eMarketers plan to get social this Christmas

Tactic: Free shipping offers + social networks

It’s been pretty clear that consumers have changed their online behavior this year: Hitwise has reported a 40 percent increase compared with last year in searches for discounts, promo codes and sales. And a National Retail Federation (NRF) study recently showed that while customers love the convenience of shopping online, customers are expecting discounts and free shipping this holiday season.
 
The combination of a down economy, price sensitive consumers and reduced marketing budgets might, in theory, signal a ‘Perfect Storm’ for ecommerce teams this holiday. But the outlook for online sales this year look pretty positive, with 38 percent of consumers planning spend more online this year (NRF).
 
Amazon.com is particularly bullish, forecasting up to 36 percent growth compared with fourth quarter 2008. Forrester analysts are predicting a more modest 8 percent growth for ecommerce as a whole, but have warned that ecommerce teams should be braced for a surge in traffic because of reduced in-store inventories may frustrate consumers and drive them online.
 
New research, carried out during the first week of November by SeeWhy, shows that promotions driven through social networking and email feature big in marketers plans this holiday. No doubt driven in part by reduced budgets, and by consumers searching for deals online, 60 percent of e-marketers are planning to offer free shipping and 57 percent  promotion code discounts.  Only 13 percent plan no discounts at all.
 

But the big news is that 50% plan to use social media such as Twitter and Facebook to distribute promotional offers. Having invested in building social networks in 2009, now it is clear that many marketers plan to exploit them to spread the Christmas cheer, and promotion codes specifically.