A holiday retail report released by the National Retail Federation last month forecasted that overall holiday retail sales would decline this year, but that’s not the case for online merchants. According to Forrester Research, online retail sales in the U.S. are expected to increase 8% this season.
Industry experts say this is due to an increased number of bargain hunters turning to the Web for deals—which means online sellers are looking to implement the most compelling promotions. So what can online retailers do to increase holiday sales and
create happy customers? We recently polled our merchant partners to find out, and here are their top answers:
Social Media
Online merchants are looking to attract and engage more users by tapping into social media sites such as Facebook and Twitter. According to Shop.org’s annual eHoliday Study, 60.3% of retailers have already made enhancements to their Facebook pages, 58.7% have improved their Twitter pages, and 65.5% have updated their blogs and RSS feeds. Merchants are also implementing marketing videos to distribute via social networking sites in order to increase the stickiness of their Web sites and to create a viral effect. Click here for best practices for businesses on Twitter, and here for five tips for a successful Facebook fan page.
TrialPay
TrialPay’s Get It Free payment platform helps online merchants increase sales over the holidays—even if their products have little or nothing to do with gift-giving. Our partnerships with great holiday-shopping destinations (such as Gap, Best Buy, Pacific Sunwear and more) present a great opportunity for merchants to convert more customers. Software companies, subscription services and online game developers use TrialPay to let customers purchase the hottest gifts for the holidays and get a present for themselves in the process—the merchant’s free product.
Incentives
This year, online retailers are responding to consumers’ desires for incentives such as money-saving bundles and free shipping. Grouping complementary items together at a discounted rate creates an incentive for customers to buy their original item, plus one or more products that they hadn’t initially intended on buying—which increases conversions and boosts average order values. And while free shipping can be an effective marketing strategy, it can also be expensive, especially for large ticket items or those with a small profit margin. But merchants who don’t offer free shipping can offer other creative incentives instead.
Discounts
With holiday shoppers actively looking for the best deal on the Web, online merchants are offering discounts through e-mail campaigns, via social networking sites and directly on their Web sites. While a lower price can effectively attract more customers away from the competition, merchants must also be careful not to negatively cut into profit margins.
Have any other smart marketing strategies for the holiday season? Please share them below.
