Peak SZN Report 2022 | Tapcart

PEAK SZN 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.

It’s safe to say 2022 has kept us on our toes. Seismic cultural shifts, looming economic uncertainty, unprecedented use of the word unprecedented—we’re all feeling the heat, and ecommerce brands are far from immune. Between inflation, skyrocketing gas prices, and IRL shopping reopening, we’re entering the upcoming holiday season with a healthy dose of uncertainty.

But it’s not all storm clouds ahead. Statista reports that nearly 20% of all retail sales around the globe happened online in 2021, amounting to more than five trillion dollars. And it’s showing no signs of slowing down—that number is expected to reach seven trillion by 2025.

If that sounds fast, hold onto your hats: a whopping 72.9% of that $5 trillion happened on mobile devices, up almost 40% since 2016. That’s $3.96 trillion of potential walking around in your customers’ pockets. (We did the math for dramatic effect.)

At Tapcart, we help Shopify brands reach their mobile commerce potential with our code-free mobile app builder. In fact, we’ve helped thousands of them, and we’re seeing these changes play out before our eyes, with stores seeing an average 40%+ conversion rate increase and a 2.4x lift in customer lifetime value.

In this report, we wanted to eliminate all the guesswork, misconceptions, empty predictions, and insecurities about mobile shopping during BFCM this year. So, we conducted a survey and recruited 1,155 mobile shoppers to participate. The result? A jam-packed report that reveals the truth about the state of mobile commerce during BFCM this year—plus a boatload of recommendations on how your store can turn these insights into action.

So, as the heavy-handed Fresh Prince once said: Let's get jiggy with it. (Too soon?)

The Methodology

First, let's take a look at the folks we surveyed. We wanted a true picture of mobile shoppers, so we made sure that we surveyed shoppers that represent all generations, ethnicities, incomes, gender identities, relationship statuses, and education. We're thorough like that.

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.

CH 1: Mobile Preferences

The Trend

The more mobile the merrier

If one thing is clear, consumers will be shopping BFCM on mobile. Whether they are shopping directly on mobile websites, third-party shop providers like Instagram, or mobile apps, mobile dominates all expected online transactions during BFCM. When asked how consumers would shop this year, they noted their phone's browser (71%) and mobile apps (65%)—both of which trumped laptop or desktop purchases (59%).

Interestingly, purchasing online via a mobile app appears to be an emerging favored method for shopping in all product categories, including the fashion, beauty, home goods, health, and food & beverages industries. While some folks plan to shop both online and in stores, those who typically shop by only one method identify apps as their preferred method in all five product categories. So naturally, we asked why.

Respondents said checkout speed is among their favorite aspects of a mobile app. In fact, they identified this feature more than any other when asked what drew them to prefer mobile app shopping. Exclusive access to discounts and load-free browsing were runners-up.

The need to amplify your presence on mobile doesn't stop at your sales channels—it also means your marketing channels should primarily lean on mobile-first strategies. 31% of shoppers noted that they had made a BFCM purchase via SMS—a particularly popular option amongst Millennial shoppers. While 31% is definitely significant, 40% of respondents reported they had made a BFCM purchase directly from a mobile app push notification, emphasizing the importance of having an app as a dual-purpose sales and marketing channel.

The Takeaway

The more your brand markets on mobile, the more your brand will sell. Shoppers are turning to mobile as the place to transact, meaning your BFCM strategies need to be mobile first. That means incorporating both marketing and sales channels into your omnichannel mix so that you can meet your customers' shopping preferences.

CH 2: SPENDING & INFLATION

The Trend

Your shoppers are ready to spend $$$ this holiday season—despite inflation.

Last year, many US shoppers spent their COVID stimulus checks on mobile shopping. (Funny story, on the days that the stimulus checks were issued in 2021, our data dashboards showed a sharp increase in transactions on Tapcart-powered mobile apps.)

The easy assumption is that we'll see slower BFCM sales in 2022. Stimulus checks weren’t issued this year, and inflation has skyrocketed to levels not seen since 1981. That assumption isn’t entirely off; 48% of respondents indicated that they spent more than usual last year because of their COVID stimulus checks.

However, 75% of respondents expect their budget this year to be the same or higher than in 2021. So, how can it be that despite inflation and economic changes, folks expect to spend the same or even more than last year?

We hypothesize that people are waiting for deals to shop. Everything is more expensive—from gas to rent to groceries. People are being more strategic on when, how, and where they spend their money and waiting for BFCM discounts to pull the trigger on those purchases.

The Takeaway

If you were banking on predictions of a less-impressive revenue performance during BFCM this year compared to last year, scrap them. Here’s how to promote BFCM in light of this unexpected trend:

Start to Market your sales weeks in advance

Your shoppers are ready to spend. Giving them an idea on when your sales will happen and what discounts will be available can seed ideas on what they will buy. If you market your sales too late, you can expect to be drowned out by your competitors. The early bird gets the worm.

CH 3: Budgets & Planning

The Trend

Your shoppers are making a game plan.

Not only are your shoppers ready to spend money this holiday season, but they're suiting up and preparing. About three-quarters of respondents spend at least a few days planning for BFCM, while only one in 8 doesn't plan at all.

Their planning doesn't stop at picking out products they want in advance. It also involves budgeting. About 85% of respondents report that they typically set budgets for Black Friday and/or Cyber Monday. Of those, 6 in 10 have budgets in the $100-$500 range, while one-third are aiming even higher.

Now, you may be thinking shoppers are pretty Type A these days. Nah. Just because your shoppers are planners doesn't mean they aren't adventurous, flexible, or even impulsive. (More on that later.) Our survey found that shopping habits vary on BFCM, with some people staying loyal to their favorite, tried-and-true brands, while others branch out to new horizons. More than two-thirds of shoppers are willing to try new brands for the first time this BFCM—giving DTC brands on Shopify the opportunity to entice those on-the-fence shoppers who’ve been browsing your online store for months with your sweet deals.

The Takeaway

A good portion of shoppers are likely to show up with a proper BFCM shopping plan. It's up to you as a merchant to help them plan effectively. Here's how:

Offer wishlist features

Offer features on your mobile website or app that make planning easy, like a Wishlist or SWYM integration. This lets your shoppers save items for later while on the go—a helpful tool when they want to see if items of interest have dropped in price.

CH 4: emotional mindset

The Trend

Your shoppers are stressed TF out about BFCM.

A case for launching a mobile app for BFCM

Your brand absolutely needs a mobile app during BFCM. Why? Because a mobile app reduces wasteful marketing spend while allowing you to reach your audience directly.

This report provides insights into current trends, preferences, and expectations for the upcoming Black Friday and Cyber Monday shopping experience. By understanding these key points, brands can better prepare their strategies to engage effectively with consumers.