Incentives is the Keyword this Holiday Season

Katherine Bennett - November 18, 2008

This holiday season the keyword is incentives. Most consumers aren’t frivolously spending their money; they’re cutting back and searching for the best deals. If you want to be the retailer that they choose, you’d better consider incentives. This statement might sound forward, however the statistics don’t lie. Let’s look at some incentives that consumers are searching for before making a purchase.

Coupons are a big hit and they are becoming more popular. According to comScore, a global internet information provider, 62% of consumers are using coupons to help cut back on their shopping expenses. A survey by eMarketer, a market research company, shows that 59% of consumers will be using coupons to decrease their shopping expenses. Surprisingly enough, wealthy consumers, those that make $100,000 plus a year are turning to coupons. According to a survey by comScore, coupon site visits by the wealthy increased by 37% compared to this same period last year. Here’s a hint, if you have an ecommerce site, coupons are a definite plus and consumers will be looking for you.

Consumers are also motivated by free shipping. If I’ve heard it once I’ve heard it twice, “If a site doesn’t offer free shipping, I’ll find a site that does.” If you don’t believe me check the statistics. According to a survey by comScore, 72% of consumers said, “If an online retailer charged them for shipping they would search for an online retailer that offered free shipping.” Now more than ever before consumers are becoming more savvy. If a competitor is offering the same product with free shipping, I’d bet money that you’re going to lose the sale if you’re not offering the same.

Sales and deals are being sought out by consumers. Everyone loves a discount. According to a survey by e-Marketer, 40% of consumers will be looking for sales and 24% will be looking for deals in order to lower their shopping expenses. Why do you think Black Friday is such a busy shopping day, not to mention Cyber Monday which follows a few days later?

Incentives are the key this year. More and more consumers are comparison shopping and not just buying items on the first site they see. Comparison shopping sites are seeing an increase in traffic and more competitors are allocating their advertising budget towards online spending. If a retailer wants to be competitive this year, they need to have an incentive, even if it’s not coupons, free shipping or big sales, there needs to be an offer that tells the consumer they are getting the best deals on a particular site.