Quantifying Q5: how to appeal to post-holiday shoppers
The festive season has long been synonymous with spending sprees and high-end splurges, meaning the post-holiday period was often seen as a time for consumers to tighten their belts and cancel their credit cards. But is that really the case?
According to Snap’s internal data, shoppers will still be buying presents in the final weeks of December
With last-minute shoppers still buying presents in the final weeks of December [1], according to Snap’s internal data, and 35% of UK retail shopping having been done online in January 2021 [2], there’s no doubt the post-holiday period is actually a key shopping moment – an opportunity that Snapchatters are primed for and eager to seize.
Indeed, with CPMs up to 44% lower than the Black Friday peak [3] and four in 10 Snapchatters making an in-app purchase at least once a month [4], it’s no exaggeration to say Q5 should be flashing very brightly on every brand’s radar right now.
Here we look at five key types of shopping behaviors that inform Snapchatters’ purchasing decisions in the Q5 period.
The last-minute shopper
While some people may cross the final item off their Christmas list before December even dawns, the same can’t be said for Snapchatters. In fact, 68% only finish their Christmas shopping in the last three weeks of December [5]. So that means Snapchatters are still purchasing gifts while other people are in the process of proffering theirs.
The opportunistic shopper
Snapchatters are eager to buy. Indeed, during Cyber Week 2020, online purchases made by Snapchatters more than doubled versus the previous year [6], meaning that there is an entire community open to the prospect of a brand-new purchasing opportunity. At a time when many brands anticipate a shopping lull and scale back their marketing efforts following the festive frenzy, Snapchatters are actually eagerly awaiting their next chance to buy.
The ‘New Year, New Me’ shopper
Like many people, Snapchatters see the new year as an opportunity for personal improvement, with 53% resolving to eat more healthily and 59% planning to exercise more [7]. And interestingly, they begin considering their ‘New Year, New Me’ mission long before midnight chimes on December 31st. In fact, ‘resolutions’ was the fourth trending term on Snap an entire week before January 4th 2021 [8], so it’s by no means an afterthought among the Snapchat community. By leaning into the ‘New Year, New Me’ narrative, brands will meet potential customers, who are already incentivized to buy.
The gift card shopper
With gift cards filling Christmas stockings with increasing regularity [9], this means a number of exciting things for brands. Not only is there an eager audience awaiting inspiration on their next purchase, but 34% of recipients say a gift card encourages them to visit stores they’re unfamiliar with [10]. And that’s not all: Snapchatters tend to add money on top of the gift card’s value [11], while 69% use their gift cards within just weeks of receiving them [12] – all the more reason your Q5 strategy should be ready to meet their needs.
The returns shopper
When it comes to critiquing a gift and ultimately relegating it to the ‘returns pile,’ Snapchatters definitely don’t hang around. Indeed, of the 10% who do plan to return a present, 100% already have a replacement in mind [13]. And just like their approach to gift cards, Snapchatters are willing to increase their spend on the new purchase. In fact, Snapchatters are 73% more likely than non-Snapchatters to spend extra funds from gift returns [14].
With all this in mind, there’s absolutely no reason why Q5 shouldn’t be viewed as a major shopping moment in a consumer’s yearly journey – especially if that consumer is a Snapchatter.
Notes
1. Snap Internal Data, Q: “When do you begin thinking about holiday shopping? And when do you usually finish your holiday shopping?” Base, Snapchatters, UK (n=946)
2. Office for National Statistics, Retail Sales, Great Britain, January 2021, February 2021
3. Snap Inc. internal data, January 1, 2020 - January 31, 2021. Global Ads with app objectives, Ads with attributed installs, 7 day click and 1 day view through attribution. See more at https://businesshelp.snapchat.com/en-US/a/troubleshoot-manage-ads
4. Snap Inc. survey of US Snapchat users September 19 - 30, 2021. Age and location data subject to restrictions. See https://businesshelp.snapchat.com/en-US/a/audience-size-tool for details. Question: "How often do you make a purchase using an app?"; 513 respondents 3 Question: "What do use apps to buy? "; 496 respondents
5. Snap Internal Data, Q: “When do you begin thinking about holiday shopping? And when do you usually finish your holiday shopping?” Base, Snapchatters, UK (n=946)
6. Snap Inc. Internal Data, 11/27/20 - 11/30/20 vs. 11/29/19 - 12/2/19 [28/1]
7. Snap Inc. survey of US, BR, NL, NO, JP, ID, FR, MX, DE, IN, UK, AU, ES, MY, IT, KSA, UAE Snapchat users December 20 - January 04, 2021. Age and location data subject to restrictions. See https://businesshelp.snapchat.com/en-US/a/audience-size-tool for details. Question: "In 2021, I am planning to..."; US=495, BR=275, NL=511, NO=497, JP=123, ID=359, FR=489, MX=352, DE=475, IN=466, UK=494, AU=478, ES=205, MY=415, IT=380, KSA=491, UAE=499
8. Snap Inc. Internal Global Snapchat Caption and Search Data, December 28, 2020 - January 3, 2021
9. KPMG, ‘Online sales of gift cards and eVouchers soars during second half of 2020 as gifting goes virtual,’ February 2021
10. MarketWatch, ‘Careful, shoppers: A gift card might actually make you spend more,’ March 2019
11. MarketWatch, ‘Careful, shoppers: A gift card might actually make you spend more,’ March 2019
12. Snap Internal Data. Base = Snapchatters (n=215)Q: “When do you typically use the gift card(s) you get for the holidays?”
13. Snap Internal Data. Base = Snapchatters (n=591) Q: “Which of the following do you think you'll do this holiday season? Return a gift I receive, Resell a gift I receive, Re-gift a gift I receive, Donate a gift I receive,”
14. Snap Internal Data. Base = Snapchatters (n=533), Non-Snapchatters (n=114) Q: “Why do you choose to buy [CATEGORY] products during after-holiday sales?”
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