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Festive Season Frenzy: Should You Focus on Newbies or Nurture Your VIPs?

Has the festive season frenzy already got you stressed? Discover whether to shower new customers with love or pamper your VIPs. Our expert advice will help you make the most brilliant move for your business this holiday season. Let's get festive!

Written by

Caroline McQueen ACIM

what's in store

The festive season is a rollercoaster of emotions for brands, isn’t it? On one hand, the intoxicating promise of skyrocketing sales with Black Friday and Cyber Monday is just around the corner. On the other hand, the sheer competition can feel like trying to unwrap a tangled mess of tinsel.

Traditionally, brands go all out to lure in new customers during this peak period. It’s like they’re obsessed with expanding their guest list for the biggest party of the year. But hold your horses! Recent research suggests there might be a more profitable path to holiday cheer.

What if, instead of chasing new faces, you focused on making your existing customers feel like the VIPs they are? Let’s explore why nurturing your loyal fan base might just be the secret ingredient to a truly merry and bright sales season.

Festive Season Gift Boxes With Discount Signs for Black Friday
Photo by Max Fischer from Pexels

The Myth of the Net New Customer Obsession in Q4

The festive season is synonymous with consumer frenzy, and brands often find themselves caught up in the whirlwind of acquiring new customers at any cost. This traditional approach, characterised by aggressive advertising campaigns and deep discounts, has long dominated the peak shopping period. However, a closer look reveals a compelling case for rethinking this strategy.

Acquiring new customers is undoubtedly essential for business growth. However, the relentless pursuit of new faces during peak seasons comes with significant drawbacks. High customer acquisition costs (CAC) are a common consequence as brands compete fiercely for attention. Moreover, the conversion rates for these newly acquired customers often need to catch up to expectations. While it’s tempting to believe that more customers equals more sales, the reality is that the quality of those customers matters just as much.

Recent research from Klaviyo challenges the long-held notion that new customers are the holy grail of festive season success. The data paints a compelling picture: existing customers are driving a substantial portion of peak season sales. These loyal patrons not only contribute significantly to quarterly revenue but also provide the financial backbone to fuel customer acquisition efforts throughout the year. In fact, a staggering 45% of sales during the 2023 peak season were attributed to existing customers.

It’s clear that the time has come to shift the focus from a relentless pursuit of new customers to a strategic approach that prioritises nurturing existing relationships. By investing in customer loyalty and retention, brands can unlock a wealth of benefits, from increased customer lifetime value to powerful word-of-mouth marketing.

The Power of Prioritising Your VIPs

At the heart of sustainable business growth lies a metric that often gets overshadowed by the pursuit of new customers: Customer Lifetime Value (CLTV). CLTV represents the total revenue a customer is expected to generate throughout their relationship with a brand. By focusing on maximising CLTV, businesses can build a solid foundation for long-term success.

Nurturing existing customer relationships is paramount to boosting CLTV. These loyal patrons are more likely to convert sales, spend more per purchase, and become enthusiastic brand advocates. This translates into higher revenue, reduced customer acquisition costs, and invaluable word-of-mouth marketing – all of which are essential for thriving in the competitive festive season.

A prime example of a brand that mastered the art of leveraging existing customer relationships during the festive season is Popflex. The athleisure brand, founded by fitness influencer Cassey Ho, implemented an exclusive early access sale for its top loyalty program members. This strategy proved immensely successful, with the first hour of the sale becoming the highest-revenue hour of the year. By making their VIP customers feel special and valued, Popflex not only drove significant sales but also deepened their loyalty.

With platforms like Klaviyo, identifying and rewarding your most engaged customers has never been easier. By segmenting your customer base and tailoring your marketing efforts to this valuable group, you can unlock the full potential of your VIPs and create a festive season that delivers exceptional results.

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Strategies to Re-Energise Your VIPs This Festive Season

To truly capitalise on the potential of your existing customer base, it’s essential to implement strategies that re-energise and reward your VIPs. Here are some actionable tips:

Personalised Engagement

  • Exclusive VIP Perks: Offer unique discounts, gifts, or early access to sales exclusively for your VIP customers. A VIP discount, for instance, can be a powerful way to show appreciation for their loyalty.
  • Targeted Email Campaigns: Utilize email marketing platforms like Klaviyo to segment your VIP customers and deliver personalised campaigns with exclusive offers and festive greetings. Consider creating a dedicated VIP email newsletter for even more exclusive content.

Loyalty Program Incentives

  • Tiered Rewards: Implement a tiered loyalty program that offers escalating benefits as customers reach higher tiers. This creates a sense of progression and encourages increased spending.
  • Personalised Recommendations: Leverage customer data to offer personalised product recommendations based on purchase history and preferences. This demonstrates a deep understanding of your customers’ needs and increases the likelihood of conversion.
  • Loyalty Program Partnerships: Collaborate with complementary brands to offer exclusive rewards or experiences to your VIP customers. This can create added value and excitement.

Digital Re-engagement

  • Social Media Retargeting: With Klaviyo’s Facebook integration, you can take advantage of the social platform to create targeted ad campaigns for your VIP customers. Showcase exclusive offers, limited-edition products, or behind-the-scenes content to maintain engagement.
  • SMS Marketing: Send personalised SMS messages with exclusive offers, reminders about upcoming sales, or invitations to VIP events. This direct channel can drive immediate action and increase customer loyalty.

Take a Customer-Centric Approach to Your Holiday Marketing

Remember, the heart of any successful customer retention strategy is a genuine commitment to the customer experience. You’ll foster stronger relationships and drive long-term business growth by prioritising your VIPs and demonstrating your appreciation for their loyalty.

By implementing these strategies, you can transform your VIP customers into passionate brand advocates who will not only drive sales during the festive season but also contribute to your brand’s success throughout the year.

‘Tis the Season to Slay Sales: Wrap Up Your Festive Strategy

The festive season is a time of immense opportunity for brands, but it’s crucial to approach it with a strategic mindset. This article has highlighted the limitations of the traditional “new customers at all costs” approach, emphasising the significant value of nurturing existing customer relationships. By prioritising your VIPs and implementing targeted strategies, you can boost customer lifetime value, increase sales, and build a loyal customer base.

While acquiring new customers is essential for long-term growth, it’s equally important to invest in retaining and growing your existing customer base. Striking a balance between these two areas will position your brand for sustainable success.

Ready to transform your festive season strategy? Download our free Q4 holiday marketing calendar to gain valuable insights, key dates, and actionable strategies to maximise your impact. Let’s make this holiday season your most successful one yet!

caroline-mcqueen-digital-strategist
Meet the author
Caroline McQueen ACIM
I help ambitious founders launch and scale unforgettable brands that effortlessly attract customers around the web and offline — without blowing the budget on social ads (Zuck that!) Off the clock, I enjoy Netflix marathons, French lessons, and exploring my local farmer’s market for culinary adventures.
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