Four tips to help online merchants boost their business this holiday season

After a tumultuous year for the retail sector, merchants are looking forward to the holiday season with hopes of making back profits lost from the impact of the pandemic, writes Cary Lockwood, CEO, Loyalty Now.

These hopes are supported with research from the Australian Retailers Association (ARA) and Roy Morgan, which are predicting this year’s pre-Christmas spending will broadly match last year’s high and be significantly above 2019 pre-pandemic spending. These predictions forecast that overall spending will come in at AU$58.8 billion, remaining on par with last year’s, and up 11.3 per cent on pre-pandemic conditions.

This demonstrates that there is plenty of opportunity in the market; however, without the correct planning and preparation, merchants may miss out on achieving strong holiday sales.

Some merchants and retailers will have already begun their holiday planning. However, there is still time to prepare for the sales season.

4 top tips for merchants to boost sales

Join an existing or implement a loyalty system

The first port of call for merchants looking to maximise their success over the holiday season is to employ a robust and easy-to-navigate loyalty program. Consumer expectations are higher than ever and retailers are looking for ways to stand out from the crowd. Loyalty and rewards programs can help by going beyond legacy approaches that involve physical cards, stamps, or swipe cards that track purchases to intelligent digital ecosystems that employ payment card-linked, frictionless technology. This technology creates a more user-friendly experience for shoppers by letting them accrue rewards simply by using their regular debit or credit card. Joining an established or establishing a card-linked loyalty and rewards program now before sales begin to increase will let merchants enjoy the benefits of the system throughout the holiday period and beyond.

Merchants should streamline POS processes

With sales set to rise over the holiday period, being able to provide fast in-person service is always a priority for business owners. This can be especially true when it comes to point of sale (POS) interactions, where customers finish their buying journey. By implementing frictionless, card-linked rewards systems as part of the overall POS interaction, merchants can remove additional steps at the counter, letting customers claim loyalty benefits only through the tap of their debit or credit card instead. Streamlining these interactions in-store will improve the user experience and encourage greater participation in these rewards programs.

Gather and learn from real-time data

Another key benefit of digital rewards systems for retailers is the collection of valuable real-time data. This data can provide merchants with the information they need to deliver a more hyper-personalised service to their customers. From knowing peak shopping times to average transaction costs, the data insights obtained from these loyalty programs can inform future campaigns and offers that members receive, ensuring greater levels of repeat business once the holidays have come to an end.

Merchants must be agile

If business owners have learned anything from the events of the last two years, it’s that being flexible in their business approach can help keep their doors open. Many traditional retailers have invested more resources into curating an online presence and have seen great success despite a decrease in in-person sales. With new reports revealing that 62 per cent of Australian consumers now demand real-time visibility of their online Christmas purchases, it is clear that merchants who have pivoted to an eCommerce approach will be better positioned to satisfy consumer preferences.

Merchants must be aware of ongoing trends and be open to new opportunities that put them in a stronger position to compete effectively. When these opportunities arise, it’s important to respond quickly and be agile enough to turn opportunity into revenue.

Merchants have undoubtedly been dealt a poor hand over the past two years; however, as Australia begins the road to economic recovery this holiday season, being able to prioritise the consumer experience will provide a strong foundation for the year to come.

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