The holiday season is the busiest time of the year for brands, and it’s challenging to retain customers when almost every brand launches flashy sales with whopping discounts. However, brands having Loyalty programs have the upper hand even before the season arrives, as more than 73% of millennial shoppers become part of loyalty programs to gain holiday season benefits. 

Not just this, the stats below reveal the growing importance of loyalty programs: 

• 81% of consumers shopped for specific brands because they were members of a loyalty program. 

• Amid soaring inflation, half of Americans believe loyalty programs are more critical than ever.

• Loyalty program customers bought 25% more per purchase during holidays and other seasonal sales. Meanwhile, first-time buyers only accepted 4% to 17% more per purchase.

            Key takeaways: 

• Your existing loyalty program members are expecting more in terms of value, experience, and rewards this holiday season
• Loyalty program members are top contributors to holiday season revenue. 

For any holiday season, loyalty programs play a pivotal role. But 2022 is different. Compared to 2021, omnichannel shoppers have increased, gamified experiences are influencing the buyer’s journey & expectations of a 1:1 retail experience have made personalization a priority for marketers. Ultimately, every brand chase one goal – to engage & retain maximum customers during and post-holiday season. Additionally, brands need to win customers on experience rather than relying on discount-heavy sales to attract price-loyal customers. 

To boost engagement, marketers should not leave any stone unturned amidst factors like inflation & rising competition. This requires a holistic approach to unlock multi-dimensional loyalty and win customers that prefer brands irrespective of the market scenario. 

The tactics below are proven to inspire customer loyalty during the holiday season and beyond: 

1. Millennials & Gen-Z love gamified experiences. 

Gaming activity around the world has risen in the past couple of years. More than 60% of gen-z & millennials engage weekly in online gaming. 

Marketers are still catching up, as 61% use gamification during the holiday season to boost customer engagement. Exclusively for this holiday season, Starbucks has launched “Starbucks for life” to seize the excitement among customers. 2 lucky winners will win free deals for at least 6 months on stores across Starbucks. They need to collect cards received post-transaction and create a gameboard.

Indeed, gamification is a catalyst for engagement, and has a significant impact on the retention rate post-holiday season of loyalty programs running throughout the year. But it requires a data-driven approach to set up appealing rewards and interesting games that encourage customers to participate. 

2. No personalization = No retention 

Millions of dead emails are trashed by customers that sound similar to everyone. 71% of millennials are frustrated with irrelevant & generic emails from brands. 

A frustrated customer & generic marketing strategy is certainly not a sign of growth, especially during the holiday season when nearly 68% of shoppers open their emails more than at any part of the year. The key to winning customers during the holiday season is personalized emails, communication, rewards, and experiences.

Thrivemarket uses quizzes to collect data from new customers, and it helps them recommend personalized products from the first day. In 2022 and beyond, personalization is not optional for marketers. Loyalty programs capture valuable first-party data to produce segmented offers and personalized communication.

3. Empathetic loyalty is powerful enough to beat transactional loyalty. 

The holiday season is about fun, enjoyment, and doing good for others. Nearly every retail brand launches flashy sales with heavy discounts. Expedia has won millions of hearts with its “Santa Flies Coach” campaign. A Santa flies through different countries to finally reach St. Jude’s Children’s research hospital in Tennessee – and Santa is there to spread Expedia+ points. That campaign has inspired millions of its loyalty program members to donate their share of points to charity. The message was clear – donate surplus points earned while traveling with Expedia. 

With more than 40% of loyalty program members considering it appealing to have the ability to donate loyalty points, marketers can delight customers this holiday season. Also, Zinrelo – a leader in the loyalty industry, recently announced that it would match 100% charitable donations made through its loyalty platform by members. To spread the holiday cheer, Zinrelo inspired a billion people to participate in giving back to society. 

4. Timing matters most during the holiday season.

Marketers know that more than 40% of annual revenue comes from the holiday season. Not just marketers but customers are also prepared to leverage discounts and rewards. Therefore, timing becomes a crucial aspect of better customer engagement.

Many brands launch pre-Christmas sales early in December to attract customers. The holiday season last year was barred by supply chain problems. But 2022 is expected to surpass $1.3 trillion in retail sales. Walmart announced that Walmart+ members could get early access to their Christmas sales. A holiday-ready loyalty program takes a holistic approach to creating personalized offers for its most loyal customers at the right time. It is possible when data-driven infrastructure leverages the technology software to produce a flawless customer experience. 

5. Be the odd one out – themify the loyalty program. 

Early access, flashy deals, and unique campaigns are tactics used by almost every brand during the holiday season. To stand out, marketers can themify the complete loyalty program.

The user interface can be designed according to the holidays to give a celebratory feeling. For example, marketers can customize emails with a red-white theme and Santa Claus phrase – “Ho Ho Ho.” 

Sephora changed the color theme of its loyalty program and offered unique gifts to its most loyal members. 

In addition, to inspire emotional loyalty over transactional loyalty, brands need to acknowledge the non-monetary activities of their members. For example, Disney asks its loyalty program members to find a code they share daily on social media. Members sharing this code in their mobile app can unlock loyalty points of up to 130.

Bonus Tactics for 2022 post-holiday season engagement

• Create a micro-influencer program. Reward micro-influencers for sharing your products on social media. 
• Partner with brands that are helpful to your customers.
• Launch a post-holiday campaign by reminding customers about rewards or points they have in their membership account. 
• Use email automation for personalized recommendations and communication. 
• Reward members for user-generated content to spread brand awareness faster. 

It’s tough to engage customers in the busiest part of the year, but it is necessary at the same time. Brands need to up the ante to stay ahead of customers and meet their expectations. Marketers can create a strong impact this holiday season through a holistic approach with data, technology, and strategy aligned towards the same goal.