Festivals provide an excellent opportunity for brands to show gratitude to their consumers. With more than 70 per cent of global consumers stating that they are more likely to buy from brands that appreciate their loyalty, gratitude-driven marketing can boost not just sales but also long-term customer relationships. This is particularly pertinent in the Indian market which has a large, extended festive season from Raksha Bandhan to Christmas, which presents a significant window to connect with customers emotionally and meaningfully. There are several ways how brands can leverage consumer insights and data to express gratitude and stand out in a competitive market this festive season.
Personalised Festive Offers
Personalisation remains the key aspect of brand engagement, with eight out of ten customers more likely to engage in business with a brand that offers personalisation. For example, offering a specific festival discount by analysing the consumer’s past purchasing behaviour or targeting festival-specific preferences boosts involvement.
Today, artificial intelligence and machine learning algorithms are enabling brands to promote highly personalised vouchers and discounts, as they advertise and target a consumer based on location, past purchases, consumer behaviour during the process, etc. The silver lining is personalised offers can boost sales by 30 per cent during the festive season.
Limited-edition Festive Products & Packaging
Exclusive, limited-edition products tied to festivals are an effective way to show gratitude. By rolling out products designed specifically for Diwali, Durga Puja, or Christmas with themed packaging, brands can create a sense of excitement and exclusivity. Every year, leading chocolate brands in our country roll out various festive-themed packaging even before the festivities arrive along with festive flavours like saffron or cardamom. Even something as simple as customised, eco-friendly packaging can significantly impact brand perception.
Corporate Social Responsibility (CSR)
Consumers today are keen to align with brands that share their values, especially those emphasising social responsibility. The festive season is the ideal time for brands to reflect these values by engaging in charitable initiatives. Over 70 per cent of consumers are more likely to support brands that donate a portion of their profits to a good cause during festivals.
This festive season, brands can show gratitude by linking sales to social good. For instance, donating a percentage of sales to local charities or causes resonates strongly with today's youth and socially conscious shoppers. A leading LA-based shoe company has been donating their 1/3 of its profits to supporting the people who are working to build equity at the local level. They also fund various mental health-related projects. Not only does it elevate your brand's image, but it also fosters consumer trust and loyalty. TATA group is one of the leading examples in such cases and how they have built goodwill among the public through their socially responsible activities.
Going Beyond Products
By offering exclusive experiences, both online and offline, brands can create long-lasting emotional connections. Experiential marketing has seen a 30 per cent year-on-year increase in effectiveness, especially among millennial and Gen Z audiences, according to a 2024 McKinsey report.
Brands can express gratitude by hosting festive events, both in-store and virtually, including giveaways, online contests, and product tutorials. Collaborating with influencers who can create immersive digital experiences can further enhance the consumer experience. The rise of metaverse-based marketing is expected to grow by 50 per cent by 2025, offering brands new avenues to connect with younger, tech-savvy audiences during festivals.
Strengthening Bonds Through Data
Festivals are a great time of the year to foster loyalty programs. A recent KMPG survey unveiled that around 70 per cent consumers would shop more often with brands that reward them for their loyalty. Incorporating AI-driven loyalty platforms allows brands to track consumer preferences and behaviour in real-time, ensuring rewards are more relevant than ever. Offering tiered rewards during the festive season—such as double points, exclusive access to pre-sale events, or personalised gift recommendations—fosters repeat purchases and sustained engagement. Many e-commerce platforms have also leveraged this prospect by offering free credit cards to their consumers with reward points and heavy discounts. Loyal customers also get earlier access to their festive sales.
Thoughtful Greetings
Something as simple as a personalised festive message can have a big impact. In 2024, 43 per cent of consumers report feeling valued when they receive personalised greetings from brands they engage with, according to a Salesforce survey.
Automating festive greetings using customer data (e.g., purchase history, birthdays, and cultural preferences) can add a thoughtful, human touch to brand communications. These messages can be delivered via email, SMS, or through social media DMs, acknowledging not only the festival but also the customer's loyalty.
Leveraging User-generated Content
In 2024, UGC campaigns are expected to contribute to a 12% rise in brand trust, especially among younger audiences. Encouraging your consumers to share their festive moments using branded hashtags can help build a sense of community.
By offering incentives, such as gift hampers or discount codes, for the best user-generated content, brands can show appreciation while also generating organic publicity.
Digital Gifting
According to EY’s Digital Consumer Report 2024, digital gifting has risen by 45 per cent since the pandemic and is expected to continue growing. Offering e-gift cards, digital vouchers, or personalised digital experiences shows that your brand is in touch with modern trends. These options also cater to last-minute shoppers, with 25 per cent of consumers now opting for digital gifts due to convenience and personalisation.
Digital gifting is especially appealing to the younger demographic, who expect seamless, on-the-go experiences during the holiday season.
Festivals are not only sales points: it’s a perfect time when brands may express their appreciation to their consumers. For offers targeted to specific clients, unique products or promotional offers, CSR activities, brand events, and digital vouchers, the brand can build consumer engagement, and develop a long-term emotional connection with the consumers.
Consumer data are still important and necessary for the process of becoming successful in this cut-throat era of marketing. Therefore it can be reiterated that by compassing your consumers and adapting to their needs during this time of the year, brands can remain relevant, competitive and notably, appreciated.
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