Holiday Spending Trends – What to Expect Through the New Year

holiday shopping

Because the holidays are such a big time of year for all types of businesses, we want to take a look at how consumers have been spending their money so far, as well as what to expect going into the start of 2018.

Holiday Shopping So Far

Not long ago, we wrote a post about holiday shopping in 2017 getting off to a booming start. Between November 1st and 11th, online shopping generated at least $1 billion every day. Revenue growth jumped 19.8 percent year-over-year, versus only 4.8 percent in 2016. In addition, smartphone and tablet shopping is up year-over-year, at 28 percent and 15 percent respectively.

Based on recent data, this trend has continued. American consumers are spending their way to the best retail holiday shopping season in seven years. This has actually resulted in many analysts increasing their forecasts for total holiday spending. Interestingly, twice as many consumers are buying gifts in the $50 range this year compared with about $25 last year.

According to MasterCard analysts, spending growth rates are on track to be the highest since 2010, leading to an increase in the stock price for retailers like Macy’s and Kohl’s.

Increased Spending Doesn’t End with Christmas

The great news for businesses is their sales aren’t going to come to a screeching halt with the arrival of Christmas. While there’s likely to be a slowdown for a few days, lots of people get money and gift cards for Christmas. That means they’re going to want to spend on items they want to personally buy. You can make the most of this behavior by following a few proven marketing steps.

First, stay in contact with your customers. Lots of retailers blast out of tons of emails on Black Friday and Cyber Monday, then stop sending anything for months. Since people are going to have money they want to spend, remind them about your business by sending at least one email in the days after Christmas.

Wondering what exactly to send in your outbound emails? You’ll see the strongest sales performance through the start of 2018 if you promote a compelling promotion or offer. Having something that customers can’t refuse will make them want to buy now instead of putting it off.

Although it’s not a strategy that every business can implement this year, another useful tactic is to launch a new product. Having something new for customers to buy is a great way to get their attention. And even if you don’t have a new product in the pipeline, this strategy is something to keep in mind for a year from now.

By keeping up with marketing efforts instead of slipping into a post-holiday lull, you’ll be able to end 2017 and kick off 2018 with very strong sales!