Three pre-Christmas problems facing the retail sector

Even if convenience, crowded stores and long queues are shifting Christmas shopping online, online stores and bricks-and-mortar stores alike need to be aware of the hurdles their customers are facing. Tobias Stelzer from Bazaarvoice explains what retailers need to prepare for.

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The Black Friday and Cyber Monday discount days are over, but now, for the last time this year, gift shopping in the run-up to Christmas is causing time pressure and stress. At the turn of the month, many shoppers equipped themselves and their homes with discounted products. Quite a few consumers also used the discount days to ring in this year's gift shopping. The closer the holidays get, the more gift seekers are pressed for time and expect - or hope - that their holiday shopping will go smoothly. 

 

1. ratings support the advisory service

When searching for the perfect gift, it's easy to get lost in the plethora of products and offers. Due to the time pressure, consumers want to be able to quickly assess whether the purchase decision is worth it in the end. Retailers have to be prepared for an increased demand for advice in the run-up to Christmas.

It is not only during pure online shopping that consumers look at other customer opinions; shoppers who prefer bricks-and-mortar retail also get a first impression of the product range on the provider's website. Customer-generated content, such as reviews and ratings, can allay customers' initial concerns and influence their purchase decision.

Consumers trust the opinions of like-minded shoppers. When a company or brand makes these opinions publicly available to all interested parties, this has a positive effect on the credibility and trustworthiness of the company, which increases the likelihood of long-term loyalty. According to a survey by Bazaarvoice on the subject of brand trust, 34% of German consumers surveyed stated that this trust has the greatest influence on purchasing decisions during discount campaigns.

 

2. sales, sales, sales - maintaining an overview even under time pressure

Even during the pre-Christmas period, online and offline retailers rely on deals, sales and other discount campaigns to persuade customers to do their Christmas shopping with them. It's hardly surprising that consumers lose track of the best offers during the bargain hunt.

A quarter of respondents continue to place their trust in a particular brand - even in the pre-Christmas period of discount campaigns. Consumers need to take time in advance to be able to deal with product and price comparisons without stress. In this case too, reviews can help to avoid bad purchases.

If the retailer allows the customer to buy products that are not suitable as gifts or that they do not actually need, they are putting their trustworthiness and therefore the loyalty of their customers at risk.

 

3. frustrate long delivery times

For the perfect gift, customers like to cross borders and buy their chosen products online from abroad. Just before Christmas, however, this decision carries the risk that the gift will not be under the Christmas tree in time. Domestic delivery can also be delayed if stocks run low or the quantity ordered disrupts the entire logistics process.

In addition to the internal organization, customers should be able to see on the website when the package can be delivered at the latest. In this case, a comment function on the brand website or in the online store even allows customers to praise or highlight the good service and punctual delivery.

 

Conclusion

For both retail staff and customers, the holiday season can be a stressful time full of decision-making and time pressure. Consumers need consultative support to help them choose the right products. Businesses need to reach their customers at the beginning of their Christmas customer journey to make this stressful time of year as enjoyable as possible.

The use of transparent customer-generated content, from which customers can obtain information about the product or brand in advance, can allay their fears and even encourage them to make a purchase decision. And if the customer goes into the festive season satisfied, they will even give the seller the gift of praise and loyalty beyond the end of the year.

* Tobias Stelzer is Head of Sales Roof & Benelux at Bazaarvoice.

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