Welcome to the fourth issue of The Insighter, a monthly brief that pairs fresh insights with an action plan for growth. Each issue covers a new research topic. In this edition, we explore opportunities for retailers to connect with holiday shoppers, post-season and beyond.
Holiday shopping doesn’t stop on Dec. 25. Instead, we see the “devoted” consumer mindset emerge: one of the four mindsets shoppers move through during the holiday season. These shoppers keep hunting for gifts for both loved ones and themselves after the holiday rush.
This represents a significant revenue opportunity for retailers. Capture post-season shopping demand by keeping momentum after Christmas and investing in loyalty programs and App campaigns to meet self-shoppers.
Don’t miss out on the fastest growing holiday sales period
Last holiday season, the devoted time frame (Dec. 25—Jan. 1) saw the highest sales growth, compared with any other period from Oct. 1 to Jan. 1.1 This makes the week after Christmas the fastest growing sales period of the shopping season. (Surprised? You’re not the only one.)
We see a rise in self-gifting during this period, with many using this time to treat themselves after completing their shopping for others. In a recent survey, we found that 45% of Americans say they enjoy shopping after Christmas.2 And last year, the percentage of those shopping for themselves was significantly higher post-holiday (Dec. 26, 2023—Jan. 3, 2024), compared to the rest of the season.3
So how can you be poised to meet this revenue opportunity? Loyalty programs are an effective tool.
Use loyalty programs to capture demand post-season and beyond
Did you know that 1 in 5 purchases during the 2023 holiday season were made using loyalty points?4 And that more than 40% percent of Shopping searches on Google mention a brand or retailer?5
Loyalty promotions can help you tailor your bidding and ads for customers inside (and outside) of your loyalty list in a privacy-safe way. We’ve introduced new features that allow you to differentiate your promotions to loyal customers, showcasing member-exclusive products or special pricing, and target those in need of an extra nudge to purchase again. Notably, loyalty programs are particularly effective at capturing demand among devoted shoppers, with 65% of U.S. consumers saying loyalty programs are important to them during post-season shopping.6
What’s more, loyalty also drives purchase confidence. Purchase confidence is 2.4X higher among shoppers with a strong connection to the brand, compared with shoppers who do not have a strong connection.7 And we’ve found that confident consumers are 6X more likely to want to buy again8 and 18X more likely to recommend the brand to family or friends than those with low confidence.9
Lastly, consider leveraging your app for your loyalty programs. Sixty percent of iOS app users turn into loyal customers after their first purchase,10 and the average combined spend of app and web users is over 31% higher when compared to solely web users.11 You can use Web to App Connect to drive incremental conversions for your web campaigns and promotion assets for App campaigns to further boost your sales potential by highlighting special offers.
How one brand’s apps-first holiday strategy drove long-term growth
Last holiday season, sportswear brand Adidas knew it was essential to show up across multiple platforms to keep up with the increasingly complex consumer journey.
With the knowledge that its app drives higher engagement, brand loyalty, and customer lifetime value, the company adopted Web to App Connect with Smart Bidding across Search, Performance Max, and App campaigns. This approach helped the brand turn end-of-season sales into long-term growth and resulted in a 2.4X higher return on ad spend.
Want to achieve the same results? Our new research paper published with Deloitte, The Mobile Advantage: A Strategic Approach for Leveraging Your App, will show you how to turn your app into your competitive advantage. This framework is designed to help you win the peak days you know and the new ones you don’t by combining the power of your app with Google AI. Also, be sure to check out our top tips for the holiday season and this on-demand episode of Google Ads Academy to hear directly from product experts about how to implement our 2024 holiday best practices.
