In this current holiday season, consumer holiday spirits seem to have hit a low point this year. Despite being a wonderful time to spend with family and friends, the holidays are a strain financially for many people.
According to a Dentsu report, 86% of consumers say they are concerned about higher prices as they approach this holiday shopping season, up from 75% last year. And 53% of shoppers expect inflation to impact their holiday celebrations, per Aki Technologies.
Budgets are tightening across the board. There are also larger spending trends to consider, like buyers prioritizing experiences over material goods. So how can brands continue to attract consumers?
The first answer is emotional resonance. Brands that make shoppers feel something get them to spend. This is nothing new, but it’s especially true when the marketplace is this competitive.
One way to get to consumers’ hearts is to convey that buyers truly care for the people they’re shopping for through the products. Personalization conveys this. Sites like Etsy offer items like cutting boards, luggage, and underwear — all of which is customizable. Initials, full names, significant dates — anything meaningful can be incorporated into most products. This doesn’t have to be pricey; you can personalize gifts like earrings and blankets on Amazon. This extra step differentiates your product from your competitors’.
Don’t miss out on the personal touch
Another way is by implementing personalization across digital touch points such as their mobile app, email communications, SMS, and various other touchpoints, brands can effectively cultivate customer loyalty on a broad scale and attract fresh purchasers. Personalization enhances retention by providing customers with a distinct online shopping experience tailored to their preferences. Cultivating a devoted customer base is essential for boosting customer retention, as these loyal customers place their trust in your product.
Invest in loyalty programs
Google Insights found that 58% of shoppers favor companies whose mobile apps remember who they are and their past behavior.
Offer incentives such as discounts, free shipping, or exclusive access to products. Recognize and reward customers for their loyalty. Send personalized emails or newsletters to keep customers engaged. These incentives and rewards give customers a reason to keep coming back to your business. They also provide a way for customers to feel appreciated and valued, which can lead to increased loyalty and word-of-mouth marketing. Additionally, personalized emails or newsletters are a great way to stay connected with your customers and give them relevant and timely information.
According to PwC research, Gen Z consumer loyalty is available for brands to cultivate. While they don’t belong in large numbers to customer loyalty programs, those who do belong outperform other age groups.
Avoid false urgency. Create a real reason to buy.
If panic buying has taught us anything, it’s that consumers can have a sense of urgency and will purchase when they have confidence something they need or want will sell out. The holiday season is known for deep pricing discounts that can only be found once a year and shoppers know how to spot the good ones.
When creating your holiday marketing plans, make sure you’re clearly incentivizing shoppers to visit your online store and complete a purchase. There is a fine line between haphazard discounting or giveaways and creating a relationship with your customers. You don’t want to devalue your brand to the point where customers think it’s cheap. They might not be compelled to make a repeat purchase.
The holiday season isn’t just about creating revenue — it’s also about establishing connections with customers who will return to purchase in the offseason. Make sure that customer retention is top of mind during any marketing decision you make for the holidays.
Brands can capitalize on the holiday spirit by crafting heartfelt messages and campaigns that evoke emotions and create meaningful connections with their target audience. They can also use festive design elements and colors to create a festive atmosphere, and offer free gifts or discounts to customers who make a purchase during the holiday season. Additionally, they can partner with charities and donate a portion of their profits to charity.