October 15, 2024

Building Customer Communities: The Cost-Effective Strategy for Holiday E-commerce Success

Close-up of a person shopping online during the holiday season, holding a credit card while typing on a laptop, with a festive gift box and holiday lights in the background, symbolizing e-commerce holiday shopping and customer engagement.

In the competitive world of e-commerce, customer acquisition is becoming increasingly expensive. The average customer acquisition cost (CAC) has risen from $50-$60 in 2019 to around $64 for organic methods and $68 for paid methods today (Linkedin). As we approach the holiday season, the challenge intensifies.  Many channels e-commerce brands rely on, such as organic and paid search get more crowded as sellers increase bids and create more content to crowd organic search results.  It’s not just marketers increasing competition, the landscape is also rapidly evolving.  Google is adding more content into its search results making space in organic results even more scarce.  For example, according to BrightEdge, shopping results that feature a product grid in organic search increased by 350% in the past year alone!  These channels cannot be ignored, but marketers must also offset their increasing costs by maximizing revenue from other areas of the business. 

The solution? Ensure you have a loyal customer community. According to CallMiner, U.S. companies could save over $35 billion per year by focusing on keeping their existing customers happy. Let’s explore five strategies to build a customer community using Cohora's platform, transforming one-time holiday shoppers into loyal brand advocates. When implemented, these can significantly reduce the costs required to drive incremental revenue for e-commerce brands!

  1. Create an Engaging Post-Purchase Experience

    The moments after a customer's purchase are critical for building long-term loyalty. In fact, 52% of customers go out of their way to buy from their favorite brands (Zendesk). Here's how to leverage this opportunity:
  • Personalized thank-you messages: Use Cohora's Dynamic Segmentation to tailor post-purchase communication based on customer preferences and purchase history. Don’t just send a generic one-size fits all message.  Make sure your customers feel valued and recognized for what they purchased.  This can significantly improve their sentiments towards your brand. 
  • Holiday-themed order confirmation emails: Go beyond transaction details by including seasonal content, gift-wrapping tips, or complementary holiday item suggestions.  Cohora makes it easy to trigger these during the holiday season with the Creative Builder.  You can even create campaigns to trigger before during and after events like Cyber Monday and Black Friday! 
  • Make social sharing easy: People love to share great ideas during the holidays.  Make it easy for your customers to share their purchase experience.  Cohora’s Distribution Platform makes it easy to empower your customers to spread the word.  You can even gamify it and offer incentives for your customers further deepening the relationship and fostering loyalty all in a turnkey solution. 

By focusing on these touchpoints, you're not just completing a transaction; you're initiating a festive relationship that can last well beyond the holiday season.

  1. Gather Crucial Insights with Holiday Shopper Feedback 

Understanding your customers' holiday shopping experiences is key to improving their journey and encouraging repeat purchases. Cohora's Branded Quizzes, Polls, and Surveys feature offers a powerful tool for gathering this vital feedback. By doing this you’re capturing critical Zero Party Data which goes beyond typical marketing segments to define your customers preferences.  By centralizing this data in a platform you can activate against, you’ll be well positioned to craft meaningful experiences that resonate with individual customers. 

Here's how to leverage this feature effectively:

  • Time it right: Send a brief survey 3-5 days after the product is delivered, when the holiday shopping experience is still fresh in the customer's mind.
  • Keep it short and sweet: Focus on key aspects like product satisfaction, gift-giving experience, and overall holiday shopping impression.
  • Offer a seasonal incentive: Encourage participation by offering a small discount on post-holiday purchases.  These incentive campaigns are easy to launch with Cohora’s platform. 

Remember, it can typically take up to three purchases to create brand loyalty. By actively seeking and acting on customer feedback during the critical holiday period, you're laying the groundwork for year-round loyalty.

  1. Leverage Holiday Reviews to Build Trust and Encourage Community Engagement 

Reviews play a pivotal role in the customer journey, acting as social proof for potential buyers and reinforcing the decision of recent customers. Cohora's Customer Reviews solution provides the perfect platform to harness this powerful tool during the holiday season.

To facilitate consistent reviews, here are some tips to ensure your customers have a positive experience:

  • Prompt holiday shoppers to leave reviews: Send a gentle reminder a week after delivery, highlighting how their feedback helps other gift-givers.
  • Showcase positive holiday-themed reviews: Use them in retargeting campaigns to remind first-time buyers of their positive experience and encourage post-holiday purchases.
  • Respond to all holiday reviews: Whether positive or negative, a thoughtful response shows that you value customer feedback, even during the busiest time of the year.

The impact of this strategy can be significant. According to Harvard Business Review, customers who engage with a company's online community spend 19% more than non-community members.

  1. Create a Festive Onboarding Experience for New Community Members 

The period following a holiday purchase is crucial for setting the tone of your ongoing relationship with the customer. Cohora's Branded Customer Engagement platform makes it easy to create an engaging onboarding experience with a holiday twist.

Here's how to make the most of the welcome journey:

  • Develop a specialized holiday welcome journey: Create a series of emails or in-app messages that introduce new customers to your brand story, values, and community, with a festive theme.
  • Provide valuable holiday resources: Share gift guides, holiday decorating tips, or exclusive content that enhances the customer's experience with their purchase.
  • Encourage holiday-themed community participation: Invite new customers to join discussions about holiday traditions, share their gift-giving experiences, or participate in seasonal community challenges.

This strategy can have a significant impact on your bottom line. Loyalty program members contribute to 43% of companies' annual sales (Business Wire).

  1. Implement a "Post-Holiday Purchase" Incentive Program 

While holiday sales are important, it's the post-holiday purchases that often mark the beginning of true customer loyalty. Cohora's Branded Rewards provides an engaging way to encourage crucial repeat purchases after the holiday rush.

At Cohora, brands have a turnkey solution to foster post-holiday purchases.  With the platform brands can:

  • Design a points-based system: Award points for various actions, with higher points for making post-holiday purchases.
  • Create tiered rewards: Offer increasingly valuable rewards as customers accumulate points, with significant milestones for repeat purchases in the new year.
  • Implement New Year challenges: Create urgency with limited-time offers or contests that encourage quick repeat purchases in January and February.

The benefits of focusing on repeat purchases are clear. According to a study by BIA Advisory, returning customers spend, on average, 67% more than first-time customers.

Ready to turn your holiday shoppers into loyal community members? Discover how Cohora's innovative features can help you create a compelling community-building journey that lasts all year round.

Schedule a demo today and start maximizing your customer lifetime value through the power of community!

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