Every year consumers flock to stores with one goal in mind: finding the perfect presents for their family, friends and colleagues. This year, holiday shoppers are eager to find the best deals, with 60 percent planning to compare prices online before purchasing. However, 66 percent don’t plan to finance any of their holiday spending, missing out on potential discounts and rewards.
TD Bank’s survey of 1,000 Americans found that the average consumer will spend $530 on holiday shopping this year, with the top gift categories being gift cards (28 percent), technology/gadgets (25 percent) and clothes (19 percent).
Show Me the (Rewards) Money
Despite the potential to earn rewards when shopping with a credit card, most Americans plan to shop with a debit card (36 percent). Fewer will use credit card (34 percent), check (17 percent), store branded credit card (7 percent) and in-store financing options (4 percent).
“Today’s shoppers are more savvy, with higher expectations than ever – they’re comparison shopping, engaging in retail loyalty programs, searching for discount and coupon codes, and taking advantage of financing programs that allow them to make budget-friendly payments over time,” says Matt Boss, head of Credit Cards and Unsecured Lending at TD Bank. “We also know that they’re leveraging credit cards to earn rewards for their purchases. For retailers who offer consumers the option to complete a significant portion of their shopping in one place, this is a smart strategy to appeal to penny-wise shoppers who like to earn some dollars back for their spending.”
Have Yourself a Merry Little Shopping Experience
In a world with an infinite number of options, today’s holiday shoppers are brand loyal, and value variety and customization over anything else. That said, Millennials are more likely than Gen-X to stay loyal to the brands they favor year round during holiday time (45 percent vs. 21 percent, respectively). The two most important features when deciding where to shop were variety of products (46 percent), discounts offered (41 percent).
“Rewards programs help increase customer engagement – who doesn’t like receiving bonus incentives or perks for being a loyal customer?” continues Boss. “Further to that, our data shows that holiday shoppers have financed responsibly in the past, which has led retailers to offer increasingly innovative financing options that provide consumers with an enticing combination of savings and rewards on their holiday purchases. It’s a win-win from the customer point of view. Rewards programs enhance a customer’s overall experience and increase their likelihood to shop at a retailer again and again, long after the holiday shopping season has ended.”
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