Holiday shopping doesn’t stop on Dec. 25. Instead, retailers see devoted shoppers continue hunting for gifts for both loved ones and themselves after the holiday rush. The devoted shopper mindset is one of the four mindsets consumers move through during the holiday season, and these shoppers represent a significant revenue opportunity for retailers.
To capture post-holiday season demand, keep up the momentum after Christmas and invest in loyalty programs and app campaigns to meet devoted shoppers.
Don’t miss the fastest-growing holiday sales period
Last holiday season, the devoted timeframe (Dec. 25-Jan. 1) saw the highest sales growth compared with any other period from Oct. 1 to Jan. 1, according to U.S. Mastercard SpendingPulse. This makes the week after Christmas the fastest-growing sales period of the season. Surprised? You’re not the only one.
There’s a rise in self-gifting during this period, with many using this time to treat themselves after completing their shopping for others. Per the Google-commissioned Ipsos Consumer Continuous survey, 45% of Americans say they enjoy shopping after Christmas. And last year, the percentage of those shopping for themselves was significantly higher post-holiday (Dec. 26, 2023-Jan. 3, 2024) compared to the rest of the season, per the Google/Ipsos holiday study.
So, how can you be poised to meet this revenue opportunity? Loyalty programs are an effective tool.
Capture demand post-season with loyalty programs
Did you know that one in five purchases during the 2023 holiday season were made using loyalty points? That’s what the Google/Ipsos holiday study discovered. And, per Google global Search data, did you know that more than 40% of shopping searches on Google mention a brand or retailer?
Loyalty promotions can help you tailor your bidding and ads for customers inside—and outside—of your loyalty list in a privacy-safe way. Google has introduced new features that allow retailers to differentiate promotions to loyalists, showcasing member-exclusive products or special pricing, and target those in need of an extra nudge to purchase again. Notably, loyalty programs are particularly effective at capturing demand among devoted shoppers with 65% of U.S. consumers saying loyalty programs are important to them during post-season shopping, according to the Google/Ipsos holiday study.
What’s more, loyalty also drives purchase confidence. Purchase confidence is 2.4X higher among shoppers with a strong connection to the brand compared with shoppers who do not have a strong connection, per “The Relevance Factor” from Google/Ipsos. And Google found that confident consumers are 6X more likely to want to buy again and 18X more likely to recommend the brand to family or friends than those with low confidence.
Lastly, consider leveraging your app for your loyalty programs: 60% of iOS app users turn into loyal customers after their first purchase, according to Appsflyer’s “The State of Ecommerce App Marketing Report 2024,” and the average combined spend of app and web users is +31% higher when compared to solely web users, per an MTM survey. You can use Web to App Connect to drive incremental conversions for your web campaigns and promotion assets for App campaigns to further boost your sales potential by highlighting special offers. Or look to Google AI to help your brand gain a competitive advantage and optimize for both known and emerging peak days on your mobile app.
An apps-first holiday strategy for long-term growth
Last holiday season, sportswear brand adidas knew it was essential to show up across multiple platforms to keep up with the increasingly complex consumer journey.
With the knowledge that the adidas app drives higher engagement, brand loyalty, and customer lifetime value, the sportswear brand adopted Web to App Connect with Smart Bidding across Search, Performance Max, and App campaigns. This approach helped adidas turn end-of-season sales into long-term growth and resulted in a 2.4X higher ROAS.
Jochen Heck is VP of sales overseeing Google’s media sales efforts in retail. Previously he led services industries including B2B, education, and apps.
