During the festive season, we at Google consistently observe a pattern where consumers navigate through four key shopping mindsets annually, which we’ve termed the ‘4Ds’: Deliberate, Deal-Seeking, Determined, and Devoted.
What exactly are these four Ds?
- Beginning in July, customers are deliberate about considering their potential holiday buys and making wishlists.
- As the calendar turns from October to November, the deal-seeking mindset takes over, with a focus on sifting through deals and emphasizing quality and affordability.
- Arriving at December, the pace shifts as consumers become determined to wrap up their festive shopping, utilizing every available day and resource.
- And ultimately, in January, the sentiment transforms into devotion as shopping continues even after the peak of the holiday season.
Check out this quick clip where we showcase these trends:
What Do the 4Ds Mean for Your Brand?
With December approaching swiftly, watch for the shopping attitude to shift towards determination, followed by devotion in January.
Implementing these three tactics has not only supported us but will also assist your brand in resonating with shoppers in the thick of their activities:
- Continue the drive in December and the subsequent months
- Engage with customers through various platforms
- Foster enduring brand loyalty
Continuing the Momentum into December—and After
The window of opportunity for retailers extends beyond the intense deal days from Black Friday through to Cyber Monday.
Analyzing data in conjunction with BCG for a period from October 2022 through January, Mastercard showed that 46% of U.S. holiday spending took place between Cyber Monday and Christmas Eve in 2022. Post-December 25th, consumers also expended over $47 billion in retail within the subsequent two weeks.
So, what fuels the buying fervor in December and January? Together with Ipsos, we conducted several surveys between October 2022 and January 2023 to unearth the reasons:
In the final month of the year, shoppers are highly motivated to conclude their holiday buying. Last year, on average, U.S. shoppers had completed only half their shopping post-‘Cyber 5.’ Notably, Gen Z shoppers had more shopping yet to do in comparison to other demographics.
When January arrives, shopping becomes a pursuit of pleasure rather than gift-giving obligations. Our findings indicate that half of the consumers enjoy post-Christmas shopping.
Engaging with Shoppers Across Varied Touchpoints
In-store shopping achieved new highs last year, surpassing $1 trillion for the initial occasion.
A significant factor for this uptick is the utilization of digital means prior to visiting a physical outlet. These digital tools are instrumental in making and fulfilling purchase decisions.
A case in point is the cosmetic retailer, Ulta Beauty, who shared insights on their holiday achievements with Google:
It has also been observed that shoppers are increasingly leveraging various digital channels throughout the season.
From our Ipsos online study that spanned October 2022 to January 2023, over half of shoppers engaged with a minimum of five different channels, such as video and social media, over the course of two days in 2022. This trend of omnichannel shopping intensified throughout December.
Post-holidays, digital engagement peaks, with even more resources being tapped for purchases. Significant upticks in usage post-Christmas were noted on Google properties like Search, Maps, and YouTube, showcasing sustained high activity. The surge indicates that customers not only continue their shopping spree but also interact across more digital platforms. Hence, brands that offered integrated omnichannel experiences to engage customers at multiple touchpoints gained an edge.
Cultivating Long-Lasting Brand Loyalty
In an investigation commissioned by Google conducted this October, it has been revealed that a considerable opportunity exists in cultivating enduring brand loyalty, as roughly 47% of shoppers indicated that the period following Christmas allows them to indulge in their favored brands.
Incentivizing with loyalty or rewards programs, which are already significant to customers during this time, can be advantageous.
In January 2023, there was a remarkable 50% increase in search interest for loyalty programs—a spike that includes queries like ‘reward program’ and ‘loyalty points’—when compared to December 2022.
Between September 2022 and January 2023, we also observed that search activity for gift-related terms like ’gifts’ and ‘presents’ remained elevated in January 2023—with a 45% and 15% jump, respectively, from the early holiday months of September and October 2022.
Looking Ahead
Having taken stock of these pivotal holiday shopping behaviors, it’s time to anticipate the Black Friday frenzy by prepping and refining your holiday promotional plans—if not done already.
For additional insights and tips, delve into our Think With Google’s Holiday Shopping Trends Report or continue exploring the wealth of information on the HubSpot Marketing Blog.
