How many customers do you need to retain and acquire this holiday season to hit your goals? Which channels are driving retention versus profitable new customer acquisition? Now is the time to be answering those questions as you plan, test, and build your holiday digital marketing strategy. While there is still uncertainty around the fall and holiday seasons, the below trends and recommendations will help set you up for success and enable you to make quick decisions as the season approaches.
Retention
- Data via Epsilon PeopleCloud Messaging for the week ending June 20 showed some of the lowest open rates (18%) and click–through rates (1.5%) since early March. While some of this can be attributed to seasonality, it shows that email cannot be the only channel for CRM. As consumers start venturing out to shop in stores, a broader CRM strategy is critical.
- In May 2020, the share of products purchased through smartphones increased by 10% compared to January 2020 (pre-COVID-19). With smartphones in consumers’ hands more than ever, many brands have seen success driving incremental revenue through reactivation in SMS. If this is a channel you’ve considered, now is the time to test, to determine the potential for fall/holiday investment.
- As states reopen (and close again) it will be important to target loyal in-store shoppers by encouraging them to visit re-opened stores or purchase virtually. We recommend including a local plan by store market in your CRM strategy for fall/holiday to ensure personalized and up-to-date information is reaching your best customers.
Acquisition
- Revisit LookAlike models in paid social to ensure you are modeling off of your most recent consumers. With many consumers’ ability to earn and spend currently impacted, it will be important to target customers who are shopping during the past two months.
- Continue to offer surprising and delightful value through customer service, virtual experiences, promotions and curated lists. With consumers unable to window-shop and discover new brands in-person, there will be an opportunity to differentiate your brand through virtual offerings and added value.
- Watch for new channel opportunities and test them now. YouTube announced a new direct-response shoppable format late last month. TikTok, while still a niche channel, is aiming to compete with Facebook and Google by launching a self-serve ad platform directed at SMBs.
