consumer
trends
REPORT
Discover data-backed evidence of BFCM mobile commerce shopping trends—and how your Shopify store can maximize revenue during this year's peak holiday shopping season.
We’re back for another round of the BFCM Consumer Shopping Trends report!
If it seems like the holidays are coming fast, that’s because they are. Thanksgiving will be on November 23, the second-earliest date it can fall on. This equals more time for holiday shopping—but it also means it’s crunch time for retailers.
Last year, people were shopping between bites of turkey and family convos—mobile shopping hit a record 55% of online sales during Thanksgiving, reported Adobe Analytics. And for the first time ever, 51% of online shopping came from mobile devices during cyber week. Since the mobile shopping experience is only getting easier, there’s little doubt that number will grow in 2023.
Here at Tapcart, we're all about empowering brands using Shopify to tap into the power of mobile ecommerce and get in on all the mobile action. In fact, we’ve helped thousands of them, and we’re seeing these changes play out before our eyes. Stores are seeing an average 63% higher conversion rate and 82% higher revenue per session in their apps than their online stores.
It’s safe to say that consumers are all in for Cyber Monday too, spending $11.3 billion last year. While we can reluctantly credit inflation for part of that 5.5% year-over-year growth, it doesn’t account for all of it. Sales were up last year, and they happened online and in mobile apps.
Shopify merchants hit record highs over BFCM weekend in 2022, reaching $7.5 billion from independent businesses worldwide. That’s a 19% year-over-year increase. A clear picture is emerging: we’re in a world that’s rapidly embracing online and app-based shopping that you can’t afford to ignore.
While heavy discounts drove spending in 2022, what’s the right strategy for 2023? That’s what we’re digging into to find out. We took the temperature of over 1,000 consumers to see where they’re shopping, what they’re buying, and how they’re feeling.
The result? A jam-packed report on the state of mobile commerce during BFCM 2023 and tons of actionable recommendations for November and beyond. Let’s dive in.
Methodology
Before we start, let’s pause to look at our survey respondents. To get a true picture of mobile shoppers, we partnered with global market research company Savanta to survey 1,117 consumers representing all generations, ethnicities, incomes, gender identities, relationship statuses, and education.
We also had some rules about who could participate. Criteria included:
- Must be 18 or older
- Must have purchased an item online in the past three months or more recently
- Must have purchased an item in at least one of the following categories: Fashion & Apparel; Beauty & Cosmetics; Home Goods; Health & Wellness; or Food & Drinks.
- Had to indicate they preferred to shop online using their smartphone OR a combination of smartphone and computer.
- Must have made either a Black Friday or a Cyber Monday purchase last November.
Now you know the facts, so let’s delve into 2023’s BFCM Consumer Shopping Trends Report.
Key Findings
SHOPPERS ARE LESS CERTAIN ABOUT THEIR BFCM PLANS THIS YEAR
How likely are your customers to shop BFCM this year? The majority are still game, but a significant number are less certain about their plans than they were last year. This year, 67% of consumers said they are highly likely to shop BFCM—down 5 percentage points from 72% in 2022.
Conversely, 32% of consumers are somewhat likely to shop during BFCM—up 6 points from 26% in 2022. Just 1% of consumers are not at all likely to shop BFCM this year, a number that‘s held steady year-over-year. Millennials and Baby Boomers largely fueled this shift in consumer sentiment. 69% of Millennials are highly likely to shop BFCM this year, down 7 points from 76% in 2022. Baby Boomers reported the biggest change in certainty, with just 56% saying they are highly likely to participate. A 12-point drop from 68% in 2022.
SHOPPERS ARE MORE EXCITED AND LESS STRESSED
Though a significant number of consumers are more uncertain about their BFCM plans, that uncertainty isn’t due to stress or lack of excitement. A full 97% of consumers report some level of excitement about BFCM this year. This is a 2-point increase over last year when 95% of respondents reported some level of excitement. What’s more, your customers are less stressed about BFCM shopping this year, with only 35% saying they’re stressed to a medium or large extent, compared to 41% last year. 30% of consumers say they don’t feel any BFCM stress at all, a 2-point increase from 28% in 2022.
SHOPPERS ARE HERE FOR BFCM ADS
A whopping 93% of consumers report feeling at least somewhat excited by ads surrounding BFCM sales. Only 7% of consumers reported feeling very annoyed by BFCM ads. But what about the message appeal of these BFCM ads? While 1 in 10 consumers are turned off by the BFCM messaging they receive, 70% of consumers find the messaging in BFCM ads to be appealing. And 1 in 4 consumers rate BFCM ads as extremely appealing.
BFCM BUDGETS ARE A MIXED BAG
82% of consumers have a BFCM budget at least sometimes. Of the 82% who go into BFCM with a budget, 71% reported having a budget between $100 and $500, with 15% planning to spend more than $700.
How do consumer budgets in 2023 compare to those of 2022? 31% of shoppers plan to increase their budgets this year, while 45% will have the same budget in 2023 that they had in 2022—a 5-point increase from the 40% who reported this last year. The remaining 22% of consumers are planning to have a lower budget this year, roughly the same as in 2022 (23%). High prices, inflation, and having less spending money were the primary reasons 1 in 5 shoppers are planning to spend less this BFCM.
SOCIAL MEDIA REACH AND EFFECTIVENESS CONTINUES TO DECLINE
Where do consumers typically hear about sales from their favorite brands? Not social media. There was a significant drop in the number of shoppers who hear about sales from brands on Facebook, Instagram, and TikTok compared to last year. Facebook dropped 8 points, from 40% to 32%, Instagram was down 10 points, from 31% to 21%, and TikTok was down 5 points, from 16% to 11%. And reach isn’t the only metric that took a hit. When it comes to conversion (eliciting a purchase), paid social’s effectiveness dropped 8 points, with only 36% of consumers reporting they made a purchase directly from an ad—down from 44% in 2022.
It's no mystery that it's become increasingly difficult for Shopify stores to reach their audiences. The data shows that consumers are feeling this too—your posts just aren’t reaching their feeds like they used to. This year more than ever, you can’t rely on social (paid or organic) to deliver awareness or conversions for your store. Conversely, email, SMS, and push notifications remained consistent year-over-year. If you want to capture the attention of your top customer cohort, owned marketing channels are the place to invest your time and money.
EACH GENERATION HAS A DIFFERENT TOLERANCE FOR BFCM MESSAGING & ADS
On average, 17% of consumers are more likely to unsubscribe during BFCM than the rest of the year. This was notably higher among Gen Z respondents, of whom 24% are more likely to unsubscribe during peak season. Conversely, this was notably lower among Boomers, of whom only 11% are more likely to unsubscribe during BFCM than during the rest of the year.
In addition to being most likely to unsubscribe, Gen Z is also more sensitive to message frequency, with 75% of Gen Z saying “getting too many messages” during BFCM would make them unsubscribe, while only 62% of Millennials, 60% of Gen X, and 57% of Boomers said the same.
OLDER SHOPPERS WILL DO MORE GIFTING THAN YOUNGER ONES
Who are consumers shopping for during the holiday season? On average, 69% of consumer purchases are gifts for others, and 31% are for themselves. There was a clear correlation between age and who consumers are shopping for during the holidays, with younger generations doing more shopping for themselves and older generations doing more gift shopping.
Gen Z is significantly more likely than other generations to shop for themselves, reporting 38% of their holiday season purchases are for themselves. On the other hand, Baby Boomers are most likely to be shopping for others. They reported 75% of their holiday season purchases are gifts for others, with only 25% being for themselves.
CH 1: Mobile Preferences
CH 1: Mobile Preferences
Mobile shopping continues to reign supreme
The apps are where it’s at. While the same number of consumers plan to shop using their phone’s browser (71%, unchanged from 2022), fewer people plan to shop using a computer, dropping from 59% in 2022 to 57% in 2023. Instagram’s popularity also took a 3-point hit, from 8% to 5%. Mobile shopping apps was the only channel that saw an increase in popularity this year—up 3 points from 65% in 2022 to 68% in 2023.
We also asked consumers what shopping method, if any, they preferred when shopping on their mobile phones (mobile app vs browser). There were remarkably strong differences between generations, with 43% of Gen Z and 38% of Millennials preferring to download and shop via mobile apps, compared to only 28% of Boomers. Younger generations showed a strong preference for shopping via mobile apps, while older generations were more likely to answer that they have no preference either way. As younger generations increase their buying power, brands who do not offer consumers the option to shop via mobile app risk falling out of touch with their customers’ preferences.
How many shopping apps do consumers have? 36% of people have 5 or more shopping apps on their phone, with 8% saying they have 10 or more. Mobile apps cater to the top 10–30% of your customer base, and these loyal shoppers see the value of having their favorite brands just a tap away.
What makes apps so appealing for holiday shoppers? Fast and convenient checkout was the number one reason consumers liked shopping on mobile apps. No hunting for credit cards or filling out a shipping address for the tenth time. In fact, shoppers were even more drawn to mobile apps because of the fast checkout this year (70%) compared to last (63%).
When it comes to the checkout experience, consumers have increasingly high expectations. There’s little doubt that you’ll lose orders this BFCM if there are too many steps in your checkout process.
Additionally, consumers reported a strong affinity for the convenience of having their favorite stores on their home screens. Both of these reasons are great news for merchants—fast checkout leads to more conversions and fewer abandoned carts, while having a presence on customers’ home screens has been shown to increase session frequency by 2–3x over web-based sessions.
Survey respondents also pointed to the user-friendliness of mobile apps (49%), getting exclusive or early access to sales and new products (46%), and the ability to personalize their shopping experience (39%) as the top reasons for shopping via mobile apps.
Bottom line? If you have a mobile shopping app, you can be confident you’re delivering that convenient VIP experience busy holiday shoppers expect.
FIG 1/5
Question
How do you plan to do your online holiday shopping this year?
FIG 2/5
Question
How many shopping apps do you have downloaded on your phone?
FIG 3/5
Question
What aspect(s) about shopping with a phone app do you like the most?
FIG 4/5
Question
When shopping on your phone, do you prefer using a brand's mobile app or their website?
FIG 5/5
Question
When shopping on your phone, do you prefer using a brand's mobile app or their website?
The Takeaway
This year’s consumers are ready for it. They want a top-notch shopping experience filled with deeper brand connections. The best thing about BFCM in 2023? Thanks to tech, brands are equipped to exceed these customer expectations. Here’s how you can capitalize on this consumer shift.
Bring your mobile checkout up to par
Pull out your phone, and count the number of taps it takes to complete your checkout. Start by adding an item to the cart and take it all the way to submitting a payment. If your customer has to tap the screen more than 10 times in order to checkout, you’re going to be losing out on revenue from consumers who have grown accustomed to faster features like one-click checkout.
Don’t wait on a mobile app
If you haven’t already, now’s the time to level up your mobile game with an app all your own. Okay, BFCM may be coming up fast, but building an app doesn’t take a squad of developers like it did back in the day. Develop and launch your app before the busiest shopping day of the year, and your customers will get the fast and easy checkout process they crave. The cherry on top? You’ll have a brand new way to connect with your top customers—just in time for the holidays.
If you have an app, give app users exclusive offers
Your mobile app is the home for your most loyal fans, and you should reward them! Offering an additional discount or incentive (like getting access to your sale 1 or 2 days early) will ensure your app users are feeling the love and is one of the fastest ways to increase your push notification subscriber list and drive downloads.
Pro tip: Use push notifications to deliver your app-exclusive promo codes. If your customers know to expect exclusive offers from your push notifications, you’ll see sky-high opt-in rates and an engaged subscriber base (plus, you’ll get free messaging distribution).
Take advantage of home screen real estate
As we saw in the survey results, consumers love the convenience of having their favorite stores on their home screens. Don’t forget to take advantage of this valuable real estate! When you update your app icon, your customers will immediately see the new design on their home screens, and you can be sure they will take notice (don’t we all notice when our apps change their look?). Not to mention a BFCM-specific app icon also acts like free advertising, alerting your best customers that your sale has begun. Add a “Black Friday” banner across your normal app icon, or update the entire design with a BFCM-specific color scheme to really stand out.
CH 2: CONSUMER EXPECTATIONS
CH 2: consumer expectations
Shoppers have even less patience for mobile website shenanigans
People have *thoughts* about the mobile web experience, and they are not afraid to share them. Only 1 in 10 shoppers is willing to stick around if you have a slow or poorly designed mobile web experience—and that spans from Gen Zers to Baby Boomers.
And 2 in 5 people are highly likely to leave a slow/poorly designed website. No one’s giving out free passes for bad mobile experiences.
For shoppers who make it to their mobile shopping cart, cart abandonment reasons aren’t unexpected. High shipping costs were the number one reason consumers abandoned their carts (69%), followed by deciding the product cost was too high (51%).
We noted how important the checkout process was last chapter, and here’s the data that backs it up. A long or slow checkout process was the third-most common reason for cart abandonment. Roughly 44% of people said they’ve abandoned their carts because of a long or slow checkout process.
FIG 1/2
Question
How likely are you to leave an online store if the mobile web experience is slow or poorly designed?
FIG 2/2
Question
Which of the following has made you abandon your cart?
The Takeaway
With only 1 in 10 people willing to stick around for a slow-loading website, you’re likely leaving a lot of money on the table. The only way you’re keeping your customers’ attention—especially during BFCM—is by putting efforts into a streamlined mobile experience. Here’s how you can deliver that and ways to prevent cart abandonment.
Prioritize page speed
A fast-loading website is a non-negotiable for 9 out of 10 people, so it requires action. Check your loading time with Google’s PageSpeed Insights and get suggestions for ways to improve your mobile stats. It could be as simple as resizing images or removing unused plugins—every second counts.
Use free shipping as a strategic lever
Customers expect shipping to be free and fast, so use a free shipping threshold as an incentive to increase your AOV and get customers to the purchase button. Remember, shipping costs are the number one reason people abandon their carts. Use that knowledge to your advantage—otherwise, you’re missing sales.
Tighten up your mobile checkout experience
If you haven’t yet, count how many taps it takes to complete your checkout experience (from “add to cart” to “submit payment”). Be sure to keep it under 10 taps—anything more, and you’ll lose customers along the way. Instead, reduce it to only what you need and integrate native mobile shopping features like one-click checkout.
Offer guest checkout
You need speed and ease to capture the most sales over BFCM. While collecting consumer information is helpful, making them jump through hoops to create an account can present a roadblock. Instead, offer guest checkout for customers who want to get in and out quickly.
Recover abandoned carts with push notifications
29% of consumers report abandoning their cart due to wanting to come back later—don’t let those high-intent customers go to waste! Abandoned carts will go up during BFCM as people are browsing multiple sales. Push notifications are an effective and revenue-efficient way to recover abandoned carts. You could even offer a little extra incentive for those who complete the purchases.
CH 3: Shopping Habits
CH 3: Shopping Habits
There’s nothing like a little retail therapy
What types of items do BFCM shoppers tend to buy? Survey respondents said they’re most often buying electronics & tech (81%) and fashion & apparel (79%)—both popular categories during the holiday shopping season. Deep discounts on electronics drive gift purchases, but electronics are often destined for shoppers’ own households. Least popular categories include sports equipment (25%) and food & drinks (18%).
The data also shows you should split your marketing attention between both new and returning customers this year. Shoppers are fairly divided between buying from brands they already know and love (28%) and trying new brands (26%), with most shoppers saying they’ll buy from both (46%).
When it comes to purchasing habits, 85% of consumers admit to making impulse purchases at least sometimes during BFCM. Millennials were the MVP of this trend, of whom 31% admitted to regularly making impulse purchases. 13% of consumers say they seldom make impulse purchases during BFCM, while less than 2% of consumers say they never do.
Who are consumers shopping for during the holidays? On average, 69% of consumer purchases are gifts for others, and 31% are for themselves. Gen Z is significantly more likely than other generations to shop for themselves during the holiday season. 38% of purchases made by Gen Z consumers are for themselves, and 62% are gifts for others. On the other hand, Baby Boomers are most likely to be shopping for others. They reported 75% of their holiday season purchases are gifts for others, with only 25% being for themselves.
There was a clear correlation between age and who consumers are shopping for during the holidays, with younger generations doing more shopping for themselves and older generations doing more shopping for others. The generational difference can be attributed to younger generations waiting for discounts before making their big purchases, while older generations may have more discretionary spending and shop for themselves throughout the year.
FIG 1/6
Question
What types of items have you historically purchased on BFCM?
FIG 2/6
Question
When BFCM shopping, do you typically shop your favorite brands or try new brands?
FIG 3/6
Question
How often do you make unexpected or impulse purchases on BFCM?
FIG 4/6
Question
How often do you make unexpected or impulse purchases on BFCM?
FIG 5/6
Question
When holiday season shopping, what percent of your purchases are for yourself vs. for others?
FIG 6/6
Question
When holiday season shopping, what percent of your purchases are for yourself vs. for others?
The Takeaway
There’s nothing wrong with a little self-love (or a lot) and some impulsivity during the holidays. Here are a few things you can do to make it easier for on-the-fence shoppers to smash that buy button.
Examine your return policy
Online shopping comes with higher returns, so make sure your return policy is displayed properly on your site and is easy to understand. Hassle-free return policies might help capture more impulse shoppers in the moment.
Make payments flexible
Consider integrating swift and straightforward shopping features, like instant checkout or buy now, pay later (BNPL) options. It worked in 2022, with BNPL usage up 78% the week of Black Friday compared to the week before. Remember, an efficient and intuitive checkout process can significantly reduce cart abandonment rates.
Capture impulse buyers with one-click checkout
Don’t let impulse buyers slip through your fingers because of a long checkout process. To optimize mobile checkout, reduce the number of form fields to only what you require, autofill information for returning customers, and optimize for international visitors. Also, consider offering easy pay options, like Shop Pay, Apple Pay, or PayPal.
Reduce cart abandonment with free shipping
Unexpected costs are a top reason shoppers abandon their carts. And when 75% of customers prefer free shipping (and many likely expect it), it can be a big roadblock during BFCM. Offer free shipping as part of your holiday deals, or even include it as an incentive to download your app or signup for SMS.
Tailor your BFCM messaging by generation
Since there’s a correlation between age and buying for others vs. buying for themselves, segment your audience by age and weight your messaging according to those shopping habits. Older generations will be more responsive to gift guides and messaging about finding the perfect gift, while younger generations will be more motivated by messaging that highlights your deals and why now is the best time of year to buy.
Create helpful gift guides
There are still many browsers when it comes to game day shopping. Even though 69% of BFCM purchases will be for others, not everyone knows what to get their loved ones when the shopping week comes around. Create gift guides to help shoppers make their gifting decisions. Bonus points if you include a customer testimonial highlighting why each product made the perfect gift.
Pro tip: Include a few gift bundles or baskets in your guide to increase AOV.
CH 4: ADVERTISING SENTIMENT
CH 4: ADVERTISING SENTIMENT
BFCM ads turn up the hype
BFCM advertising is everything for retailers, but how do shoppers feel about it? A whopping 93% of consumers report feeling at least a little excited about BFCM ads. Only 7% say ads didn’t make them feel excited at all. Compare that to the 33% who are very excited by BFCM ads, and it’s safe to say ads are an effective way to drive hype during BFCM.
Ads may drive excitement, but do they also annoy? 51% of consumers say BFCM ads don’t annoy them at all, and only 7% of consumers say BFCM ads annoy them to a large extent. This is good news! Despite the deluge of ads on social media, Google, Amazon, and the like, people are still receptive to them.
And BFCM ads are even fueling consumer anticipation. 9 in 10 people say ads evoke some level of anticipation. People are hyped for those deals!
But what about the message appeal of these BFCM ads? Only 1 in 10 consumers are turned off by the BFCM messaging they receive. On the other hand, 70% of consumers find the messaging in BFCM ads to be appealing, with 26% of consumers rating BFCM ads extremely appealing. Millennials led the pack, with 28% of respondents rating BFCM ads as extremely appealing. Gen Z was the least impressed—only 21% rated BFCM messaging the same.
FIG 1/8
Question
To what extent do advertisements about BFCM sales make you feel excited?
FIG 2/8
Question
To what extent do advertisements about BFCM sales make you feel excited?
FIG 3/8
Question
To what extent do advertisements about BFCM sales make you feel annoyed?
FIG 4/8
Question
To what extent do advertisements about BFCM sales make you feel annoyed?
FIG 5/8
Question
To what extent do advertisements about BFCM sales make you feel anticipation?
FIG 6/8
Question
To what extent do advertisements about BFCM sales make you feel anticipation?
FIG 7/8
Question
How appealing do you find the messages and advertisements about BFCM sales?
FIG 8/8
Question
How appealing do you find the messages and advertisements about BFCM sales?
The Takeaway
While we’re not saying you should blow up your customers’ phones (that would be expensive), don’t hold back on the BFCM messaging. We’ve already learned that people aren’t afraid to shop early for the holidays, so by early November, you should be teasing out holiday sales.
Fill that funnel
It’s tempting to slow down advertising leading up to BFCM when you know you’re going to come in hot. Avoid the temptation! Gameday BFCM messaging is key, but start ramping up your campaigns at the start of November. Drive traffic into owned channels like email, SMS, and mobile app push notifications early to make it easier to reach potential customers come game time. Don’t forget to look at both new and existing customers.
Ads aren’t bothering the crowd
Audiences know ads come with the territory, and some people are genuinely excited to see what brands have to offer this holiday season. Consider creating an omnichannel strategy that starts with 1 email, 2 SMS, and 3 push notifications on Thanksgiving day and expand from there. Just ensure you’re adding value and not cluttering up their inboxes.
Segment your audiences
Based on our survey, Millennials get the most excited and find your ads to be the most appealing, while Gen Z keeps it more low-key and isn’t so easily impressed. Target your Millennial audience with messages that ride the hype train and play it cool with your Gen Z audience. Send fewer, more poignant messages to your younger audience.
Dedicate Budget to Millennials
When it comes to ads surrounding BFCM, Millennials report the highest levels of excitement, anticipation, and messaging appeal. Millennials are ready for your ads, and they find them the most appealing. If millennials make up a large portion of your customer base, consider putting them in their own campaign and dedicating more of your budget towards it. Their high levels of excitement, anticipation, and tendency to view your ads favorably means you could see higher ROAS with this generation.
CH 5: CHANNEL EFFECTIVENESS
CH 5: CHANNEL EFFECTIVENESS
The marketing messages that actually get customers to buy
Where are shoppers hearing about these amazing BFCM steals? Email remains the most typical channel for consumers to hear about sales from their favorite brands, with 63% of respondents saying they learn about sales in their inbox. This shouldn’t be surprising, as email is one of the most common (and, dare we say, most saturated) marketing channels out there.
Interestingly, social media took a hit this year, with fewer shoppers reporting that they hear about sales on Facebook, Instagram, and TikTok. Facebook dropped 8 points, from 40% to 32%, Instagram was down 10 points, from 31% to 21%, and TikTok was down 5 points, from 16% to 11%.
When it comes to eliciting a purchase, paid social’s effectiveness dropped, with only 36% of consumers reporting they made a purchase directly from an ad—down a significant 8 points from 2022.
38% of consumers reported buying directly from mobile app push notifications. The number buying directly from push notifications is slightly higher than those buying from paid social and markedly higher than SMS, from which only 26% of consumers reported buying directly.
What does that tell us about push vs. SMS subscribers? Push subscribers are likely more primed and ready to buy.
And what happens when people aren’t so hyped for BFCM deals? While people are busy hunting for deals, they’re also paying more attention to the notifications they do get and culling the bad ones from their inboxes.
Most consumers (54%) are no more or less likely to unsubscribe during BFCM than during the rest of the year, and 29% of consumers said they are actually less likely to unsubscribe during peak season. They’re counting on hearing from you to find those deals!
In total, only 17% of consumers said they are more likely to unsubscribe during BFCM than during the rest of the year. But we see real stratification across generations, with younger generations being more likely to unsubscribe than older generations. 24% percent of Gen Z are more likely to unsubscribe during BFCM, while only 11% of Baby Boomers said the same.
As far as what might make consumers unsubscribe? Unsurprisingly, the leading cause for unsubscribes was getting too many messages (62%), followed by not having an interest in that brand (51%). Gen Z was most likely to unsubscribe due to too many messages (75%), while Baby Boomers were most likely to unsubscribe because they are not interested in a brand (58%).
FIG 1/7
Question
Where do you typically hear about sales from your favorite brands?
FIG 2/7
Question
Have you ever made a purchase directly from a push notification?
FIG 3/7
Question
Have you ever made a purchase directly from a paid social ad?
FIG 4/7
Question
Have you ever made a purchase directly from an SMS text message?
FIG 5/7
Question
Have you ever made a purchase directly from a...
FIG 6/7
Question
Are you more or less likely to unsubscribe around BFCM than during the rest of the year?
FIG 7/7
Question
Are you more or less likely to unsubscribe around BFCM than during the rest of the year?
The Takeaway
These results show the sales funnel at work and highlight the importance of a well-rounded omnichannel strategy. Spread your advertising time and budget across each part of your marketing stack. Use email and paid social as your loudspeakers to spread your message far and wide, and add in SMS and push notifications for more targeted messaging to elicit purchases.
Omnichannel is more important than ever
Before you go all in on one messaging platform (or count one out due to low conversions), take a look at the entire sales funnel. An omnichannel strategy is more important now than ever—and helps you stand out from the noise. Our survey respondents were more likely to hear about sales through email, but push notifications often lead directly to a sale. Start with a well-segmented email list, then follow up with more personalized SMS and push notifications.
Pay attention to unsubscribe rates among Gen Z
With 29% of consumers less likely to unsubscribe during BFCM, they WANT your messages. Don’t be afraid to double down on communication methods with fewer unsubscribe rates, like push notifications. Pay close attention to your younger audiences, though. 1 in 4 Gen Z shoppers is more likely to unsubscribe during BFCM than the rest of the year, most often due to getting too many messages. Choose your messages more carefully to avoid a Gen Z exodus from your list.
Re-evaluate your social strategy
In social media’s ever-increasing pay-to-play arena, a decline in reach isn’t surprising. Experiment with new channels, interactive content like polls and quizzes, and more user-generated content. If you don’t see the needle moving in the right direction, it might be time to reallocate some of your ad spend to more effective channels.
Align message frequency to generation
75% of Gen Z respondents say getting too many messages would cause them to unsubscribe, while only 62% of Millennials, 60% of Gen X, and 57% of Boomers said the same—suggesting Gen Z is especially sensitive to message frequency. Baby Boomers are least likely to unsubscribe during BFCM and seem to be less bothered by high frequency, so you could test dialing up the frequency with this group. With Gen Z, consider decreasing your frequency as they’re most likely to opt out this holiday season.
CH 6 : Emotional Mindset
CH 6: Emotional Mindset
BFCM isn’t nearly as stressful as it used to be
Black Friday used to strike fear in people’s hearts. Crowds, stampedes, all-nighters in camping tents—it was a dark time. Now? Not so much.
Online shopping has extended shopping hours and lightened the load on brick-and-mortar retailers everywhere. It’s also made it less stressful for shoppers.
A full 97% of respondents report some level of excitement about BFCM this year. This is a 2-point increase over last year when 95% of respondents reported some level of excitement. This includes 36% who are excited to a medium extent and 42% who are excited to a large extent. Long story short, your shoppers are excited.
What’s more, fewer people report being stressed about BFCM, with only 35% saying they’re stressed to a medium or large extent, compared to 41% last year. 30% of consumers say they don’t feel any BFCM stress at all, a 2-point increase from 28% in 2022.
Not to mention, 92% of those we surveyed feel a sense of anticipation—and over a quarter said to a large extent. People are ready to snag those deals and find that perfect gift for their loved ones.
FIG 1/6
Question
To what extent does BFCM shopping make you feel excited?
FIG 2/6
Question
To what extent does BFCM shopping make you feel excited?
FIG 3/6
Question
To what extent does BFCM shopping make you feel stressed?
FIG 4/6
Question
To what extent does BFCM shopping make you feel stressed?
FIG 5/6
Question
To what extent does BFCM shopping make you feel anticipation?
FIG 6/6
Question
To what extent does BFCM shopping make you feel anticipation?
The Takeaway
Your customers AREN’T stressed TF out this year. 35% reported being at least moderately stressed, down from 42% in 2022, a 7-point decrease. Here’s how to capitalize on those feel-good vibes without adding to anyone’s stress.
Capitalize on excitement and anticipation
Scatter email/text sign-ups and app download banners across your site. Tease BFCM deals exclusive to your app and your subscriber lists to capture people just browsing your site.
If you have an app, let app users shop early
Letting shoppers access your sale early, even just a few hours, is a proven tactic to drive app downloads. And with this much excitement and anticipation going into BFCM, it won’t take much. Our data shows consumers are more willing to download an app and opt into push notifications during Q4 than during the rest of the year, largely due to special offers (like early access to your sale). The best part? Riding this Q4 subscriber wave will set you up for success going into 2024.
Keep the excitement going
Despite the increasing digital shift, the BFCM spirit is still going strong. Make it fun by hosting online events, live-streaming your best deals, or even running contests.
Make mobile shopping a zen experience
Endless browser tabs and long checkout processes don’t equal a fun shopping experience. Optimize your mobile website and check out to snag those holiday sales. Or consider a mobile app that offers no load time to wait for or a difficult checkout process to battle (a top benefit we discovered earlier in the survey). Plus, you can send free push notifications to ensure they don’t miss out on deals.
CH 7: BUDGETS
CH 7: BUDGETS
BFCM budgets are a mixed bag
What will BFCM look like this year? Expert opinions are mixed. While inflation is still creeping up, it’s slowed significantly in the last few months. People are still somewhat optimistic, which might be reflected in their holiday spending.
With mild uncertainty in the air, 67% of consumers are highly likely to shop BFCM this year—down 5 percentage points from last year. Conversely, consumers who said they are somewhat likely to shop on BFCM climbed to 32% from 26% in 2022.
Most of this apprehension comes from Millennials and Boomers. The survey shows 69% of Millennials are highly likely to shop BFCM this year, down from 76% in 2022. Boomers appear to have even more hesitations. They had a 12-point drop in those saying they’re highly likely to shop BFCM this year, from 68% in 2022 to just 56% in 2023. Much of that change was absorbed by the “somewhat likely” category, which saw a 14-point increase from 2022 results. Notably, 0% of Boomers said they were unlikely to participate in BFCM this year.
39% of consumers report usually having a budget when shopping BFCM sales, while only 18% of consumers don’t have any budget going into BFCM. It’s most common for consumers to have a BFCM budget “sometimes” (43%).
For those consumers who have a budget at least sometimes, 71% of budgets fell between $100 and $500, with 15% planning to spend more than $700. This seems in line with average order values of $120 in the U.S. and $105 globally in 2022—which means this should be your target sweet spot with BFCM customers.
Of those consumers who have a budget at least sometimes, 31% plan to increase their budgets this year. More are planning to keep their budget at last year’s level—45% will have the same budget in 2023 that they had in 2022, a 5-point increase from the 40% who reported this in 2022.
The remaining 22% of consumers who typically go into BFCM with a budget are planning to have a lower budget this year compared to last. When asked to identify the main reason their budget was going to be lower this year, 54% pointed to high prices and inflation, and 29% to having less spending money. Only 6% of consumers pointed to a fear of recession, a notable 33% decrease from 2022’s result (9%). That suggests consumers may be less worried about a recession this year.
Our thoughts? Consumers are split, and based on the evidence, spending will remain roughly the same as last year. Rising prices won’t equate to rising budgets, so people will be looking for those deals to get more for their money.
FIG 1/6
Question
How likely are you to shop BFCM sales this year?
FIG 2/6
Question
How likely are you to shop BFCM sales this year?
FIG 3/6
Question
Do you typically have a budget when you shop BFCM sales?
FIG 4/6
Question
What was your BFCM budget last year?
FIG 5/6
Question
Do you expect your BFCM budget this year to be higher, lower, or the same as last year?
FIG 6/6
Question
What is the main reason your BFCM budget is going to be lower this year?
The Takeaway
It’s been a tough year all around, but retailers are looking to BFCM to be a turning point. Customers will be looking for those deals, so focus on what you can offer them.
Expect BFCM to be mid
There's no denying some forces are working against holiday shopping this year, but people seem prepared for it. Expect to meet, but maybe not exceed last year’s highs. You may have to work a little harder to hit those numbers.
Don’t skimp on the discount messaging
Go off about the best sale of the year. Everyone is looking for a bargain to make their money go as far as it did during pre-inflation times. Shout from the rooftops about your best deals, especially in the electronics and fashion categories. Pick a handful of items and offer jaw-dropping deals to attract more customers to your store. Also, consider offering tiered discounts for higher order values (e.g., 10% off $100+, 15% off $150+, etc.) to attract customers with good deals while keeping your AOV high.
Tailor deals with segmentation
Level up your deals to match your customers' vibes with segmentation. Consider segmenting offers by day, product type, or customer type. Highlighting varied products, bundles, or SKUs maintains customer engagement and boosts conversion through targeted personalization. Always be deliberate when crafting your exclusive offers.
Spend marketing dollars wisely
With social media channels not performing as well (and costing more), this might not be the year for a pay-to-play marketing blitz. Instead, turn to less saturated channels like SMS to get your BFCM messaging across. If you have a mobile app channel, push notifications are free and much less saturated than email, ads, and SMS.
CH 8: Planning
CH 8: Planning
Early birds WANT the deals
How early is too early to start shopping for the holidays? Uh, according to our survey, the limit does not exist.
The highest number of respondents (31%) said they will buy at any point in the year and save it for the holidays. For the rest of us, October (25%) and November (24%) were the most common months to dive into the holiday fray, with only 3% waiting until December.
What motivates consumers to shop early? Saving money, mostly. 62% said better prices motivate them to shop early, followed by finding the perfect gift (54%) and wanting to avoid the holiday rush (53%). Since shoppers are hunting for deals ahead of BFCM, consider teasing deals early. Kill two birds with one stone by including a gift guide to help consumers find that perfect gift.
Interestingly, people are less worried about out-of-stock items this year (22%) than they were last year (27%). Since supply chains have slowly recovered, scarcity isn’t driving the same urgency as it has in the past. Might be best to avoid this language in early marketing messaging.
When it comes to prepping for BFCM, 4 in 5 shoppers do some advance planning. (We’re imagining tiny barbells and finger curls to strengthen their taps.) 31% start planning a week or more before, and 41% start planning a few days before. Take note when scheduling your BFCM promotions!
Also, 36% of shoppers already know what to buy by the time BFCM comes around, while 23% browse the sales for the perfect item.
FIG 1/4
Question
At what point in the year do you typically start holiday shopping?
FIG 2/4
Question
What motivates you to shop early for the holidays?
FIG 3/4
Question
How far in advance do you plan your BFCM shopping?
FIG 4/4
Question
Which of the following statements most closely describes your approach to BFCM sales shopping?
The Takeaway
Most shoppers have an idea of what they’re looking for and are ready to go, plan-in-hand, by the time BFCM comes along. Figure out how to capitalize on the planners and the browsers for a winning strategy in a middling year.
Don’t miss the planners—start early
Start offering sneak previews of your BFCM and Cyber Week deals as early as October. Those planners are already thinking about the holidays, so you want to make sure your sales are on their radar long ahead of the game.
Ramp up acquisition efforts
Now’s the time to build those email, SMS, and push subscriber lists in a new and more effective way. Remind consumers that they can snag what they’ve been eyeing for a discount in the upcoming sale if they get on your lists. You can also incentivize app downloads by offering sneak previews of your sales or even early bird offers.
Hook the browsers
Browsers exist and will be on the hunt during BFCM. Look for opportunities to move people off the fence. Allocate some spending to people who’ve looked at your store but haven’t pulled the trigger. Be their resource by putting together gift guides or offering a personalized “things you might like” feature.
Skip false scarcity messaging
This year, people are less motivated by items selling out than in the last few supply-challenged years. Only use scarcity messaging when it actually applies. Instead, opt for urgency by putting a time limit on your sales.
FINAL TAKEAWAY
FINAL TAKEAWAY
A case for launching a mobile app for BFCM
Mobile’s the face of BFCM shopping
Mobile dominated BFCM purchases last year, and was up 11% YoY—with no signs of slowing down. Even more consumers are planning to shop the season with mobile shopping apps (68%) this year, and maintain last year’s use of phone browsers (71%) for their BFMC shopping.
Many brands already see 80%+ of their traffic coming from mobile devices, but it still represents a smaller chunk of overall revenue. Want to close that gap? Lean into a truly mobile-first mindset. The trend is only moving in one direction here, and brands that under-prioritize the mobile experience will be left behind. But it’s not just about being there; it’s about delivering what shoppers crave: seamless convenience and supersonic speed.
Consumers prefer mobile apps — especially the younger ones
Across the board, 37% of consumers prefer shopping on a mobile app to shopping via a mobile website. Younger generations are leading the pack—43% of Gen Z shoppers prefer to download mobile shopping apps rather than shop on a mobile-responsive website. Gen Zers are simply too large of a group to ignore. Younger generations are flexing their (increasing) buying power, and brands without mobile apps risk falling behind.
Spotlight on revenue efficiency
There’s so much uncertainty in the macro-economy, so it’s more important than ever for brands to make every dollar count. Now, unit economics separates the winners and losers. Full stop. Acquisition costs remain stubbornly high, which makes retaining customers (that were so costly to acquire) is mission critical.
Fortunately, mobile apps shine brightly against that backdrop. Push notifications deliver a highly engaging, cost-effective supplement to more costly email and SMS campaigns. Mobile apps also convert more effectively. On average, Tapcart customers see 62% higher conversion rates in their app vs mobile web, and 82% higher revenue per session in-app than mobile web.
Push notifications are free to send with a mobile app—no matter how big your subscriber list gets. And with more consumers this year saying they’ve made a purchase directly from a mobile app push notification (38%) than from paid social (36%) or SMS (26%), it’s clear that this channel converts. Mobile app push notifications are the most cost effective way to reach your VIP customers at scale.
Timing is perfect
Brands will invest more time, money, and energy into peak season exposure than any other time of the year. It only takes a few relatively small steps to integrate a new mobile shopping experience into that strategy. And those that dive into the mobile experience and maximize their overall ROI? They’ll be rewarded with a burgeoning, highly engaged, owned marketing audience of push notification subscribers.
Our data shows that consumers are 40% more likely to download an app and opt into push notifications during Q4 than during the rest of the year, largely due to special offers (like early access to your sale). Brands that catch that wave will have a built-in advantage to leverage through 2024 and beyond.
Bottom line: the time is now.
You made it!
That’s a wrap on The BFCM Consumer Shopping Trends 2023 report! While there’s still a big question mark hanging over retailers' heads this year, we’ve dished out the data and some actionable insights to help you nail your BFCM game plan. Keep these tips in your back pocket, and you’ll not only boost your peak season performance but you’ll build a solid customer retention strategy for the year to come. Good luck, and here’s to smashing those holiday sales!
Interested in discovering how a mobile app changes your BFCM game?
Book a walkthrough with a mobile expert today, and we’ll get you launched ahead of the holiday season.
