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Maximize Value of Your Holiday Shoppers - Dynamic Yield
2026-02-28 19:41 Diff
https://www.dynamicyield.com/article/maximizing-the-value-of-your-holiday-shoppers/
The Secret to Maximizing the Lifetime Value of Your Holiday Shoppers

While the holiday season is a huge boon to eCommerce sales, this doesn’t mean you should pursue every customer at all costs.

Summarize this articleHere’s what you need to know:
Focus on high-value holiday shoppers, not just everyone. While the holidays bring a surge in sales, not all customers are worth pursuing at all costs. Holiday shoppers tend to spend more, but retailers also spend more to acquire them. Prioritize high-value customers who are likely to return and spend more throughout the year.
Segment your holiday shoppers and personalize accordingly. Don’t treat all holiday shoppers the same. Segment them based on their purchase behavior and tailor your marketing and shopping experiences to their individual needs and preferences.
Identify and target bargain hunters strategically. Some holiday shoppers are only interested in the best deals and are unlikely to return. While they may spend more during their initial purchase, they don’t contribute to long-term customer value. Reduce acquisition spend on these bargain hunters and personalize their experience to maximize profit from their one-time purchase.
Nurture holiday buyers year-round. The holidays are a great opportunity to acquire new customers, but don’t forget about them after the season ends. Use retargeting and other strategies to stay engaged with holiday shoppers throughout the year and encourage them to become loyal customers.
The holiday shopping season is a buyer’s market. Every retailer knows that it takes steep discounts and bargains to lure consumers to your store in this competitive world unless you’re Warby Parker, that is. (They never discount during the holidays.)
On top of lower prices, retailers need to deal with higher ad spends. In fact, with everyone vying to attract hungry holiday shoppers, costs of acquisition increase by a whopping 39% on mobile and 180% on desktop during the holiday period.
Offering discounts and spending more to acquire customers works out for retailers since volume often makes up for the reduced margins. Holiday shoppers also tend to spend more than off-season shoppers by as much as 17%. All in all, this translates into retailers generating close to a quarter of their annual revenue during the holiday season.
So, you might be wondering, what’s the problem? Retailers spend more but they also make more. Isn’t that a good thing?
The problem is thinking only of the “A” in AOV. The average consumer spends enough during the holiday season to more than offset the increased acquisition costs. But if you slice your visitors into segments (which, of course, you should be doing), you’ll notice that some segments spend way above what it costs to get them to your site; others fall below this threshold. This latter group are the bargain hunters, the drive-by shoppers who purchase just once and don’t return to the scene of the buy until the following holiday season. You shouldn’t be pouring as many resources into acquiring this group as you would the big spenders; you should be deploying a suite of strategies to turn the bargain hunters into repeat visitors and shoppers.
To reduce costs and improve yields during the holiday season, retailers should segment users as they arrive at the site and personalize experiences accordingly. Here’s how you do it.
Lower ad spend on bargain hunting holiday shoppers.
Retailers should lower their ad spend on shoppers who have only shopped in their store during the previous holiday season. This can be accomplished by segmenting the ads being served based on CRM or 1st party data.
Maximize post-click conversion
If a retailer knows a visitor is a price sensitive holiday shopper, optimize the category or grid page by showing the prices “low to high” by default or trigger a real-time message offering free shipping. In an age of instant price-comparison shopping, subtle UX customizations can be the difference between a user completing a purchase or leaving your website to play the field, never to return again.
Optimize the merchandising
Mitigate the risk of negative CLTV by pushing sale products that have high margins. This way, even if these holiday sales shoppers don’t return until the following year, you’ve made those customers happy with a discount while keeping your ROI in check.
Keeping Your Buyers in the Holiday Spending Spirit

While the holiday season yields massive uplift in traffic across platforms, the ho-hum of winter is coming. To survive better than a Stark, it is vital to continue to engage your holiday buyers year round, even the ones you might’ve written off as “bargain hunters.” If they’re retargeted properly, there is a good chance they stick to your brand.
Here are a few strategies you should consider in order to retain as many of them as possible.
Provide incentives to come back through segmented or personalized messages.
Increase brand awareness through personalized retargeting ads.
Offer incentives to buy more using coupons, such as “20% off your next order.”
While you got them on your site during the holidays, encourage them to subscribe to your email newsletter.
While the holiday season is a huge boon to eCommerce sales, this doesn’t mean you should pursue every customer at all costs. Segment and personalize wisely and you’ll get the most out of all of your shoppers during the holidays and beyond.
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return false;"> <svg xmlns="http://www.w3.org/2000/svg" viewBox="0 0 512 512"><path d="M389.2 48h70.6L305.6 224.2 487 464H345L233.7 318.6 106.5 464H35.8L200.7 275.5 26.8 48H172.4L272.9 180.9 389.2 48zM364.4 421.8h39.1L151.1 88h-42L364.4 421.8z"/></svg> </a></li></ul><div class="topnav-buttons"> <a href="#" data-toggle="modal" data-target="#lc-subscription" class="btn-desktop-only pulse-button v5 topnav-btn"> <span class="button-inner"> XP² Newsletter </span> </a> <a href="/newsletter/" class="pulse-button v5 topnav-btn btn-mobile-only"> <span class="button-inner"> XP² Newsletter </span> </a></div></div></div><div class="lc-progress-wrap"><div class="lc-scroll-progress"></div></div></header><article id="post-18221" class="et_pb_post post-18221 article type-article status-publish has-post-thumbnail hentry article-category-targeting-personalization article-industry-ecommerce article-tags-seasonality-in-personalization article-function-merchandising-ecommerce article-function-marketing article-type-thought-leadership"><div class="article-content"><div class="article-head-content-inner"><div class="article-breadcrumbs"> <a href="https://www.dynamicyield.com/articles/" title="Articles">Articles</a> <a href="https://www.dynamicyield.com/articles/category/targeting-personalization/ ">Targeting &amp; Personalization</a></div><h1 class="article-title">The Secret to Maximizing the Lifetime Value of Your Holiday Shoppers</h1><h2 class="article-excerpt">While the holiday season is a huge boon to eCommerce sales, this doesn’t mean you should pursue every customer at all costs.</h2><div class="article-authors lc-flex"><div class="article-author-box lc-col lc-flex"><div class="article-author-image lc-col"><div class="entry_author_image"><img src="https://www.dynamicyield.com/wp-content/authors/charles-28.jpg"  alt="Charles Brun" width="76" height="76" /></div></div><div class="article-author-title lc-col"><div class="article-author-name"> <a href="https://www.dynamicyield.com/blog/author/charles/" title="Posts by Charles Brun" rel="author">Charles Brun</a></div><div class="article-author-title-text"></div></div></div></div></div><div class="entry-content article-entry-content"><div class="article-entry-content-inner"><p></p><div id="WYNTK-Sec" class="what-you-need-to-know-sec"><p><img decoding="async" src="/wp-content/uploads/2020/09/star-icon.svg" style="width: 20px; margin-right: 5px; vertical-align: -2px;"><strong class="first">Summarize this article</strong><strong class="hidden">Here&#8217;s what you need to know:</strong></p><ul style="margin-left: 4px; font-size: 16px;"><li style="margin: 10px 0;">Focus on high-value holiday shoppers, not just everyone. While the holidays bring a surge in sales, not all customers are worth pursuing at all costs. Holiday shoppers tend to spend more, but retailers also spend more to acquire them. Prioritize high-value customers who are likely to return and spend more throughout the year.</li><li style="margin: 10px 0;">Segment your holiday shoppers and personalize accordingly. Don&#8217;t treat all holiday shoppers the same. Segment them based on their purchase behavior and tailor your marketing and shopping experiences to their individual needs and preferences.</li><li style="margin: 10px 0;">Identify and target bargain hunters strategically. Some holiday shoppers are only interested in the best deals and are unlikely to return. While they may spend more during their initial purchase, they don&#8217;t contribute to long-term customer value. Reduce acquisition spend on these bargain hunters and personalize their experience to maximize profit from their one-time purchase.</li><li style="margin: 10px 0;">Nurture holiday buyers year-round. The holidays are a great opportunity to acquire new customers, but don&#8217;t forget about them after the season ends. Use retargeting and other strategies to stay engaged with holiday shoppers throughout the year and encourage them to become loyal customers.</li></ul></div><p></p><p>The holiday shopping season is a buyer’s market. Every retailer knows that it takes steep discounts and bargains to lure consumers to your store in this competitive world unless you’re Warby Parker, that is. (They never discount during the holidays.)</p><p>On top of lower prices, retailers need to deal with higher ad spends. In fact, with everyone vying to attract hungry holiday shoppers, costs of acquisition increase by a whopping <a href="http://marketingland.com/stat-backed-holiday-advertising-tips-know-2016-190716" target="_blank" rel="noopener">39% on mobile and 180% on desktop</a> during the holiday period.</p><p>Offering discounts and spending more to acquire customers works out for retailers since volume often makes up for the reduced margins. Holiday shoppers also tend to spend more than off-season shoppers by as much as <a href="http://marketingland.com/stat-backed-holiday-advertising-tips-know-2016-190716" target="_blank" rel="noopener">17%</a>. All in all, this translates into retailers generating <a href="https://rjmetrics.com/resources/reports/the-ecommerce-holiday-customer-benchmark/?utm_source=pardot&amp;utm_medium=email&amp;utm_campaign=email+whitepaper-promotions" target="_blank" rel="noopener">close to a quarter</a> of their annual revenue during the holiday season.</p><p>So, you might be wondering, what’s the problem?  Retailers spend more but they also make more. Isn’t that a good thing?</p><p>The problem is thinking only of the “A” in <a href="https://www.dynamicyield.com/glossary/average-order-value/">AOV</a>. The <i>average </i>consumer spends enough during the holiday season to more than offset the increased acquisition costs. But if you slice your visitors into segments (<a href="http://marketingland.com/average-user-ruined-e-commerce-experiences-190900" target="_blank" rel="noopener">which, of course, you should be doing</a>), you’ll notice that some segments spend way above what it costs to get them to your site; others fall below this threshold. This latter group are the bargain hunters, the drive-by shoppers who purchase just once and don’t return to the scene of the buy until the following holiday season. You shouldn’t be pouring as many resources into acquiring this group as you would the big spenders; you should be deploying a suite of strategies to turn the bargain hunters into repeat visitors and shoppers.</p><p>To reduce costs and improve yields during the holiday season, retailers should segment users as they arrive at the site and personalize experiences accordingly. Here’s how you do it.</p><ol><li><strong>Lower ad spend on bargain hunting holiday shoppers.</strong><br /> Retailers should lower their ad spend on shoppers who have only shopped in their store during the previous holiday season. This can be accomplished by segmenting the ads being served based on CRM or 1st party data.</li><li><strong>Maximize post-click conversion</strong><br /> If a retailer knows a visitor is a price sensitive holiday shopper, optimize the category or grid page by showing the prices “low to high” by default or trigger a real-time message offering free shipping. In an age of instant price-comparison shopping, subtle UX customizations can be the difference between a user completing a purchase or leaving your website to play the field, never to return again.</li><li><strong>Optimize the merchandising</strong><br /> Mitigate the risk of negative <a href="https://www.dynamicyield.com/glossary/customer-lifetime-value/">CLTV</a> by pushing sale products that have high margins. This way, even if these holiday sales shoppers don’t return until the following year, you’ve made those customers happy with a discount while keeping your ROI in check.</li></ol><h2>Keeping Your Buyers in the Holiday Spending Spirit</h2><p>While the holiday season yields massive uplift in traffic across platforms, the ho-hum of winter is coming. To survive better than a Stark, it is vital to continue to engage your holiday buyers year round, even the ones you might’ve written off as “bargain hunters.” If they’re retargeted properly,  there is a good chance they stick to your brand.</p><p>Here are a few strategies you should consider  in order to retain as many of them as possible.</p><ol><li>Provide incentives to come back through segmented or personalized messages.</li><li>Increase brand awareness through personalized retargeting ads.</li><li>Offer incentives to buy more using coupons, such as “20% off your next order.”</li><li>While you got them on your site during the holidays, encourage them to subscribe to your email newsletter.</li></ol><p>While the holiday season is a huge boon to eCommerce sales, this doesn’t mean you should pursue every customer at all costs. <a href="https://www.dynamicyield.com/segmentation/">Segment</a> and <a href="https://www.dynamicyield.com/personalization/">personalize</a> wisely and you’ll get the most out of <i>all</i> of your shoppers during the holidays and beyond.</p><div class="article-separator"><svg width="54" height="26" viewBox="0 0 54 26" fill="none" xmlns="http://www.w3.org/2000/svg"> <path d="M53.0088 25.6367C52.7884 21.9564 51.8025 18.3625 50.1141 15.0849C48.4256 11.8073 46.0718 8.9181 43.2031 6.60203L43.2031 25.6367L53.0088 25.6367Z" fill="black"/> <path d="M14.4395 3.59038C10.3237 5.69174 6.82743 8.83082 4.29638 12.6973C1.76533 16.5638 0.28711 21.0239 0.0078125 25.6367L14.4395 25.6367L14.4395 3.59038Z" fill="black"/> <path d="M17.6563 2.20809L17.6562 25.6367L39.9829 25.6367L39.9829 4.36701C39.9829 4.36701 30.7303 -2.31342 17.6563 2.20809Z" fill="black"/> </svg></div><div class="article-tags-block"> <strong>Tags:</strong> <a href="https://www.dynamicyield.com/tags/seasonality-in-personalization/">Seasonality in Personalization</a></div></div><div class="article-content-sidebar"><div class="article-content-sidebar-inner"><h4>Read next</h4><ul class="article-sidebar-nav"><li> <a href="https://www.dynamicyield.com/article/user-identification-for-personalization/">From Fragmentation to Connection: Mastering User Identification for Personalization</a><div class="article-sidebar-nav-author">Gina Walanga</div></li><li> <a href="https://www.dynamicyield.com/article/the-enterprise-guide-to-ip-warning/">The enterprise guide to IP warming: Boost deliverability, ensure compliance, and power seamless journeys</a><div class="article-sidebar-nav-author">Ravit Morales</div></li><li> <a href="https://www.dynamicyield.com/article/how-to-drive-more-subscribers-to-your-mailing-list/">How to Drive More Subscribers to Your Mailing List</a><div class="article-sidebar-nav-author">Ravit Morales</div></li></ul></div></div></div></div></article></div></div><section class="lc-subscription-section"><div class="lc-subscription-form-block lc-subscription-inner"><h4 class="lc-subscription-title">Sign up for the XP&sup2; newsletter</h4><div class="lc-subscription-text">Join thousands of readers from Target, Citi, Spotify, Hulu, Google, Sephora, and other innovative brands who read our bi-weekly XP² newsletter, delivering educational content, research, and insights straight to your inbox</div><form class="mktoForm" data-formId="3876" data-formInstance="sub-inline"></form><div class="lc-privacy-wrapper"><div class="lc-privacy"> You may unsubscribe at any time. 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