With banks looking for new ways to charge consumers for using debit cards, a new report from Javelin Strategy & Research suggests credit card usage may make a comeback.

Many consumers curtailed their credit card usage during the economic recession out of fear they wouldn't be able pay off their bills. However, Javelin predicts debit card usage will decline from 30 percent of all transactions this year to 21 percent by 2016. Credit cards will largely fill that void.

This bodes well for retail merchants – the average consumer tends to pay $58.29 when using a debit card, compared to $82.09 when putting purchases on credit. Online usage of credit cards is forecast to grow from 40 percent to 45 percent in 2016, the report notes.

"After several years of declining use, credit cards are poised for resurgence," said Beth Robertson, director of payments research at Javelin. "Despite the nation's very rocky economic recovery, consumers appear to have halted their belt-tightening and bank incentives to use credit cards rather than debit are gaining appeal."

This highlights the continued need for point-of-sale payment processors capable of conducting credit card transactions. New technology, such as mobile payments, may be growing more popular, but it doesn't look likely to eclipse credit cards anytime soon.

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Traditional brick-and-mortar retailers not only have to worry about their competitors down the street, but also those online. Moreover, online retailers have a distinct advantage – they frequently don't have to pay sales tax.

This perk hinders the success of local stores, which is why the National Retail Federation is rallying for the House Judiciary Committee to support legislation that would require internet retailers to pay the same sales tax.

"Different retailers have different strategies for going to market, but one feature is beyond a retailer’s control – only some collect sales taxes," NRF senior vice president for government relations David French said. "This disadvantage is not created by the marketplace but by the current state of the law following the Quill decision."

With the web becoming a bigger part of the retail experience, French argues that fair tax collection policies will be key to providing a competitive retail landscape.

As Black Friday weekend illustrated, ecommerce is accounting for a growing number of sales. On Cyber Monday alone, more than $1.25 billion was spent online, according to recent comScore data.

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American consumers are becoming more optimistic of their financial future, according to a new report from the Conference Board.

The Conference Board's index increased to 56 in November, up nearly 16 points from the 40.9 reading observed in October. As Bloomberg notes, this marks the largest single-month gain since April 2003, and the gauge greatly exceeded the already optimistic forecasts of economists.

There are several factors that may have contributed to the rise in consumer confidence, such as increased wages and an improved labor market.

"We are seeing confidence returning to the ranges it's been in the past two years in this lukewarm recovery," Guy Berger, an economist at RBS Securities, told the news source. "While the data are consistent with the gains in holiday retail sales, it doesn't bode for a further acceleration in spending, but more of the same."

With more than 220 million consumers shopping during the Black Friday weekend, as the National Retail Federation reported earlier this week, this holiday season seems to be on pace to meet spending forecasts.

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Retail merchants tend to group customers into one big audience, when in reality shoppers can have unique behavioral patterns. One consumer may respond very differently a sale or marketing campaign than another.

Recent research conducted by the University of New Hampshire illustrates that exact point. Nelson Barber, associate professor of hospitality management at the university and the primary researcher, analyzed how Generation X and Generation Y consumers arrived at purchase decisions.

Generation X, Americans born between 1964 and 1977 (44 million consumers), tended to be more independently minded. Meanwhile, Generation Y Americans, those born between 1978 and 1998 (72 million), rely more on the opinions of others – specifically their parents – before making purchase decisions.

Generation X shoppers can be categorized by their keen understanding of marketing and media. Research is crucial for these individuals – they use the web to reinforce their existing opinions on brands and products, rather than to form them to begin with.

"Generation X is very motivated to search for purchase-related information and is adept at searching. Generation Xers tend to use information not as a point of pride but as assurance that they are not being taken advantage of by marketers and are getting the best deal possible," Barber explained.

On the other hand, Generation Y shoppers are likely to turn to their friends and family for opinions. Barber explains the close watch of these consumers' parents makes them strive to conform with parental oversight. Additionally, their integration with new technology and social media makes them more reliant upon it.

In short, this demographic may simply ask their social networks "What is the best retail chain?" rather than "What makes Retail Chain X better than Retail Chain Y?"

"Generation Y selects and consumes products that help them achieve their goals of blending in with the crowd or a certain group; thus, they are influenced by the need to conform in order to be liked and accepted by them," Barber adds.

Understanding the buying habits of consumers is key to better engaging them. By leveraging research data, such as the UNH report, as well as information collected internally, retailers can help convert window shoppers into buyers. 

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Mobile advertising agency InMobi was right when it predicted mobile shopping would hit new peaks over the Black Friday weekend.

Between Black Friday and Cyber Monday, more than 60 million mobile users will leverage their smartphones and tablets to shop ecommerce websites, the firm forecast ahead of the holiday. Additionally, more than 21 million of device owners – 36 percent of the total audience – will make a purchase directly from their handsets.

The company also said mobile shopping would peak during Cyber Monday, with 42 percent of mobile device owners planning to use their smartphones and tablet devices to shop or research purchases.

"The study highlights that mobile is cannibalizing desktop shopping and shows that mobile devices will be a critical tool in all facets of shopping this holiday season," Anne Frisbie, vice president and managing director of InMobi North America, explained. "It will be ubiquitous both in the store and online."

Merchants can also use mobile devices to support retail operations. For example, some businesses are using the Square credit card processor to complement their point-of-sale checkout processes, while others give tablets to sales associates to better assist customers.

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When it comes to influencing household purchase decisions, the mother is the consumer that retailers target the most. Identifying how this individual picks products and shops is crucial to winning her household's dollars.

However, as a recent report from New Moms Group found, not all mothers shop alike. In fact, the shopping patterns between a new and experienced mother are quite different.

For example, new moms tend to focus on making shopping more efficient due to having less time, which suggests ecommerce websites could see more business from that demographic. Inexperienced mothers also spend more time researching purchases – such as cars, baby gear and electronics – than veteran moms.

"The study provides a rich source of new data about moms," said Sandy Gingerich, a senior partner and leader of the New Moms Group. Catering to the shopping habits of young mothers provides retailers with a way to create a long-lasting relationship, so it's important companies take note.

New Mom Group's study highlights the importance of being flexible. By offering mobile and online shopping experiences in addition to traditional brick-and-mortar locations, retail brands can enhance their relationship with shoppers.
 

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Cyber Monday continues to gain popularity among American consumers, with IBM anticipating total expenditures improved 33 percent in 2011, compared to the same day last year.

In 2010, shoppers spent upward of $1.03 billion on Cyber Monday. If IBM's estimate is true, that would mean $1.36 billion was spent in total on the day after Black Friday weekend this year.

"Cyber Monday was once again the big winner for the Thanksgiving holiday shopping season, with a record number of consumers focused on finding the best online deals," says John Squire, chief strategy officer at IBM Smarter Commerce. "Retailers that adopted a smarter approach to commerce … were able to fully benefit from this day."

Retail merchants that integrated mobile devices were especially successful. Over the weekend, 10.8 percent of shoppers used mobile devices to access retail websites – more than double the number of consumers who did so last year.

If retailers had issues with their websites over the weekend, it's crucial they get them ironed out quickly. While Black Friday weekend has traditionally been a sales period, there are still sales to be captured throughout the remainder of the holiday season.

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Americans used their smartphones to make online shopping more convenient this holiday season, with a new report from IBM suggesting the devices accounted for 14.3 percent of all traffic on Black Friday. This marks a significant 9.8 percent improvement compared to the same time last year.

Apple devices led the charge, with the majority of mobile shoppers browsing from the iPhone and iPad. The two devices accounted for 5.4 percent and 4.8 percent of traffic, respectively. Android devices, such as the HTC Evo, came in third place at 4.1 percent.

The report also noted the importance of relevancy. Whereas online shoppers were more willing to browse a website if the item they wanted wasn't on the first page (33 percent), mobile consumers were more likely to just try a new website (41 percent).

"Black Friday witnessed the arrival of the mobile deal-seeker who embraced their devices as a research tool for in-store and online bargains," the IBM Coremetrics report said.

Retailers should take note – by not operating a mobile-compatible website, they are essentially losing out on 14 percent of all online shoppers. They should at least ensure their websites are viewable from these sites, if they're not designing a specific landing page for them.

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The 2011 Black Friday weekend exceeded all odds and set a new record high for the number of Americans shopping and spending money at retail stores, the National Retail Federation reports.

According to the NRF's data, more than 226 million shoppers hit malls and retail stores over the three-day weekend, which is up nearly 14 million year-over-year. The average American spent $398.62 this weekend, which also marked an improvement over the $365.34 spent in 2010. Total spending was estimated to have reached $52.4 billion.

"Stuffed to the brim from their holiday meals and eager to shop, more consumers than ever turned out for retailers' Black Friday promotions, a promising sign for the economic recovery," said NRF president and CEO Matthew Shay. "After a historic holiday weekend, retailers know the holiday season is far from over and will continue to look for ways to excite holiday shoppers."

Analysts anticipate the 2011 holiday season as a whole will see a 3 percent increase in sales over the same time last year.

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Ecommerce retailers are often concerned by the user experience – they want to make their websites easy to navigate and facilitate purchases. However, Tim Elam – vice president and chief technology officer of party supply retailer Birthday Direct – urges companies to also take search engines into consideration when creating their websites.

Elam told Internet Retailer there are two audiences to keep in mind when designing webpages – consumers and search engines. Both need to have an equal emphasis in order to maximize sales. Great usability with poor search engine optimization results in low web traffic, while the opposite translates into few conversions.

"Too often online retailers focus on how their website is seen through the eyes of their customers but neglect to realize how it is seen by the search engines," he explained. "The key take-away [is] that you must design your web site for SEO while maintaining the focus on the customer experience."

Retailers should look to include keywords of their top products frequently throughout content. Additionally, having a variety of content pages improves the chances of being discovered by online shoppers.

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