5 tips for retailers preparing for the 2024 holiday shopping season

Posted on August 21, 2024
5 min read

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As the 2024 holiday shopping season approaches, retailers face the challenge of delivering exceptional online experiences while maximizing revenue through retail media.

The competition is fierce, and customer expectations are higher than ever. To better understand what’s keeping retailers awake at night as they ramp up for this holiday season, we surveyed leaders and practitioners from around the world to get their perspectives on how retailers can prepare for this holiday shopping season. Here’s what we found. 

Retailers are bracing for reduced spending—and higher customer expectations

Many retailers are bracing for tightened belts and projected reduced sales this season as consumers watch their spending and have less expendable income. 

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Yet less spending doesn’t equal lower expectations—it’s the opposite. As consumers put more consideration into purchases, they’re also putting a magnifying glass to their shopping experiences and don’t have tolerance for obstacles in their journey. 

In a recent industry report, UserTesting found that over 40% of consumers experienced friction when shopping

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Those snags have a lasting impact. The report also showed that with each point of friction in the shopping journey, the chance of a consumer coming back—and making a purchase—fades.

But there’s good news here, too. What consumers want isn’t anything outrageous. Most digital leaders already have these things on their radar (or they should). Yet, time and again, consumers struggle with basic obstacles like page loading errors, ineffective search, and unclear navigation.

For retailers to be successful this holiday shopping season, they need to get back to basics and focus on the fundamentals. Consumers have said loud and clear, they won’t put up with a sub-par digital experience. 

Here’s what we recommend any retail or ecommerce team can do now to set themselves up for success this holiday shopping season. 

1. Optimize the checkout process

Cart abandonment is a thorn in any retailer’s side, but sometimes, consumers change their minds for good reason. Our survey showed that many retailers were working to optimize their checkout experience to ensure a seamless purchase for new and existing customers. Making it easy to purchase products is one of the best ways to make a sale, yet many retailers still struggle with this. If the success of the legendary $300 million button isn’t proof enough, just ask your customers. 

Options like express checkout, guest checkout, and a wide range of payment options that support today’s consumer habits (think Apple Pay, Amazon checkout, Paypal, and Shopify) are crucial. 

And even if adding new payment options isn’t in the cards this shopping season, at a minimum, don’t force consumers to register or provide too much information before making a purchase. 

How Chico’s drove customer retention
Learn how Chico’s leveraged customer feedback to inform changes to the digital experience, resulting in improved customer retention, satisfaction, and revenue.
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2. Make sure your ads resonate with shoppers

Some retailers in our study noted that advertising costs have skyrocketed, but their campaigns' efficacy hasn’t kept pace with that investment. Add to that the surge in sponsored content and social commerce, low conversion rates, and the high cost of advertising, and, understandably, digital leaders are concerned. 

Test ads before they launch

The best way to ensure an ad campaign’s success is to launch with confidence, knowing your ad messaging resonates with your target audience. Testing ads before launching a campaign reveals the audience’s reactions to the ad and whether they’ll take the desired action. 

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3. Keep customers in the loop with clear communications

Supply chain challenges are a major concern for retailers, yet they’re not something that most digital experience leaders have much control over. Delays in shipping and order fulfillment are commonplace, but consumers still expect a fast, affordable, and trackable ordering experience. 

Our survey indicated that many retailers were specifically focusing on ensuring customer communication was optimized and resonated this year.

Understand the post-purchase experience

Getting customers through the purchase process is the first step, but retailers know a lot can happen between that moment and when the customer receives their order. Even if a customer decides to return a purchase, ensuring a smooth process is critical to customer loyalty. Learn more about the importance of customer empathy throughout the customer journey in this Harvard Business Review report, Emphasizing Empathy as the Cornerstone of Customer Experience. 

Harvard Business Review: Emphasizing Empathy as a Cornerstone of the Customer Experience
Explore critical role empathy plays in delivering a better customer experience
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4. Get back to basics

It’s nothing any digital leader hasn’t heard before, but it bears repeating: fix basic issues on your site or app that impact the shopper journey. Frustrations like site loading time, poor navigation, and unhelpful information are all key complaints shoppers have with even the top retailers. 

According to UserTesting’s recent Retail Benchmark Report, common points of friction still frustrate shoppers and result in lost revenue and loyalty—not to mention potential damage to brand reputation. The more obstacles shoppers encountered, the more likely they were to become NPS detractors.

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5. Refine sponsored search and social commerce

Search technology in ecommerce has evolved dramatically, shifting from simple keyword-based searches to more complex natural language processing. This evolution is crucial as customers increasingly use conversational queries to find products. However, many retailers still struggle with search engines that can’t keep up with sophisticated queries, leading to irrelevant search results and frustrated customers.

As retailers prepare for the holiday season, it’s essential to ensure search functionality can handle natural language queries effectively. This might involve investing in AI-driven search tools or fine-tuning your existing algorithms to better understand customer intent. By enhancing search relevancy, you can help customers find the products they want quickly and efficiently, increasing the likelihood of conversion.

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Check out our Insights Unlocked podcast: Holiday retail tips with Brian Walker
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Your key to 2024 holiday success: listening to your customers

As you prepare for the 2024 holiday season, take a proactive approach. Start testing and refining your strategies now to ensure your ecommerce site or app is ready to meet customer expectations. With the right balance and preparation, your holiday season can be a resounding success, driving both customer satisfaction and revenue growth.

Social media shopping habits 2024 report

Are you ready for Black Friday and Cyber Monday?

Ensure your digital shopping experiences are ready to exceed customer expectations before the holiday rush with our shopping optimization template.

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