Google released their 2023 retail guide in five parts. We’ve broken it down to give you the cliff notes version you need to start making your company’s holiday readiness checklist for the upcoming 2023 season!
Are you ready? 📋✅✅
Table of Contents
2023 Holiday Readiness with Google’s Retail Guide
Navigating the twists and turns of the recent economic disruptions has been tough, to put it mildly. And still, we find ourselves in the thick of a retail environment that just won’t stop evolving, with consumer behavior changing at a breakneck pace.
Now, more than ever, flexibility is the key. We need to constantly find fresh ways to connect with people exactly when they’re ready to hear what we have to say. In Google’s 2023 Retail Guide, you’ll find the most recent global trends and tools you need to stay adaptable and agile, maintain your competitive advantage, and keep your business in the black amid an uncertain environment.
But we know time is of the essence with the season fast approaching, so we’ve a key points list and checked it twice to make sure you’ve got what you need to prepare your business for the 2023 holidays!
Chapter 1. Reach cautious customers who have a new set of values
Summary: Modern shoppers display more deliberate consumption habits, valuing quality and good customer service over mere price cuts. This shift in consumer behavior impacts brand loyalty, with buyers showing openness to trying new brands and retailers. Despite these changes, Google remains a consistent tool in the shopping journey, facilitating discovery, inspiration, and purchase decisions.
Key Points:
- Shoppers Seek More than Deals:
- They prioritize value, quality, and customer service, and are more intentional in their buying decisions.
- 72% of consumers are more thoughtful about their spending, and 62% are more mindful about where they shop.
- 73% of consumers are willing to stick with companies that increase their prices, given they feel valued as customers.
- 53% of consumers prefer to buy durable products over more affordable but less lasting options.
- Brand Loyalty Waning:
- Consumers are more open to new brands and businesses that align with their needs and values.
- Approximately a third of consumers are spending more time deciding, considering more brands (30%), and contemplating more retailers (29%).
- 47% of consumers have tried at least one new brand.
- 62% of Gen Z and Millennials are likely to change their shopping places, compared to 51% of Gen X and Boomers.
- Google’s Continued Relevance:
- Google, specifically Search and YouTube, remains a key resource in the shopping journey.
- 76% of surveyed individuals agree that YouTube enhances the traditional shopping journey.
- Over 40% of shoppers use Google for researching a purchase, whether online or in-store.
- Almost a third of holiday shoppers use Google Maps to aid their shopping.
In essence, today’s consumers are akin to careful gift seekers, prioritizing value, quality, and superior customer service, unafraid to discover new brands that resonate with their needs and values. While brand loyalty fades, Google stands as a guiding star in the shopping journey, facilitating research, decision-making, and enhancing the overall retail experience.
Chapter 2. Capture brand awareness and consideration during moments of discovery
Summary: Today’s consumers are perpetually on the lookout for new brands, necessitating businesses to stay relevant in moments of customer discovery. Google’s advanced tools such as broad match, smart bidding, and responsive search ads, enable brands to appear in these crucial moments. Additionally, YouTube’s shoppable videos and product feeds in video action campaigns facilitate a seamless journey from inspiration to purchase.
Key Points:
- Consumers Open to New Brands:
- 43% of consumers globally are keen to discover new brands, even when not intending to purchase.
- The longer consideration phase in shopping journeys makes it crucial for brands to be present during these discovery moments.
- Google Tools for Brand Visibility:
- Google’s elevated Search offers a more visual and engaging shopping experience, increasing opportunities to inspire potential customers.
- Broad match and Smart Bidding: Broad match displays ads when shoppers search something related to your product or service. Smart Bidding helps set the right bid for each search within your performance goals. For example, CarParts.com saw a 23% revenue increase using broad match.
- Responsive search ads: These allow you to show the most relevant ads based on what shoppers are searching for, saving time by offering multiple headline and description options.
- YouTube as a Shopping Facilitator:
- YouTube provides shoppable videos for over 2 billion viewers, playing a crucial role in shoppers’ journey from inspiration to purchase.
- Video action campaigns with product feeds: These turn YouTube video ads into a virtual storefront, driving consideration and influencing purchases. Campaigns with product feeds have seen an over 80% increase in conversions on video in-feed.
Simply put, today’s consumers are akin to curious explorers embarking on a quest for new brands, making it crucial for businesses to become captivating landmarks on their discovery map. Google and YouTube, like navigational tools of the modern age, not only illuminate the path like a certain bright and shiny nose, making brands more visible, but also craft a shopping experience that is engaging, pertinent, and seamless, propelling the journey from mere contemplation to definitive conversions.
Chapter 3. Stand out online to maximize your profits
Summary: As the global retail e-commerce growth rate is forecasted at 10.4% for 2023, understanding customer needs and meeting them online is essential for retailers. Google’s AI, Performance Max campaigns, and Web to App Connect can enhance visibility across channels and forge deeper customer relationships. Differentiating your business by emphasizing product quality and attractive deals/promotions can help build trust and value.
Key Points:
- E-commerce Growth:
- The global e-commerce growth rate for 2023 is projected at 10.4%, up from 2022.
- Agile Engagement Across Channels:
- Google’s AI helps reach shoppers across various channels and respond to changing needs.
- Performance Max campaigns provide access to Google’s ad inventory – Search, YouTube, Display, Discover, Gmail, and Maps.
- L’Oréal Vietnam achieved 4.1X higher return on ad spend (ROAS) and 13X higher conversion rate using Performance Max.
- App-Based Customer Relationships:
- Apps with features like self-checkouts and reward programs can drive customer loyalty, with 87% of retailers agreeing that app users have higher lifetime value.
- Web to App Connect provides a seamless web-to-app experience, improving customer experience and campaign performance. It has been observed to deliver a 2X higher conversion rate for clicks that land on your app versus your mobile website.
- Boohoo saw a 25% increase in revenue and 5.5X higher conversion rate using Web to App Connect.
- App campaigns promote your app across Google’s largest properties, helping to better connect with customers and increase lifetime value.
- Business Differentiation:
- Highlighting product quality (46%) and deals/promotions (45%) can attract customers.
- Merchant differentiation can be achieved by showcasing promotions, sale price, fast shipping, return and refund options, and regional pricing and availability.
- Merchant Center insights, competitive visibility report, best sellers report, and Reporting API can help understand market trends and competitive landscape.
- The Insights page and Product Insights column in the Products tab offer personalized suggestions to improve campaigns and inventory utilization.
As the world of e-commerce evolves like an ever-growing Christmas village, businesses must employ sophisticated tools such as Google’s AI and Performance Max campaigns. Deepening customer bonds via apps and setting businesses apart through highlighting product quality and promotions is as essential as stringing up unique holiday lights. Furthermore, leveraging insights and reports from Google’s Merchant Center to comprehend market trends and competitive landscapes is key to optimize campaigns and make informed, strategic decisions like navigating reindeer across a myriad of rooftops.
Chapter 4. Expand omnichannel sales
Summary: Consumers are increasingly blending online research with in-store purchases, which necessitates a seamless omnichannel marketing strategy from brands. By utilizing a suite of tools offered by Google, businesses can drive web traffic into their physical stores and enhance overall customer experience.
Key points:
- 59% of consumers like to visit stores to see or touch products even if they plan to buy online.
- Google Business Profile and in-store products: Businesses should update their profiles with store hours, location, images, and more to attract customers. Showcasing in-store products on the profile helps customers check availability.
- Digital advertising tools like Performance Max campaigns for store goals can help increase store visits by promoting physical business locations across Google platforms. Performance Planner can aid in creating efficient ad spend plans.
- Local inventory ads can help promote in-store inventory to shoppers who search on Google (50% of consumers check product inventory before going to the store).
- Smart Bidding for store visits or sales can help maximize online and in-store sales by adapting to shifting consumer behaviors.
- The case of Ilva, a Danish furniture retailer, demonstrates success with a 30% increase in return on ad spend and a 20% increase in offline sales using omnichannel bidding and conversion value rules.
So, businesses must adapt to consumers blending their online and physical shopping, much like the harmonious blending of holiday traditions. By using Google’s tools to craft a seamless omnichannel approach like a master craftsman, they can bolster online visibility and drive in-store sales, making the customer’s journey as magical as being physically present at a holiday market. This understanding can amplify their return on ad spend, ringing in a chorus of enhanced sales.
Chapter 5. Engage shoppers throughout holiday peaks
Summary: The holiday season represents a critical time for businesses to capture consumer attention and generate sales. It’s essential for brands to strategize their marketing campaigns to engage customers effectively throughout three key phases: early holiday shopping, high-intent shopping closer to the holidays, and post-holiday sales.
Phase 1: Early Holiday Shopping
- Holiday shopping begins weeks before the holiday season, providing an opportunity to attract new customers.
- Businesses should communicate brand value and best offers to early shoppers.
- Key strategies include:
- Leveraging online video for product discovery and inspiration.
- Utilizing Google Ads’ Insights page for real-time Search query trends.
- Promoting upcoming sales and including information about promotions, sale price, and return policies in product listings.
Phase 2: High-Intent Shopping
- As holidays approach, consumers seek to make quick purchases and value factors like high-star product ratings, fast and free delivery, and returns.
- It’s crucial to engage with customers both online and offline.
- Key strategies include:
- Offering free and fast shipping or buy online, pick up in-store options.
- Reengaging customers through App campaigns for engagement.
- Reaching local shoppers with Performance Max for store goals and Local inventory ads.
Phase 3: Post-Holiday Engagement
- Shopping continues post-holidays with consumers seeking deals or fulfilling their New Year’s resolutions.
- Brands should plan for year-round engagement beyond end-of-year holidays, considering important cultural and retail events.
- Key strategies include:
- Capitalizing on the post-holiday sales period for additional sales opportunities.
- Building ongoing relationships with customers for year-round engagement.
- Staying top of mind for consumers throughout the year for whenever they’re ready to make a purchase.
Essentially, businesses must craft a marketing strategy as comprehensive and well-planned as a holiday feast. This should kick off with early bird specials to lure the first wave of holiday shoppers, followed by facilitating swift and sure purchases as the Yuletide draws closer. The strategy shouldn’t end with the last chime of the New Year’s bell but capitalize on continued shopping interest, just like the appeal of post-holiday sales. Moreover, staying connected with customers throughout the year is akin to keeping the holiday spirit alive, ensuring the brand remains a treasured choice in the consumers’ gift lists of future purchases.
Live Happily Ever After
In conclusion, much like old St. Nick’s complex operations from the North Pole, managing a business during the holiday season is an intricate process. From understanding consumer behavior to shining brightly in a sea of competition, from ensuring your workshop can handle the demands to providing a seamless omnichannel experience, and riding the ebbs and flows of the holiday season, it all demands strategic thought and execution.
Google’s 2023 Retail Guide provides comprehensive advice and tools to help you navigate these complexities. By approaching it like Santa Claus – with a detailed list, checked twice for accuracy ✅✅ – you’ll be better prepared to maximize your holiday sales. So, take a cue from Santa and his hard working elves. Adapt, innovate, and deliver joy to your customers this holiday season. After all, happy customers are the best gift your business could receive!
