Are you ready for Christmas 2023?

This year we took part in Retail Week’s Christmas in July report[1] where we shared our insights on how companies can maximise their revenue during this time of year. In this article we’ve summarised key findings from the report and share more insights from our expert to help you prepare for Christmas 2023 and beyond.

According to the report, apparel is expected to experience one of the highest growth rates (6.2%) in Q4 of 2023. Whilst this is very encouraging, the current economic landscape means that it’s difficult to predict how consumers will react at Christmas and how the lift in sales can be maximised by retailers.

One trend that continues is customers wanting to find and purchase exactly what they are looking for in just a few clicks

Matt Dine, Head of Mid Market, Experian Data Quality

‘Also, with the average cart abandonment rate at 72.23% in the retail sector, according to Salecycle[2], we predict this will rise further if the consumer journey is not made as simple as possible.’ Continues Matt.

Along with a quick and easy purchase experience, reliable delivery is one of the most important elements of the purchase process, particularly around the festive season. In a recent survey of 1,000 adults across the UK[3], 61% said reliable delivery is a key reason to encourage online shopping. ‘Helping clients with reliable delivery is our bread and butter. We know consumers are consolidating their shopping into specific brands. Spending more money with those who offer reliable delivery, value for money and good user experience. Particularly around this time of year we see a surge in retailers coming to Experian for help with contact validation since this is the easiest way to ensure accurate delivery information is captured.’ says Matt.

A personalised Christmas is another key topic in the report as data is, once again, going to play a significant role this golden quarter. However, given the amount of change in the consumer landscape, the consumer profile has shifted dramatically too. So, what retailers think they know about key customer groups is likely to have also changed. It’s surprising how many retailers are identifying evolving target segments when they profile their CRM data with Experian’s demographic and lifestyle insights.

‘For example, by adopting simple personalisation leveraging Experian Mosaic segmentation we’ve seen uplifts of 20% with email engagement and similar uplifts in sales. Understanding key target segments’ needs as well as the types of products they are likely to buy or shifts in shopper mobility patterns allows retailers to tailor their communications in-store, through e-CRM, effective direct mail strategies, and into channels such as digital and Connected TV (CTV).’ Outlines Debbie Oates, Director of Customer Engagement, Experian UK.

‘Experian’s Mosaic segmentation system can really help be a differentiator for many retailers this Christmas,’ adds Matt. Knowing more about customers than what they have historically bought from the organisation means that retailers can increase cart size by recognising up sell opportunities such as households likely to have children or buy premium products. It also leads to improved marketing and better customer engagement throughout Christmas and beyond.

How can we help?

We hope you’ve found these insights helpful. Whilst the Christmas in July report focuses on Christmas 2023, improvements to your delivery, personalisation and customer journey can be made throughout the year.

You can find out more about Experian’s Data Validation tools that help retailers enhance their data quality processes, improve customer insights, and make more informed business decisions.

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With Christmas 2023 being only a few months away, talk to Experian today and make sure you are prepared.

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