Retailers Focusing on AI, Social Media, and Deep Discounts to Attract Holiday Shoppers
A recent report from Fiverr about retailers’ readiness for 2024’s holiday season reveals that the businesses plan to take a “more strategic approach to how [they’ll] manage their marketing efforts, freelance talent, and AI technologies.” Their goal is to “level the playing field against larger e-commerce brands.”
One of the keys to success for retailers this year is to “capture” Gen Z (Zoomer) customers, who are prolific online shoppers, so business owners are concentrating on digital marketing to reach them. The report shows:
- 43% of Zoomers plan to spend more this holiday season, compared to the 37% of millennials who plan to do the same
- 57% of the retailers surveyed will invest in social media ads to reach their target audiences
Retailers’ marketing approach will consist of 39% social media ads, 35% influencer marketing campaigns, 33% email marketing, 29% updated product pages, and improved SEO functionalities.
The report says social media remains the “go-to place” for Zoomers looking for the perfect holiday gift. Where do they get their gift ideas?
- 34% use TikTok shop
- 25% look to recommendations from social media influencers
- 14% use generative AI search to help with gift buying
- TikTok shop continues to dominate—almost 54% of Zoomers find their gifts on this platform alone
- 33% will shop via Facebook and Instagram ads
Reaching new audiences
In addition to social media, retailers plan to:
- Over 80% of businesses offer discounts, compared to 55% last year
- Customers want good deals (42%), free shipping (32%), and high-quality products (30%)
I hope you’re prepared since 52% of consumers plan to start shopping for holiday gifts in October and November.
The emergence of AI
As shopping moves online, 68% of the retailers surveyed plan to implement AI this holiday season.
- 41% will invest in AI tools to expedite work
- 35% want to embed AI throughout the entire customer journey with chatbots, customer personalization, or customized marketing campaigns
Gen Z consumers are already comfortable with AI. Over 54% will use AI to assist in their holiday shopping, to help them find the best prices (17%) and new gift ideas (22%).
Staffing shortages
Another issue facing small businesses this holiday season is an anticipated shortage of holiday workers. One-third of retail and e-commerce businesses are hiring freelancers to find holiday staff.
Rieva Lesonsky is President of Small Business Currents, LLC, a content company focusing on small businesses and entrepreneurship. Email Rieva at rieva@smallbusinesscurrents.com, follow her on Twitter @Rieva, and to get the scoop on business trends and sign up for Rieva’s free Currents newsletter.
Online holiday shopping stock image by phBodrova/Shutterstock