Did you know that over 70 per cent of consumers are influenced by emotional connections to brands during the holiday season? This insight highlights how emotions play a pivotal role in shaping consumer behaviour. These festive celebrations aren’t just about buying—they're about joy, togetherness, and creating lasting memories. To thrive during this time, businesses must understand the deeper motivations driving consumer engagement and purchases.
Emotional Connections Drive Loyalty
Christmas heightens emotions, with consumers drawn to brands that evoke nostalgia and celebration. Whether it's the warmth of childhood memories of decorating the Christmas tree or the excitement of ringing in the New Year with loved ones, these emotional ties directly impact buying decisions. According to McKinsey research, 71 per cent of consumers expect brands to deliver personalised experiences. This personalisation creates a sense of individual recognition, significantly boosting engagement rates and strengthening emotional connections with brands.
It is no surprise then that the desire for a human connection remains strong among Indian buyers. A recent EY Future Consumer Index (FCI) revealed that 78 per cent of consumers prefer to shop on online platforms that provide human customer service support, and 61 per cent are more inclined to share personal information with a human rather than through automated processes, highlighting the importance of personalised, human interactions during the holiday season. Businesses can strengthen these emotional connections by acquiring and analysing customer data, which reveals their preferences, behaviours, and emotional triggers. This allows brands to engage with consumers on a deeper, more personal level, particularly during festive sales.
Personalised Experiences Powered By Data
To engage consumers effectively during the season of cheer, brands must understand their customers on a granular level. By consolidating data from various touchpoints, businesses can gain a 360-degree view of their audience's preferences, behaviours, and needs. This allows them to deliver personalised experiences that feel tailored to each individual, whether it's through targeted offers based on past purchases or reminders based on browsing history. With the right technology in place, brands can automate these personalised experiences at scale, ensuring that every interaction feels relevant and emotionally engaging.
Irresistible Discounts Fuel Festive Shopping Sprees
While emotions play a key role, this vibrant season’s sales are also powered by the allure of discounts and limited-time offers. In 2024, over 70 per cent of shoppers cited discounts as their main reason for making a purchase, with 60 per cent admitting to buying unplanned items when tempted by significant markdowns. This trend emphasises that discounts do more than just increase sales—they create excitement and a sense of urgency, pushing consumers to act faster and spend more than they initially intended. Brands must understand their customers' preferences and tailor offers accordingly. When discounts align with both the emotional and practical needs of consumers, they not only stimulate immediate purchases but also lay the foundation for long-term loyalty.
Social Media Amplifies Engagement
Social media is another key driver of consumer behaviour during holiday sales, particularly among younger generations. Platforms like Instagram and TikTok provide the perfect stage for brands to create immersive, visual experiences. For GenZ, authenticity is key—they prefer brands that showcase real people and genuine experiences, while Millennials lean toward aspirational content and influencer partnerships. In fact, 84 per cent of Indian consumers have bought products solely based on an influencer’s recommendation or promotion. The rise of digital shopping has only reinforced this, with many consumers now relying on these platforms for product discovery, comparison, and validation. By analysing engagement data, brands can design campaigns that meet the expectations of different audience segments, ensuring that they stay relevant and top of mind.
Building Bonds Through Shared Experiences
Shopping during Christmas and New Year often goes beyond individual purchases—it's a social activity where shared experiences enrich the consumer journey. Families and friends shop together, either online or in-store, discussing options and exchanging recommendations. This collective experience promotes a deeper connection not only between consumers but also between consumers and brands.
In India, 98 per cent of brands engage users online, highlighting the country's growing digital engagement. This preference for online shopping, combined with the increasing desire for social interaction, emphasises the importance of creating engaging, personalised online experiences. Businesses that understand this dynamic can build community-driven marketing strategies that tap into social connections, boosting both engagement and brand loyalty.
Sustainability Matters, Even During Sales
As consumer awareness around sustainability increases, many are becoming more conscious of their purchasing decisions. Data reveals that 72 per cent of US consumers are aware of sustainability issues and seek eco-friendly options in their purchases. This shift is impacting consumer behaviour, as they demand transparency in sustainability efforts, prefer eco-friendly packaging, and favour brands that make a clear statement about their environmental impact.
Sustainable packaging and transparent practices are now essential for brands looking to appeal to this growing segment. In India, 37 per cent of consumers intend to buy locally made gifts this festival season, signalling a rise in demand for sustainable and local products. These choices reflect the growing importance of sustainability in consumer decisions during festive sales.
Harnessing The Power of Martech
Harnessing Martech’s power means more than just using the tools—it’s about maximising their potential to drive results. While today’s marketers are equipped with powerful tech stacks, data reveals only about 42 per cent of this capability is being utilised, leaving significant room for improvement. With the right strategies, these tools can become game-changers, enabling companies to process customer data, design detailed journeys, and automate in real-time.
One crucial aspect is deploying time-sensitive campaigns, like flash sales, driven by automation that captures the urgency of limited-time offers. Personalised recommendations can also significantly elevate customer experiences, using data-driven insights to suggest products that feel tailored, enhancing intuitive buying. Gamification adds another layer, creating an immersive, engaging experience that pulls customers in and keeps them hooked.
For peak performance, strategies like send-time optimisation and best-channel algorithms ensure messages hit at the right time and place, amplifying conversions through momentum marketing. When integrated fully into brand strategy, martech shifts from an add-on to a vital component, keeping businesses agile and responsive, especially during high-demand periods like sales.
Takeaway
As festive shopping evolves, brands that can balance emotional engagement, strategic discounts, and personalised experiences will continue to thrive. By digging deep into customer data and leveraging technology to create seamless, omnichannel experiences, businesses can not only boost sales but also build lasting connections with their audience. In a world where every purchase tells a story, brands must ensure they’re part of that narrative—providing value, meaning, and memorable experiences that resonate long after the festive season and sparkle ends.
