Personalization and loyalty will win the holiday shopping season

Retailers excel in personalization by leveraging transaction and zero-party data (ZPD) to create tailored shopping experiences, especially during holidays.

It’s no surprise that retailers are among the top performers when it comes to personalization. The frequency of customer interactions plays a significant role, and not all retailers are equal. For example, while car dealerships may only interact with a customer once every few years, grocery retailers might engage with shoppers weekly or even daily. This regularity allows retailers to accumulate a treasure trove of data, which they can use to craft highly personalized shopping experiences.

However, transaction data is only half the story; the other half is marrying those data with more personal data points about the customer. This is zero-party data (ZPD): typically information that consumers share directly, such as interests, preferences or motivators. It is best acquired through a value exchange, where brands provide something of value to consumers for their data.

As it turns out, retailers are perfecting the art of gathering and utilizing zero-party data alongside transactional data to blaze a path towards effective personalization that drives conversions and fosters long-term customer loyalty. This is especially crucial during high-stakes shopping periods like the holiday season.

Holiday shopping strategies: leveraging data for success

The holiday season presents a prime opportunity for retailers to use their data-driven insights to engage with customers across multiple touchpoints. Leading retail brands – who dominate the Top 15 in Marigold’s Relationship Marketing Trends: Brand Rankings Report – have honed their personalization strategies and are reaping the rewards. A common thread among these top-performing brands is their robust loyalty and rewards programs, which are crucial to maintaining customer engagement during the holidays. Here’s how they do it:

1. Personalized offers and recommendations

Retailers can use their treasure trove of data, including zero-party data, to create personalized offers for holiday shoppers. For example, retailers can use loyalty program data to create targeted promotions for members, such as early access to Black Friday deals or exclusive holiday discounts. This not only drives immediate sales but also deepens customer loyalty.

Walmart (#1 in the Brand Rankings Report)

Walmart has excelled by using its Walmart+ program to offer significant perks, from free shipping to exclusive holiday deals and early Black Friday access. The program’s combination of convenience, value, and exclusivity makes it a powerful tool for customer retention, particularly during the holiday rush.

2. Multi-channel engagement

Successful holiday marketing is about meeting customers where they are. Whether it’s in-store, online, via mobile apps, or social media, top retailers ensure their customers can engage with them seamlessly across all platforms. This integrated approach fosters a cohesive brand experience.

Adidas (#10)

The adiClub loyalty program stands out for its ability to keep customers engaged beyond purchases. Members earn points by interacting with the Adidas app, reviewing products, and staying active, all of which contribute to an immersive shopping experience. With exclusive rewards like early product access and personalized offers, Adidas creates a year-round relationship with its customers that peaks during the holiday season.

3. Loyalty programs that offer more

A compelling loyalty program can be a retailer’s best weapon during the holiday season. Many top brands leverage these programs to stand out by offering exclusive deals, early access to promotions, and additional rewards for repeat customers.

John Lewis (#12)

John Lewis’s “My John Lewis” program exemplifies a loyalty program that goes beyond the transactional. The program builds long-lasting customer relationships by offering early access to products, exclusive events, and eco-friendly rewards. During the holidays, the program’s flexibility and thoughtful perks are key drivers of customer engagement.

As the holiday season heats up, a well-designed loyalty program combined with personalized, data-backed marketing strategies can make a significant impact. The top-performing brands show that personalization, omnichannel engagement, and customer-centric rewards are the essential ingredients for success during the holiday shopping season.

By emulating these strategies, retail brands can set themselves up for a winning holiday season – one that not only boosts sales but also fosters customer loyalty well into the new year.