This is the time of year retailers and manufacturers nervously check the calendar as the holidays are approaching at what seems like lightning speed. The fourth quarter is make or break time for many businesses, which hope to capture a share of the overall holiday spend – a reported $964.4 billion in 2023. If you want to compete, your holiday plan should be on point and in process now.
Opportunity is calling as shoppers expect to open their wallets for gifts and other holiday-related items. Numerator’s 2024 Holiday Preview Survey finds a significant number of U.S. consumers plan to spend more than $100 on celebrations for Christmas (81%), Hanukkah (54%), Thanksgiving (45%) and New Year’s Eve (35%).
Top spending categories are:
• Thanksgiving – food (81%), and alcohol (29%)
• Christmas – gifts (72%), food (68%)
• Hanukkah – food (57%), gifts (50%)
• New Year’s Eve – alcohol (53%)
How to stand out? Promotions are a differentiator. That is what people will see when comparing your brand to that of a competitor. Shoppers want quality – they also want value, and they are trained to look for deals, whether it’s a sale, a cash back offer, gift with purchase or even a sweepstakes. All of these take time to plan, not just from a manufacturer standpoint, but also for your retailer partners, suppliers and any partners who will help you execute that promotion.
Timing is Everything
Something all retailers and brands should be aware of in 2024, a shorter holiday shopping season that will require even more targeted planning. There are only 27 days between Thanksgiving and Christmas in 2024, versus 32 days in 2023. When your promotions should hit, and when you need to have a plan in place for those promotions are key considerations. Salsify’s 2024 Holiday Consumer Research report finds while some shoppers look for gifts year round, the hunt begins in earnest by October. That’s when 27% of shoppers surveyed indicate they begin their holiday buying. Another 26% start before Thanksgiving – and an additional 19% are looking for deals during the all-important week that captures Black Friday and Cyber Monday. With more than 40 years’ experience with holiday promotions, your Arrowhead team knows this time of year provides huge opportunities for your brand to stand out – if you have a plan.
Gift with Purchase
This provides shoppers with an opportunity to increase the value of their gift with an add-on for the recipient, or something the shopper might keep themselves. In September, brands should already be working with suppliers to ensure those add-ons, or premiums are available and ready to be delivered when needed. A good rule of time is at least 12 weeks, which means if you don’t already have your items in hand or on the way, you might have to pivot.
Options include trying to source your items domestically or find a similar premium that could be delivered within your desired time from. You might consider having your premium sent over air freight to reduce your turn time. If none of these work, you could consider a cash equivalent – perhaps a gift card or promotional prepaid card.
Not only are gifts-with-purchase a proven method for conversions, they can also be a good strategy to move product that needs to be cleared. By setting a minimum amount of spend to receive a gift, the shopper is encouraged to buy more, boosting sales overall. Some brands (think cosmetics) find success by including samples/gifts that expose shoppers to new products they will purchase later.
Cash is King
Cash-back promotions are always enticing for shoppers looking for deals and can be useful if you find yourself a bit behind on planning. This type of promotion is all about value. While the price of the product remains the same, the shopper walks away with a rebate that puts money in their pocket, or a gift card that allows them to purchase something else, possibly for themselves.
The cash-back offer also allows for a shorter turn-around time on planning, meaning you still have time to consider this option. Shoppers can upload information to receive a digital payment or get a gift card or code via email. However, if you are considering physical gift cards, any branding on those cards will take more lead time.
Stand Out with Coupons
Coupons can entice shoppers to try something new if they don’t see other major differences between brands. Savvy brands can lean into data to target shoppers most likely to interact with their brands.
Make sure you build in time to print and get your coupons into consumers’ hands, whether it’s direct mail, or having your distributor physically attach them to the product. We can work with our clients to make sure all of this happens seamlessly, from the initial creative to tracking redemption.
Last-Minute Stocking Stuffer: Sweepstakes
Sweepstakes can be a fun, last-minute promotion as long as you meet certain restrictions on the value of the prize, among other things. It’s our job to ensure our clients are fully compliant with regulations, including the Children’s Advertising Review Unit (CARU) and the Children’s Online Privacy Protection Act (COPPA), which are specific rules that apply to contests that include children under the age of 13. It’s easy to get tripped up on compliance, no matter who your target audience is. Rules can differ by state, and there are federal regulations as well, making it critical to have expert help to create and fully review your sweepstakes language.
Once that is in place, promoting your sweepstakes through social media channels is another way to quickly get your promotion into the marketplace during the holiday season.
Communicate Early and Often
The most critical piece of your holiday promotion campaign is communication. Make sure you bring your partners into your planning process as early as possible. That includes working with suppliers to make sure any promotions requiring you to put something into the hands of shoppers will get there on time.
If you want your promotion included in your retail partner’s communications to shoppers, they will need an early heads-up. Circulars, for example, are planned months in advance. Online communications are more nimble, but still require planning, and cooperation with your retailers.
At Arrowhead, we engage our clients as early as possible to help with creative, as well as the overall design and execution of the promotion. We’re happy to help with last minute brainstorming as well. Our experience allows us to offer ideas you haven’t thought of, including website promotions, or social cause promotions where your purchase includes a donation to a specific charity. And again, your promotions partner is often your best line of defense to ensure everything you put into the marketplace is compliant with all laws and regulations.
Wrap it Up
All winter long many of us dream of lazy summers followed by beautiful fall colors, but brands and retailers have been working hard to lay the groundwork for a successful Q4. You can wrap up a successful holiday season by reviewing your plans now, so you can stand out among your competitors as the holidays get underway.
Connect With us for Your Next Campaign
Arrowhead helps brands build stronger connections with consumers year round. Our end-to-end promotion services are tailored to your needs, leveraging the latest technology to engage your customers, including rebates, loyalty programs, coupon management, sweepstakes, game and contests management. Connect with us to learn how Arrowhead can help you build brand awareness, loyalty and sales.
