Leveraging conversion driving tools like fit technology will lower the cost of acquisition and create foundational relationships for driving customer lifetime value this holiday season.
Learnings from Last Year
Holiday 2022 is upon us and we are witnessing rapidly changing consumer behavior from continued supply chain disruptions to cost of living increases and growing consumer privacy concerns. So how can retailers put their best foot forward this season to meet shoppers with relevance and convenience?
Let’s first take a look at last year. Across True Fit’s Fashion Genome, shoppers began buying much earlier with orders up 10% over 2020 in October. Retailers that see success will factor this into their promotion schedules, making the most of their traffic beginning in September. Giving shoppers the right tools to convert and be confident in their purchases will also be an important strategy for maximizing traffic at a time when advertising spend is costly and competitive.
Preparing for Holiday 2022
Cement your Traffic Pipelines
Successful retailers are cementing traffic pipelines now to prepare for Q4. According to Wordstream, the average cost per click for apparel search ads is $2.66 with cost only rising during peak shopping periods. Digital advertising that is targeted, early, consistent and compelling will lead to the most effective click through rates.
Drive Marketing Efficiency
To lower the cost of acquisition, an optimized PDP is critical as shoppers move into the consideration stage of the funnel. At this stage, shoppers wants to evaluate what size they should buy, how much it will cost, fiber content, features, imagery, reviews, delivery windows and return policies.
For apparel specifically, size and fit is still the largest barrier to conversion. This becomes an even bigger barrier as shoppers browse for gifts for friends and family. A clear and updated size chart is important but to enhance a shopper's experience and give them confidence to convert, size and fit solutions like True Fit guide shoppers to the best fit for them or the person they are shopping for, mitigating both buying friction and returns.
True Fit has seen tremendous growth in 2022 in demand for fit guidance with new shopper adoption up 7% over last year. During holiday, True Fit members use a ‘shop for others’ feature to create unique fit profiles for their friends and family to gift the perfect size. Who doesn’t want that this holiday season?
Buy now pay later services will also be critical for softening the spend for consumers this year. “Introducing buy now, pay later options such as Klarna and Afterpay allow funds to hit merchants quickly, less a fee, while allowing customers to pay over time” as described by Practical Ecommerce.
Put your 1st Party Data to Work
With cookies phasing out in 2024 and rising privacy concerns among consumers, it is important for retailers to lean on 1st party data sources to learn about their loyal shoppers and get to know new traffic visiting their site.
"Valuable first-party data is unique to retailers, and it will give retailers the leverage they need to grow their brands in a post-third-party-cookie world."
“Valuable first-party data is unique to retailers, and it will give retailers the leverage they need to grow their brands in a post-third-party-cookie world,” Total Retail explains. True Fit earns 1st party data for retailers to leverage as they get to know their buyer personas and preferences. This model turns peak traffic into loyal, repeat shoppers. Giving shoppers a great first experience will set the foundation for customer lifetime value and advocacy.
Conclusion
With peak holiday shopping right around the corner, retailers that see the most success will focus on securing traffic pipelines, driving marketing efficiency and getting to know their peak traffic buyers to build customer lifetime value.