Consumers welcome more holiday messages, doubling retailer revenues

The insight: Recent findings from Attentive challenge long-held assumptions about holiday marketing, revealing that consumers are significantly more receptive to increased communication during peak shopping seasons than previously believed.

This awareness comes at a crucial time as retailers gear up for the holiday season amid changing consumer behaviors and economic pressures.

“We started to see a couple of years ago, brands take that to the next level where, in some cases, they were sending multiple messages a day for multiple days in a row,” chief strategy officer Eric Miao told us in an interview. These increased holiday messaging frequencies maintained normal opt-out rates while doubling revenues.

  • The key to this unexpected tolerance lies in consumer behavior patterns. While marketers often worry about overwhelming customers, Miao revealed that the average consumer subscribes to only three or four SMS programs, not the 50 or more that marketing professionals typically assume. This means each brand has more opportunity to capture attention without competing against numerous other messages.
  • Economic conditions have also influenced this shift. Sharply increasing prices have made deal-seeking behavior more prevalent, making consumers more appreciative of regular updates about discounts. During the holiday season, customers expect and welcome these communications, viewing them as valuable shopping aids.
  • Successful brands boost engagement by sending personalized messages featuring recently viewed items and custom pricing rather than generic storewide sale announcements.

Deliveries and deals: Attentive’s study also revealed a clear hierarchy in message value. Package delivery notifications consistently rank as the most appreciated communications, followed by sale alerts for previously browsed items. This insight explains why increased frequency works during holidays—when messages deliver clear value, consumers remain engaged.

Why it matters: While many brands have historically held back their holiday messaging frequency for fear of alienating customers, the data suggests they may be forgoing significant revenues. However, Miao emphasizes that success requires sophisticated personalization and timing strategies.

Yes, but: While GetApp's 2024 survey shows most consumers unsubscribe after receiving four monthly messages, holiday communications could be an exception. During these periods, shoppers actively seek deals, especially when messages are personalized and timely.

Our take: As retailers navigate this holiday season, these insights suggest advertisers can execute more robust communication strategies, provided they maintain high standards of relevance and personalization.

With consumers actively seeking deals and valuable shopping information, brands that can deliver personalized, timely messages stand to benefit from increased engagement during this crucial retail period.

First Published on Nov 18, 2024