A holiday love letter to Canadian retailers

Dear retailers,

It’s happening. The holidays are here and there’s one thing we know for certain: focusing on sales is the wrong way to grow sales. Everything retailers do now must come down to cultivating lifetime value for the customer.

We don’t have to tell you it’s been a different kind of year. Layering in the holiday factor takes things to the next level. Last year, Canadians planned to spend 72% of their holiday shopping budgets in store. This year, Canada Post says nearly half of holiday shoppers plan to spend mostly or exclusively online. And consider this: 54% were open to starting as early as October or November. That shift is palpable, with online shopping promotions and sales flooding our collective feeds even before summer officially turned to fall.

Volume aside, the holidays always bring a certain level of nostalgia and sentimentality to retail purchases. Now the stakes are even higher, as shoppers from all demographics try to balance the right gifts with the right budget and the right delivery timeline. Price sensitivity, shipping logistics and a compelling need to create a sense of normalcy are now the name of the game.

Here’s the thing: the way retailers respond must rely less on key learnings from holidays past, and more on key learnings from 2020. Determining how your customers have adapted to this new normal and relentlessly committing to creating unique holiday retail experiences is crucial this year.

How is this possible?

Acknowledge what’s changed and ensure your digital holiday experience does, too

Your customer is different. They want to feel confident that you understand their changing needs. It comes down to data and empathy. Data is critical, and what you do with it even more so. What key words are customers searching for on your website? Which FAQs get the most traction? How has their reality changed? Are they celebrating alone? Looking for more personalized gifts?

According to the EY Future Consumer Index, more than half of Canadian consumers are concerned about their family, finances and job security. Demonstrate your understanding with holiday offerings and services that show you understand. If affordably priced yet delicious popcorn has been flying off the shelves, build out some seasonal flavours, get into the spirit with fanciful packaging, and show – don’t tell – that you hear what your audience is saying.

Fix your trouble spots now, leave nothing to chance

During the pandemic, e-commerce showed explosive, five-point growth. Where fast followers once had a fighting chance, that might no longer be the case. The traditional customer adoption S-curve was once a slow and gradual path toward product and technology saturation and adoption. But change is accelerating and virtuous, shifting the curve to an actual S. Micro inflection points are happening more often, leaving less room for late adopters to catch up (if at all).

As the holidays up the ante, you can’t afford many mistakes. Typical pre-holiday testing at big box stores and major chains happens over the summer, and developers work well ahead to ensure holiday experiences – from the ease of checkout to the ease of returns – are sound. Every additional minute a customer struggles to understand the return policies for their family members across the country can easily translate to dollars — and more important, relationships — lost. Be sure to identify trouble spots you saw bubble up during the first wave of the pandemic. Solve for these pain points before they trip up the onslaught of holiday shoppers looking to make meaningful and efficient purchases.

Don’t be the person who comes into town once a year and only talks about themselves.

Whether you’re the distant relative sending the 10-page holiday letter, or the retailer just now popping in to say “Hey!” after months of pandemic pause, don't solely reach out to customers when you want to make a sale. Tailoring products and services to holiday needs is only as effective as your ability to engage with your audience through communications that are relevant to our current reality.

Consider creative, celebratory ways to show a little seasonal appreciation for customer loyalty. Validate what society has collectively experienced this year with customized gifting lists meant for parents with kids stuck without sports, or grandparents who may be holiday housebound. Consider strategic partnerships – think innovative delivery services – to build an ecosystem that helps customers get holiday ready in all-new circumstances. Think creatively about your digital outreach, from the words you choose to the tools you use. Everything you do should offer an easier, more empathetic customer experience in November and December to deepen customer relationships that are built to last.

It’s been a challenging year all around. No matter your digital starting point, immerse yourself in creating experiences, lean your foot on the gas and keep your spirits high. This will help bridge this unusual holiday season into a brighter 2021. Remember: if you’ve come this far, you’re already doing a whole lot right. Don’t stop now.

Happy holidays,

Waleed El-Zoghbi, Executive Creative Director, EY Design Studio