Holiday Shopping Season: Growth Marketer Prep

Holiday Shopping Season and Supply Chain Challenges

With the official commencement of the holiday shopping season just 22 days away, we consulted with several growth marketing professionals connected through our TechCrunch Experts initiative. Our aim was to ascertain how current supply chain disruptions are influencing their campaign strategies this year.

Expert Insights

We engaged in discussions with:

• Julio Lopez, Director of Client Strategy and Retail Practice Lead at Movable Ink
• Chris Toy, CEO and Co-founder of MarketerHire
• Kristin Dick, Head of Operations and Growth Marketer at Tuff
• Dipti Parmar, Founder of Dipti Parmar Consulting

The widespread global supply chain issues experienced throughout this year will require considerable time for resolution. Despite the return of vaccinated personnel to the workforce, a complex array of obstacles persists. These include a lack of truck drivers, port congestion, and limited availability of both empty shipping containers and the ships needed to transport them.

Adapting Marketing Strategies

During recent quarterly earnings reports, adjustments to forecasts were frequently noted. These were made due to the uncertainty surrounding potential supply chain challenges in Q4, as Lopez explained.

To optimize order volume and maintain customer satisfaction, Dick’s company has advanced the launch of their campaigns by 2-3 weeks. They also intend to prioritize SMS and email marketing more significantly than in previous years.

Focus on Marketing Fundamentals

Toy emphasized the importance of solid marketing principles. “What I’m observing with these businesses, from a marketing standpoint, is fundamentally sound.” He further stated that many of the necessary adjustments represent best practices that should be implemented consistently throughout the year.

These marketers are well-prepared for the upcoming holiday shopping season by concentrating on core marketing strategies and developing the ability to adapt quickly to changing circumstances.

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Julio Lopez, Director of Client Strategy and Retail Practice Lead at Movable Ink

Beyond the ongoing impact of the pandemic and the complexities it introduces to supply chains, retailers are now contending with a series of natural disasters. Instances of flooding and wildfires are contributing to disruptions. These events are significantly affecting retailers' capacity to maintain control over their supply networks.

Reports indicate issues ranging from manufacturing delays to congestion at entry ports. Staff shortages and a scarcity of shipping containers, particularly for goods originating from China, are exacerbating these problems.

Supply chain uncertainties are a primary concern for many retailers. Recent earnings reports reveal adjustments to forecasts, acknowledging the unpredictable challenges anticipated in the fourth quarter.

Retailers must recognize the potential unavailability of planned products and product lines for their Q4 marketing campaigns. A willingness to adapt marketing schedules based on real-time inventory levels is crucial.

Consequently, the importance of data is amplified. Retailers should prepare to customize or filter their marketing communications based on current stock levels.

A substantial reduction in available SKUs is anticipated. To ensure a superior customer experience, it’s essential to filter messaging based on product availability, prioritizing the ability to fulfill customer needs.

The Importance of Data-Driven Marketing

Delivering a positive customer experience hinges on providing access to desired products. Therefore, focusing on inventory status is paramount.

Retailers need to leverage data to proactively manage customer expectations. This includes clearly communicating product availability and offering suitable alternatives when items are out of stock.

• Real-time Inventory Updates: Integrate inventory data directly into marketing campaigns.
• Dynamic Content: Display only in-stock items in promotional materials.
• Personalized Recommendations: Suggest alternative products based on customer preferences and available inventory.

By embracing these strategies, retailers can mitigate the negative impact of supply chain disruptions and maintain customer satisfaction. The ability to quickly pivot marketing efforts will be a key differentiator.

Chris Toy, CEO and co-founder, MarketerHire

There's considerable discussion surrounding potential stock shortages, particularly as the holiday season approaches. Some brands are proactively anticipating lower-than-desired inventory levels.

This leads to strategic planning: how to maintain marketing momentum and revenue generation even with limited or no stock. The focus shifts to investments that will yield returns when inventory is replenished.

Lifecycle marketing, email campaigns, and robust database strategies become crucial. Building brand awareness and capturing first-party data within a CRM are key objectives.

Leveraging a Sold-Out Strategy

Brands are also exploring strategies that capitalize on scarcity. The example of Supreme demonstrates how a "sold-out" status can generate significant buzz and demand.

Often, this demand is redirected towards available products. Website and marketing funnel adjustments are made to guide customers towards alternatives when popular items are unavailable.

This involves crafting compelling narratives and creating demand for products that might not have been prioritized previously.

Fundamental Marketing Principles

Frankly, these practices should be standard operating procedure throughout the year. The current situation highlights the importance of solid marketing fundamentals.

Experienced marketers are well-equipped to handle these challenges. While the current supply chain issues are more pronounced due to recent events, the core strategies remain consistent.

These are not novel problems; they are situations experienced marketers have navigated repeatedly.

The Role of Experienced Marketing Talent

At MarketerHire, we find that clients are less concerned with what to do and more focused on who can execute effectively.

We connect companies with marketers possessing the expertise to address these supply constraints. The established playbook for responding to limited supplies remains relevant, regardless of the current supply chain complexities.

Kristin Dick, Operations and Growth Marketing Lead at Tuff

The recent pandemic and the disruptions it caused to supply chains are prompting consumers to begin their holiday shopping earlier than usual. Given the broad scope of these shifts in consumer behavior, we made the decision to accelerate our holiday advertising expenditure by two to three weeks compared to our initial schedule.

October has proven to be a remarkably successful month for many of our e-commerce clients, and we are currently evaluating strategies to sustain these revenue gains throughout the Black Friday and Cyber Monday periods.

Furthermore, we are expanding our engagement with email and SMS marketing initiatives. Previously, Tuff primarily utilized email and SMS automation to enhance conversion rates after initial lead acquisition.

However, for this holiday season, we've begun assisting our partners in implementing more direct sales and promotional campaigns via email and text messaging.

It's common for a newly acquired lead to require weeks or even months before making a purchase. Therefore, maintaining brand visibility within their email inbox is crucial.

Consider how this sustained engagement influences the effectiveness of your paid social media, YouTube, and Pay-Per-Click (PPC) advertising efforts.

Key Strategies for Holiday Success

• Early Campaign Launch: Initiating holiday advertising campaigns earlier to capitalize on shifting consumer shopping patterns.
• Expanded Channel Focus: Increasing investment in email and SMS marketing for both lead nurturing and direct promotional activities.
• Integrated Marketing Approach: Aligning email/SMS strategies with broader paid advertising campaigns (social, YouTube, PPC) for maximum impact.

Staying top of mind with potential customers is paramount in a competitive holiday market.

A cohesive marketing strategy that leverages multiple channels can significantly improve conversion rates and overall revenue.

Dipti Parmar, Founder of Dipti Parmar Consulting

A common concern among my clientele is the potential for their most popular, or “hero,” products to become unavailable due to high demand. My recommendation has consistently been to initiate production and inventory accumulation at an earlier stage.

While increased warehousing expenses are a consideration, these can potentially be mitigated by incentivizing customers to place orders in advance. This can be achieved through targeted pre-order campaigns leveraging strategies like fear of missing out (FOMO) and limited-time offers.

Addressing Last-Minute Shopping Trends

However, it’s realistically very difficult to alter the behavior of last-minute shoppers – a category I myself often fall into – and persuade them to purchase ahead of time. Therefore, a key component of our strategy involves promoting and upselling items that complement the core “hero” products.

This approach allows us to capitalize on existing demand and offer customers additional value, even when the primary product is experiencing limited availability. Strategic upselling can significantly boost revenue.

• Focus on complementary products.
• Implement pre-order campaigns.
• Manage warehousing costs effectively.

By diversifying the promotional focus, we aim to maximize sales opportunities and minimize the impact of potential stockouts of the most sought-after items. Inventory planning is crucial for success.