Be bolder and behave differently: That’s the advice of industry experts, who say brands will need to be more targeted and creative in their approach to holiday cyber sales to drive customer spending this season.
One thing for certain is the majority of holiday shopping will happen from home this year, according to eMarketer, which reports that 71 percent of U.S. adults plan to do more than half their holiday shopping digitally this year.
To drive seasonal sales, the biggest players are moving up the start of their holiday campaigns, beefing up their websites, and relying more on digital channels.
Brick-and-mortar retailers like Macy’s are going to offer a longer holiday-shopping period and leaning on digital in a big way, according to CEO Jeff Gennette, who said Macy’s holiday shopping season will commence “in full force after Halloween.”
Target also plans to kick off its holiday sales in October, in order to jump-start the final sales quarter that conservatively represents 30 to 40 percent of a retailer’s annual sales, as reported in The Washington Post.
Meanwhile, industry insiders say Amazon’s Prime Day, which usually happens in July, will likely move to October.
The biggest indicator of seismic shifts in shopping trends? Walmart, Target, Best Buy, Dick’s, and Kohl’s will close on Thanksgiving Day.
Such dramatic shifts in traditional holiday consumer-shopping patterns only add to the intense competitive pressure between CBD brands competing for market share to step up holiday pricing, promotions, and packaging.
There are underlying cues of what drivers will motivate holiday shopping this season. They include:
Main Street merchants will play an elevated role in this year’s shopping season, according to Google, which reports that 66 percent of shoppers plan to shop local this year.
Although it’s not frequently referenced, 97 percent of CBD companies fit within the SBA’s classification of a small business.
For shoppers, that local moniker offers an important and valuable distinction. Why?
In addition to employing nearly half (47.3 %) of America’s workforce, small businesses reflect the unique character of city neighborhoods and are what keep communities from becoming cookie-cutter replicas of each other.
Bottom line: Small businesses are a mirror of ourselves and embodiment of the American dream and, therefore, deserving of mindful support.
CBD Marketing Hub has created a universal Small Business icon for unrestricted use by CBD brands that want to call out their small-business status. We encourage CBD companies to emphasize local ownership and vendor relationships through their creative use of imagery and iconography on websites, social media platforms and packaging, as well as holiday
Distant, but not apart: More than 31 million holiday travelers will stay home this year, according to CNN. And, for many, that means that holiday gifts need to be packed with more meaning.
Holiday shoppers are going to revert back to “the basics” this year, according to retail analysts at McKinsey, who predict that splurge experiences will be overtaken by smaller, more practical gifts that evoke a more meaningful experience.
Among those items are skincare, haircare, and bath-and-body products, which have skyrocketed during the pandemic, according to NPD. The research firm, which tracks consumer spending and point-of-sale data, reports that sales of skin-, nail-, and hair-care products are up 300 percent over last year.
Bath-and-body products alone are up 65 percent over last year, according to Amazon.
But CBD brands need to think beyond the bundle to win over distanced consumers this year.
It’s all about packaging. With so many shoppers apart from loved ones this season, deeper drivers will direct consumer-cart behavior.
CBD brands need to think about creating consumer bundles that convey care, moving far beyond the typical bundle that, while attractively priced, delivers little in the way of experience.
Whether they bundle CBD bath bombs nestled on a loofah in a wicker basket or create a “sleepcation” kit complete with CBD Sleep capsules, a sleep mask, and soothing chamomile CBD tea, gift bundles need to convey comfort and warmth in the form of a virtual hug.
Even pain products can nudge their way into holiday promotions with appropriate packaging and warm wishes of better days ahead.
CBD brands with apparel lines have the perfect opportunity to creatively package items, like a running cap and recovery rub bundle. Messaging is everything today.
Brands need to start planning and scheduling media now. If this season is like Memorial Day, businesses can expect to see a flood of media placements from competitors trying to make up for losses in 2020.
Last year, more than 55 percent of CBD brands had some type of Cyber holiday special, according to our CBD Confidence Survey, conducted in collaboration with CBD.io and Target Insyght’s nonprofit arm Insyght Institute.
Given the Brightfield Group’s projection that more than half of the nation’s 3,500 CBD brands will shrink to as few as 1,000 by year-end, Cyber holiday sales may well serve as the barometer of those that will be left standing.
In such a crowded landscape, targeting is essential.
Cyber holiday campaigns are nearly a market mandate. Brands need to pick a lane and own it this holiday season.
Countless studies point to overwhelming evidence that COVID-19 has elevated the importance of well-being and maintaining good mental health in America.
No one may feel the weight of that more than moms – America’s Chief Health Officer – who, according to the U.S. Department of Labor, make 80 percent of the household decisions about family health.
Among those feeling the highest level of COVID-19 are Millennial moms, 97 percent of whom told Motherly that they feel more stressed-out than ever.
It’s logical that Millennial moms and self-care messages become the centerpiece of Cyber holiday campaigns from products focused on maintaining calm during the stressful holiday shopping season to finding balance amidst the chaos of their new everyday life.
Among consumer groups, our targeting experts recommend CBD brands focus on Millennial moms, ages 23 to 39, who are interested in yoga, fitness, and natural solutions this holiday season.
Sleep is among the casualties of the pandemic, according to Sleep Medicine, which asserts that clinical insomnia rates jumped up 37 percent since the start of the pandemic, and Supermarket News, which reports sales for sleep remedy products are up more than 20 percent.
Capitalizing on the trend requires more than artful product packaging to ensure “Sleepcation-type” holiday bundles are targeted to the right audience of sleepless households.
Using advertising products like keyLIFT, our keyword-based solution, CBD brands can meet advertising guidelines, while focusing in on targeted need states like sleep. This proven keyword-based solution enables CBD brands to redirect hundreds of thousands of consumer searches for OTC and general sleep solutions to their CBD products.
Cyber holiday sales represent an important mechanism to make up for revenue losses accumulated during the pandemic, invite lapsed customers to return, and, as important, to retain new customers gained as a result of COVID-19 related shifts in digital-shopping patterns.
Our internal-trend monitor mirrors the Brightfield Group’s most recent projection that downward pricing pressures will characterize the fourth quarter and likely continue through the second quarter of 2021.
That’s why we encourage CBD brands to think about their product mix, messaging, marketing, and promotion and adjust plans to meet emerging trends.
With so much emphasis on driving digital-sales activity, it’s important that CBD brands have a mechanism to identify, track, and remarket to anonymous website visitors.
On average, about 40 percent of website visitors will leave a brand’s website without registering their email address. During the Cyber sales season, that number jumps even higher.
With remarketing, CBD brands are able to multiply the impact of Cyber holiday sales and achieve higher ROAS.
A great Cyber holiday sales plan can help get and keep CBD brands on solid footing. If you need help building or supporting yours, contact us at email@example.com or call 734.634.9275.
Editor’s Note: CBD Marketing Hub is offering its own Cyber holiday sales discount campaign for ads placed before December 15. Contact your sales rep or email us at firstname.lastname@example.org to learn more. CBD brands may download and utilize our Shop Small Business icons, created for unrestricted use by CBD companies.