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Increasing Lifetime Value During the Holidays

The holidays are a time of giving but also can be a time of one-time purchases. Customers actively search for meaningful gifts for their loved ones in places where they do not typically shop. The issue with these seasonal sales is that one-off shoppers can be difficult to retain over time. This lowers the shopper's lifetime value - the total worth to a business of a customer over the whole period of their relationship. To retain customers and turn them into lifelong relationships, companies must take advantage of holiday conversions and adjust their digital marketing strategy accordingly.

Formula for calculating lifetime value and customer lifetime value. 154 Agency is a full service marketing agency offering expertise in customer user experience, lifetime value, and digital marketing trends..
Formula for calculating lifetime value and customer lifetime value.

Rewarding customer loyalty is a vital way of leveraging the use of existing customers. This includes the implementation of loyalty programs and discounts that increases overall brand awareness while retaining a base of loyal customers. Today, 20% to 40% of e-commerce consumers are repeat customers. This suggests that the more a customer shops at a location the more likely they are to do so again. Additionally, the act of retaining customers is easier than attracting new customers. The holidays are therefore a pivotal time in which brands are attracting those rare new customers. Giving incentives to shop there again by signing up for loyalty programs, or even giving them a coupon, could be the difference in making a repeat customer.


After people are acquired into a membership program, brands should take steps to personalize discounts and promotions. One of the best ways you can incentivize consumers is through some type of reward. Studies show that 92% of consumers use coupons during their purchases. This can include discounts, free shipping, gifts, samples, or rewards that can be redeemed for money off. Further, brands can build personal content without losing money on coupons and gifts by utilizing email marketing. Mail software can use customer behavior and trends to automatically personalize the content marketing that customers receives.

Woman doing holiday shopping online. 154 Agency is a full service marketing agency offering expertise in customer user experience, lifetime value, and digital marketing trends.

Outside of incentivizing a customer to return, brands should take measures to ensure the best possible sales experience. Offering free shipping and returns, or a fast and mobile-friendly checkout experience, are two of the simplest ways to improve the customers user experience. Outside of smooth digital operations, companies should also ensure customer service is operating at their best. According to a Harvard Business Review study, more Americans seek customer service online over other platforms. By ensuring a positive digital experience, we can keep users engaged and prevent negative associations. By prioritizing the customer service and checkout process, one-off customers can remember a positive experience and be likely to return.


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