A Customer Is for Life, Not Just for the Holidays
Leading the session
Olly O'Toole
Adobe
Bethan Williams - James
Adobe
Colin Strong
Ipsos
U.K. E Commerce Report
Covers Period from January 1 to July 31, 2024
Online Spending in 2024
Q1 24 online spend significantly lower due to cost of living crisis
Post-Summer, preChristmas lull
Spike over holiday shopping period
Spend follows the annual trend, but slow growth is a concern
Online spending in 2022 was coming off of the COVID highs of 2020 and 2021
The heightened cost of living in 2023 saw a big fall in spending YoY in Q1 2024 has not seen spending growth rebound to the levels retailers hoped for after two years of consistent YoY drops in spending
1. Sluggish growth and the more cautious consumer
2. Lipstick effect in full force
Online grocery prices impact demand across the retail landscape
4. Always-on sales don’t cut through; major shopping events are still key
The top five behavioural changes expected this holiday season
Blue Christmas?
§ The harsh economic, political, and environmental backdrop of 2024 has been marked by inflation , political instability , and climate concerns
§ The harsh economic, political, and environmental backdrop of 2024 has been marked by inflation , political instability , and climate concerns
• Economic Uncertainty : Customers are more value - conscious and sceptical , making affordability and transparency crucial.
• Political Instability : With declining trust in institutions, peer validation and communitydriven content become more important for building credibility .
• Environmental Concerns : Sustainability and ethical practices are now core expectations, making it essential for brands to highlight eco - friendly products and responsible business practices .
Blue Christmas?
§ The harsh economic, political, and environmental backdrop of 2024 has been marked by inflation , political instability , and climate concerns
• Economic Uncertainty : Customers are more value - conscious and sceptical , making affordability and transparency crucial.
• Political Instability : With declining trust in institutions, peer validation and communitydriven content become more important for building credibility .
• Environmental Concerns : Sustainability and ethical practices are now core expectations, making it essential for brands to highlight eco - friendly products and responsible business practices .
§ This backdrop intensifies the need for brands to connect authentically with consumers, offering stability , empathy , and values - driven experiences during the holiday season
Theme 1: From habits to rituals
Why rituals are important today
§ Rituals – such as setting table for Sunday lunch - have a deep symbolism , rooted in personal or cultural meanings
§ They provide emotional resilience by offering a sense of control and stability, buffering against stress, anxiety, and uncertainty.
§ Rituals tend to emerge or strengthen during difficult or chaotic times, bringing structure and comfort , helping to maintain emotional balance.
Cristiano Ronaldo is known for being the first player to step onto the field and for getting a pre-game haircut, which he believes boosts his confidence
Serena Williams is famous for her rituals, including wearing the same pair of socks throughout an entire tournament and bouncing the ball exactly five times before serving
What good looks like
Spotify wrapped : Personalised results, move from passive listening to meaningful self-reflection
Beer Hawk : Personalised experiences with integrated offline. Moved from simple transaction into a fun ritual.
Top tips to build lasting digital CX experience around rituals:
§ Purposeful Routines: Find ways to link a set of routines to wider meanings – the holiday season offers this aplenty
§ Associative Learning: Extend the experience with similar digital themes during other holidays (e.g., Valentine’s Day,)
§ Build out Mental Schema: Integrate with an ongoing loyalty program that builds across all seasonal promotions, encouraging repeat engagement.
Trend 2: Anticipation building
Anticipation
§ Over the past decade, an abundance of psychology research has shown that experiences bring people more happiness than possessions
§ A key element of this is the anticipation of the future positive event - it offers people the opportunity to imagine a happy and exciting future
§ Enhances immediate engagement but also fosters long - term loyalty by positioning the brand as a consistent source of positive emotional experience s during a challenging period.
Leaf Van Boven and Thomas Gilovich (2003) found people derive greater satisfaction from anticipating experiences (e.g., vacations, concerts) than material purchases because experiences are linked to personal identity, social connection, and lasting memories.
What good looks like
Coca Cola: ‘Real Magic: Anticipation by inviting fans to use AI tools to create personalized holiday greeting cards
Catbird: Uses design such as wishlists and product drops to build anticipation & make shopping more exciting
Top tips to build lasting digital CX experience around anticipation:
§ Zeigarnik Effect: Leave tasks or experiences unfinished (e.g., advent calendars with daily surprises) to heighten anticipation and keep customers coming back for more.
§ Goal Gradient Effect: Increase engagement as customers near completion of a goal (e.g., unlocking final holiday rewards as they approach a major event).
§ Future - Oriented Thinking: Encourage customers to mentally project themselves into future moments (e.g., holiday gatherings), enhancing anticipation.
Trend 3: The need for belonging
Belonging
§ At this time of year, people from underrepresented groups may experience uncertainty about whether they belong –religious beliefs obviously but also from other perspectives (financial, neurodiversity, gender, ethnicity)
§ This is not just about social connection, but inclusive environments, about being integrated not just accepted
§ While digital spaces can foster connection , there is also a risk they can also create superficial relationships that lack depth
‘Quiet quitting’ describe employees who are disengaged, doing the bare minimum at their jobs.
Psychologists have linked this behaviour to a lack of belonging in companies where employees don’t feel a sense of community, recognition, or connection with their colleagues or leaders
What good looks like
Cadburys "Secret Santa" campaign allows anonymous sending of chocolate gifts to friends and family creating inclusion
Paul Smith: Personal touch by customising items & improved mobile shopping supporting customers to feel part of a community
Top tips to build lasting digital CX experience around belonging:
§ Empower users: Personalized choices and progress feedback help users feel capable and valued, deepening their connection
§ Create connection: Live interactions and real-time feedback make users feel part of a real community
§ Foster appreciation: Encourage giving and receiving gratitude to build positive bonds, making users feel valued and connected.
Trend 4: Collective joy
§ Collective joy (effervescence) refers to the sense of ‘emotional communion’, offering participants a means to develop a sense of shared pleasure
§ This is particularly relevant at Christmas, where shared activities (e.g., gift exchanges, carolling, communal meals) evoke powerful emotions of unity and joy.
§ These communal experiences enhance emotional connections and foster a sense of collective identity , making the holiday season a time of heightened social bonding and shared positive emotions.
A widespread custom in the UK are Christmas Day swims where people come together for a shared, often charitable, experience despite(or because of) the cold
What good looks like
Disney+: Hosting simultaneous global streaming events so viewers can have a shared emotional experience.
Top tips to build lasting digital CX experience around collective joy:
Rubik: Added interactive content to online store like tutorials and global promotions, bringing bring puzzle fans together and creating a sense of community
§ Emotional Synchrony: Design experiences that create simultaneous, shared emotional reactions (e.g., virtual holiday countdowns or digital events like tree lightings) to boost group cohesion and excitement.
§ Group Flow: Encourage activities where participants feel part of a larger whole, like live interactive events or group challenges that promote collaborative achievement, enhancing collective emotional energy.
Trend 5: Wellbeing in face of adversity
Wellbeing
§ Broaden-and-Build Theory suggests that positive emotions— such as gratitude—expand our cognitive abilities , allowing for greater creativity and improved problem-solving skills.
§ This cognitive flexibility is particularly beneficial during stressful periods like the holidays, where the potential for overwhelm is high.
§ By promoting mental health strategies and creating supportive environments, brands can contribute significantly to individual and community well - being , making the holidays a more positive experience amid challenges
Christmas Jumper Day encourages donations to Save the Children. The event has become popular, with workplaces and schools participating and sharing photos online, fostering engagement
M&S’s "Love Thismas , Not Thatmas “: D igital tools like interactive recipes and meal planning guides, simplifies preparations, & promotes togetherness.
food products. Customers could much more easily access what they needed during stressful times.
§ Encourage Positive Emotions: Foster joy and gratitude through campaigns that highlight customer stories and community engagement to deepen emotional connections and boost loyalty
§ Promote Mental Health Strategies: Implement wellness initiatives focusing on mindfulness and stress reduction, positioning your brand as a supportive ally during the holidays
§ Facilitate Cognitive Flexibility: Provide practical resources like gift guides and budgeting tips to help customers navigate holiday challenges, enhancing their experience and establishing your brand as a trusted resource
CX is not just for christmas
§ Beyond the Holidays: The emotional connections built during the holiday season can be the foundation for year-round engagement.
§ Emotional Loyalty: Prioritize CX strategies that foster loyalty— this goes from transactions and towards creating relationships with customers who advocate for your brand.
§ Consistency is Key: Ensure that the customer experiences you offer in December carry the same level of care and attention in January, June, and beyond. The strongest brands provide consistent CX year-round.
Thank you and (early) festive greetings!
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BREAK
Panel Discussion
Olly O'Toole
Adobe
Bethan Williams - James
Adobe
Colin Strong
Ipsos
Please introduce yourself to the group. How is your organisation planning to leverage digital experiences to address the uncertainties of this holiday season/ next quarter and differentiate itself from competitors? What challenges or successes has your organisation encountered when creating lifetime value with experience-driven commerce
How is your organisation adjusting its digital experience strategies to maximise lifetime customer value?
Thank you
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