy in sales and add the products to their wishlist.Remember that customers shop differently on Boxing Day compared to Black Friday and Cyber Monday (BFCM). Unlike BFCM, where many shoppers stock up on festive gifts for others, Boxing Day shoppers are more likely to be buying for themselves.<a href="https://www.theguardian.com/australia-news/2021/dec/26/australians-tipped-for-record-21bn-summer-shopping-splurge-as-boxing-day-sales-begin#:~:text=Meanwhile%2C%20a%20Commonwealth%20Bank%20survey,next%20on%20the%20shopping%20list." rel="noopener noreferrer" target="_blank"> In previous years</a>, clothing, home electronics and white goods have been particularly popular categories in Australia.<h2>Brief staff</h2>Sales staff – whether they are in-store sales assistants or online customer support staff – need to be briefed on what to expect, how to manage inventory issues and how to handle gift cards.&nbsp;Gift cards have become one of the most popular gift options in recent years, and eager customers often cash theirs in on Boxing Day. It’s important to ensure that all staff understand exactly how they can be redeemed.<h2>Set your delivery policy early</h2>It is crucial to decide on delivery terms and options well ahead of Boxing Day. Ensure that delivery times and fees are clearly communicated on your website, and consider offering a range of delivery options – from standard shipping to express delivery and click-and-collect – to remove any barriers to purchase.Similarly, ensure your refund policy is clearly visible on your website.&nbsp;<h2>Think past sale day</h2>It’s one thing to drive sales and revenue on Boxing Day. However, to ensure that your Boxing Day strategy continues to deliver dividends well into 2023 and beyond, take time to consider how you will convert one-time sales shoppers into long-term customers.For brick-and-mortar retailers, the answer may be collecting customer data via e-receipts (and incentivising staff to do this). For e-commerce retailers, it’s important to collect information or add customers to your subscriber list so that you can connect with them after Boxing Day.

It’s one of the biggest dates in the retail calendar. Here’s how retailers can make the most of the Boxing Day sale.

It’s one of the biggest dates in the retail calendar. Discover tips on how retailers can make the most of the Boxing Day sale, by forecasting demand, preparing early and thinking beyond sale day

Boxing Day sale for retailers: top tips to prepare your store 

How to prepare your store for Boxing Day bargain hunters

boxing day sales retail tips

Discover how to make the most of this fast-growing – but often overlooked – sale event

With the end-of-year sales season fast approaching, one date should be standing out for Australian retailers above all others, and that’s Single’s Day.Having generated over $<a href="https://www.cnbc.com/2021/11/12/china-singles-day-2021-alibaba-jd-hit-record-139-billion-of-sales.html" rel="noopener noreferrer" target="_blank">200 billion</a> in global sales last year, Single’s Day 2022 is set to be one of the most significant sales events of the year, and more importantly, a day that offers huge potential for Australian retailers.From creating the perfect Single’s Day sale, reaching potential shoppers and maximising online sales, here’s everything you need to know about Single’s Day 2022 and how to prepare for your most successful sales event ever.<h2>What is Single’s Day?</h2>Popularised by Chinese retail giant Alibaba in 2009, Single’s Day is celebrated on 11 November each year and - thanks to its date, featuring the numeral one repeated four times (11:11), it’s seen as a kind of anti-Valentine’s Day – and an opportunity for single people to treat and pamper themselves.&nbsp;As Mark Tanner, Managing Director of marketing, branding and research agency China Skinny explains, “Single’s Day rules the roost for sales events in China, and globally. Whilst China is peppered with online sales often covering specific categories, Single’s Day is all-encompassing and covers every product category and every demographic.”<h2>Why is Single’s Day significant for Australian businesses?</h2>Australian products have long been a favourite of Chinese consumers – particularly health and wellness products like vitamins and supplements – something Single’s Day data confirms. In<a href="https://powerretail.com.au/in-focus/singles-day-breaks-43-billion-in-sales-in-24-hours/" rel="noopener noreferrer" target="_blank"> 2019</a>, for example, Australia was the second biggest Single’s Day shopping nation, after China and even beating out shoppers in India and South Korea.“The opportunity for Australian brands is to reach hundreds of millions of consumers, build awareness and encourage trial, and also test the appetite of products,” Tanner says, adding, “Clever strategies allow brands to convert consumers who buy on Single’s Day to longer-term loyal customers.”<h2>Should your business take part in Single’s Day?</h2>While most industries are likely to see sales success on Single’s Day,<a href="https://www.austrade.gov.au/news/insights/insight-singles-day-2021-lower-tier-cities-drive-sales-in-another-blockbuster-year" rel="noopener noreferrer" target="_blank"> data from previous years</a> shows that apparel, footwear, health and supplements and food and beverages are among the most popular categories.<h2>How can retailers make the most out of Single’s Day?</h2>When it comes to social media promotion, the first step is to identify if your consumers are living in Australia, China, or both and target any paid advertising accordingly.For businesses taking part in the sales for the first time, Tanner suggests thinking outside the box when it comes to exclusive Single’s Day offers.&nbsp;“Promotions shouldn’t be just about <a href="https://www.afterpay.com/en-AU/business/access/smarter-discounting/sales-promotions-examples-to-inspire-you" rel="noopener noreferrer" target="_blank">discounting</a>. New products are a great way to garner attention as well.”&nbsp;

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“Promotions shouldn’t be just about discounting. New products are a great way to garner attention as well.”&nbsp;

Social media strategist Jordan Lomax adds that during Single’s Day, a lot of brands <a href="https://www.afterpay.com/en-AU/business/access/smarter-discounting/sales-promotions-examples-to-inspire-you" rel="noopener noreferrer" target="_blank">create discounts</a> or promotions based on the number one or 11, such as offering 11 per cent off products. Others focus on “self-love” products or bundles.&nbsp;“My suggestion would be to put paid behind a competition for Single’s Day (e.g. Win the ultimate self love pack) with the competition mechanism being to enter with email. The cost per lead will be much cheaper than a cost per purchase campaign at this time of year, and then you've built a list to send your upcoming sales comms to.Caroline Jessett, the head of growth at JSHealth Vitamins adds that for brands that have a large Chinese customer base Single’s Day has the potential to outperform BFCM.Unlike BFCM, though, “ it's less about the sale and more about the customer,” she says, adding that brands should think carefully about their target audience and “tailor the messaging so it fits them”.

"Unlike BFCM, Single's Day is less about the sale and more about the customer."

Jessett notes that when it comes to social media, “there isn’t a one-size fits all approach.”Instead, she recommends testing different forms of content like reels, carousels and live videos as well as different types of content like tutorials or product user guides as well as priotitising VIP customers who are likely to shop across multiple sale events like Singles Day and Black Friday or Cyber Monday.&nbsp;“Because these days are so close to each other, think about your loyal customers and how their buying patterns might be affected during this time. Offering a cross-sell <a href="https://www.afterpay.com/en-AU/business/access/smarter-discounting/retail-sales-techniques-and-strategies" rel="noopener noreferrer" target="_blank">discount</a> or [supplementing] their last purchase with a gift could be a good idea, and provide the best value to your customers,” Jessett says.“Simplicity is key, whether that's a blanket discount or a gift with purchase – make it easy for the customer to use and see so they don't have to think too much about how it works.”

Discover how to make the most of this fast-growing – but often overlooked – sale event

Discover how your business can make the most of Single's Day, a fast-growing – but often overlooked – sale event

Retailers: Are you ready for Single’s Day 2022?

Are you ready for Single’s Day?

Single's Day 2022

SMS marketing can be confusing - here's our guide, featuring advanced advice on how to target customers through their mobile device and drive sales.

Text messages have come a long way.When text messages were first introduced in the late nineties, most phones were the size of bricks, emojis hadn’t been invented, and most people used their mobile phones for texting and calling – and nothing else.Fast-forward to today and SMS is one of the most widely used data services in the world. An estimated<a href="https://techjury.net/blog/sms-marketing-statistics/#gref" rel="noopener noreferrer" target="_blank"> 23 billion text messages are sent every day</a> (that’s 270,000 every second), and<a href="https://www.tatango.com/blog/90-of-text-messages-are-read-within-3-minutes/" rel="noopener noreferrer" target="_blank"> 90 per cent of texts are opened within three minutes</a> of being received.Not surprisingly, text message marketing is increasingly seen as a powerful channel for businesses to communicate with their customers.&nbsp;“Brands began experimenting with SMS messages a few years ago, but I think we started to hit an inflection point around the time of the COVID-19 outbreak,” says Josh Siegel, vice president of SMS at<a href="https://www.klaviyo.com/" rel="noopener noreferrer" target="_blank"> Klaviyo</a>. During the 2021 Christmas sales period, the marketing automation platform experienced more than a 10-fold increase in the number of messages it sent on behalf of clients.This new form of mobile marketing sees businesses send a variety of texts to its customers: welcome or opt-in messages; sales alerts; appointment reminders; birthday messages; product launches; abandoned cart reminders; and customer service follow-ups.The potential to engage with customers via their mobile devices is high, given that texts have an estimated open rate of 98 per cent, compared to 20 per cent for email. According to research from Klaviyo, over one third of consumers choose SMS messages as their preferred channel to hear from brands. For younger consumers such as Gen Z or millennials, that number is even higher, at 50 per cent.

Over one third of consumers choose SMS messages as their preferred channel to hear from brands.

“SMS is going through that curve of wild adoption, but because it is a new marketing medium, many businesses don’t know the rules around using it and how to set themselves up for success,” says Siegel.Follow this guide to nail your SMS strategy.<h3>1.	Get the basics right</h3>To start, you’ll need to sign up to a marketing automation provider, such as<a href="https://www.klaviyo.com/" rel="noopener noreferrer" target="_blank"> Klaviyo</a>,<a href="https://www.attentive.com/" rel="noopener noreferrer" target="_blank"> Attentive</a> or<a href="https://www.smartrmail.com/" rel="noopener noreferrer" target="_blank"> SmartrMail</a>. These platforms will allow you to send a bulk SMS – generally from an online SMS dashboard – and will manage your data and permissions.Costs will vary, with many SMS marketing platforms offering tiered pricing, whereby you can send a specified number of messages for a monthly fee.With SmartrMail, sending 1000 contacts one SMS of 160 characters costs roughly $50, says Nicolas Vibert, the company’s growth manager.<a href="https://marketerhire.com/blog/sms-marketing" rel="noopener noreferrer" target="_blank">According to MarketHire</a>, sending one SMS campaign per week to a list of 10,000 subscribers would cost around $600.By comparison, sending your customers marketing emails via a basic automation platform can cost as little as a few dollars per month (with Mailerlite, you can get free plans for up to 1000 subscribers, while if you have 10,000 subscribers, sending unlimited emails costs around $70 per month.Keep in mind, though, that the costs associated with executing an SMS marketing campaign are lower than that of an email marketing campaign – with no need to pay for a designer or long-form copywriter.<h3>2.	Secure customer consent</h3>Before you start sending texts, customers need to agree to receive messages to their phone number. They must opt in.In Australia, permissions are a legal grey area. To send an SMS message, you need ‘inferred permission’, which could simply mean that a customer has joined a <a href="https://www.afterpay.com/en-AU/business/access/marketing/customer-loyalty-program" rel="noopener noreferrer" target="_blank">loyalty program</a> in store. “The definition of ‘inferred’ will vary according to who you ask,” says Vibert. “We err on the side of caution and recommend that permission to send an SMS is specific and explicit. vIn Australia, brands who do not comply with the rules around permission could be in breach of the Spam Act 2003, and may be prevented from sending further SMS advertising.Permission can be collected during the checkout process or through a landing page or form that appears on your website. Consider giving the customer a compelling reason to join the SMS list, such as VIP membership or an exclusive offer.

"It's a bad customer experience to send SMS messages to customers who don’t want to receive them.”&nbsp;

<h3>3.	Set your goal</h3>Next, consider the motivation behind your SMS marketing strategy. With each text, are you seeking to welcome new customers, alert them to a promotion, invite them to an event, or re-engage with lapsed customers?Remember, every text message is an opportunity to engage with your customer and work towards converting a sale. According to Anup Khera, vice president and general manager of international at SMS marketing provider<a href="https://www.attentive.com/" rel="noopener noreferrer" target="_blank"> Attentive</a>, a recent customer survey found that 63 per cent of respondents who subscribed to a brand had made a purchase based on a text message exchange.See some examples of different types of texts below. The Welcome text:

The Sales Pitch:

The Lure-Back:

<h3>4. Keep it brief</h3>As illustrated, briefer is better when it comes to SMS marketing.&nbsp;One reason for this is cost – if you exceed the 160-character limit, you’ll pay for it. A message of 200 characters, for example, will incur the cost of two SMS messages; a message of 500 characters will be priced as three messages.Short and snappy texts are also preferable from a user perspective. “Clear, brief messages tend to perform well," says Siegel. “People glance at their phones quickly, so you have to capture their attention and it has to make sense. If you push the call to action too far down, it can be lost.”<h3>5. Experiment with images, videos and emojis</h3>“Using a picture [in a text] can be effective, but be careful what you choose,” says Siegel. “Test to see what works for your audience. The research on the use of emojis is mixed… Some people don't like it – it depends on the context and the type of business.”&nbsp;Adding emojis, images and videos to your messages will also incur extra costs. And with the current tech, a video can only be sent via a link, rather than embedded in the SMS message itself.<h3>6. Get personal</h3>Avoid a generic blast. The most common mistake made by merchants is overlooking the personalisation that an SMS marketing strategy requires.“It’s really important to tailor the message, as opposed to [sending out] a blanket offer,” says Vibert. “Many merchants think that they can simply export a list of phone numbers that they accumulated over the years through their in-house booking system and just blast them with an SMS campaign every week. It will simply not be effective.”Khera agrees, adding that there is no need to use guesswork in targeting different segments via SMS. “For marketers, text messages stand out as a channel that’s uniquely data-informed and measurable,” he says. “Its immediacy allows brands to segment and personalise messages in real time to [turn] browsers into buyers.”A partner like Attentive, LoyPal, Klaviyo or SmartrMail can pull in multiple data sources to set up segments. For example, you could group together the customers who have purchased before and are interested in the same category – then send them a relevant offer.&nbsp;“Leverage the data that you've got to tailor the message,” says Vibert. “Don’t just shoehorn email content into an SMS script. Even a little bit of personalisation will go a long way.”

“Clear, brief messages tend to perform well."

<h3>7. Ensure you meet content regulations</h3>In the US and Canada, text message marketing content relating to<a href="https://smsbump.com/knowledge-base/view/prohibited-content-sms-marketing" rel="noopener noreferrer" target="_blank"> SHAFT</a> – sex, hate speech, alcohol, firearms and tobacco – is either entirely permitted, or requires an age-gate. See the<a href="https://www.wmcglobal.com/hubfs/CTIA%20Short%20Code%20Monitoring%20Handbook%20-%20v1.8.pdf" rel="noopener noreferrer" target="_blank"> CTIA Handbook</a> for specific guidelines.Content restrictions around topics such as alcohol vary across the globe. Wine merchants often fall foul of this because they simply do not realise they are contravening the rules, notes Vibert.&nbsp;In Australia visit the<a href="https://www.acma.gov.au/" rel="noopener noreferrer" target="_blank"> Australia Communications and Media Authority (ACMA)</a>, and in the UK, see the<a href="https://www.asa.org.uk/" rel="noopener noreferrer" target="_blank"> Advertising Standards Authority (ASA)</a>.<h3>8. Give customers the option to opt-out</h3>Always ensure there is an option to unsubscribe at the end of your texts – across the world it’s mandatory to send an opt-out message upon sign-up. In subsequent texts, it’s widely considered best practice, and is a legal requirement in some jurisdictions. Check specific regulations with your SMS marketing provider.“Aside from getting banned by the provider, [not giving customers the option to opt-out makes for] a bad customer experience,” says Julian Casson, co-founder of SmartrMail. “It's such a highly personalised channel. If you're invading people's space, it will be viewed very negatively.”<h3> 9. Set and forget with automation</h3>Automated text messages can spur revenue growth by promoting flash sales and sending re-engagement messages and prompts following cart abandonment. It is preferable to run this in tandem with related email messages, but be mindful about a disjointed experience for the customer. SMS messaging can be particularly powerful for targeting customers who haven’t made a purchase for a long time (whereas an email is more likely to stay unread in the promotions folder).However, it’s important to find the sweet spot in terms of frequency when setting up automated SMS campaigns; messaging too frequently will lower the open rate as customers begin to disengage.“You probably don't want to send a SMS message more than once a week,” says Siegel. “If you push that further, you have to really understand the audience and be careful about your content strategy.”

"If you're invading people's space, it will be viewed very negatively.”

<h3>10. Allow for a two-way exchange</h3>SMS was never meant to be a one-way channel. So, what happens if a customer writes back to your text, seeking more information on a product or deal? Your SMS provider platform will likely be equipped with basic features that let you text directly with customers. You could also consider implementing auto-reply keywords, which let customers receive more information by sending a one-word reply (for example, ‘Text DEAL for a discount code’ or ‘Text INSTA to check out our feed’.)<h3>11. Think outside the box</h3>While many merchants stick to sales promotions and order confirmations for SMS marketing, Australian online artwork retailer<a href="https://bluethumb.com.au/" rel="noopener noreferrer" target="_blank"> Bluethumb</a> has utilised a more creative marketing strategy. Post-purchase, they send every buyer an SMS with a photo tile of the artwork they purchased, which can be shared on social media.“With a couple of thumb clicks, the buyer can share it on their social sites: it’s quick and seamless and it plays to the strengths of SMS with a personalised message,” says Casson, who founded Bluethumb as well as SmartrMail. “The tiles are branded [with our logo], which drives awareness for Bluethumb. It’s been a game changer.”<h3>What does the future hold for SMS marketing?</h3>When Apple recently released the iOS 16 software update in the United States, it introduced a promotions tab for SMS, just like the promotions tab for emails.As a result, are business SMSs more likely to be left unseen and unread? “It could make SMS marketing less effective,” notes Siegel. “However, that is not necessarily going to be the case. What we're seeing with email is that people are less likely to unsubscribe if the email stays in the promotions folder, because it isn’t annoying them every day. They can shop around in the promotion tab on their own accord.”He adds that there is a lot of mileage for businesses who are doing SMS marketing right, and likens the current period of SMS marketing to the early days of online sponsored ads, which delivered huge sales for brands. He foresees SMS marketing campaigns becoming more sophisticated – with the possibility to even complete purchases via text – before saturation point is reached, and new mediums emerge.

This powerful form of mobile marketing is a huge, but often underutilised, opportunity for business sales. Text for success with these 11 steps. 

A guide to SMS marketing during the festive season featuring advanced advice on how to target customers through their mobile device and drive sales. 

How SMS marketing can drive sales during holiday season | Afterpay

How to use SMS to drive sales

Avoid these common retail mistakes during the festive period, from not preparing for an influx of traffic to not offering multiple delivery options.

Last year, Black Friday and Cyber Monday sales hit an all-time high in Australia, with shoppers<a href="https://news.nab.com.au/news/black-friday-and-cyber-monday-hit-an-all-time-high/" rel="noopener noreferrer" target="_blank"> spending more than $8 billion</a> over the four-day spree.And that was just the beginning of shopping season, which ramps up as Christmas approaches.&nbsp;Every year, sales season offers online merchants and brick-and-mortar stores alike the opportunity to drive up basket size, boost revenue and secure new customers.But without careful consideration and thoughtful execution, small businesses can easily make mistakes and miss opportunities. This holiday season in particular, merchants will be dealing with the flow-on effects of inflation, interest rate rises, and supply chain shortages, with experts predicting that shoppers will soon start tightening their purse strings.To prime your business for success, get familiar with these 10 common mistakes made by retailers – and how to avoid them.<h3>1. Failing to… prepare your online store for an influx of traffic&nbsp;</h3>The season’s major shopping events, especially those occurring online, like Cyber Monday (November 28), can bring a surge of visitors to your e-commerce store.&nbsp;For context, in November 2019 the top 100 global shopping sites saw<a href="https://www.similarweb.com/corp/blog/ecommerce/retail-insights/the-numbers-are-in-2019-black-friday-cyber-monday/#:~:text=Traffic%20Gains%20%E2%80%93%202019%20Shopping%20Season,-As%20a%20whole&amp;text=Cyber%20Monday%2C%20the%20second%20day,of%20112%25%20over%20the%20baseline." rel="noopener noreferrer" target="_blank"> average daily visits increase by 22 per cent</a>, including a 137 percent spike on Black Friday.This is good news, but is your website equipped to handle the extra load? “You need to make sure that your site is easily accessible even when traffic is high,” says Roger Simpson, retail consultant and CEO of<a href="https://theretailsolution.com.au/?doing_wp_cron=1660789989.1983830928802490234375" rel="noopener noreferrer" target="_blank"> The Retail Solution</a>. Find out how many requests per second your content management system (CMS) can handle before the load time is affected. Is your website optimised for multiple devices? And does your checkout work well on both desktop and mobile? Easy solutions for this common mistake.Fixing glitches and increasing your website’s speed can bring about real and tangible results. The<a href="https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Consulting/Milliseconds_Make_Millions_report.pdf" rel="noopener noreferrer" target="_blank"> Milliseconds Make Millions</a> report found that even a 0.1-second improvement in site speed saw retail customers spend almost 10 per cent more at the checkout.

“You need to make sure that your site is easily accessible even when traffic is high."

<h3>2. Failing to… order enough stock</h3>An “out of stock” sign on a product won’t just lose you a sale, it can leave a bad impression on new potential clients who are visiting your store for the first time during the sales. Follow these steps to manage inventory effectively and get in your Christmas orders as early as possible.-&nbsp;Calculate how much stock you need. Examine your business reports and consider trends from the past few years.-&nbsp;Communicate with your suppliers or vendors. Check if there are changes to lead times during the holiday season, and if they’re offering any promotional or discount prices. Also, are they taking time off over Christmas?-&nbsp;Place orders. The earlier, the better. Consider ordering enough stock to last until mid-January, to see you through the sales season.-&nbsp;Create contingency plans. Draw up a plan of action in case a product is over or understocked. For the former, will you slash the prices – and when and by how much? For the latter, you’ll need to create a waiting list or reorder swiftly from your suppliers.<h3>3. Failing to… strategically target prospective customers</h3>The holiday season is a prime time to attract new customers and win back old ones, but the cost of advertising on social media is concurrently at a year-round high, as competition drives up the cost per click (CPC).<a href="https://leadsbridge.com/blog/ads-cost/" rel="noopener noreferrer" target="_blank"> According to one study</a>, the average CPC on Instagram is $USD0.80 in the first quarter of the year, spiking at more than $USD2 in late November/early December.Therefore, your advertising and marketing campaigns will need to be tactical.-&nbsp;Get in early. Invest in social media advertising at least a few weeks before Black Friday. This will be more economical than waiting until the last minute and it will also generate interest with prospective customers while they’re writing their shopping lists.-&nbsp;Target lookalike audiences who have similar purchasing patterns to your existing customers. Social media platforms like Instagram and Facebook use data to find these prospective high-value customers. These are your target audience, so serve them targeted advertising.-&nbsp;Remarket to last year’s customers. Re-engage with those who’ve already done business with your retail store. Examine last year's analytics and reach out to customers who shopped from you during the last Black Friday Cyber Monday (BCFM) period or holiday season; email is the best platform for this, particularly personalised and targeted EDMs.

The holiday season is a prime time to attract new customers and win back old ones.

<h3>4. Failing to… hire enough additional staff</h3>Major sales can attract large volumes of people ready to snap up a bargain. Will your current staff be able to handle the influx and provide the same attention to detail?&nbsp;“Make sure you have enough staff in store to cope when it’s very busy,” says Simpson. While hiring in advance is important every year, it’s especially pertinent for the upcoming Christmas sales season as restaurants and retailers struggle to find casual staff due to “very limited overseas students and visitors. Retailers need to try and over-employ if they can,” he continues.“There will be a lot of competition for the best Christmas casuals. They need to be fully trained by mid/late November as shoppers tend to shop earlier to avoid stock issues.”Amid labour shortages, you’ll need to stand out from the crowd to attract the right staff. Consider implementing an employee referral program as well as offering incentives to work for you (such as staff training, flexible schedules and company events).<h3>5. Failing to… utilise the power of SMS campaigns&nbsp;</h3>SMS marketing (or texting) is a relatively new way to connect with customers, but according to numerous studies, you can use it to promote and publicise your sales with significant cut-through.According to Lexer’s<a href="https://www.lexer.io/lp-2022-retail-holiday-guide" rel="noopener noreferrer" target="_blank"> Retail Strategies To Maximise 2022 Holiday Sales</a> report, SMS campaigns have a 97 per cent average read rate just 15 minutes after delivery.<a href="https://www.attentive.com/" rel="noopener noreferrer" target="_blank"> Attentive</a>, an SMS marketing provider, facilitated more than 18 billion texts between retailers and customers last year, with retailers making an average of $USD55 dollars for every $USD1 spent on SMS marketing.Note that before sending marketing texts, your customers will need to explicitly opt-in. You can drive sign-ups by providing an incentive, discount or exclusive reward. Once your list grows, SMS will become a valuable communication channel for your brand. <h3>6. Failing to… provide a range of delivery options</h3>During the sales season, competition is fierce – and for some shoppers, free or fast delivery might be the deciding factor when choosing where to make a purchase.Simpson suggests that retailers provide a range of delivery options, including click-and-collect. Free shipping is an enticing option (high shipping costs are widely regarded as the number-one reason for cart abandonment) and can help increase average order value. But if it’s not cost-effective for your business, you could offer it as a one-off promotional tool on peak sales days like Black Friday, Cyber Monday and Boxing Day –&nbsp;or offer it to customers who spend a certain amount.

SMS campaigns have a 97 per cent average read rate just 15 minutes after delivery.

<h3>7. Failing to… amp up your customer service</h3>As<a href="https://tbhskincare.com/" rel="noopener noreferrer" target="_blank"> tbh Skincare</a> has learned, more customers equal more questions.&nbsp;“There have been times [in the early years] where we’ve struggled to keep up with the level of customer service tickets during a sale period, especially across weekends and out of hours,” explains founder Rachael Wilde.“This is something we’ve worked on over the past 12 months to manage as we really value our customers' experience and <a href="https://www.afterpay.com/en-AU/business/access/customer-service/seek-customer-feedback" rel="noopener noreferrer" target="_blank">feedback</a>. If people are shopping during a sale, they want fast customer-service assistance.”Now, tbh Skincare rosters on online customer support 24/7 for the duration of major discounts.Your customer support staff can cover everything from responding to emails to social media messages and pop-up web chats. Today, some businesses are opting to elevate their e-commerce offering with virtual personalised shopping experiences, where purchasers can connect with the customer service team via text, email or video and receive personalised product recommendations.<h3>8. Failing to… create an eye-catching landing page</h3>When a potential customer clicks through to your e-commerce store from an email or digital ad, where do they land? Chances are, they’re taken to your homepage, which provides a general overview of your business. But this is a lost opportunity. Studies show that if you have a specific, short-term goal – such as promoting a sale or a particular product or range on sale – a dedicated landing page can help increase your conversion rate.&nbsp;Why? Because while a homepage is filled with countless messages and images – creating a “paradox of choice” for the shopper, while a landing page has one clear call to action: ‘20% off for Black Friday’, for example. Some businesses create a landing page in the lead-up to a shopping event with a countdown clock and urge visitors to sign up to their EDM to stay informed. Once the discount event starts, the landing page can lead users directly to the products they’re interested in.An effective landing page will have…-&nbsp;A clear and compelling CTA&nbsp;-&nbsp;A clutter-free design-&nbsp;One main headline-&nbsp;An engaging image-&nbsp;Concise copy that emphasises the value of the sale or deal-&nbsp;Minimal navigation – strip the page of menus and buttons that allow the shopper to click away (unless it’s a CTA to Shop The Sale or Shop Gifts, which will link through to your product pages)-	Promotion of Afterpay as a way to buy now, pay later. (Visit <a href="https://www.afterpay.com/en-AU/business/resources/marketing" rel="noopener noreferrer" target="_blank">Afterpay’s marketing resources centre</a> for tips and examples.)<h3>9. Failing to… nail your pricing strategy</h3>As a business owner, your aim is to sell. And against a backdrop of inflation, financially squeezed shoppers are seeking out value deals this season.But significantly dropping your prices isn’t always the smartest business plan. If you price a product too low and the deal is too popular, you’ll miss out on revenue, harm your profit margins, and put pressure on already struggling supply chains; the consequent delays and unfulfilled orders have the potential to override your sales success.Think creatively and experiment with tiered discounts – where the more a customer spends, the larger their discount – or bundle sales, where you package complementary products together to drive up sales and reduce surplus inventory.<h3>10. Failing to… think beyond the single transaction</h3>During peak retail periods, your business will likely experience an upsurge in traffic. So, make some noise while there are additional eyes on your brand.As part of its 2021 Black Friday event, tbh Skincare released a new product: pimple patches. Wilde explains, “Not only were our customers super excited because this was a new product, but [as part of] our Black Friday offer [they were] free with any purchase over $80."“This was a great value add for our customer, wasn’t a huge discount in terms of margin for us, and it kept basket sizes up across the sale period.”&nbsp;Similarly, consider how to transform first-time purchasers into long-term loyal fans. Ensure you have a marketing strategy to drive <a href="https://www.afterpay.com/en-AU/business/access/customer-retention/customer-retention-strategies" rel="noopener noreferrer" target="_blank">retention</a> and repeat purchases, whether that’s via retargeting, for example, or a content series that introduces them to your brand.

Avoid these common retail mistakes during the festive period, from not preparing for an influx of traffic to not offering multiple delivery options

10 common retail mistakes to avoid at holidays 

10 common retail mistakes to avoid at holidays | Afterpay Access

10 mistakes retailers make every sales season 

Experts share how to prepare for the holiday season 2022 - how are shoppers spending, how do consumers feel, and what can business owners do to adapt?

Amid a pandemic, war and economic turmoil, we’re living in unique times. Consumers are being hit by the rising cost of living, while businesses are navigating supply chain delays, shipping issues, and rising costs of materials and commercial rent. It's extra important for retailers to keep up with each key retail trend as it emerges.But it’s not all bad news.In Australia, 34 per cent of<a href="https://marketing.wearemiq.com/holiday-shopping-whitepaper" rel="noopener noreferrer" target="_blank"> shoppers</a> are expected to spend more than they did in 2021.That said, 2022’s unique circumstances set the stage for a unique sale season in many ways. Here, experts weigh in on the current retail landscape – and share how merchants can adapt and thrive this holiday season. Read on for our forecast of key retail trends to best inform your sales strategy.<h3>1.	Christmas will come early</h3>With inflation rising, budget-conscious shoppers are likely to be keen to get in early to beat the crowds and avoid price hikes and shipping delays. To ensure sales growth, merchants need to be well-prepped for the season in October, if not before – <a href="https://www.afterpay.com/en-AU/business/access/smarter-discounting/bfcm-checklist" rel="noopener noreferrer" target="_blank">read our small business checklist for the sales season here.</a>While Black Friday falls on November 25 this year, many businesses are rolling out sales earlier and earlier, even in October. This pull-forward strategy might help merchants stand out from the crowd. Of course, if you go too early and you’ll miss out on shoppers who are holding out for a better deal.The secret may be “leaking deals” through your EDMs and social media in October, teasing customers to drive excitement for your November sales, and even doing the odd flash sale on a particular product or line. Plus, keeping an eye on when competitors go on sale.

With inflation rising, budget-conscious shoppers are likely to be keen to get in early.

<h3>2.	Shoppers are ‘trading down’</h3>As inflation forecasts soar, shoppers will start to see their spending power falter. “Retailers will have to work harder to show both the quality and value of their goods,” says Helen Dickinson, chief executive of the British Retail Consortium. “Many households are already finding themselves ‘trading down’ – buying the cheaper ranges of goods – meaning that retailers must either show the value of higher-end brands, or expand their existing affordable ranges."&nbsp;The BFCM and pre-Christmas period is an opportunity for merchants to cater to cautious or cash-strapped shoppers with slashed prices.But between sale days, not every business can afford to be the cheapest on the market, especially when competing against retail giants. One way to retain customers in this landscape without constant discounting is to look to offering exclusive products. “Offering exclusive products makes price comparisons difficult,” explains Marie Driscoll, Coresight Researcher. “Exclusives, limited editions and collaborations with exciting brands drive shopper engagement and traffic.” Another option is a free gift with purchase.<h3>3.	Shoppers loyalties are changing</h3>Research suggests that, worldwide, we’re in the midst of a “loyalty shake-up” with more consumers switching to different brands in 2022 than in 2021 or 2002,<a href="https://www.mckinsey.com/business-functions/growth-marketing-and-sales/our-insights/how-us-consumers-are-feeling-shopping-and-spending-and-what-it-means-for-companies" rel="noopener noreferrer" target="_blank"> according to McKinsey research</a>. This trend requires businesses to be more adaptable than ever.Hold on to your high-value customers by granting them early access to sales events or special discount codes – and think about how to take advantage of customers’ willingness to try new brands. How can you encourage consumers who haven’t shopped with you before to purchase with you for the first time? Make sure the path to purchase is as smooth as possible – that your website is fast, customer service is on hand (perhaps consider a chatbot), and that you offer a buy now pay later service like Afterpay.

“Retailers will have to work harder to show both the quality and value of their goods."

<h3>4.	Consumers are craving positivity</h3>A few years ago, a sale banner or discount email might have been enough to land a transaction, but customer behaviour and desires have changed. Today’s financially squeezed shoppers need more – including a reason to feel good.“If you go right back to why it is that people shop, it’s never just about getting a product; it’s the way that it feels when they [shop],” says retail expert Ingrid Maynard, director of<a href="https://thesalesdr.com.au/about/" rel="noopener noreferrer" target="_blank"> The Sales Dr</a>.“How do we make sure that at every step along the way, however [customers] choose to purchase, they have a positive experience? This year, in particular, it’s about linking spending money [with positivity], instead of triggering stress.”Consider how to communicate the benefits of your products (via signage, social media, EDMs). Value is an obvious one, but think beyond this – for example, how will shopping in your sales make your customers’ lives easier? Can they tick off their Christmas list early? Enjoy free or fast shipping? Or feel less overwhelmed as December gets underway?Bob Phipps, a US-based retail educational specialist, who helps businesses better understand customer behaviour, emphasises that this year, merchants shouldn’t be too pushy with their sales. Cramming customers’ inboxes with discounts and coupons throughout the holiday season could be overwhelming for shoppers, plus it teaches them to always wait for a better deal.<h3>5. ‘Wow experiences’ will attract shoppers and drive sales&nbsp;&nbsp;</h3>Online retail has been growing consistently for more than a decade, but it was the pandemic-induced lockdowns of 2020 that saw the explosion of e-commerce.The upshot is that customer-facing, brick-and-mortar stores have their work cut out for them, and will need to create cutting-edge environments and experiences that customers want to try to lure them off the couch and into stores. The importance of customer experience is a key trend to adapt to as consumers move away from their reliance on digital sales.“With the Covid scare abating, we’ve seen consumers returning to stores showing a pent-up demand for the social side of shopping, which includes in-store events as well as occasion-driven promotional activity,” says Driscoll, who recommends creating a “festival-like” atmosphere around BCFM sales.High-quality in-store offerings to entice and delight shoppers include access to experts in-store (such as brand founders or influencers); free product demonstrations (especially for beauty products); gift-wrapping facilities; personalisation for leather goods; and frictionless pay, including the option to buy now and pay later.

"We’ve seen consumers returning to stores showing a pent-up demand for the social side of shopping."

<h3>&nbsp;6.	Customers will expect multiple delivery and return options</h3>Whether your business is online, bricks-and-mortar or both, offering a range of delivery and collection options will be essential this year. Click-and-collect, for example, was normalised during pandemic lockdowns, and is now widely expected by shoppers (especially those who leave their shopping to the last moment).Driscoll believes that businesses should provide a “<a href="https://www.afterpay.com/en-AU/business/access/marketing/customer-centricity" rel="noopener noreferrer" target="_blank">consumer-centric</a> omnichannel strategy” whereby customers can receive their orders in multiple ways. Examples include BOPIS (buy online, pickup in-store); curbside pickup; and buy online and return in person.Another option is the ‘find in store’ function, where online shoppers can check stock levels for a particular product online, and then go to a store and view it or try it on in person.Each of these methods creates a “crossover experience between online and in-store”, Maynard says, not only making the customer’s life easier, but reducing shipping costs, minimising online returns, increasing foot traffic and driving up basket size. According to the International Council of Shopping Centers, more than <a href="https://www.icsc.com/news-and-views/icsc-exchange/icsc-finds-over-half-of-americans-use-click-and-collect?utm_source=Triggermail&amp;utm_medium=email&amp;utm_campaign=Post%20Blast%20%28bii-e-commerce%29:%20Consumers%20want%20to%20use%20BOPIS%20%7C%20Amazon%20pushing%20suppliers%20to%20move%20to%20marketplace%20%7C%20US%20Presidential%20hopeful%20could%20push%20e-commerce%20regulation&amp;utm_term=BII%20List%20E-Comm%20ALL" rel="noopener noreferrer" target="_blank">half of adult shoppers use click-and-collect</a>, with 67 per cent of them adding additional items to cart when they know they can pick them up immediately. Make sure to keep up-to-date on consumer expectations about delivery and pickup; it's critical for happy customers.

Experts reveal how consumers will shop, spend and save – so you can get ahead of the curve and maximise sales

Experts share how to prepare for the holiday season 2022 - how are shoppers spending, how do consumers feel, and what can business owners do to adapt? 

Retail sales trends in the 2022 holiday season | Afterpay Access

6 Ways Retail Will Look Different This Sales Season

The countdown to Christmas is a time of festivities and frivolity for most people, but for retailers it means one thing: the biggest and busiest period of the year.“On average more than 30 per cent of all retail sales are done in the November to January period,” confirms Brian Walker, CEO and founder of<a href="https://retaildoctor.com.au/" rel="noopener noreferrer" target="_blank"> Retail Doctor Group</a>. “It’s a huge opportunity for retailers to make record sales, and it’s also an opportunity to sell through stock, increase cash flow, and continue to build a loyal customer database.”Last year, holiday shoppers spent<a href="https://www.prnewswire.com/news-releases/salesforce-data-reveals-global-digital-sales-surpassed-1-trillion-during-2021-holiday-season-301459450.html" rel="noopener noreferrer" target="_blank"> $USD1.14 trillion online worldwide</a>, with<a href="https://www.prnewswire.com/news-releases/salesforce-data-reveals-global-digital-sales-surpassed-1-trillion-during-2021-holiday-season-301459450.html" rel="noopener noreferrer" target="_blank"> the majority of shopping occurring early and late in the holiday season</a>, coinciding with sales events. Cyber Week (in late November) accounted for 23 per cent of global online holiday spend, followed by another sales rush between December 18 and 31.The takeaway? The holiday shopping season is a huge opportunity for merchants, whether you’re an e-commerce business or bricks-and-mortar store. But there’s a lot to consider, including inventory, staff onboarding, markdowns, marketing and more.To streamline and simplify the sales season, we’ve compiled a detailed checklist for retailers, covering both the lead-up to the sales (with BCFM kicking off in late November) and the final countdown to Christmas. Consider this the 12 weeks of retailing Christmas.

“On average more than 30 per cent of all retail sales are done in the November to January period.”

<h3>JULY - OCTOBER</h3><h3>24-12 weeks until Christmas</h3>Assess inventory and ensure all supply orders have been made.Choosing and ordering products to sell during the holiday season should be completed as early as possible – up to six months before sale season begins.Use reports from your e-commerce software to find out which products sold well in 2021 during the same calendar period and ascertain what quantities you’ll require. This will allow you to optimize your ordering. Remember, an “out of stock” message on your product page will mean missed sales and could leave a bad impression on potential customers.Generally, ordering stock for Christmas involves some calculated risk. It’s probably safe to increase order quantities on year-round best-sellers, but if you overstock a festive or Christmas-themed product, you’ll be left dealing with storage and <a href="https://www.afterpay.com/en-AU/business/access/boosting-profitability/cashflow-management-tools" rel="noopener noreferrer" target="_blank">cashflow</a> issues.&nbsp;Decide on your markdown strategyDiscounts are a major sales driver during the holiday sales period, but small businesses need to be strategic in the promotions and deals they offer.Jane Magoffin, head of e-commerce at global retail marketing agency<a href="https://www.reloadmedia.com.au/?" rel="noopener noreferrer" target="_blank"> Reload Media,</a> suggests defining your business’s holiday season objectives before creating a markdown strategy.&nbsp;“Are you trying to target new customers or retain a certain amount? Or are you targeting a certain amount of spend per customer? Do you have a set revenue figure you want to hit this year? Knowing this will dictate what kind of sale or promotion you run during sales season, is it a bundle? A product launch? A standard percentage discount?”When marking down products, your aim is to find a middle ground between attracting customers, staying competitive and being profitable. Tiered discounts – based on how much a customer spends or how many items they buy – are a clever way to increase your average order value, while attractive holiday bundles will help get rid of unsold stock. But there are plenty of other ways to discount.&nbsp;

<h3>Amp up your visibility online</h3>There is a steady increase in customers searching for “Christmas gifts” from late August onwards, which means it’s important to be visible from this month. “They’re not necessarily buying yet, they’re … taking note of the brands who have what they want,” says Magoffin.&nbsp;Use this time to test and optimise marketing tactics and start driving more shoppers to your e-commerce store. Your aim is to capture leads, showcase your products and plant the seed for future sales.Some strategies to try:&nbsp;-&nbsp;Supercharge your SEOSearches for gifts and products will surge over the sales period, so it’s worth taking the time to prepare and<a href="https://www.afterpay.com/en-AU/business/access/seo-tips/how-to-improve-seo-ranking" rel="noopener noreferrer" target="_blank"> improve your website’s SEO ranking</a>. Get specific and utilise seasonal keywords like ‘personalised Christmas gift ideas’, ‘Christmas gifts on a budget’, ‘fast shipping for gifts’ or ‘holiday discount code’ for your best chance of success.&nbsp;-&nbsp;Invest in social media ads“Ad costs are increasing and the closer you get to sales season, the more expensive it gets to gain customers’ attention - and there will be more advertisers competing for the same space,” says Magoffin. As such, if you’ve allocated budget to social media ads over Christmas, aim to get in early.-&nbsp;Send engaging EDMsAccording to<a href="https://www.salesforce.com/blog/data-driven-holiday-predictions/" rel="noopener noreferrer" target="_blank"> data from Salesforce</a>, 68 per cent of shoppers pay more attention to emails from companies during the Christmas period. Throughout October, make sure you’re sending regular EDMs that engage your audience, show off your product offering and keep your brand top of mind, so that audiences are primed to spend when sales season begins.&nbsp;Read more tips on acquiring<a href="https://www.afterpay.com/en-AU/business/access/customer-acquisition/strategy" rel="noopener noreferrer" target="_blank"> new customers here</a>.&nbsp;

“Ad costs are increasing and the closer you get to sales season, the more expensive it gets to gain customers’ attention - and there will be more advertisers competing for the same space”

<h3>10 weeks until Christmas</h3>Optimise your websiteSales season means an enormous surge in customers shopping online, with e-commerce sites likely to see increases of between 22 per cent to 110 per cent in traffic. That’s why it’s crucial to ensure that your website is (literally) up to speed.Make sure you fix any bugs, test the load speed across all devices and optimise the customer checkout experience (this applies to bricks-and-mortar stores, too). For example, is your gift-card redemption system set up, and will you be accepting flexible payment options like Afterpay?Next, streamline usability and optimise your website’s design. “Popular items should be clearly displayed and easy to find,” notes Walker. “Be thorough in terms of your layout so that buying from you is an enjoyable experience.”You may also want to create some seasonal banners and website assets that capture the holiday spirit – the equivalent of visual merchandising for an e-commerce store. These will go live in November and December (find free, printable templates on<a href="https://www.canva.com/en_gb/" rel="noopener noreferrer" target="_blank"> Canva</a>). Or take a look at Afterpay’s <a href="https://www.afterpay.com/en-AU/business/resources/marketing" rel="noopener noreferrer" target="_blank">marketing resources centre</a> for more templates and tips.

“Popular items should be clearly displayed and easy to find.”

Recruit new staffThe busiest time of the year naturally comes with an increased demand for staff – both working the store floors and behind the scenes.“You’ll have an influx of people [making enquiries] in your direct messages and sending comments and queries - so make sure you have enough hands on deck for that,” says Magoffin. “Equally, warehouse and logistics staff will be integral. Recruit now [in October] if you need more resources.”The catch? Amid a global labour shortage, recruiting is notoriously difficult. To attract a larger pool of candidates, streamline the application process; highlight your strong company culture; offer benefits and perks; and allow as much flexibility in the role as possible.

<h3>NOVEMBER</h3><h3>8 weeks until Christmas</h3>Re-engage with potential customersAs you move into November, it’s time to <a href="https://www.afterpay.com/en-AU/business/access/customer-acquisition/funnel" rel="noopener noreferrer" target="_blank">nurture the leads</a> you’ve already attracted and start getting potential customers excited for sales season.“Engage with those customers who found your brand when they were building their wish list weeks ago,” advises Magoffin. “Retarget them on social media and launch your [holiday sales] email marketing campaign – let your customers know whether you’ll be putting products on sale, so they know what to plan for and look forward to.”Set your shipping strategyA convenient shipping and delivery policy could be the difference between securing a sale and losing it.Review your shipping methods and pricing and revisit whether the strategy is working for both the business and for your customers. Consider comparing your shipping policy to that of your competitors (as your customers are likely to do).&nbsp;Then, communication is key. Display your shipping policy on your online store, at checkout and in order-confirmation emails, and be realistic with customers about when they should expect their deliveries. Also emphasise the cut-off date for shoppers to receive orders before Christmas.

“Engage with those customers who found your brand when they were building their wish list weeks ago."

<h3>7 weeks until Christmas</h3>Finalise creative assets and continue online marketingAt this point, the start of sale season (Black Friday) is just three weeks away. “By now, you want all of your sale season assets finalised – that is, creative for your EDMs, social ads and even physical stores – with your sale proposition super clear,” says Magoffin.&nbsp;&nbsp;You can also start dialling up your paid ads and increasing ad spend to retarget customers who have previously engaged. Your EDM campaign should start to include strong sales and Christmas messaging, and you might want to send teaser emails hinting at your upcoming BFCM promotions, or themed gift guides.Onboard new staff“The bugbear of many consumers during sales season is that staff in physical stores don’t know a lot about the product,” says Walker. “Ensure your staff are well set up and coached in your product and how best to deliver it. By mid-November you want them trained up and ready to go.”&nbsp;Training should also be complete or nearly complete for any new customer support and warehouse staff.

<h3>6 weeks until Christmas</h3>Go live to VIP customersChristmas might still be more than a month away, but it’s less than two weeks until Black Friday. Use this time to reward your most loyal and valuable customers. “Make sure they feel important and valued,” says Magoffin, who recommends offering VIPs exclusive access, early-bird offers or added value around two weeks before Black Friday.“As they are already your most engaged customers, you have an even greater chance of converting them with a ‘beat the rush’ style offer. If you can find a way to personalise it, even better.”Ensure your store looks enticingBy mid-November, your physical shopfront should make people want to step inside. Your decorations or festive theme should be apparent, and your promotional offers should be clearly signposted.&nbsp;“Merchandising adjacency is also hugely important – increase the average spend by placing similar items together like socks next to shoes, for example. This is very valuable for online retailers, too,” says Walker.Offering in-store add-ons, such as gift wrapping, can also enhance customer experience.

"Make sure [customers] feel important and valued."

Incentivise staffSales season is an important time for retailers – and it can be a stressful one. “Keeping staff engaged and motivated is really important,” says Walker, who suggests introducing incentives to help gamify the experience and drive them to exceed targets.Ensure you have rostered on your top performers during the busiest periods - and encourage everyone to have fun. “It’s Christmas, after all,” adds Walker. <h3>5 weeks until Christmas (and 1 week until sales season!)</h3>Go live with your salesMagoffin suggests launching your sales one week before Black Friday. As the saying goes: first in, best dressed.“If you wait until Black Friday to launch your sale, you’re going to lose so many customers,” she says. “Brands are going live earlier and earlier each year. One week before is the strongest time as it’s close enough to the sales season that customers won’t be holding out for a better deal, but early enough that they won’t already be overwhelmed.”

"If you wait until Black Friday to launch your sale, you’re going to lose so many customers."

<h3>DECEMBER</h3><h3>4 weeks until Christmas</h3>Test and assess your sales strategyBy now, you’re in the thick of sales season. Amid the frenzy, take some time to examine the market, size up your competitors and review your own promotions.Says Magoffin, “After the first big bang, you’re testing the efficacy of your campaign … What is more effective for your customers, EDMs or SMS? What’s going to move the needle? When you have high volumes of traffic like this, you can gain valuable information quickly – and make better decisions faster.”&nbsp;<h3>2-3 weeks until Christmas</h3>Refine your sales strategyAfter the Black Friday and Cyber Monday mayhem have settled, make any necessary changes to your strategy for the upcoming pre-Christmas rush.&nbsp;“During the sales season you’re assessing and refilling your shelves as much as your stock will allow,” says Walker. “Look at what’s been moving quickly, and what you’d like to move faster. Ensure your store is looking pristine once more, re-merchandise if you need to.”Consider whether you can add extra value to your customers, such as free express shipping. Is there any way you can incentivise last-minute purchases?

"Ensure your store is looking pristine once more, re-merchandise if you need to."

<h3>1 week until Christmas</h3>Lure last-minute shoppersThis is the time to promote last-minute purchases, such as gift cards, and to cater to shoppers who are time-poor and will welcome suggestions for extra gifts.“Ensure you’ve implemented merchandise adjacency,” says Walker, who explains that retailers can identify any stock they want to clear and discount it as part of a gift bundle.&nbsp;Give customers a reason to buy from you againThe final sales rush will flow into Christmas – one day of reprieve for retailers – followed closely by the Boxing Day sales, which you’ll be well-equipped to navigate by now. But your sales strategy doesn’t stop here. “The sales season brings such an influx of new customers - don’t let it go to waste,” says Walker. “Now you have them in your database, you can nurture the relationship and encourage them to come back and ultimately retain them as loyal customers.”

We’ve made a list (and checked it twice) to help streamline and simplify the holiday season for merchants

Get ready for Black Friday Cyber Monday with this small business BFCM checklist outlining everything you need to be prepared.