Discover how to turn holiday shoppers into loyal repeat customers with these proven strategies.
We’ve all done it. You bought a holiday gift that’s an unfamiliar product or brand. Then, whether we make the person we give it to us happy or not, that’s all. We never go back.
Herein lies the opportunities for brands that want to attract millions of shoppers who would likely fall into this category and make them fans.
Although consumers are starting to be more careful with their spending than they have been in the past couple of years, the holiday season remains a time when many are looking for new products and brands. While these initial purchases benefit retailers, repeat purchases are more valuable.
Sarah Cascon, Vice President of Marketing at Bluecore, noted, “With the glut of promotions and deals offered during the holiday shopping season, it’s usually a time when shoppers set out to try new products and brands.” She added that while the first purchase is an achievement, retailers should not only focus on acquiring new customers through their acquisition programs, but also on retaining them after the first purchase — as that is equal or more important.
Bluecore research shows that repeat customers grow in value over time. For example, customers who have made two purchases are 101% more valuable than customers who have only made one purchase.
Here are five strategies for turning these one-time buyers into repeat customers:
1. Deliver value to build customer loyalty
In the face of inflation and economic uncertainty, 56% of shoppers in a survey by Verint cited “value for money” as one of the two most important factors influencing their loyalty to mass-market retailers.
Retailers who delight first-time shoppers can also benefit greatly. According to a Verint study, 88% of these customers are more likely to repurchase, 82% are more likely to recommend the store to friends or family, 68% are more likely to join a loyalty program, and 63% are more likely to write a positive review. reconsidering,.
As Jenny Paluchek, Verint’s Vice President of Marketing Statistics, Experience and Enablement states, “At a time when global inflation has become one of the biggest issues facing consumers, leaving them with less disposable income, maintaining ‘portfolio share’ is critical for retailers.”
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2. Customize post-purchase messages to win customers
According to Ryan Turner, founder of Ecommerce Intelligence email marketing agency, one of the most effective ways online retailers can turn one-time shoppers into loyal repeat customers is by designing highly personalized post-purchase sequences. “Ideally, the client will feel like the campaigns are tailored to them,” Turner said.
He added that to maximize customer lifetime value and increase repeat purchase rates, brands must go beyond generic follow-up messages and discounts and design specific post-purchase itineraries for customers related to items they have just purchased. Often, when making an online purchase, customers receive generic follow-up messages simply offering a discount on future orders, but brands need to go above and beyond to maximize customer lifetime value and increase repeat purchase rates as much as possible.
Brands must design specific post-purchase funnels for customers so that each buyer receives a personalized marketing sequence after making a purchase related to the item or items they just purchased, Turner added. “One of the most effective ways to do this is with targeted cross-selling and up-selling, which is informed by the brand’s business intelligence, along with the customer’s purchase history. Ideally, these campaigns will be cross-channel efforts.
3. Take advantage of loyalty rewards
Jay Gavin, chief marketing officer of Blackhawk Network, said the company’s research indicated that 60% of holiday shoppers planned offers such as coupons, promotions, brand/retailer discounts and loyalty point offers this past holiday season.
But these shoppers may only be interested in discounts, which means their return is insufficient at best. Instead of relying on one-time discounts and similar promotions, marketers should focus their marketing efforts during the holidays on loyalty points and other reward-based promotions, Gavin suggested. “They are more sustainable long-term solutions that can generate 58% more revenue and deliver 8% more return on marketing investment than instant discounts through continuous customer engagement and sales opportunities.”
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4. Securing customers with a permanent approach
While many brands focus their holiday marketing strategies on customers buying on Black Friday or the following weeks, many consumers plan their holiday purchases much earlier in the year, according to Gartner. This means that holidays and other purchases can be secured by focusing on the “always shopping” customers, rather than just the “hot” holiday shopping season of Black Friday and Christmas. This effort will also help drive sales for other special days/events, such as birthdays, anniversaries, etc.
Kasey Socha, Principal Analyst at Gartner, suggested, “Consider launching an online category dedicated to year-round gift giving. This creates a destination for shoppers to use whenever they want and creates long-term SEO value for gift-related keywords.” Additionally, before fall, brands should evaluate how they can promote this category on their websites, apps, and in stores, and drive traffic through digital performance channels and in-store efforts, she explains.
5. Convert customers with AI-powered ads
Iveda Solutions CEO David Lee said brands looking to build next-level customer loyalty and successfully convert holiday shoppers into repeat customers should look to AI-powered advertising to provide a superior customer experience.
“Whether it is companies bringing their mascots to life, or avatars interacting with users via AI-powered billboards and banners, AI will enable advertisers to take their efforts to a higher level. Soon, instead of a person handing out flyers, individuals will get requests Specific and directed while they wait to change a street light, walk toward an ATM, or refuel their car at a gas station.”
In addition, smart online shopping with AI assistants is just around the corner. “These AI-powered assistants will have the ability to suggest items that customers like, all while providing unique recommendations based on who they are shopping for. Not only will this type of automation simplify customers’ lives, it will keep them coming back for more.”
Final thoughts on converting one-time holiday shoppers
Many economists expect a recession in 2023, but even in the absence of a recession, sales tend to decline after the holiday shopping rush. While some decline is normal, the brands that will be the most successful will be able to drive repeat purchases from customers year-round from holiday customers for the first time.