Peak demand events like Christmas, Easter and Black Friday present retailers with unique opportunities to boost sales and build customer loyalty, says Rory O’Connor, founder and CEO of Scurri, if they confront the challenges of intense competition and the pressure to offer deep discounts
The current cost of living crisis further complicates this landscape, making consumers more price-sensitive and cautious. This caution is coupled with unpredictable demand and fragmented shopping behaviours, making it vital for brands to adapt quickly and effectively. Brands must therefore rethink their strategies to not only survive but thrive during this crucial period, aspects of which may well be with us longer term. For instance, the crisis has led a significant portion of the population, particularly younger consumers, to seek promotional events to manage their budgets.
Research indicates that 51% of consumers, including 68% of Millennials and 65% of Gen Z, are more likely to participate in sales during peak events due to financial constraints. Understanding the shifting preferences of different demographics is crucial. For instance, Gen Z consumers favour social media interactions and mobile-first shopping experiences. Brands should leverage these preferences to enhance engagement through social selling and influencer partnerships.
There are three pillars to navigating the complexities of peak demand events remembering that, with consumer interactions spanning multiple channels, brands must implement robust omnichannel strategies to create seamless experiences. This includes synchronising online and offline touchpoints and personalising interactions based on data insights. Such an integrated approach can significantly enhance customer engagement and loyalty.
Deliver exceptional value
While discounts are often expected, brands can differentiate themselves by enhancing the overall value of their offerings. Instead of relying solely on price cuts, companies should prioritise quality, service and unique experiences. This approach can help maintain brand integrity and profitability.
Consistent communication
Clear and effective communication is essential throughout the consumer journey, from pre-purchase marketing to post-purchase engagement. Brands should leverage various channels to keep customers informed and engaged, reducing anxiety and building trust.
Memorable customer Journey
Creating a positive and memorable customer experience, particularly during the delivery phase, can significantly impact customer loyalty. A seamless delivery process can turn a one-time buyer into a repeat customer.
In order to enhance the delivery experience which plays a pivotal role in customer satisfaction, especially during peak events, brands can optimise logistics and delivery strategies to offset the need for aggressive discounting, specifically, carrier selection – choosing reliable carriers is essential for ensuring timely deliveries while managing costs; flexible delivery options – offering various delivery methods, such as next-day shipping or click & collect, enhances convenience; and customisable tracking – providing branded tracking information helps keep customers informed and reduces anxiety about their orders.
The post-purchase phase is often overlooked, yet it represents a significant opportunity for building loyalty. Strategies to enhance this phase include thank you notes and loyalty programmes – personalise communication after a purchase to foster goodwill and encourage repeat business; hassle-free returns – a straightforward returns process boosts customer satisfaction and can lead to repeat purchases; and post-purchase surveys – gather feedback to help brands understand customer needs and improve future experiences.
A handy way to remember all this is to adhere to the “7 R’s of Logistics” to ensure a smooth operation during peak events. These principles emphasise delivering the right product, in the right quantity, at the right place and time, to the right customer, at the right price, and in a sustainable manner.
Key strategies for retailers
- Optimise carrier selection – identify carriers that offer reliability and flexibility to handle peak demand efficiently.
- Offer flexible delivery options – cater to diverse customer preferences with various delivery choices.
- Enable custom-branded tracking – enhance customer trust with personalised tracking communications.
- Provide accurate delivery estimates: manage expectations through clear communication about delivery timelines.
- Create a superior post-purchase experience – focus on follow-up communication and loyalty initiatives to build long-term relationships.
As brands prepare for peak demand events, the key to success lies in shifting focus from deep discounting to creating exceptional customer experiences. By optimising logistics, enhancing delivery and fostering post-purchase engagement, brands can build lasting customer loyalty and maximise sales. In doing so, they not only capitalise on peak demand periods but also create opportunities for sustained growth throughout the year.
For further insights into maximising sales and customer loyalty during high demand events download Scurri’s Creating Your Own Peak report.
