September 30, 2016
Holiday shoppers comprise 24% of annual revenue in retail categories such as apparel and electronics. You might assume that holiday customers buy gifts for others and won’t return for a second or third purchase. But the Magento Analytics Holiday Benchmark Report has revealed some remarkable findings. Want to learn how to retain holiday customers, and boost annual revenue? Read on.
Are the holidays a good time to grow your customer base?
Every day during the holiday season you can acquire up to 59 percent more customers. With clever marketing, you can enjoy some long term success: The Holiday Benchmark Report finds that the average commerce business acquires 23.8 percent of its new customers during the holiday season. Attract holiday shoppers by fine-tuning your customer acquisition and retention spending plans.
Do holiday customers come back?
The study found that holiday customers make a second purchase 27 percent of the time. That’s compared to non-holiday customers, who made a second purchase 30 percent of the time. This data proves that there is an opportunity to turn holiday shoppers into regulars using remarketing. By tapping your analytics, you can identify the source of your most valuable holiday customers and invest marketing dollars into the highest-impact channels.
When is it best to remarket to a holiday shopper?
There is an incredible opportunity to increase annual revenue by hitting holiday shoppers quickly, in the same holiday period. Of all holiday shoppers who made a second purchase, 38.7 percent made their next purchase in the same holiday season. And 42.4 percent made their next purchase in the following off-season. The takeaway here? Hit them fast with another offer. Find the best times to email your existing customers and reactivate them with targeted holiday campaigns.
Are customers acquired during the holidays more or less valuable than other customers?
Well, new customers are worth less, but considering the heavy discounts that drive many holiday acquisition strategies, it’s not by much. Despite the expectation of a much lower Customer Lifetime Value, the Holiday Benchmark Report found only a 13% drop in CLV during the holiday period. Provide your team with a single source of truth and centralized goals to help drive holiday performance.
How does your customer data compare to the Holiday Benchmark?
Find out how your own customer data stacks up to this industry data with the Holiday Dashboard from Magento Analytics so you can make smarter decisions before, during, and after the holiday rush.
Use the dashboard to determine where to invest marketing dollars, when to retarget holiday customers, fine-tune spending plans, and centralize revenue goals.
Contact Magento Analytics today and get started on customizing your Holiday Dashboard so you can optimize your customer acquisition and activation.
Robert J. Moore is the head of Magento Analytics at Magento Commerce and the Chairman of Stitch. He was previously co-founder and CEO of RJMetrics (acquired by Magento Commerce in 2016), a SaaS business intelligence company with the mission of inspiring and empowering data-driven people. A regular writer and speaker, Bob also guest lectures at Princeton University.