The following is a guest piece written by David MacDonald, executive vice president and head of the Retail & Commerce Experience practice at Razorfish. Opinion’s are the author’s own.
With the holiday season at our doorsteps, the significance of value in consumer purchasing decisions is more nuanced than ever. Traditionally, price has been a dominant factor, guiding consumers as they search for the best deals. However, in today's complex retail landscape, true value extends far beyond the numbers on a price tag.
Consumers are increasingly discerning, looking for a blend of factors that collectively define value in a more comprehensive sense. As brands think about what value means to consumers, it’s essential to understand that while competitive pricing remains essential, it does not mean cheap. Consumers need more than a favorable price tag.
Today's shoppers are seeking a more holistic experience — one that combines convenience, rewards, product quality and an enriching shopping journey, both in-store and online. Understanding this broader concept of value is essential for brands hoping to create meaningful connections with their consumers this holiday season.
Unwrapping real value
As holiday campaigns roll out, how do brands differentiate themselves when everyone is promoting similar products at similar prices? For starters, brands must level up their messaging to showcase their unique value propositions — whether through exceptional customer service, seamless return policies or immersive in-store experiences that enhance the overall shopping journey.
At its core, value is about getting more than what one pays for, but the dimensions of what constitutes “more” have evolved in several ways:
- Convenience: In an age where time is a precious commodity, convenience is a crucial component of value. Whether it’s through fast shipping or a seamless omnichannel experience, consumers are willing to pay a premium for hassle-free shopping.
- Rewards: Loyalty programs and personalized offers add layers of value that resonate with consumers. These incentives not only provide immediate savings but also foster a deeper connection between the consumer and the brand. While traditional loyalty programs focus on purchased loyalty, next-generation programs need to prioritize earned loyalty, ownership and a two-way partnership between consumers and brands.
- Product longevity: Durability and sustainability are becoming increasingly important to shoppers. Consumers are thinking long term, seeking products that not only last but also have a lower environmental impact. The perceived value of a product rises when it’s seen as a worthwhile investment.
- Enriching experiences: The overall shopping experience — online or in-store — plays a pivotal role in defining value. Shoppers are drawn to brands that offer engaging and enjoyable experiences, whether through personalized service, immersive environments or exclusive events.
Making a list and checking it twice
Consumers are more connected than ever, with smartphones and other devices providing constant access to research and deals. In fact, today’s shoppers are conducting more research than before, often across multiple devices and platforms. The majority of Gen Z (72%) say they vet and evaluate ahead of purchasing, according to Google. While cost-conscious mindsets still peak during the holiday season, retailers need campaigns that evolve to meet these heightened expectations of consumers doing greater due diligence.
Following the COVID-19 pandemic, consumers are happy to spend money, but now want assurance that their purchases provide long-term value. Brands that emphasize more than just price — offering quality, convenience and customer satisfaction — will stand out in this crowded market. Knowing consumers are more deeply analyzing their purchasing decisions, make sure you showcase the highlights of your product and put your best foot forward.
Sleighing the season with a unified strategy
This “always-on” and always connected mentality means consumers are engaging with brands throughout their buying journey, and marketers must be prepared to meet them at every touchpoint. In fact, Gen Z is more than twice (42%) as likely than average (20%) to buy holiday gifts directly through social media in 2024, according to May 2024 research from Basis Technologies and GWI. A unified commerce approach ensures that regardless of when or where the purchase occurs, consumers are greeted with consistent messaging that aligns with their expectations.
Still, the in-store shopping experience remains a critical part of this journey, particularly for Gen Z consumers who use it as both a research tool and a social activity. Brands can capitalize on this by creating immersive in-store experiences that complement their digital efforts.
Shopify is an example of a platform doing unified commerce exceptionally well. Independent bicycle company Tokyobike faced a challenge of global demand but limited physical retail locations. Customers would travel for test rides but often left without making a purchase due to cumbersome checkout processes. After adopting Shopify’s Point of Sale (POS) system, Tokyobike unified its sales channels. If a customer test rides a bike but doesn’t make a purchase, their shopping cart is saved and emailed, ready for them when they get home, seamlessly connecting its online store with physical retail spaces.
For these younger, socially inclined shoppers, in-store shopping is not just about making a purchase, it’s an opportunity to engage with the brand and gather insights to inform future purchases.
Wrapping up: Delivering value
As we move into the holiday season, it’s clear that consumers are looking for value that transcends cost alone. By recognizing and responding to the diverse factors that constitute true value — convenience, rewards, longevity and enriching experiences — brands can better align with consumer expectations. This approach not only drives sales but also ensures that the shopping experience is as satisfying and memorable as the gifts themselves.
In a season where price is just one part of the present, understanding and delivering on the broader concept of value will be the ultimate gift to consumers and retailers alike.
