7 strategies for turning holiday shoppers into lifetime customers

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When it comes to long-term success in retail, turning occasional shoppers into lifetime customers is one of the most effective strategies a business can implement. And at no time is this more important than the holidays. It's simple math: Engaging seasonal shoppers and converting them into repeat buyers provides a solid foundation for higher sales throughout the year.

Savvy companies know it's far more cost-effective to strengthen relationships with existing customers than it is to find and acquire new ones. A recent global study by Forbes Insights and marketing technology company Sailthru shows companies that make retention a priority significantly increased year-over-year market share compared with those that focused on acquiring new customers.

But building those lifetime customer relationships doesn't happen by accident. It takes a solid retention strategy and effective deployment of email, online and mobile messaging, and customer loyalty programs, especially during the holiday season. For many retailers, it's a make-or-break moment. Sure, numbers may be up during the gift-buying rush, but if businesses fail to put retention strategies into place, those customers will disappear just as quickly as they showed up.

Luckily, those fourth-quarter shoppers present a huge opportunity for years to come - if handled correctly. Here are some suggestions for turning holiday shoppers into lifelong customers.

1. Make retention and acquisition a C-suite priority.

Senior management should recognize the value of converting holiday shoppers into loyal customers while also focusing on acquisition. To do so, brands need to reassess whether or not they're looking at the full picture. Make sure you're acquiring even smarter and more efficiently by finding out who your best customers are, and then acquisition and retention both become that much better.

2. Have the right marketing tools in place.

By ensuring your marketing tools are up to snuff, you demonstrate a commitment to increasing customer lifetime value (CLV) through a long-term business strategy. When marketing tools are set up to fuel acquisition, engagement, and retention, all of your company's needs are served holistically and across multiple channels.

3. Train your team.

Make sure everyone on every team understands the importance of retention and knows how to deliver a positive experience online, in the contact center, or in person. Though great customer service is crucial for building long-term relationships, the Forbes Insights/Sailthru study found a need for improvement in terms of communicating the benefits and best approaches to retention internally. Great retailers make it everyone's job to provide an amazing customer experience, especially for those who may not be customer-facing but whose work reaches customers the most, like marketers.

4. Invite holiday shoppers to join your loyalty program.

Use your online, mobile, and social media channels to tell new customers about the benefits of staying engaged with your company. For instance, loyal customers might receive free year-round shipping for a modest annual fee, or receive 24 hours advance notice of in-store sales. In any case, highlight your loyalty program in your holiday sales and promotional messaging.

5. Examine your shipping and return policies.

Make it easy for new customers to return unwanted merchandise. Not only does that take away the perceived risk in placing an order, it also provides you with an opportunity to engage customers about their specific wants and needs. At the same time, minimizing shipping costs can also encourage holiday shoppers to place repeat orders in the coming year.

6. Target the most likely repeat customers.

Predictive analytic tools can help you identify the holiday shoppers with the highest likelihood to become loyal customers. That allows you to focus your marketing and communication dollars on the most likely prospects. The Forbes Insights/Sailthru study found that 67% of companies surveyed cited data-driven insights as critical for their retention programs.

7. Monitor the results.

After the holiday season is over, analyze your sales and marketing data to determine the effectiveness of your marketing programs in relation to retention and customer lifetime value. Was a social media post more effective than an email blast in terms of sign-ups for your loyalty program? Did a certain demographic or geographic segment show a greater propensity for staying connected with your company? At the same time, take a hard look at any tactics that produce results so you can shift gears in the future.

Finally, it's important to remember that while a great one-time offer can generate immediate sales, it takes a powerful, integrated approach to turn occasional shoppers into loyal customers. So be sure you deliver on your promises, exceed expectations, and implement strategies that keep customers coming back to your company time after time.

For more information on how to turn casual holiday shoppers into lifetime customers, get Sailthru's free holiday marketing playbook.

This post is sponsored by Sailthru.

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