Retailers Can Maximize Holiday Success by Tuning into Consumer Desires

By Mo Chaar, Chief Commercial Officer, Givex

This holiday season, consumers are expecting streamlined technology for efficient and secure payment options. Here is how retailers can leverage these expectations to drive brand loyalty and improve the customer experience.

The 2024 holiday season poses a distinct challenge with an abbreviated shopping window of just 27 days between Thanksgiving and Christmas, a scenario which hasn’t taken place since 2019. As the holidays approach, retailers must tackle the usual challenge of meeting consumer expectations amidst shifting trends and economic uncertainties. This year's environment is particularly fluid, with inflation leading to cautious spending. To succeed, retailers need to be proactive, harnessing technology trends and strategic insights to improve customer experience and streamline operations. Here’s how to prepare for a successful holiday season.

Digital and mobile payment systems have rapidly evolved from a convenience to a necessity in modern retail. Systems like Near Field Communication (NFC), QR codes and mobile wallets such as Apple Pay are pivotal in streamlining the shopping experience. With Apple Pay accepted at over 85% of U.S. retailers, investing in the latest mobile payment technologies can significantly reduce wait times and improve customer satisfaction during the holiday rush.

Moreover, mobile payment platforms provide valuable data for personalized marketing and loyalty programs. Retailers should integrate these systems across all sales channels, including in-store, online and mobile apps. Informational campaigns about new payment options can prepare customers ahead of the peak shopping season so they know what to expect. Additionally, limited-time discounts exclusive to digital payments can encourage consumers to adopt digital payment methods and drive brand loyalty.

Customer loyalty is invaluable during the holiday season. Retailers should leverage data-driven insights to create personalized marketing campaigns and loyalty programs. Digital gift cards are particularly popular, offering convenience and personalization options that resonate with modern consumers.

According to the 2023 Givex Holiday Gift Card Survey, 76% of Americans said inflation impacts their holiday spending. With this in mind, many shoppers are opting for gift cards with the feeling that their money is better spent when their loved ones can buy something they truly want.

The Givex survey also reports that 70% of Americans say they are more likely to purchase a digital gift card than a physical one for someone else, a 6% increase from 2022, as digital gift cards are favored for their convenience and personalization options that appeal to modern consumers. Retailers should promote digital gift cards as versatile, thoughtful gifts that cater to budget-conscious shoppers. Offering incentives for gift card purchases can further boost sales and customer engagement.

Data from the 2024 Holiday Trends Shopping Report by Basis indicate that only 18% of holiday shoppers say they will shop ‘mostly’ or ‘entirely’ in-person; 43% say they will do it ‘mostly’ or ‘entirely’ online; 39% say they will do it equally in-person and online. Customer service is critical year round, but especially so during the holiday shopping frenzy. Retailers should enhance their customer service strategies to address increased customer inquiries and potential issues. Implementing AI-powered chatbots can provide instant responses to common questions, improving response times and reducing the burden on customer service staff.

Returns are another crucial aspect of holiday shopping. Retailers should streamline their return policies and processes, making them clear and customer-friendly. Offering flexible, stress-free return options, such as in-store, online and curbside returns, can lead to increased customer satisfaction and loyalty.

SoftPOS technology, which transforms smartphones or tablets into fully functional point-of-sale terminals, is revolutionizing the retail landscape. According to Fortune Business Insights, the global SoftPoS market, which was valued at USD 248.5 million in 2022, is projected to expand significantly from USD 293.6 million in 2023 to USD 1,077.4 million by 2030, reflecting a CAGR of 20.4%. This growth is fueled by the rise in product installations and the improvement in consumer experiences, as outlined in their "Global SoftPoS Market Forecast, 2023-2030" report.

SoftPoS systems are instrumental in streamlining the checkout process, especially crucial during busy periods like the holiday season. They also enhance inventory management, billing, and supply chain operations, contributing to a more seamless customer experience. Retailers should invest in SoftPOS platforms that integrate with existing customer relationship management (CRM) and inventory systems. Providing training for staff on mobile-based checkouts can reduce manual errors and increase efficiency, so consumers can spend less time waiting in line.

With increased crowds, increased security is vital. In a survey taken in 2022, over half of the consumers surveyed expressed concerns about fraud during holiday shopping. Retailers must ensure their payment systems are equipped with the latest security features, such as encryption and tokenization, to protect payment data and to keep the trust of loyal consumers.

Innovative biometric systems, like Amazon One’s palm-scanner, offer elevated security and a seamless payment experience. Retailers should also run awareness campaigns to assure customers of secure transactions, to continue building trust and loyalty amidst tech advancements. Highlighting robust security measures can enhance consumer confidence, encouraging them to shop more freely.

A robust supply chain is essential for a successful holiday season. Retailers should analyze their supply chain operations to identify potential bottlenecks and areas for improvement. Investing in real-time inventory tracking and demand forecasting can help ensure product availability and timely fulfillment.

Efficient fulfillment operations are crucial for meeting customer expectations. Retailers should consider options such as same-day delivery, click-and-collect and curbside pickup to offer convenience and flexibility. Working ahead and ensuring all is in order can reduce stressful delays.

The holiday season places significant demands on retail staff. Retailers should invest in workforce management solutions to optimize scheduling and ensure adequate staffing levels during peak times to lessen the strain. Providing training on new technologies and processes can empower employees to deliver exceptional service, as well.

Recognizing and rewarding staff efforts can boost morale and productivity. Implementing incentive programs for meeting sales targets or receiving positive customer feedback can motivate employees and enhance the overall customer experience.

The holiday season is a prime opportunity for retailers to maximize sales and enhance the customer experience. By preparing well in advance to embrace technology, prioritize security and optimize customer service, retailers can navigate the challenges and seize the opportunities this season presents.