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To conduct market research or not to; that is one question that many businesses will face in the holiday season. While it's common practice in the industry to avoid conducting market research during the holidays, is this really the best option?
When it comes to statistics, insights gotten during the holiday season have a distinct reputation for being inaccurate in providing data for the remainder of the year. Conducting research using standard survey tools in your company in the midst of a vital sales spike, on the other hand, may provide its own set of concealed benefits.
Retail holiday sales are predicted to increase in the U.S. more than 10 percent over last year’s holiday season, With these figures in mind, it might be worth your time and some of your company's marketing budget to figure out what makes these customers tick.
Let's take a look at some of the pros and cons of conducting market research using survey software on holiday sales:
PROS
1. Exposure to changing patterns
48 percent of shoppers said they are willing to shop at new stores during the holiday season. That's a lot of potential new customers with their eyes open and their wallets ready. Market research can help you figure out what drew these new customers to your product or service.
Once you understand their motivation and the decision-making process that led to their decision to purchase from your company, you may be able to convert some of these one-time holiday shoppers into repeat customers.
2. Can be indicative of sales patterns during other periods
What you see during the holiday season may be indicative of the types of consumer behavior seen during other major life events. If your customers' holiday shopping is out of the ordinary, it's reasonable to assume that other life events could cause a similar out-of-the-ordinary pattern.
Back-to-school, birthdays, weddings/honeymoons, vacations, and other holiday shopping (Valentine's Day) could all result in similar behavior. Market research conducted during the holiday season may help inform decisions and, as a result, marketing choices made during these other periods of unusual (but profitable for you) spending.
3. More opportunities to sell
During the holiday season, customers will beg for your attention. In a recent survey, 75% of consumers said they wished retailers better understood their preferences and used that knowledge to send personalized holiday offers. Knowing that customers want more personalized offers could indicate that times are changing.
It was once thought that the holidays were a bad time to conduct market research, but with the current marketing climate and increased consumer expectations as we enter the new decade, the holiday season could be a good time to collect consumer metrics and data. Consumers may be more willing to engage with a brand and discuss their wants and needs for the holiday season and beyond if they want a more personalized shopping experience.
CONS
1. Long periods of holidays
The holiday season lasts a long time. What used to be a 30-day period between Black Friday and Christmas Eve is now nearly three months of potential holiday sales. Marketers are no longer waiting until after Halloween to announce their holiday sales. As early as the beginning of October, holiday advertisements and digital advertisements can be found everywhere. During such a long period of time, it can be difficult to determine what is and isn't holiday shopping. Furthermore, if the market research is conducted close to the holidays, you may miss out on some of the metrics from those early bird shoppers, providing only a partial picture of what is going on.
2. Everyone is on holidays!
The holidays are hectic! Everyone is preoccupied with planning their gatherings and seeing friends and family. It can be difficult to reach the right audience during the holidays because holiday shoppers are often less representative of your typical clientele.
If you are fortunate enough to reach the right audience, shoppers are often too busy and less willing to give you their undivided attention. Distracted, busy shoppers may provide less reliable answers on online survey software and thus serve as less reliable data sources. The only exception could be if your specific product or service revolves around these holiday festivities, making it extremely relevant to them in the moment and leading them to be more willing to engage.
Conclusion
While there are pros and cons to conducting market research using a survey tool during the holiday season, it has become clear that the pros outweigh the cons. True, it is a long period of time, and you may not be able to collect all potential holiday sales data, but the information you can obtain will still be useful.
As consumer expectations rise, it's likely that your customers will be more than willing to assist you in providing a more personalized shopping experience. These insights may also help you convert some of these holiday customers into regular customers, giving you a better chance of reaching them during other tipping point purchasing cycles. Although this data may not be representative of your typical shopper, there is still value here that can help you grow your revenue and customer base.
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