5 Segments to Target for Your Holiday Season

The holiday season is not only the most wonderful time of the year but also a critical period for any brand, as customers are eager to shop, more willing to spend, but also keen to take advantage of seasonal deals. To maximize sales and create targeted marketing campaigns, it’s essential to understand and focus on specific customer segments. Let’s explore how to identify and effectively engage five key customer segments during the holiday season.

The Last-Minute Shoppers

Who they are Either you know them or you are one of them: the last-minute gift shopper. They often need quick solutions and are willing to pay for convenience, most often with expedited shipping.

How to segment them

To identify your last-minute shoppers, use order tags that label express shipping and look for all customers who placed an order last December with such a tag:

How to target them

Once you know who these customers are, remind them about the upcoming holiday season, e.g., with a countdown. Pair this with information on the last date you can guarantee delivery before Christmas without the need for express shipping, and share easy-to-navigate gift guides.

This customer group may also be particularly interested in other convenience offers, such as gift wrapping.

Finally, don’t forget to send one last reminder in the week leading up to Christmas. If you have the fulfillment capabilities to deliver items on time, this is your chance to shine.

Your Big Spenders

Who they are Data shows that the top 20% of customers by LTV account for more than 60% of a brand's total revenue. So if you're not already monitoring customer lifetime value, it's your time to start. You want to be sure that you're delivering a superior experience to your most valuable customers during the holiday rush - and, of course, that your store and products are the go-to place for their gift selections. These customers value quality, exclusivity and convenience over discounts.

How to segment them

To identify your big spenders, consider all customers with a high LTV (Contribution Margin 1) in the last 12 months - to ensure these customers are still active:

How to target them

Once you know who your big spenders have been over the past 12 months, be ready to give them a little VIP treatment - let them truly enjoy holiday season. Reach out to let them know you value them and offer them an exclusive offer such as complimentary express shipping on any purchase or gift wrapping.

Also, if you're up for a little gift giving yourself, this is the audience you want to target.

Your Repeat Shoppers

Who they are Happy customers are the best advocates for your brand! Customers who have shopped with your brand multiple times are already sold on your products. Repeat shoppers are the perfect audience not only to purchase your products for themselves, but also to consider purchasing them as gifts for their loved ones.

How to segment them

To identify your active repeat customers, look at all customers who have made at least one purchase in the last 12 months and at least two purchases over all time:

How to target them

This customer segment is a perfect fit for generating referrals by encouraging them to share what they love with friends and family.

Focus on making it as easy as possible for them to share what they love (your products) with the people they love, such as with Buy One, Get One (BOGO) deals.

You might also want to encourage them to treat themselves with self-care promotions that market products that align with self-care and personal rewards.

The Deal Hunters

Who they are Deal hunters are highly motivated by discounts and promotions, always searching for the lowest prices. They are especially active during major sales events such as Black Friday and Cyber Monday, making them responsive to limited-time offers and flash deals. Deal hunters are resistant to upselling, are the least loyal customer type, and will leave when better deals are available.

How to segment them

To identify your deal hunters, segment all customers who made a purchase during last year's BFCM:

How to target them

To effectively target deal hunters, inform them about your upcoming sales early—they should know about your promotions before they find a better deal elsewhere.

Additionally, if you're sending push notifications through your app or SMS, these customers are ideal candidates to receive updates about deals directly on their phones.

The Early Birds

Who they are Early birds either love Christmas or hate it! Those who love Christmas want the whole family together and decorate their homes like it's the North Pole itself. Those who hate Christmas are over-prepared and make sure to avoid any holiday madness. But both types will have similar shopping expectations each year. That means if you delight them, you'll ensure they'll come back for the next holiday shopping season.

How to segment them

To segment early birds, identify customers by gender who purchased products for the other gender before Thanksgiving:

How to target them

Nearly 29% of consumers start their holiday shopping before Thanksgiving! By launching your holiday campaigns early or creating a holiday countdown, you can capture the attention of these proactive shoppers and set the stage for a season of anticipation and excitement.

Gift guides are a popular starting point for early birds and a great way to help them find the perfect gift. Curating personalized lists based on their past purchases can make the process even smoother.

Create a sense of exclusivity to not only drive demand, but also address the fear of missing out. Offering targeted deals, early bird discounts or limited edition items can create a sense of urgency.