Valpak® and market research firm PureSpectrum partnered up once again to zero in on consumer holiday shopping season habits and behaviors. Survey findings show that this year versus last, there is an overall increase in holiday spending. Use this data to understand how shoppers approach holiday spending and to develop a better holiday marketing strategy.
First Things First
One thing people forget about as they’re rushing to please loved ones during the holiday madness is themselves. Not only do we do some self-reflection during this time of year, but we also deserve some self-caring. So, our first big question before we forget about ourselves while thinking about others is ways to destress during the holidays. 77% of Americans will spend time with friends / family during the holidays to destress. Then, with the utmost honesty, coming in at second, 46% opted for a little me-time (i.e., retail therapy) shopping around the chaotic days to unwind. Companies can get in on holiday giving spirits by offering discounts and deals to those seeking holiday help and healing.
“Prices are high we don’t really go out to eat anymore. I have a hard time finding deals, so I am really looking for ways to have fun and not spend so much money.”
Americans’ Holiday Shopping Plans
82% of respondents purchase at least some holiday gifts before November, while 18% shop for the holiday season year-round. When it comes to in-store or online shopping, averaging responses in past holiday surveys have shown a reasonably even split between in-store and online shopping, meaning that the game is pretty much on year-round. Businesses that capitalize on this behavior by always advertising can benefit most—and then make a killing once the holiday rush rolls around.
More than half of Americans surveyed (62%) plan to save money by shopping on major spending holidays. The most popular holiday shopping day for consumer spending is Black Friday, followed closely by Cyber Monday.
Holiday Shopping Behaviors
77% of respondents purchase gifts from stores they normally don’t shop at during the holiday season (at least sometimes).
This was a common theme, with 51% making gift-buying decisions based on finding the lowest price.
There is no question that data-backed strategies, a smartly designed campaign combined with properly placed promotions that find the right audience at the right time (when potential consumers are actively searching for products and services) bring in new customers that share a high probability of becoming loyal / returning customers if the discounts and deals promised deliver.
Most Popular Holiday Sales / Offers
The survey finds U.S. consumers want (even expect) free or discounted shipping offers when holiday shopping – and no, not just from Amazon and Walmart.
When asked how they prefer to receive holiday sales coupons, over half of consumers (57%) prefer to receive holiday coupons / offers in the mailbox or inbox—12% have no preference (give me all the coupons!).
Motivating Factors
If you discount, they will shop. A great way to motivate shoppers to show up and spend a little more at your business is to offer some impossible-to-pass-up holiday offers. 45% of our respondents requested more purchased deals ($10 for $20 worth of product) value like these here as their #1 reason to shake loose a few dollars from the money tree this holiday season. Next, the ultimate stimulus we all hope for when we head out to buy gifts is pre-Christmas markdowns (42%)!
Holiday Budgets – Americans Spending Less
“I have a small budget and a small family. The gift giving is fun but the food and drink and family and friends time spent together is the best. I also celebrate Yule & Winter solstice.”
Even though the pandemic is thankfully behind us, inflation and other economic disruptions continue to drive consumer spending down. However, things may be ticking up as more and more companies recognize flatter sales due to what feels like endless higher prices and have started to compete for those consumer dollars with well-publicized deal battles. 38% of respondents plan to spend more than $500 on holiday gifts this year, vs. 29% last year (10% increase!).
And there are even more positive signs for retailers and sellers, despite economic uncertainty and higher prices (that seem to be fortunately easing—but not much), as 28% of consumers we asked plan to spend more this holiday than last. 47% say they’ll most likely spend the same amount, but nothing is ever set in stone, especially when great deals and discounts are advertised and messaged as the major holidays draw near. Moreover, it’s beginning to look a lot like Christmas as Americans appear to be feeling a little more generous but a lot more cautious when it comes to prices. Thus, finding and targeting the right audience at the right time may be paramount to sales this season—maybe even more than in previous years!
Most Popular Gifts This Holiday Season
Gift cards (55%) dominated our most popular holiday gifts list last year—no shipping delays or supply chain issues to worry about; however, clothing, shoes & accessories have significantly moved to the top spot with 68%. This is a clear sign that things have been slowly but encouragingly moving back to normal, and folks know they can get what they want when they want it again.
Holiday Dining Trends
With the stress and effort of holiday shopping (not to mention holiday travel), home-cooked meals become less of a priority, as 40% of our respondents said they plan to eat out at least 3 or more times during this holiday season.
And it’s not just hams and Yule logs they’re after. People are excited about non-traditional holiday dining, and where they plan to eat out and would like to receive money-saving dining coupons is almost evenly split across the available restaurant genre options. On that, 92% of consumers want holiday coupons for restaurants, and, surprisingly, the top begins with pizza, then moves to steak / prime rib to Italian to Mexican. Moreover, the list of coupons desired for holiday eating enjoyment is open for opportunity:
Sprinkle On The Incentives
They’re hungry for good food and equally good times dining out. However, with the wide variety of cuisines desired, here is another chance to sweeten the advertising deal with a little motivation, as 93% of consumers agree they’d be motivated even more with a deal / discount. Buy one, get one free is the most popular with hungry consumers (59%), followed by discounted menu items (44%), yet possibly one of the biggest ad pushes during the holiday season are those family bundles (42%).
Other Holiday Coupons Wanted
Of course, it’s not just dining; people want coupons from other businesses they plan to shop at over the holiday season. With the rising prices in the aisles, grocery store coupons took the top spot a second year in a row (66%), leading the need by a significant margin. Then, no shock here, bakeries (46%) and coffee and tea shops (44%) for those who take a break and relax during the holiday rush.
Holiday Cleaning & Decorating
89% of our respondents will or are considering getting into the holiday spirit by decorating their homes for the holidays. While most are do-it-yourselfers, some have or would consider hiring professional help for holiday cleaning and decorating. Outdoor holiday lighting (23%) is the most popular of these services.
Holiday Events: Fun for the Whole Family
From holiday markets to photos with Santa, there’s so much to do, see and experience during the holiday season. Our respondents enjoy getting out in the Winter Wonderland, with 74% indicating they want to attend one or more popular holiday events.
As mentioned above, we all know how the holidays can get overwhelming. Consumers need a little relaxation, whether with friends and family (77%), in-person shopping (46%), mastering those culinary skills, or baking holiday desserts (44%). The family fun doesn’t necessarily have to be holiday-themed, either. Our survey findings showed that 45% plan to go to the movies! (Well, they could choose to see a Christmas movie).
Holiday Entertaining and Hosting
However, some plan to spend that money creating and providing events and doing it in-house, i.e., bringing the party home, as 63% of survey respondents plan to host a holiday party this year. Meanwhile, when hosting holiday guests, they are gearing up to go BIG and will need lots of supplies and services to do it justice. A healthy 34% plan to host more than 10 guests, including family that raises many needs such as chips, dips, decorations, catering, games, you-name-it services (and then some) that will be needed to pull it off right.
Who’s on the Holiday Guest List?
In total, 66% plan to spend $100 or more on holiday entertaining, with 29% planning holiday budgets of over $250.
Get More Holiday Sales with Valpak
Knowing the shopping behaviors of your target audience, what motivates them to try a new business and which offers generate the best response is critical to your upcoming holiday advertising success. But there is more work to do to ensure your direct mail and digital marketing campaigns sleigh this holiday season.
From postcards to social media ads, your local Valpak marketing team can help determine which channels are the best fit for your business, the ideal reach and frequency for your ad campaign and more.
