How to Retain Holiday Shoppers Amidst Inflation
Discover how to retain customers this festive season as inflation forces shoppers to reduce spending.
Table of Contents
The holiday season is upon us, but this year, festive cheer comes with a side of financial caution. Inflation has shoppers laser-focused on value, stretching every euro, pound, and dollar like never before. In France alone, the average Christmas budget has shrunk to €497—the lowest since 2017. Meanwhile, Black Friday and Cyber Monday have taken center stage as savvy buyers hunt for deals to make their budgets stretch further.
With half of holiday shoppers checking off their gift lists November, the question for retailers isn't just how to attract buyers, but how to retain them in an increasingly competitive and price-sensitive market.
This blog unpacks actionable strategies to keep your customers coming back, even as economic pressures mount. So, without further ado, let's get into it!
#1: Double Down on Loyalty Programs
When budgets are tight, loyalty programs become even more enticing. A well-structured loyalty program doesn’t just encourage repeat purchases—it makes customers feel like they’re part of an exclusive club, reaping rewards others aren’t. Promoting these programs within delivery emails, which benefit from open rates 17% higher than standard emails, is a sure way to get your brand noticed. Here’s how to make your loyalty program irresistible this holiday season:
Tiered Incentives for Maximum Engagement
Encourage higher spending with tiered loyalty rewards. For example, spend $100 and get 10% off your next purchase; spend $200 and get 20% off, and so on. These tiers incentivize larger purchases while building a sense of accomplishment for customers who reach higher levels.
Provide Early Access
Nothing screams “VIP treatment” like early access to holiday sales or limited-edition products. Give loyalty members the first crack at your best deals and most sought-after items. This not only rewards your most engaged customers but also drives urgency and excitement.
Leverage Partnerships
Partner with complementary brands to provide joint rewards. For instance, a bookstore could collaborate with a coffee shop to offer discounts on cozy holiday bundles. These partnerships expand your reach while delighting customers with added perks.
Gamify the Experience
Introduce fun, gamified elements to your loyalty program to keep customers engaged. For example, customers could earn bonus points by completing specific holiday-related actions, like reviewing a recent purchase or sharing your brand on social media. Gamification adds an element of fun to shopping and increases brand interaction.
#2: Deliver an Exceptional Post-Purchase Experience
Your job doesn’t end once the transaction is complete. A memorable post-purchase experience can transform first-time buyers into loyal customers who think of your brand long after the holiday lights come down. This is where small, thoughtful touches create a big impact. Here's how to turn a completed purchase into an ongoing relationship:
Streamlined Shipping Notifications
Personalized shipping notifications can do more than just keep customers informed—they can build trust and excitement. Use branded notifications that include order tracking, estimated delivery times, and even product care tips to keep customers engaged after their purchase.
Proactive Problem Solving
Anticipate issues before they arise. If you foresee potential delays due to high demand or shipping constraints, communicate them upfront and offer solutions like free expedited shipping or in-store pickup options. Proactively addressing problems reinforces trust and demonstrates your commitment to customer satisfaction, all while reducing the strain on your customer support teams.Â
‍
Use Thoughtful Packaging
First impressions count, and in the world of e-commerce, your packaging is the first physical interaction a customer has with your brand. Go beyond the generic box: incorporate festive designs, eco-friendly materials, or even a personalized note of thanks. A little touch of holiday cheer can go a long way in creating a memorable unboxing experience.
Surprise and Delight
Inflation-weary shoppers may not expect extras—but that’s exactly why a thoughtful touch can make your brand memorable. Include a handwritten note, a small freebie, or a discount code for their next purchase. These unexpected gestures create a positive impression and incentivize repeat business.
Leverage Post-Purchase Surveys
Show your customers you value their opinions by requesting feedback on their shopping experience. Short, engaging surveys can uncover areas for improvement while also demonstrating that your business cares about their input. Bonus points if you offer a small reward for completing the survey, like a coupon or loyalty points.
Follow-up with Value-Added Content
Post-purchase emails shouldn’t just be transactional—they’re an opportunity to nurture the relationship. Send care guides, styling tips, or creative ways to use the product they purchased. For instance, if they bought holiday decorations, share ideas for setting up a festive space. This approach keeps your brand top-of-mind while adding value to their experience.
#3: Optimize Fulfillment for Last-Minute Shoppers
Despite all the planning, a significant chunk of shoppers will always wait until the eleventh hour to finish their holiday purchases. Inflation might tighten wallets, but it hasn’t eliminated the gift-giving scramble. Here’s how to cater to those last-minute shoppers while ensuring their loyalty:
Provide accurate delivery estimates
Nothing will betray customer trust quicker than a gift that didn’t arrive on time for the holiday season. Ensure that you display precise delivery estimates on your product, card and checkout pages. Specify the exact date or date range rather than a shipping speed (ex: 2-3 days) to ensure complete clarity regarding your customer’s time-sensitive order.Â
‍
Streamline Buy Online, Pick Up In Store (BOPIS)
For time-crunched shoppers, BOPIS is a lifesaver. It eliminates shipping delays and lets customers pick up items at their convenience. Ensure your BOPIS process is seamless, with easy online ordering, clear instructions, and speedy in-store retrieval. The faster and smoother the experience, the more likely they are to shop with you again.
Offer Expedited Shipping Options
Yes, expedited shipping can come at a cost, but it’s a necessity for late shoppers. Highlight “last day to order” deadlines clearly on your website and in your emails to create urgency. Partner with reliable carriers and use predictive analytics to forecast potential shipping delays so you can proactively address issues before they affect customer satisfaction.
Leverage Local Delivery Services
For shoppers who need gifts in a flash, local delivery services like DoorDash or UberEats-style couriers can provide same-day delivery for an extra fee. Partnering with these services lets you capture sales that might otherwise go to a competitor with faster options.
#4: Strengthen Customer Support
When consumers face financial stress, they lean heavily on brands that make their shopping experiences as seamless and stress-free as possible. Be the brand they trust by delivering customer support that's efficient, empathetic, and on point. Here's how to ensure your customer support team is holiday-ready:
Scale Up for the Seasonal Surge
Holidays mean more than just mistletoe and eggnog—they bring an avalanche of customer inquiries. Arm your support squad with resource management apps to keep the chaos under control. But if new tech feels like biting off more than you can chew right now, lean on downloadable, timesheet templates. It's a low-cost way to understand your employee's resource allocation and identify gaps.
Be Quick and Efficient
In the age of same-day delivery and instant communication, speed is non-negotiable. Equip your support team with tools to respond to inquiries within minutes, not hours. Whether it’s troubleshooting a product issue or updating shipping details, prompt responses can mean the difference between a completed purchase and an abandoned cart. Implement live chat or AI-powered chatbots to ensure help is available 24/7.
Go Omnichannel
Meet your customers where they are. Offer support across multiple channels, including email, social media, live chat, and phone. If a frustrated shopper tweets about a delayed shipment, responding quickly and courteously on Twitter can turn a potential complaint into a glowing review.
Offer Self-Service Options
Many shoppers prefer solving problems on their own—especially during the busy holiday season. Create a robust FAQ section, how-to guides, and even video tutorials to address common issues. A searchable knowledge base can empower customers to find answers without waiting in a virtual queue.
Turn Problems into Opportunities
Issues like order mishaps or delivery delays are inevitable during peak shopping periods, but how you handle them defines your brand. Address concerns promptly, offer compensation where appropriate, and go the extra mile to ensure satisfaction. A customer who feels valued—even after a hiccup—is far more likely to return than one whose complaints were dismissed or ignored.
#5: Inspire Through Experiences, Not Just Discounts
Sure, sales are a draw, but shoppers also crave experiences that go beyond the transactional. The secret to retaining holiday shoppers amidst inflation lies in offering something memorable—something that makes your brand stand out from the avalanche of discount codes flooding their inboxes. Here’s how to create experiences that turn one-time buyers into lifelong fans:
Augmented Reality (AR) Try-Ons
Inflation has shoppers scrutinizing every purchase, so help them feel confident by offering virtual try-ons. AR-powered tools can now simulate everything from how a piece of furniture looks in a room to how a lipstick shade complements different skin tones. These innovations reduce buyer hesitation and increase conversions.
Retailers selling holiday decorations, for instance, could offer an AR feature allowing shoppers to visualize how products—like wreaths, ornaments, or lights—look in their homes. This eliminates guesswork, making the “Add to Cart” button all the more irresistible.
Embrace the Phygital Shopping Experience
Blur the lines between brick-and-mortar charm and digital ease. Picture this: a dazzling holiday display stops a shopper in their tracks, and—voilà !—a cleverly placed QR code whisks them to an interactive gift guide or a special discount. It’s like gifting them convenience with a sprinkle of festive magic.
Running an online-only gig? No problem. Pop QR codes onto packaging or ads, leading customers to holiday hacks like how-to guides, festive recipes, or tailored product picks. It’s an effortless way to keep shoppers engaged while showing off your brand’s tech-savvy flair. And don’t worry about breaking the bank—free QR code generators are just a search away. Just be sure to pick one with solid reviews and safety features—your shoppers deserve nothing less.
Host Pop-ups and Events
If you’ve got a brick-and-mortar store, transform it into a winter wonderland with themed pop-ups or interactive displays. Think photo booths with snowflake backdrops, DIY gift-wrapping stations, or even hot cocoa bars. For digital shoppers, consider hosting virtual events like live-streamed workshops on holiday decorating or gift-giving ideas.
You can also partner with local influencers to boost event attendance. Their presence at your pop-up shop or virtual workshop can draw in their loyal followers, creating buzz and adding a layer of credibility to your brand. Incorporate elements like giveaways or exclusive event-only discounts to sweeten the deal.
Use Interactive Content
Hook your audience with interactive videos that don’t just tell your story—they show it in real time. With AI-powered graphic generators and interactive video creators, crafting immersive experiences is no longer reserved for big-budget studios. Now, anyone can bring their products to life without breaking the bank.
Picture this: a virtual holiday gift guide where shoppers can click to explore, see products in action, and purchase—all in one seamless journey. Not only does this offer an engaging experience, but it also keeps customers glued to your site longer, dramatically boosting your conversion chances. Bonus? Many interactive video tools feature demo automation capabilities, letting you send personalized, jaw-dropping demos at scale. Because why settle for good when you can go next-level?
#6: Create Value Customers Can’t Resist
By offering irresistible value, both in terms of monetary savings and emotional connection, you can ensure your brand shines amidst a sea of competitors. Here’s how to do it:
Apply Strategic Discounts
Discounts are the ultimate holiday draw, but they must be strategic. Instead of blanket markdowns, focus on targeted deals that align with your customers’ needs. Leverage analytics tools to identify best-selling products and bundle them with complementary items at a discount. Flash sales, time-limited offers, or “spend more, save more” promotions are excellent ways to create urgency and drive higher cart values.
Capitalize on Local Loyalty
Don’t underestimate the power of “shop local” campaigns, especially during tough economic times. Highlight locally sourced products or host community-focused events like holiday markets or charity drives. For online businesses, consider showcasing the artisans or suppliers behind your products to create a sense of connection and authenticity.
Introduce Exclusive Limited-Time Offers
Create a sense of urgency with exclusive, limited-time promotions. Whether it’s a flash sale, a countdown to midnight deals, or early access for loyal customers, these tactics tap into the FOMO (fear of missing out) effect. Highlight these promotions with bold messaging and a clear deadline to drive immediate action.
Incorporate Charitable Tie-Ins
During the holidays, many shoppers look to give back. Partner with a charitable organization and commit a percentage of holiday sales to a cause that resonates with your audience. Highlight the impact of each purchase to create a feel-good factor that encourages spending.
#7: Tap Into Influencer Marketing
When shoppers are scrolling through the Internet at midnight, looking for "Holiday Gifts Under $25," who do they trust? Spoiler alert: it's not that generic banner ad stalking them from site to site—it's the relatable influencer whose recommendations feel more like advice from a savvy best friend than a corporate sales pitch.
With their trusted voices, influencers help present your products as "must-haves," even tho those watching every dollar. Not just any influencers, though—the ones who genuinely resonate with their audience and don't look like they're hawking a new product every 24 hours. Here's how to wield the power of influencer marketing to your advantage this holiday season:
Focus on Alignment
Your chosen influencer should be the living, breathing embodiment of your brand values. For example, a sustainable fashion retailer pairing up with an eco-conscious influencer? That's a match made in marketing heaven. Their authentic message will amplify your story without a whiff of pretense.
But let's be real: manually combing through profiles to find your brand's soulmate can be time-consuming and painfully inefficient. That's where influencer discovery platforms come in. The right discovery tool will help you find influencers who not only align with your brand but also come with legitimate engagement rates.
Go Micro for Maximum Impact
While mega-influencers might boast millions of followers, micro-influencers—those with smaller but highly engaged audiences—often yield better ROI. Their followers trust them, and their endorsements feel more personal. Plus, they're often more affordable, which is a win-win when you're navigating tighter budgets.
Craft Campaigns with Heart
The holidays are about connection, so your influencer campaigns should evoke emotion. Create stories that resonate with shoppers—think cozy holiday mornings, gift unwrapping moments, or even a humorous take on inflation-friendly gifting.
Collaborate with influencers to integrate your brand seamlessly into their content, whether it's through holiday gift guides, unboxing videos, or even real-time live streams where they share honest, unscripted opinions. Authenticity wins hearts—and shopping carts.
Make This Holiday Season a Retention Win
Inflation may have turned consumers into price hawks, but exceptional experiences, meaningful personalization, and strategic loyalty programs can make your brand their festive favorite—without relying on fleeting promotional events. Play your cards right, and you won't just win the holiday season—you'll set the stage for a prosperous year ahead.
‍