Nearly 70% of retailers struggle to retain customers after the festive season, facing challenges such as customer drop-off and growing competition, according to a report by customer data platform WebEngage.
Key͏͏ Challenges:
Retaining͏͏ customers͏͏ is͏͏ challenging͏͏ due͏͏ to͏͏ distracted͏͏ users,͏͏ intense͏͏ competition,͏͏ high͏͏ post-festive͏͏ engagement͏͏ costs,͏͏ and͏͏ insufficient͏͏ customer͏͏ feedback.
The͏͏ report,͏͏ titled͏͏ ‘The͏͏ State͏͏ of͏͏ Festive͏͏ Marketing͏͏ Report͏͏ 2024,’͏͏ is͏͏ based͏͏ on͏͏ consultations͏͏ with͏͏ over͏͏ 250͏͏ industry͏͏ insiders͏͏ and͏͏ shoppers.͏͏ It͏͏ underscores͏͏ how͏͏ brands͏͏ are͏͏ utilising͏͏ trends͏͏ and͏͏ data-driven͏͏ strategies͏͏ to͏͏ improve͏͏ their͏͏ seasonal͏͏ marketing͏͏ initiatives.
What͏͏ Drives͏͏ Festive Campaign͏͏ Success?
The͏͏ report͏͏ identifies͏͏ prices,͏͏ new͏͏ launches,͏͏ and͏͏ user͏͏ experience͏͏ as͏͏ the͏͏ main͏͏ factors͏͏ that͏͏ make͏͏ festive͏͏ campaigns͏͏ attractive͏͏ to͏͏ consumers.͏͏ Notably,͏͏ 77.6%͏͏ of͏͏ those͏͏ engaging͏͏ with͏͏ these͏͏ campaigns͏͏ are͏͏ millennials͏͏ aged͏͏ 25͏͏ to͏͏ 34.
Approximately͏͏ 98%͏͏ of͏͏ brands͏͏ connect͏͏ with͏͏ users͏͏ through͏͏ online͏͏ channels,͏͏ while͏͏ nearly͏͏ 45%͏͏ utilize͏͏ omnichannel͏͏ marketing͏͏ to͏͏ reach͏͏ both͏͏ offline͏͏ and͏͏ online͏͏ audiences.
Continue͏͏ Exploring:͏͏ Online͏͏ retailers on͏͏ track͏͏ for͏͏ 20-25%͏͏ growth͏͏ this͏͏ festive season
“The͏͏ festive͏͏ season͏͏ presents͏͏ brands͏͏ with͏͏ a͏͏ valuable͏͏ opportunity͏͏ to͏͏ attract͏͏ new͏͏ customers͏͏ while͏͏ re-engaging͏͏ many͏͏ inactive͏͏ users.͏͏ However,͏͏ it’s͏͏ crucial͏͏ to͏͏ maximise͏͏ the͏͏ lifetime͏͏ value͏͏ of͏͏ both͏͏ acquired͏͏ and͏͏ reactivated͏͏ customers,”͏͏ stated͏͏ Ankur͏͏ Gattani,͏͏ Chief͏͏ Growth͏͏ Officer͏͏ at͏͏ WebEngage.
The͏͏ report͏͏ reveals͏͏ that͏͏ while͏͏ brands͏͏ typically͏͏ plan͏͏ their͏͏ campaigns͏͏ three͏͏ to͏͏ six͏͏ months͏͏ ahead,͏͏ 54%͏͏ of͏͏ them͏͏ begin͏͏ their͏͏ pre-festive͏͏ campaigns͏͏ only͏͏ within͏͏ 30͏͏ days͏͏ of͏͏ the͏͏ launch.
Brands͏͏ across͏͏ various͏͏ sectors͏͏ start͏͏ their͏͏ preparations͏͏ early,͏͏ particularly͏͏ e-commerce͏͏ and͏͏ direct-to-consumer͏͏ (D2C)͏͏ brands,͏͏ which͏͏ make͏͏ up͏͏ 41.2%͏͏ of͏͏ those͏͏ involved͏͏ in͏͏ festive͏͏ marketing.
Short͏͏ Campaigns͏͏ Drive͏͏ Success:
Campaigns͏͏ that͏͏ run͏͏ for͏͏ less͏͏ than͏͏ seven͏͏ days͏͏ are͏͏ frequently͏͏ more͏͏ successful͏͏ for͏͏ multi-product͏͏ platforms.͏͏ This͏͏ brief͏͏ timeframe͏͏ fosters͏͏ urgency,͏͏ encouraging͏͏ consumers͏͏ to͏͏ make͏͏ faster͏͏ purchasing͏͏ decisions,͏͏ according͏͏ to͏͏ the͏͏ report.
