70% of Marketers Face Customer Retention Challenges Post-Festive: WebEngage

WebEngage, a leading full-stack Retention Consultancy, has released “The State of Festive Marketing Report 2024,” revealing that 70% of marketers encounter difficulties in retaining customers once the festive season concludes. This comprehensive report draws insights from over 250 industry experts and shoppers, shedding light on the challenges and strategies within festive marketing.

The festive period is pivotal for brands, offering opportunities to connect with consumers through innovative pre-festive campaigns, engaging promotions, and thoughtful follow-ups. However, many marketers struggle with customer drop-off and fierce competition after the celebrations.

Ankur Gattani, Chief Growth Officer at WebEngage, stated, “The festive season provides a unique chance to acquire new customers and reactivate dormant ones. It’s essential to maximise the lifetime value of these relationships. Our report outlines strategies, including pre-festive planning and personalised engagement, to enhance marketing ROI during this critical time.”

Key findings from the report include:

1. Attraction Factors: Consumers are primarily drawn to festive campaigns through attractive pricing, new product launches, and an engaging user experience.
2. Sector Engagement: The E-commerce, EdTech, and BFSI sectors are the most active in utilising festive marketing strategies, effectively showcasing their products in a festive context.
3. Omnichannel Marketing: An impressive 98% of brands engage users through online channels, with 45% employing omnichannel marketing to create a cohesive customer experience.
4. Planning Timeline: While brands typically start campaign planning 3-6 months in advance, 54% begin their pre-festive initiatives only within 30 days of launch, indicating a need for better advance preparation.
5. Sales Duration Strategy: Campaigns lasting less than 7 days are often more effective for multi-product platforms, creating urgency and driving faster purchasing decisions.
6. User Interaction: Understanding consumer interactions with festive campaigns is vital. The report explores user preferences and behaviours, enabling brands to tailor future campaigns for greater engagement.

Despite the opportunities presented during the festive season, brands frequently face challenges maintaining customer engagement post-festivities. Key recommendations include spacing out promotions throughout the year to avoid consumer fatigue, as continuous sales can diminish urgency and effectiveness.