Marketers are community-minded people. We collaborate across multiple departments in our own companies, while keeping track of competitive players and ensuring we’re deeply connected to the needs and goals of our customers.

So, to better understand what to expect or pay close attention to in 2021, I’ve connected with 20 marketing experts for their perspective.

While there is significant diversity of ideas and visions presented below, I love the common theme of how we’re working toward a better future together, which is why my prediction is this: Marketing in 2021 will be more empathetic than ever.

I continue to believe in my mantra that marketing is powerful and must be used for good, not evil. That might sound overly simplistic, but I do believe it’s paramount that marketers understand their influence and what a wonderful positive power it can be.

We are humans, serving humans. Whether B2B or B2C, customers are looking for brands they can trust to meet their needs and make their lives easier or more delightful. If we treat each person with loving kindness and respect, we’ll be making the positive impact I know we can while building a stronger, more loyal base.

Here’s what else 2021 has in store based on the predictions of this fabulous group of marketing leaders.

Virtual Events

1. Marketers will plan asynchronous events that plug into the funnel.

Latané Conant, Chief Market Officer at 6sense, predicts: “This year saw an explosion of virtual events as marketers adapted to a changing world. While I suspect a lot of us are feeling some virtual burnout right now, there will still be a place for these kinds of events, even after we resume in-person ones. Imagine a virtual event running 24/7.”

“Your prospects get triggered into the event as they proceed to the right steps in your funnel, and they engage with this event through multiple means, like Netflix meets Slack. There’s video content they watch on-demand, there’s a live stream playing on-site and there’s a community of users and fans who create a unique and engaging place to be. Prospects learn about your solutions and then, after watching videos and chatting with others, they get directed immediately to your product team. Now that sounds like a virtual event worth attending!”

2. Community marketing will replace event-based marketing.

Adam Masur, VP of Marketing at Credly, told me: “The era of anchoring marketing around a big, industry event is coming to a close. We’ve all seen the annual conference go virtual due to the impact of COVID-19. But I expect hosts to find that their audience’s appetite for the singular virtual gathering will wane, as well.”

“Look for more intimate, and more topical online get-togethers in 2021. Experts with verified digital credentials and a willingness to share will be highly valued virtual community leaders and influencers.”

“Companies should be ready to be active contributors and bring practical value to the conversation.” 

3. Businesses will find new ways to encourage online connections.

Kevin Alansky, Chief Marketing Officer at Higher Logic, says: “The virtual and digital-first world will continue in 2021 and possibly beyond. Many organizations have shifted their annual event and tradeshow to a virtual one. Many organizations have not succeeded, however, because they tried to replicate the experience on an outdated model. This has led to a flood in the number of virtual events and many people facing ‘Zoom fatigue.'”

“Organizations are now wondering how to fight this overcrowded market and stand out against the rest. The answer is online communities — how do you engage before, during, and after your event? We need to find ways to better engage our audiences and build meaningful connections between our organizations and our customers. We are seeing the demand for engagement already this year and this will continue to be a big trend through 2021.”

4. The interactivity that’s been promised for decades is now a necessity for 2021.

Jake Milstein, CMO at CI Security, told me: “When the pandemic hit, there was a huge spike in registrations and attendance in virtual events that attempted to mimic in-person events. Attendance at those events lasted a month or two and then dropped off quickly. People are looking for more human interactions — something out of the norm. Webinars just don’t do it anymore.”

“People are now interested in discussions and panels in which they can ask questions, they can be part of the action, they can offer their own expertise. That’s not something you could do when watching someone on-stage, but we all know it’s something you can do online. The interactivity that’s been promised for decades is now a necessity for 2021.” 

Brand Values

5. Customer-centricity will propel brands forward.

Natalie Severino, VP, Marketing at Chorus.ai, predicts: “Throughout the many challenges of 2020, revenue teams have been able to weather the storms and thrive by putting the customer at the center of every decision. This is only made possible through total alignment between sales, marketing, and customer teams, as all must rely on using the actual voice, pain points, and goals to create a winning partnership.”

“While conventional methods of relationship building, like in-person meetings, may not be possible today (or simply don’t scale quickly enough), entering 2021 provides us a paradigm shift for bringing relationships and shared business goals to the forefront of every opportunity.”

6. Brands will navigate an increasingly polarized social and political climate.

“One of the biggest trends to watch in 2021 will be how brands navigate an increasingly polarized social and political climate. Presidential politics, the response to navigating the global pandemic, and an increasingly siloed media and social media landscape is forcing brands to make hard decisions about how and where they align with their customers.”

“Every ad dollar spent, every choice of channel and platform, every social post, every inch of shelf space, and every conference or trade show will be evaluated through the lens of what a brand’s marketing decisions say about who they are and what they stand for,” says Tim Linberg, Chief Experience Officer at Verndale.

Revenue and Budget

7. A/B Testing will become a waste of time and budget.

R. J. Talyor, CEO and Founder at Pattern89, says: “The next decade will see the end of A/B testing. Marketers have long relied on validating their intuition with A/B tests to guide creative advertising and marketing decisions — however, the rise of AI makes this not only obsolete, but wasteful.”

“Once machine learning predicts the trends before they happen and provides clear guidance for marketers, why waste money to A/B test something that wouldn’t work as well? Soon, marketers will be able to go all-in on what will work best without having to test the theory.” 

8. Digital marketing spend will continue to grow.

Bridget Perry, CMO at Contentful, predicts: “We’ve found a digital innovation gap between what customers demand and what brands are currently capable of delivering. That’s why digital leaders across industries tell us they plan to spend, on average, 25% more on digital in 2021. And 25% is just the average — some plan to spend significantly more. CMOs who aren’t scaling up their digital spending will soon be outpaced by competitors.” 

9. Tech spending levels will return to normal over 2021 — but not all categories will benefit.

“Some companies will remain remote, others will move to hybrid offices, and some will — eventually — go back to business as usual. In 2020 we saw user searches jump on TrustRadius for software categories like e-signature, collaboration, video conferencing, endpoint security, antivirus, and of course telemedicine. Those categories will stay strong in 2021 and beyond, reflecting the new workplace. Other categories — event management and facilities management, for example — will radically reinvent themselves,” says Russ Somers, VP Marketing, TrustRadius.

10. Content marketing will start with conversations.

“The content marketing playbook we’ve been using is at least two decades old. Marketers are still focusing on keyword-heavy blog posts as the main tactic to captivate their audience. But it’s a strategy made for Google, not for people.”

“Today, your audience wants to have an authentic experience with your brand and the best way to do that is by leading with conversations.”

“As marketers aim to create a more human-centric experience, we will see more content pulled from actual conversations with people in the industry who can provide that genuine interaction today’s consumers are looking for,” Lindsay Tjepkema, CEO of Casted, told me.

11. Many companies will decrease their marketing budgets.

Melissa Sargeant, CMO of Litmus, says: “In the coming year, marketers will experience budget cuts and even smaller teams. But, by doing this, companies are setting themselves up for failure. During an economic downturn, companies that pull back and starve marketing efforts, do not perform well. And, when our consumerism-driven environment re-engages, those brands will be further behind than they were when they made those budget-conscious decisions.”

“Ultimately, the pandemic has accelerated trends in business. Look at digital transformation and work from home initiatives, for example. But, if there were cracks within a business’s model beforehand, the pandemic brought those to light so now is the time for them to fix it, not bury it. Businesses have to position themselves the best they can now in order to come out even stronger in the end. And, it requires a mature, advanced multi-channel strategy with experienced marketers.”

Teams and Collaboration

12. In 2021, it’s all about people, people, people.

Caroline Tien-Spalding, CMO at Aptology, says: “Marketing’s north star will be evolving in 2021. Marketing has always been about understanding people and acting on that knowledge. A key difference in 2021 is that marketers are able to know more than ever. It’s the rise of the psychologist, and the rise of the digital marketer.” 

13. Many companies will implement a new Web Operations team.

Christy Marble, CMO at Pantheon Systems, predicts: “Marketers will require technology to enable real-time responsiveness to customer needs that span the customer lifecycle and each customer touchpoint. The events of 2020 taught us that we must demand the agility to transform on a moment’s notice to respond to customer needs. This forced an end to the era of lengthy multi-year brand and website re-builds.”

“In 2021 those will be figments of the past, replaced by cross-functional teams that collaborate through technology-enabled workflows to continuously test, learn, and evolve their digital customer experience. These WebOps teams will have a distinct advantage — especially those supported by artificial intelligence, machine learning, and automation.”

“The pace of change has accelerated, but one thing will remain constant: Marketers who focus on people — on customer experience — will be the ones who will keep pace with change. Focus your team on improving personalization, advancing your customer journey, and creating a truly authentic web experience that meets your customers where they are.” 

Digital Transformation

14. Brands will unlock the key to orchestration.

Andrea Lechner-Becker, CMO at LeadMD, told me: “Data should be on every marketer’s mind as we enter 2021, but not in the way it usually is. B2B marketers must realize they’re generally strong with orchestrating their own data, but weak with third-party data — which must be a top area of focus. They can’t afford to depend on marketing automation or CRM platforms for this, but will need to strongly consider creating their own system, something along the lines of a CDP. If they do that? They’ve unlocked the key to orchestration and success with data in 2021.”

15. The ‘panic pivot’ will turn into more purposeful reinvention.

 Laliv Hadar, VP Marketing, InVision Communications, says: “In 2020, out of pandemic-induced necessity, marketers have rapidly transformed face-to-face events into virtual ones, and developed innovative ways of connecting with audiences digitally. In 2021, this reactionary ‘panic pivot’ will turn to more purposeful reinvention of the ways we engage our core audiences. That reinvention will manifest in hybrid audience experiences that are wholly connected across the communications ecosystem. This integrated brand approach will be built on the premise that our audiences comprise real human beings, whose brand perceptions are shaped by their experiences, and now, more than ever, crave professional empathy and connection.”

Because while quarantines, social distancing and remote work will play a critical role in our eventual emergence from the COVID-19 pandemic, they also have had a significant side effect: Disengagement. 2021 will see marketers tapping into the human need for just the opposite: engagement.”

16. Brands will capitalize on change.

John Graff, Chief Marketing Officer at Sonim, predicts: “I believe 2021 will be a year that will provide significant opportunities for companies to grow/expand market share. Why? Because many companies will fall into the trap that there will be a post-2020 ‘return to normal.’ Marketing has already been experiencing constant change and evolution the last decade, and just because many people are ready to get past COVID times, does not mean the change will stop. In fact, for best of breed, it very much will accelerate. Everything has been changed, whether it’s work-from-home, education, online retail, and more.”

“The best marketers will look to capitalize further on those changes in 2021, while others unfortunately revert to the old pre-COVID playbooks. It’s a great time for marketers to further embrace change, and be the stewards of helping their companies grow and gain share in 2021!”

17. Marketers will continue to incorporate real, true personalization.

“Marketing automation should not be confused with personalization. Oftentimes, it’s just quicker batching and blasting. When marketers use intent data and data-based insights to fuel their automated communications, they can create remarkable brand experiences sophisticated consumers rely upon. In the year ahead, marketers will better incorporate real, true personalization.” says Nick Runyon, CMO of PFL.

18. Marketers will rely on deep data insights and machine learning to deliver value to prospects.

Richard Jones, CMO of Cheetah Digital, predicts: “The next generation of personalization is not about cookies or third-party data, it’s not about merchandising, and it’s not about guesswork. The next generation of personalization is about relying on deep data insights, first and zero-party data and using machine learning to derive not only the right content, not only the right offer, not only the right channel but, the right sequence of events that leads to an automated path to conversion.”

“The next generation of personalization is about providing a value exchange for consumers in the ‘moment’ when you have them on your mobile app, on your site, in your store. How can you provide them something that will generate trust and affinity with the brand?”

19. Cross-channel integrations will continue to grow.

Meg Scales, CMO of SlickText, told me: “Incorporating multiple channels within campaigns is much more effective than simply putting all your resources into one channel — even a versatile channel like SMS. It’s why we’ll see channels and varying tactics continue to cross-integrate in the coming year.”

“For example, channels will adopt services like loyalty programs to better connect brands with customers through a variety of strategies within just one platform. Also, a customer interaction in one channel could trigger a personalized, automated sequence in another, creating data- and behavior-driven campaigns many are unable to produce currently due to a lack of time, money and expertise.”

20. We’ll see an acceleration with the digital-first shift.

Auseh Britt, VP, Growth Marketing at Terminus “We saw an acceleration in the shift to digital in 2020, mainly due to the gap left by live events. Substitutes like virtual conferences lacked the ability to really engage audiences, making them glorified webinars, exacerbating the ‘Zoom’ fatigue.”

“I see this trend continuing in 2021 as we look for more creative ways to engage customers and prospects through hyper-personalized outreach, high impact direct mail, intimate and interactive virtual experiences, and relevant educational content.”

The other day, I was on a run and listening to my trusty Spotify playlist. Lo and behold, in between two of my favorite pump-up jams, I hear a HubSpot audio advertisement trickle through my headphones.

It’s not uncommon for me to see HubSpot ads on social media or Google, but Spotify was a new one.

This experience made me curious about what other kinds of advertisements our team at HubSpot had tested out this year. So I sat down with a few folks on our advertising and editorial teams.

Below, they share some interesting lessons and takeaways regarding the different platforms and audiences they tested in 2020.

Advertising Experiments HubSpot Tried in 2020

“While HubSpot has traditionally been relatively direct response-focused (with software signups being the main acquisition goal), one of the biggest takeaways from our advertising in 2020 actually revolves around driving awareness through brand advertising,” shared Rex Gelb, Director, Acquisition Analytics & Paid Advertising at HubSpot.

In early 2020, the team realized they were reaching diminishing returns on many of their existing ad channels, namely search and social ads, and saw it as an opportunity to branch out.

They spearheaded this effort based on the guiding principle that the HubSpot audience is comprised of people with different media habits.

“What works for one person might not work for everyone, so we were likely only reaching a small segment of them through [direct response ads],” said Jillian Hope, Senior Marketing Manager, Brand Advertising at HubSpot. “But in reality, our audience is listening to podcasts, they’re reading articles in the New York Times or The Wall Street Journal,they’re watching Hulu, they’re doing all these different activities throughout the day.”

So, by expanding where they showed HubSpot ads, the team hypothesized they could reach a much larger segment of their audience and make new consumers aware of HubSpot.

As I chatted with these experts, a few key platforms stood out.

1. Audio Advertising

“In 2020, we started doubling down on [podcasts]. It started as more of an awareness play, but we’ve invested in this really neat tool called Podsights,” said Jillian. Podsights is a podcast attribution tool through which the team measures when someone hears a podcast ad and returns to the site, and becomes a lead.

(Can I plug an audio file in COS? https://wiki.hubspotcentral.net/display/marketing/2020+Year+in+Review%3A+HubSpot%27s+First+Brand+Advertising+Push)

The team has tested a few direct buys with specific podcasts, like NPR’s How I Built This and Masters of Scale. They’ve also done some national radio buys on NPR and a few Spotify Audio Everywhere ads (for those Spotify users who don’t pay for premium).

2. Hulu Advertising

“[In addition to podcast advertising,] we’re diversifying into new channels and also looking for opportunities to really measure and hone in on what’s working even from a direct response standpoint, including Hulu,” Jillian shared.

That’s right — this year, consumers turned on their TV to see some of HubSpot’s first advertisements on streaming channels. The team found that Hulu has high completion rates (about 99%) because the network’s ads are unskippable. “This made it a great tactic for testing out more creative messaging and executions because our audience was tuning into the full ad,” shared Alicia Collins, Copywriting & Brand Strategy at HubSpot.

Alicia worked on much of HubSpot’s 2020 brand advertising campaigns, including the Hulu push.

3. YouTube Advertising

Video as a whole gave the team more room to deliver value through education, entertainment, and inspiration, especially compared to a display or static social advertisement.

“Because YouTube is a Google-owned property,” Jillian said, “we had the ability to target people who are actively searching for content related to our products, so our ads are relevant to their work.”

In fact, Rex shared one of the most successful tests they ran: YouTube’s “affinity audiences,” Affinity audiences are audiences that Google’s algorithm identifies as likely to be interested in your product(s).

“While the algorithm is a bit of a black box, trusting their data ultimately paid off for us, generating some of the most cost-efficient, high-quality impressions and video views, which in turn yielded a great brand lift (as reported by surveys), and a measurable increase in incremental Google searches,” reported Rex.

So, what does developing this brand advertising campaign creative look like?

According to Alicia: “When you’re thinking about brand awareness advertising, you have to think about who you’re coming in contact with.”

Most people who interact with HubSpot’s brand awareness advertisements have never heard of HubSpot — versus those who see the typical direct response advertising. “There’s a reason why people are getting targeted with [direct response] ads; they’ve seen our content, they’ve been on our website, and they’ve interacted with our posts.”

The same can’t be said for this new brand advertising push. Alicia and her team are trying to reach a completely new audience, meaning they have to create clear, direct ads that communicate what HubSpot is and who it’s for.

“[We’re aiming for] eye-catching and engaging, so people are either enticed to click-through to learn more or simply stop and take a second look,” Alicia shared.

Speaking of second looks, Alicia has learned just how different the brand advertising strategy can be. “[It’s a] bit different because, again, people don’t see one social ad and immediately remember your brand. It takes like seven or eight impressions for someone to start recalling.”

In her opinion, brand awareness work is unlike a lot of other bottom-of-the-funnel work. “It’s not that there’s only a science to it, but there’s also a bit of an art,” she shared. “It’s [all about] trying to find the right balance between solving for the data and the short-term results, and thinking about where you want to be in the long-term.”

She encourages those who want to invest in brand awareness plays to be patient. “It can take a long time to move [brand awareness] metrics; raising brand awareness can take years and millions of dollars,” said Alicia.

In her experience, people who want to invest in new channels and audiences tend to put their money in one place. But Alicia and her teammates have found that no one spends all their time on one channel.

For example, you might prefer to start your day listening to a podcast, read a few articles during lunch, and watch your favorite Hulu show to unwind after work. However, your coworker might like to start their day watching cable news, scroll through social media during lunch, and travel to the gym (passing multiple billboards) after work. “You’re just getting multiple touch points throughout the day and sharing your stories in new, unique ways,” said Alicia.

Jillian agreed: “What works for some won’t work for all. If we limit channels, we risk not reaching a large segment of our audience.”

And the more channels on which consumers can see HubSpot, the more likely they are to remember and return.

Read more about developing your own cross-channel or omnichannel advertising strategy on the HubSpot Blog.

As of March 2020, over 804,390 businesses in the U.S. were less than one year old. Combine that with the 31.7 million small businesses vying for customers, and the competition seems even more fierce. So how can you possibly create a marketing strategy that stands out? Diving into a specific niche is the way to set your business apart.

Let’s look at how a handful of businesses use niche marketing to their advantage, before walking through the steps to create your own growth-generating strategy.

5 Examples of a Niche Marketing Strategy

1. Flylow Gear

With 9.2 million skiers and snowboarders in the U.S, the pool of potential customers seems wide enough for all to share. But popular brands like Patagonia and The North Face can be found in almost every sports shop, making it hard to convince customers to seek out smaller brands with fewer offerings.

Flylow Gear figured out how to fight through the noise. Instead of targeting all customers interested in winter gear, their niche marketing strategy focuses on backcountry skiers looking for no-nonsense, quality gear. Their products are featured in all the right places — like Powder magazine — to reach their ideal buyers. Even their confirmation emails share that they’re a small, mountain-based crew of dedicated skiers.

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2. Octavia Elizabeth Jewelry

For ethically-minded consumers searching for jewelry, the most important factor is knowing about raw materials sourcing and product creation. That’s because this $300 billion dollar industry has come under fire for using child labor and causing extensive environmental harm.

Octavia Elizabeth understands the need for responsible jewelry. The company’s commitment to fair working conditions, legitimate living wages, and ethical production are clearly stated on its website.

Not only has Octavia Elizabeth honed in on customers looking for sustainably-sourced, handmade jewelry who are willing to pay a higher price, the brand has also elevated its niche offering by associating itself with celebrity clientele.

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3. Natural Dog Company

Research estimates Americans will spend $99 billion on their pets in 2020 alone. So how can a pet-focused business stand out amongst the thousands of memory foam beds, custom carry-on bags, and dog-friendly ice creams saturating the market?

Natural Dog Company caters to a very specific kind of pet owner: the eco-conscious consumer who pampers their pooch. By giving their organic and all-natural skin care products names like PAWdicure Pack and offering discount codes for free dog treats, they put pups first — which is exactly what their customers do.

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4. Pimsleur

Learning a new language can be a struggle, and the options for doing so are definitely overwhelming. Will you really be speaking like a Parisian after spending $1,000 on a program?

Rather than making promises of perfect grammar and flawless accents, Pimsleur focuses on learners who need to improve their speaking and listening skills. The program includes a 30-minute audio lesson every day, with each conversation building off the previous ones. While not the most innovative language-learning app, its audio-first approach is great for customers looking to improve their conversational skills.

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5. Photographers Without Borders

It’s one thing to entice people to buy a product, but it’s another thing entirely to attract donors for a nonprofit. While this type of organization may not seem like the right fit for a niche marketing strategy, it’s essential for bringing in donations and volunteers.

Photographers Without Borders has partnered with major organizations like Adobe, Sony, and Patagonia by honing in on a particular marketing technique: storytelling.

By prioritizing ethical storytelling, whether in a social media post, email newsletter, or online webinar, the organization has built a reputation for producing high-quality work that address the 17 UN Sustainable Development Goals and UNDRIP. Plus, their Code of Ethics makes it clear what type of community members and partners they’re aiming to attract.

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Developing a Niche Marketing Strategy

Now that you have a better grasp on how brands from all types of industries create strategies that drive growth, it’s time to shape your own.

Step 1: Know your competition.

Developing a niche marketing strategy is impossible without scoping out your competition. That’s because it’s crucial to understand your unique selling proposition — what you do differently that makes customers choose your company over another.

Maybe you design ceramic dishware that can’t be found anywhere else, or maybe you’ve developed a tool that makes it easier for marketers to send emails. Whatever is it, find your speciality and craft a story around it.

Step 2: Narrow down your niche market.

Airbnb Co-founder Brian Chesky is famous for having said, “Build something 100 people love, not something 1 million people kind of like.” Put simply, it’s better to reach a small group of people who sing praises about your company, rather than a large group who thinks it’s just okay.

You can do this by honing in on the right niche market for your business. While this takes time and thought, it’s worth the effort to find loyal customers who will gladly choose you over competitors.

For instance, Thirdlove is the first underwear company to offer bras in half-size cups. Through their inclusive sizing options and emphasis on body diversity, they’ve built a loyal community of over 327,000 Instagram followers.

Step 3: Go where your buyers are.

If your ideal customer spends all of their time scrolling on Facebook, it wouldn’t make sense to develop a niche marketing strategy around email campaigns. Enter market research.

You already know who your buyers are, but research helps you go deeper to find out where they shop, how they find products, and what influences their purchase decisions. Once you have that information, you’ll get the most return for your marketing dollars.

Step 4: Listen to the word on the street.

Everyone has problems that need solutions. If you listen to people’s thoughts about a certain product or service, you can find opportunities to fill in the gaps.

David Barnett did just that when he engineered a solution for constantly tangled headphones. What started out as two buttons glued to the back of a phone case quickly turned into Popsockets, a company that brought in $169 million in revenue just seven years after its founding.

Step 5: Create a unique brand.

Once you’ve defined your unique selling point, outlined your buyer persona, found out where to reach them, and listened to their problems — all that’s left is to build a brand identity. A well-defined brand will help you develop a niche marketing strategy that’s authentic to you and attracts ideal customers.

For instance, Etsy’s position as the marketplace for independent artists has attracted more than 138 million buyers. In a 2020 TV commercial, the brand touched on the pandemic and used emotional marketing tactics to encourage support for small businesses that sell through the platform.

Creating a niche marketing strategy that drives growth for your business is more than creating a social media ad or sending a weekly email promotion. If you take the time to learn about your customers and differentiate your brand, you can develop a strategy that attracts the right buyers and helps you hit your growth goals.

In 2020, B2C businesses all over the world pivoted their strategies as consumers dealt with the COVID-19 pandemic.

Not only did the pandemic force people to live and work strictly from home, but it also put a financial burden on many households and businesses.

Now, as the holidays approach, both physical and online business owners are wondering if they’ll still get the same level of booming business they saw last year.

Because we (unfortunately) can’t predict the future, we decided to survey a sample of nearly 300 general consumers about their holiday shopping plans.

Specifically, we asked, “Compared to last year, how will COVID-19 impact your holiday shopping plans?”

As part of the Lucid survey, participants could check all the boxes related to how their holiday shopping would be impacted.

While you’ll see that some of the responses align with research-backed shopping predictions, the overall results of the survey might surprise you:

Data Source

While you might not be shocked that many respondents are planning more online shopping than last year, you might be surprised that nearly one-third of them still plan to go to physical stores.

Additionally, with 41% of respondents planning to spend less money or buy fewer gifts this year, you might wonder if budget-conscious consumers will still spend money on your products.

Remember, this is just one small poll of general consumers. Had we zoned in on a specific audience target or location, the results might have been very different.

However, these responses are still worth keeping in mind as you navigate the holiday season. It also hints at potential trends that could continue in 2021.

Below, I’ll walk you through the three biggest holiday shopping pivots consumers plan to make this year, as well as a few business takeaways for handling each shift.

3 Pivots Holiday Shoppers are Making in 2020

1. Despite online growth, physical stores won’t be vacant.

As you might expect, the number one holiday shopping change, cited by 47% of survey respondents, was, “I plan to do more online shopping.”

This makes sense. In 2020, consumers who weren’t tech-savvy learned how to buy almost everything they needed online. Meanwhile, those who already made purchases regularly online embraced it more heavily. Additionally, with holiday shopping seasons known for closely packed quarters stores, some consumers might opt to stay at home this year to avoid the crowds.

However, it doesn’t seem like foot-traffic will cease completely.

To learn more about how abundant ecommerce would be this season, we asked, “Where do you plan to do your holiday shopping this year?”

As it turns out, lots of people still plan to shop in-person this season:

Data Source

While 33% of consumers plan to shop “mostly” or “completely” online, 34% plan to do an “even mix of both online and in-store shopping.”

On the other hand, 33% percent plan to shop “mostly” or “completely” in-store this year.

Although this survey is just one small piece of data, and these results might vary by location, the responses hint that physical stores might still get business despite increased online shopping.

Takeaways for Business Owners

Ultimately, online shopping is growing — and we see more online purchase revenue with each new holiday season.

Even if our survey results show that people still plan to shop at least partially in stores, you should consider building an online presence and — potentially — an ecommerce strategy.

When it comes to building an online presence, you could start with a business page on Facebook or Instagram, or a Google My Business listing to help internet users learn more about your brand and where you’re located.

If you’re ready and able to sell your products online, many digital tools, like HubSpot and Shopify, can help you create a simple, but effective online store.

For example, if you already promote your brand with a Facebook Business Page or Instagram Business profile, you could highlight and sell a few of your most popular products in a Facebook Shop. This will allow you to test the waters with ecommerce by selling a few select products online. Then, once you feel confident in your shipping and supply chain, you can launch a full ecommerce site with one of these tools.

2. Shoppers might not splurge — even on gifts.

Due to the uncertain financial times caused by the COVID-19 pandemic, shoppers were already tightening their budgets and protecting their assets. Now, with plans for in-person holiday gatherings uncertain for many folks, there are also fewer reasons to purchase gifts and other holiday items.

However, since holidays have been known to encourage people to splurge more than usual, you might think that this time of year could be an exception to current shopping trends.

When polling general consumers, 26% percent said, “I plan to spend less money.” while 15% said, “I plan to buy fewer gifts due to limited holiday gatherings.” In total, 41% of consumers indicated that they plan to spend less or buy fewer products this year.

The data above, although unsurprising, still reaffirms consumer predictions that might be concerning to business owners.

Takeaways for Businesses

By now, brands have already seen consumers tighten budgets and limit non-essential purchases. Not to mention, studies from McKinsey and other organizations predict that consumers will continue to spend more frugally through 2021.

But, even if you’re up to date on the current market research trends, you might not be sure how to grapple with these consumer behavior shifts.

Right now, buyers need extra motivation to buy expensive or non-essential products. While the holidays might give them a reason to splurge a bit more than they have throughout the year, consumers will still want to invest in products with the best value — whether they’re buying for themselves or their families.

Because people are looking for essential products they need or items that offer the best bang for their buck, focus your messaging on answering questions like:

• “Why does the consumer need this product?”
• “How does this product or service solve one of their problems?”
• “Why is the product worth its price?”

Aside from adjusting your messaging, you can also adjust your content to help you answer the questions above. For example, you can post content that highlights sales, deals, and promo codes that people with more stringent budgets might use.

If you can’t offer a sale or deal, you could alternatively use testimonials, reviews, or user-generated content from your current customers in your marketing. When you share a happy customer’s review or testimonial, you allow prospects to hear stories of people who benefited from your products. This can build a sense of authenticity and brand trust that ultimately leads to purchases.

3. Shoppers will take social distancing seriously.

Above, we noted that our respondents still want to shop at least partially in stores this year. But, many of them might also want to avoid bustling crowds that have historically been seen during holiday shopping seasons.

Because of this, the third biggest holiday shopping change — which 33% of respondents cited — was, “I still plan to shop in stores but will be more cautious of social distancing.”

Takeaways for Businesses

While small business owners would love to see crowds line up to enter their stores during the holiday season, it’s clear that things will be very different this year. Not only will customers be mindful about social distancing, but other research shows that they might be more concerned about their health and safety when shopping than ever.

If you want to embrace in-person foot-traffic opportunities this holiday season, it’s important to know that people might be fearful of crowds or getting too close to others. Because of this, you should invest in PPE for your staff, while also considering protective barriers, one-way aisles, and other solutions to keep people far apart.

While this will not only make customers feel safer in your store, it could give you a competitive advantage over shops that take fewer precautions. After all, customers trust brands that care about them and their safety.

Navigating a Unique Holiday Season

While we can offer suggestions and basic data on how holiday shopping will change this year, it’s important to keep in mind that results could be different for every business — whether physical or online.

Although planning a holiday strategy in a pandemic can feel daunting or nearly impossible, keeping a few tips in mind could still help you get sales and intrigue consumers who are ready and able to shop.

• Market your product’s value: Now — and in the near future — consumers will need to be persuaded that your product is valuable, better than a cheaper option, and worth investing in. If your messaging, reviews, or online content fail to convey those things, a budget-minded shopper might very well buy something from a competitor — or avoid buying any product in your industry at all.
• Build an online presence: Even if you plan to rely on foot-traffic this year, you’ll still want to develop an online presence so people can learn about your store, where you’re located, and any deals you offer. If you’re ready to step into the world of ecommerce, many easy-to-use tools can help you launch a scalable online store.
• Care about your customer: This year, customers are paying extra attention to how brands treat them. When a brand makes an effort to ensure a pleasant and safe experience, shoppers will remember and trust them more. Even if your business is mostly online, you can still show customers you care through helpful and responsive customer service, answering customer questions on social media, and offering deals or content that solve for your ideal customer.

To learn more about how COVID-19 has impacted the overall business landscape, check out our six-month retrospective fueled by data from thousands of HubSpot users.