customer driven commerce

Its the Season...

A Practical, Tactical Guide to a
Brighter Holiday Season

www.marketlive.com
www.e-tailing.com

Its the Season... A Practical, Tactical Guide to a Brighter

Holiday Season
the e-tailing group and MarketLive, Inc.
Since 1995, MarketLive, Inc., has been the leading provider of eCommerce technology and services that help fast-growing
companies successfully sell goods and services online. Designed to meet the unique requirements of catalogers, retailers,
direct marketers, and manufacturers, the extensible MarketLive eCommerce Suite and MarketLives best practices-based
Intelligent Selling methodology enable merchants to enhance their customers experience online while dramatically
improving acquisition, conversion, and retention rates.
The MarketLive platform is the most retail-targeted, fully featured, customizable eCommerce solution on the market today.
MarketLive powers many successful retail eCommerce sites, including Armani, Party City, Perricone MD, Sport Chalet,
Sundance, Helzberg, John Deere, Title Nine, Intermix and others.
FOR MORE INFORMATION ABOUT THIS WHITEPAPER, CONTACT MARKETLIVE, INC

marketlive.com
877-341-5729

Its the Season... A Practical, Tactical Guide to a Brighter Holiday Season

The projections are in for the 2013 Holiday

season and all signs point to measured growth.
NRF forecasts retail sales will see a modest 3.9%
gain which is higher than the 10-year average
holiday sales growth of 3.3 percent. The bright
spot according to industry pundits will come
via online sales once again where the growth
curve mirrors current 13-15% increases. As a
case in point, November/December online sales
could reach as high as $82B according to Shop.
org. Mobile will power omni-channel shopping
connecting shoppers to their favorite stores
as they continue to seek efficiency and costsavings when buying gifts this holiday season.
eMarketer concurs that holiday numbers
will remain consistent with current spending
patterns making it essential that retailers garner
the greatest share of wallet they can through
practical and tactical solutions we will outline
based on our research insights.

The Merchant Speaks

With the season compressed, retailers will have
to get everything just right to simultaneously
reel in shoppers and revenues. The e-tailing
group research completed by 77 retailers
earlier in the year finds that 80% of the retailers
surveyed strongly to somewhat agree that
cautious optimism delivered via promotionfueled activities is the prognosis for the season
ahead. The good news is that they believe
they will make their numbers where a lack
of customer confidence plays into caution &
fear that aggressive plans wont be met. This
mindset factored into the five themes we will
put forth in this whitepaper while influencing
the recommendations we suggest for retail
consideration.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

Research Objective and Methodology

Find the consumer voice regarding their proposed
online, mobile and social shopping behavior
relative to gifting and 4Q13 holiday shopping,
including untapped merchant opportunities and
tactics that resonate with your customers.

Methodology
1,000
consumers
completed
questionnaire in September 2013

an

online

50% female/50% male

shopped online 4 or more times in the past
year
typically spend $250 or more online annually
100% owned a smartphone

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

General Gifting Trends

Each year we take the pulse on general gifting
behavior where budgets appear to be on par with
last years numbers. Consumers are gravitating to
the online channel as it continues to take market
share from store-based competitors. They are
also fully comfortable with purchasing via the
web and are showing great interest in using their
smartphones for efficiency and time-savings.
41% of consumers intend to buy at least 16
gifts this holiday season.
Yet budgets remain consistent year/year
with the majority (59%) planning to spend
$500 or more.

Shoppers continue to give non-store based

channels greater priority in their gift giving
as 65% of shoppers will do the majority of
their gift purchases via PC.
40% of consumers will purchase
significantly/somewhat more gifts online
this year where high shipping charges
remain the #1 obstacle.
Most categories expect purchases to grow
exponentially as consumers fully embrace
online conveniences and savings.

5 Holiday Reflections that will Resonate with Retailers

Five themes set the stage for what matters most
in delivering a strong holiday selling season. We
will begin with differentiation as this may be the
only means to survival for many. We will then
tackle price and promotion suggesting a need
to power performance through promotional
creativity. Simultaneously, our third area of
focus centers on orchestrating a superior
gifting experience which is now mandatory for
every retailer. Of course timing is everything
particularly in 2013s compressed selling season.
This factor alone reinforces that shoppers will
continue to embrace and accelerate their use
of smartphones for both pre-store research and
in-store purchasing so retailers must ready and/
or ratchet up their mobile efforts. It is here that
social and omni-channel efforts that connect
customers across channels will be shared as
well. Twenty seven ideas are also included and
we hope that you will take advantage of the
remaining days to try as many as possible.

Differentiation is a Survival Mechanism

One can fully expect that the competitive fight
will be fierce as our annual holiday research
study conducted with MarketLive indicates
that 6-out-of-10 shoppers will buy at least 25%
of their gifts on Amazon and of even greater
concern is that 31% expect to buy more than
50% of their gifts through just one retailer. It is
not simply enough that Amazon is a destination
for all things holiday but it also serves as the de
facto smartphone price check prior to online
purchasing. As price will be one of the central
tenets of our white paper this year, we thought
it might be insightful to start with Amazon who
has not only changed the dynamics of price, but
elevated service and logistics over the last 15
years. There are many ways to differentiate but
we have selected a few that push the envelope.
Messaging should be consistent across channels
and reinforced throughout the entire season.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

Ensure Your Value Proposition Includes Strong

Customer Service
Nordstrom leveraged their well-known customer
service advantage and articulated that messaging
last holiday. The messaging was pushed by hitting
on the themes that resonate with shoppers from
tools and tactics to making connections to their
personal stylists in this December, 2012 email
entitled Gift Giving Made Easy: From Nordstrom
with Love. First and foremost they highlighted that
products ship for free and timely delivery is a reality
with global fulfillment supporting a worldwide
value proposition. They elevated their game with
buy online, pickup in store, powering omni-channel
shopping and increasing customer service. Tools
Nordstrom embraced that simplify shopping
included providing access to wish lists while gift
cards were presented as the gift that never goes
out of style. Knowing that their customers are onthe-go they want to connect with them via mobile
and are willing to go the extra mile with extended
store hours. They have sought to differentiate on
every front and shoppers have rewarded them for
these efforts, opening their wallets and powering
growth for their company.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

Elevate Logistics and Ensure On-time Delivery

Customers have heightened service expectations
as they want product to be in-stock with
guaranteed online delivery as the response
below indicates. Over the past few years retailers
have continued to push the envelope delivering
in fewer days, satisfying procrastinators who
believe almost anything is possible even if
sometimes it comes with a price.

As the days wind down and cut offs for ground

delivery approach, Lands End reminds shoppers
of its imminent arrival in this 12/19/12 email,
extending a free upgrade despite only requiring
customers to pay standard shipping prices. These
appeals to the procrastinator and the priceconscious very late in the game effectively serve
last-minute gift giving. Deadlines are reinforced
and easy returns to Sears are highlighted as well.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

Reinforce Easy Return Options Across Channels

Sports Chalets No Sale is Ever Final is sure
to resonate with any customer who wonders
whether theyre making the right choice for
everyone on their holiday list. Positioning it front
and center on their site keeps it top-of-mind
using their retail stores and return policy as
differentiators.

Performance Powered Through Promotional

Creativity
When asked to rate the reasons they buy gifts
online from 1-5 with 5 being the most important
reason and 1 the least, saving money, saving
time and shipping ease were cited by 88% of
the participants as very/somewhat important.
Retailers must also appeal to an overwhelming
price-sensitivity at the heart of todays shopper
as paying full price is not an option for many.
These shoppers report that they only do so when
something is perfect, hard-to-find or an item that
rarely goes on sale. Some are willing to take the
plunge when they receive either free shipping or
rewards points in return, so these too should be
factored into your merchandising as well.

Ensure your Training is Thorough

3-out-of-4 customers have high expectations
for CSRs with accessible contact info and 24hour access desirable. Be sure and put the final
touches on your training to convert customers
now and to retain them through superior yearround service.

Ultimately the job of a retailer is developing a

loyal customer base so understanding what
makes a consumer loyal to any given retailer
should inform their value proposition. Price
clearly resonates as 90% of respondents
selected this choice when thinking about loyalty
while service and assortment also play important

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

roles. With price making such a strong statement

we are compelled to offer a series of solutions
that address this area.
In thinking about ultimately what makes you
loyal to any given retailer, please pick your top 3
choices from the following list.

90%

Prices

51%

Overall customer service

47%

Product assortment

38%

Loyalty/rewards program

35%

Online shopping experience

22%

In-store experiences I receive

Word-of-mouth experiences shared
by friends/family
Personalization of the shopping
experience
Community/social connection to
the brand

7%
6%
4%

Encourage the Customer to Pay Full Price

Positioning Products that are New to the
Assortment, Hard-to-Find or Classics that Never
Go on Sale

Review Promotional Strateges, Keeping a

few in Your Hip Pocket Pending the Seasons
Performance
A look at the promotions that are likely to
resonate with shoppers serves as the jumping off
point for our next section and -- not surprisingly
-- free shipping rises to the top. This year we also
see that almost every promotion has potential
and will likely be taken advantage of at some
point so we encourage you to always leave
room for last-minute additions. Thus we wanted
to share a range of ideas that can inspire you
to elevate your offers and your execution. This
effort should begin with a thorough review of
promotional strategies prior to finalizing your
holiday calendar.

Sephora comes to mind for me as a great

example here when I think of their pricing, their
service and the customer experience they deliver
online and in-store. Their innovative assortments
coupled with their always evolving Beauty
Insider program are attractive to their customer
base. Leveraging merchandising tactics that
range from weekly specials to just arrived and
best sellers ensures their visitors are thrilled with
the shopping experience.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

Free Shipping Should Be Deployed Selectively

Throughout The Season with an Understanding
of Profitability
Sur La Table anticipated the shoppers keen
interest in Free Shipping in their Our Best Black
Friday Deals Ever + Free Shipping just before
Thanksgiving (11/23/2012). Theyve shared
a series of in-store and online specials with 4
key items promoted. Their links to holiday gift
shops where visitors can view product by price,
recipient and type effectively direct gift givers
with cross-channel shopping in mind.

ensuring that at least one will resonate. Mens

Wearhouse does just that via their 12/17/2012
email where theyve Loaded up the Sleigh with
Buy 1 Get 1 Free Events and offered a shoe sale
featuring a Buy 1 Get 1 50% Off promotion. Their
participation in Free Shipping Day is touted
along with recommending gift cards as the
optimal stocking stuffer. Covering their bases in
such a way should now certainly result in higher
conversion rates.

Introduce Flash Sales Given Consumer Interest

Stack Up Promotions to Attract a Wide Range
of Shoppers
Based on breadth of promotions desired, a
retailer would be wise to stack up their favorite
promotions in one email or on their site

Flash sales have gained incredible traction over

the past few years as success from flash-sale
sites such as Gilt, RueLaLa and One Kings Lane
compel traditional retailers to test this tactic in
hopes of recouping some of those dollars. Cost

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

10

Plus World Market smartly introduces a 3-hour

flash sale as part of their Black Friday onsite deals
hoping to inspire shoppers to take advantage of
these promotions within a short window.

be part of every email retailers email package

this holiday.

A Superior Gifting Experience is Mandatory

Remind Shoppers to Take Advance of Sales for

Personal Needs
Our research suggests that 84% of participants
overwhelmingly indicate they will take
advantage of sales for personal consumption
or non-gift purchases. Knowing that suggests
a real opportunity to message to the customer
whos in gift giving mode, yet seeking a little
relief in the form of a personal purchase. Asos
in this 12/2/12 email serves up Gift for You,
Treat for Me messaging going squarely after
the shopper who needs a little something for
me. We applaud their effort as one that should

The gift card shines as being the most important

gifting tool where gift cards grow as a staple for
gift giving. In fact 6-in-10 shoppers will spend
more than 10% of their budget on gift cards. Thus
it is imperative that retailers use every means
possible to position those cards to capitalize on
consumer interest.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

11

Elevate Gift Card Offering by Extending Access

Across All Channels and Embracing New
Options
Home Depot does just that with both traditional
and email options where they have added
a mobile offering promoting smartphone
purchasing. Corporate cards are also available
and group ecards can be facilitated from friends
and family.

Confirmations are Optimal Locations to Tout

Gifting and Related Services
Lowes does a fine job of featuring both their gift
card and buy online pick up in store capabilities
when sending out the all-important shipping
confirmation. Pottery Barn also serves up the
gourmet gifts for the home chef as part of
their order confirmation summary. These are
two locations along with the shopping cart
confirmation that should be part of your gifting
visibility and promotion arsenal to support new
sales generation.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

12

Build in Time-Savings Tools to Bolster Gift

Centers
REI knows how to give customers what they want
and allows them to efficiently find the perfect
gift by recipient or price point. They provide
a plethora of popular gift ideas, gift cards and
boxing options referencing wish lists which are
important to 1-in-2 shoppers. This also aids
consumers providing an easy path to please
those on their shopping list.
Segment to Give Shoppers Direction
Restoration Hardware employs clever creative
in support of the well stuffed stocking in this
12/18/12 Save up to 30% on All Stocking
Stuffers marrying assortment and promotion.
Remembering the desire for the unusual among
customers was certainly achieved while also
being great for last minute gift givers.

Romance the Product

Sundance always delivers a fabulous holiday
guide
through
beautiful
photography,
reinforcement of services and a highlighting
of seasonal winners. Their were here to help
mindset goes a long way in support of their
elevated service standards while social links
facilitate sharing.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

13

Optimize and Position all of the Customer

Favorites
Helzberg Diamonds takes advantage of the main
site as well as navigation to ensure top holiday
gifts are also top-of-mind. That includes top
engagement rings, top 100 gifts and gift sets.
Such an approach is ideal as many shoppers
seek advice along the way where favorites
always resonate.

Timing is Everything
Last years sales numbers are a good place to
start when thinking about how dollars will be
forthcoming this year and when. Adjustments
for a late Thanksgiving should be factored into
planning and promotional schedules.

Embrace Outside the Box Thinking

Ann Taylor leverages movie star talent and
marries it to a gift list segmented by recipient
in this 11/30/12 email. The editorial bent and
creative recipient selection starts with a straight
list of picks or a more visual lookbook sure to
inspire Ann Taylor aficionados.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

14

Our research indicates a strong likelihood that

shoppers will take advantage of designated
promotional days only serving to reinforce the
price dynamics discussed earlier. Shoppers
aggressively pursue promotionally-oriented
holidays with CyberMonday and Black Friday
receiving heavy interest though all receive
significant attention.

When thinking through your promotional

cadence, keep in mind that procrastinators will
still be in play in December as 78% shoppers
intend to finish their shopping late in the season
as always.

September or earlier

October

Start

29%

29%

35%

7%

Finish

2%

4%

16%

78%

Encourage Customers to Get a Jumpstart on

the Season
Golfsmith delivers a why wait headline in their
11/22/12 email encouraging a sneak preview
through a series of promotions. Including
conditional free shipping as a baseline but then
allowing customers to choose the promotion
that best meets their needs should see strong
reception. In-store referrals remind shoppers
of hours while suggesting they check back
frequently for new deals.

Extend Promotional Timing to Optimize

Revenue

November December

Wine Enthusiast nails this 11/2/12 eblast giving

shoppers one more day to save. They tout their
top deals while providing valuable links to gift
cards and their gift center. The creative execution
is clever and certain to excite their passionate
customer base.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

15

Emphasize In-Store Pickup for True CrossChannel Convenience

Things Remembered is certainly cognizant of
last-minute behavior reminding shoppers of
the 5 remaining days they have to shop. Store
hours are noted but more importantly they have
chosen to highlight their buy online pick up in
store services. This cross-channel effort should
compel the shopper to visit and ideally add
to their basket once they are in the store. The
guaranteed Christmas delivery seals the sale
with over 60 items part of the offer.

Give Customers the Control they Covet

Control comes in many forms but Toys R Us also
lets the shopper take charge giving 20% off their
purchase of choice just before the holidays with
a few minor exceptions. The in-store only nature
drives store traffic in hopes of increasing ones
overall basket size.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

16

Ensure Shoppers are Aware of Ordering Cutoffs

Use Real Estate Wisely to Reinforce Timing

There simply arent enough ways that retailers

can remind shoppers about delivery choices
and options. Amazons onsite effort as part of
their help center can easily be replicated in email
efforts as well.

Get creative in visualizing the count down as Blue

Nile takes a clockbased approach while Giggle
reinforces their services and the dates and times
for both standard and expedited shipping.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

17

The Acceleration and Embrace of Mobile &

Social
Shoppers make connections via mobile to power
their shopping behavior as 1-in-2 shoppers will
purchase a gift on their phone or tablet this
holiday season. Retailers must be ready with
a mobile experience that is streamlined yet
comprehensive providing all of the product
information to give shoppers the confidence to
buy. Ensure that all emails are mobile friendly
and that checkout is efficient where profiles are
accessible across channels.

In-store mobile phone usage centers on

saving money and securing the best price vis
a vis Amazon. 6-out-of-10 consumers check for
sales/competitive pricing, availability and store
information. Therefore its important to be aware
of this behavior and be competitive relative to
price. A robust store locator as seen in this REI
example includes store hours, map, directions
and the phone number. The iconography they
have chosen lets visitors learn which departments
are supported at each respective location.

Allow Shoppers to Smartly Connect with Stores

to Drive Efficiency
Shoppers want their trips to the store to be
successful and this means checking on inventory
availability (86%) and reserving product for
pickup in store. The smartphone serves as the
connector where such functionality resonates
with the time-starved shopper.
Shoppers do their homework in advance of store
visits. Footlocker positions their Find It In Store
capabilities while simultaneously reinforcing
free same day pickup on select styles.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

18

Elevate Facebook Experience

Half of consumers clearly spend more time
in social pursuits. While social efforts have
not achieved the revenue results originally
promised, the ability to engage the shopper
should not be minimized. Francescas knows that
their younger customer base spends significant
time online and their 100 Gift Giveaway should
have great appeal in anticipation of the season.
It would behoove retailers to evaluate and port
over successful e-commerce tactics.

Reinforce Social Efforts On Site to Connect

Customers Across Channels
Shoppers are active socially in a range of
activities from email signups, liking retailers to
rating of products. It is essential to give visibility
to social elements as Joann Stores has done
reminding their customers of the many ways to
connect with the brand.

Extend Promotional Efforts Via Social

Networking

Year-over-year increase in the use of social

networking sites sees around 1-in-2 shoppers
spending significant time so your attention is
warranted here as well.

Consumers once again favor free shipping

offers and exclusive discounts where a range
of promotions would influence behavior. The
favorites perform well and see strong interest
among shoppers.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

19

Gear Up Holiday Tips

Assess whether you have established clear differentiation with your competitors while
creating while creating a message that resonates
Give shoppers value online and off through creative promotional execution that is monitored
and adapted throughout the season
Gift cards demand visibility along with gift centers onsite and via email
Review calendar to ensure marketing and messaging are on track and well-timed
Ensure mobile is optimized to reap the traffic this season while still engaging via social
Put in place superior customer service all season long

We Wish You a Profitable and Bountiful Holiday Season!

About the e-tailing group

the e-tailing group is a niche e-commerce consultancy that helps merchants deliver the right
customer experience on their websites and across all of their channels while adeptly assisting
technology companies to create and execute go-to-market strategies that simultaneously
educate the retail community and deliver cost-effective thought leadership and lead
generation.
For more background about this survey or for additional information on the e-tailing group,
please contact Lauren Freedman via email to LF@e-tailing.com, by phone at 773-975-7280
or visit the e-tailing group website www.e-tailing.com.

Its the season... a practical, tactical guide to a brighter holiday season | e-tailing group | www.marketlive.com

MarketLive,

Inc. 2013

20

FOR MORE INFORMATION

www.marketlive.com
HEADQUARTERS:
MarketLive, Inc.
617 B 2nd Street
Petaluma, California 94952
................................................
1-877-341-5729
info@marketlive.com