Happy Holidays, indeed. The holiday season drives consumers around the world to spend more money than any other time of year. Many shoppers will be one-time purchasers with a specific retailer, while some will become lifelong customers. Brands looking to capitalize on this spending glut need to have strategies in place to capture and retain the surge of customer activity that occurs this time of year.
Knowing how to take advantage of this annual opportunity can result in not only the single biggest engagement spike of the entire year, but also a measurable increase in year-round revenue. Ignore it, and you’ll be kicking yourself until next December. Here’s how those tasked with increasing customer retention can make the most of the holiday season.
Educate Internal Stakeholders
Holiday shoppers are a special breed. Teaching your customer-facing employees and marketers how to prioritize customer experience will pay immediate and long-term dividends. Develop and distribute a single source of standards and practices for how to deal with tough scenarios like returns, product dissatisfaction, or friction in the buying process. Include a thorough explanation of what the company stands to gain by adhering to these standards. Once you’ve settled on a plan, make sure your team knows it inside and out. You’ll be making a lot of first impressions over the holidays, and customer experience will be the deciding factor in fostering relationships that could last years.
Demonstrate Immediate Value
Many holiday shoppers will be meeting your brand for the first time. The sooner you can make their lives easier, the more likely it is they’ll shop with you again. Find little ways to improve their overall holiday shopping experience. Something as easy including a free gift for purchases above a certain value or complimentary gift-wrapping at checkout sets the right tone for a long-lasting relationship.
Invite New Shoppers to Join Your Loyalty Programs
A 2016 study by eMarketer revealed that “55% of (consumers) said rewards programs will affect their decision as to what mass-market retailer to shop at this holiday season”. The more engaged customers are with your loyalty program, the better. Use your email, web, and social media resources to promote your programs, especially among new customers. Use retargeting tools to promote products relevant to your customer’s needs. Don’t be shy about placement, and remember that the more data you can capture, the better equipped you’ll be to succeed once the holiday dust has settled.
Remind Existing Customers of Loyalty Benefits
With more leisure time and disposable income available, returning customers are able to take better advantage of your existing loyalty and retention programs. Remind customers with high loyalty point balances that cashing in those points will help them come in under budget. Use your communication channels to rehash any recent changes to your loyalty programs that they might have missed in the last few months. Do everything you can to remind customers that it pays to give you their business.
Be Ready with a Deal
With every shopper hoping to come in under budget, the desire for a holiday deal colors every stage of the buying journey. “Of customers looking to purchase a tablet this holiday season, 61% of searches were for discounts, 49% were for coupon codes, and 24% were for rebates”, says Cassandra Rader of Voice Solutions. While it may dig into your margins, keep your pricing competitive to capture sales volume. Surface your discount message across all channels. Don’t be afraid to spend extra resources to fill out the top of your funnel.
Offer Post-Holiday Shopping Benefits
The holiday shopping phenomenon doesn’t end on January 1st. With your brand fresh in their minds, give customers a reason to return to you with their business in the new year. “Thank customers who shop before the end of the year with a discount coupon that’s valid after the holiday season”, suggests Breena Fain of Stitch Labs. If you’ve managed to make a good first impression, returning to do business at a discounted rate will be a no-brainer for customers.
With so much to be gained over the holiday season, it pays to be prepared. Start planning early and dedicate time for reviewing data, surfacing insights, and iterating on your strategy for next year. With these few time-tested retention strategies in place, the customers you win this holiday season will be around for many more.