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Customer Types Helping Retailers This Holiday Season

3 min read
 

 

It’s that time of year again when the holiday shopping frenzy kicks in! 

Coming up in the next few weeks, we have Black Friday, Cyber Monday, Christmas and of course, New Year’s Eve. With all of these busy shopping days almost at retailers doorsteps; it’s important to be prepared for a variety of website visitors. 

According to a study by McKinsey, the holiday season is responsible for as much as 30% of a retailer’s sales for the year with the expectation that it’ll go up. With such high stakes, it’s important to understand what customers expect from their shopping experiences. 

Understanding customer types can be a vital part of offering visitors a refined and tailored experience. Proper segmentation is necessary to create messaging that not only converts but resonates with potential and existing customers. By combining real-time omnichannel behaviour, ecommerce companies can provide a highly personalised online journey. 

Active & Loyal

This type of customers keeps coming back again and again. These are the customers you can count on to be a significant part of your revenue and who are also more likely to recommend you to a friend. They will act as a brand ambassador when needed and will be a vital part of your social strategy. Understanding how to interact with active loyals will help you solidify the relationship but also give them more to praise the company for. Interacting with active loyals in a personalised and tailored way can help to increase their AOV, get them sharing your story and ultimately help bring new customers in.

So how can you keep the active loyal happy and singing your praises?

  • Always give them a platform to use their voice 
  • Send special offers that are tailored to their shopping habits
  • Get them involved in ongoing surveys and feedback loops where you can demonstrate your intention to improve their experiences
  • Offer them the personalised services they deserve

Churned Customers

Not all churned customers are a bad thing – you can really learn from what needs improvement however, the goal is always to re-engage them. Winning back a churned customer can be a worthwhile effort because these people have demonstrated a need for your service which already makes them far better prospects than generated names on a cold call list. They understand the company and are well aware of the services/products you provide which means there isn’t a need to educate them on the benefits. The holiday season can be a great way to engage with churned customers around a topic that is already being discussed – gift shopping. Chances are, they are looking for ways to make their shopping experiences as seamless as possible around this hectic period and it’s up to businesses to manage that. 

So how can you use the right ‘win-back’ strategies to get back into customers good graces?

  • Focus on loyal and profitable customers rather than all customers with the potential to churn 
  • Always analyse churn and assess the reasons around it – use data to make the right decisions for your business 
  • Show customers that you value them by being proactive and understanding to their dissatisfaction – the more you know the better chances you have to prevent churn or win-back clients

One Time Shoppers

While many holiday shoppers can be considered one time shoppers, the holiday shopping season brings a great opportunity to reach consumers at a time when they may be most willing to make purchases. While many gift shoppers can fall into categories like ‘one-time shoppers’ (meaning they don’t intend on visiting your website again) it doesn’t always have to be the case. Retailers have a huge opportunity to turn these one time shoppers into repeat customers if they can cultivate the right discounts, engagements, messaging and discussions. In other words, these shoppers may be fully willing to become lifelong customers if they receive a memorable and outstanding service. A study by Salesforce indicated that  81% of consumers are more likely to shop at a business again after they’ve received good service. That same study also confirmed that a 5% increase in customer retention leads to a 125% increase in profits overall. 

So how can you turn gift shopping one-timers into lifelong ambassadors?

  • Make them an offer they can’t refuse – based on their own real time data!
  • Give customers access to your expertise as well as your products
  • Have a way to interact with them on a monthly, biweekly or weekly basis such as a newsletter
  • Respond to their preferred behaviour in a personalised and meaningful way – it’s the holiday season after all!

Although not every one-time gift shopper who will visit your site can become a return customer, there will likely be a high percentage of visitors with that potential. 

It’s important to concentrate on building experiences during this busy holiday season that are relevant to their behaviours and motivations as a gift shopper to ensure you leave a lasting impression of your brand to hopefully encourage repeat purchasing. 

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