Holiday Shopping Season 2022: Trend Update
Much like large retailers with holiday sales, we are starting our holiday season trend reporting early this year! With extensive shopping events, such as Prime Day, and other major retailers already boasting early Black Friday specials, we wanted to share a brief outlook into how consumers plan to spend this holiday season. Between gifts, travel, and entertainment, the average consumer is expected to spend $1,430 during the 2022 holiday season. Financial institutions need to keep tabs on these key spending themes for the 2022 holiday season as shoppers spend the next few months giving their finances the biggest shock of the year.
Millennials Will Be the Biggest Spenders
Standing out from the crowd, millennials will be the big spenders this year! With an average budget 27% higher than other consumers, many have recently traded up for higher-paying roles in a job-seekers market. It’s more important than ever to ensure you put initiatives in place to reach this younger audience. Offering them additional financing options on platforms they use, such as Instagram and YouTube, to support their larger budgets will draw them to your institution.
Online Shopping Stabilizes
While holiday shopping online spiked at the height of the pandemic, it is expected to remain stable during 2022. After the boom in online shopping in 2020, the percentage of consumers planning remains at 57%, the same as in 2021. With the majority of shoppers doing business online, it’s essential to take advantage of the increased online traffic this time of year. Be sure to maintain an effective presence on social media and use search engine advertising to pull in holiday shoppers who need additional financing or guidance.
Debit Cards Reign Supreme
Debit cards reign as the top preferred payment method for the 2022 holiday season, and credit cards fall close behind. As various contactless payment options arise, cash continues to slip lower in the rankings from being the top payment choice by 80% of consumers in 2015. It’s also important to note that buy now, pay later platforms are on the rise, jumping from only 5% in 2021 to 13% in 2022. The rising preference for debit and credit cards means that reminding new and current customers why your cards stand out from the crowd is very important to increase your wallet share. For example, highlight any cards that may offer a rewards program, convenient digital services, or competitive rates to increase conversions in these products.
Many Shoppers are Starting Early
Although it’s not Halloween yet, the holiday shopping season has begun! With 40% of consumers preferring to shop before any Thanksgiving weekend shopping events, starting holiday credit card or loan campaigns now is essential. This will ensure that early-bird shoppers can acquire the financing they need to get their shopping done early and those that need it by Thanksgiving weekend are too.
The Comeback of Holiday Air Travel
Air travel during the holidays is making a comeback! As anxiety surrounding the pandemic slows, holiday travelers are returning to airports, with almost half of holiday travelers – 57% planning to fly during the 2022 holiday season. Providing these customers with the tools they need to remove as much stress as possible from their holiday travels is essential. From providing any additional financing to cover extra travel expenses to reminders regarding any account or travel alerts to keep tabs on accounts is a great way to keep customers committed to the convenience of banking with your institution
Gearing up for the peak of the 2022 holiday season? Strategis is a full-service marketing agency developing strategies proven to increase (ROI) through a wide range of methods. Contact us today!
