Beyond the buzz: How to retain customers after festive highs

During the festive season, consumer behaviour shifts significantly toward shopping and gifting. People are more willing to spend on products like home appliances, making it a crucial period for brands to capture attention and drive sales.

A survey by market research firm Ipsos Research, commissioned by Amazon India, found 71% of respondents plan to shop online this festive season.

However, retaining customers post-festive season is challenging for brands. According to customer retention platform WebEngage’s The State of Festive Marketing Report 2024, 70% of marketers face difficulties in keeping customers engaged once the holiday excitement fades.

Ankur Gattani, chief growth officer, WebEngage, emphasises that today’s consumers expect more than just discounts. Brands can retain both new customers and dormant ones by creating opportunities for them.

“This is where automation, personalisation, and customer journey management come into play. Instead of simply offering more discounts, brands should focus on educating customers about product usage and creating tailored communication that resonates with them,” adds Gattani.

Experts agree that brands need to focus on curated, meaningful offers that align with the spirit of the festivities.

Jacob Joseph, VP of data science at CleverTap, states that while promotions like “50% off” attract attention, they often fail to stand out. Instead, brands should leverage data-driven insights to provide hyper-personalised recommendations that foster emotional connections with customers.

“This creates a sense of exclusivity and keeps the brand top of mind even after the festive season,” he adds.

Nurturing long-term consumer relationships

To nurture long-term relationships, brands must innovate strategies beyond traditional discounts. Personalising incentives based on customer behaviours—such as offering discounts for restocking—can improve retention.

Raviteja Dodda, CEO and co-founder of MoEngage, a customer engagement platform, notes that brands should focus on comprehensive customer experiences, anticipating needs, and maintaining consistent communication. Strategies like rewards programmes can enhance loyalty without relying solely on price reductions.

Prashanth “PVK” Krishnaswami, global head of market strategy at Zoho Corp, argues that sustainable pricing promotions are not viable long-term. Instead, brands should invest in customer experience technology that delivers personalised interactions at scale, which builds brand equity against price-based competition.

Increasing demand for personalisation

The demand for personalised experiences and value-based interactions from brands is growing rapidly. Gattani says that in a world where holiday discounts and seasonal promotions often take centre stage, it’s becoming clear that customers now expect more meaningful and tailored engagements beyond the festive buzz. The shift is no longer just about price or promotions—brands that offer personalised interactions are seeing higher customer retention and loyalty.

He further advises smaller brands to adopt similar strategies, focussing on personalising communication based on customer behaviour and using automation to ensure that engagement remains relevant.

“Consumers respond with their wallets—they are drawn to brands that offer relevant, personalised experiences. They may not tell you outright, but if they feel a lack of personalisation or are bombarded with irrelevant offers, they will simply move on to a brand that knows them better,” adds Gattani.

Dodda echoes this sentiment, noting that today’s consumers are looking for brands to go beyond transactions and engage on a more personal level. Talking about how MoEngage helps brands tap into these expectations, he states, “We enable brands to deliver personalised messages across channels. By understanding individual customer journeys and using AI-driven insights, brands can create more relevant, value-based engagements that resonate deeply with consumers.”

Retaining consumers

As consumer expectations evolve, brands are increasingly relying on a mix of personalised content, strategic product launches, and loyalty programmes to bring customers back beyond the festive period.

Krishnaswami emphasises the importance of timing product launches outside the festive season. “One interesting thing brands can try is to time their product launches either much before or much after the festive season. This strategy keeps excitement alive during quieter months, encouraging customers to stay engaged with the brand.

He also advocates for providing consistent value through educational content. As customers learn interesting things or skills from a brand, they're more likely to return if they have a question or need.

Dodda stresses the need for brands to maintain engagement without overwhelming customers. “We've seen success with brands that use segmented and behaviour-triggered communications, offering relevant content and personalised product recommendations,” he notes.

By leveraging analytics and understanding customer preferences, brands can craft targeted campaigns that resonate with individual interests. This personalised approach makes customers feel valued, encouraging them to return, beyond the festive fever.