During the holiday shopping season, the pressure on retail managers and employees to deliver excellent service intensifies. The increase in foot traffic, online orders, and customer inquiries can make it tempting for retail organizations to focus solely on operational efficiency.
However, adopting or refocusing a customer-centric approach during this high-demand period is more important than ever—for both the customer and the organization.
Customer-centricity is about meeting your customers’ needs while staying true and authentic to your brand. “Customer centricity involves being very knowledgeable about your customers, having good customer information systems, and understanding that taking a customer-centric approach cuts across the whole organization,” says Michael D. Johnson, Marketing Department Chair for the Wisconsin School of Business.
During the holidays, customer expectations are at their peak. Shoppers are not only looking for great deals but also expect a seamless, stress-free experience. A customer-centric approach ensures that every touchpoint—whether in-store or online—delivers on these expectations.
A positive experience during such a critical time fosters long-term relationships that extend beyond the holidays.
“Understanding your customers and the range of emotions they are feeling, and how your company can provide a unique experience to support them in this time, drives connection to your brand over others,” says Laura Hensen, Executive Director, Kohl’s Center for Retailing and Office of Strategic Partnerships with the University of Wisconsin-Madison’s School of Human Ecology.
Three Business Benefits of Customer-Centricity During the Holidays
For retail organizations, the stakes during the holiday season are incredibly high. A customer-centric approach not only meets the immediate needs of customers but also creates significant business advantages that extend well into the new year.
“An example that comes to mind is having complimentary gift-wrapping services with a purchase,” Hensen says. “It is a convenience service and an opportunity to bring your brand’s emotion to your customers.”
Consider the full experience, she adds.
- How does a gift-wrapping associate receive the purchase?
- What packaging is used?
- How is it addressed to the intended recipient?
- How are they building a connection with the customer all during that process?
“That builds and deepens a relationship with the brand and customer that they will remember long after that day,” Hensen adds. “They will share that experience with others, and they will come back to you after the holidays.”
1. Boosts Revenue through Repeat Business
The holiday season provides an opportunity to turn first-time shoppers into repeat customers. A customer-centric approach that emphasizes a positive experience and builds trust ensures that holiday shoppers return to the brand even after the seasonal rush. Happy holiday customers often come back for more—both during off-peak seasons and in the next holiday cycle.
2. Increases Positive Word-of-Mouth and Referrals
Customers who feel valued during the holidays are more likely to spread the word about their experience. Positive reviews, personal referrals, and social media mentions can significantly increase your brand’s visibility. By focusing on customer-centricity, retail organizations can benefit from this organic, word-of-mouth marketing at a time when customer recommendations are most influential.
3. Enhances Employee Engagement and Productivity
When frontline employees are empowered to prioritize the customer experience, it also boosts their morale and job satisfaction. A customer-centric focus gives employees a sense of purpose and allows them to form meaningful connections with customers, which can translate into increased productivity and higher performance levels.
Building Commitment to Customer Centricity
Retail managers must model customer-focused behaviors. Be visible on the floor, help customers, and solve issues alongside employees. This sets the tone for how employees should interact with customers.
Additionally, retail managers need to empower the frontline employees. Involve employees in making decisions that enhance the customer experience. The employees working in your retail stores day to day are the most connected to your customers. They are collecting information and can provide feedback from what the customers are saying, what they like, and what they don’t like, says Kelly Bernal from Torrid.
Provide targeted training to ensure frontline employees understand your organization’s customer-centric approach. Organize focused training sessions to ensure your frontline employees are well-versed in handling high-pressure situations, customer service protocols, and common challenges specific to the season (such as stockouts and long lines).
“Communication is key in making sure they understand your brand’s purpose and vision and what you’re setting out to achieve,” Bernal says. “Make sure there is clarity and that they support and align to that. It’s important to communicate clearly what you’re trying to do, why you’re trying to do it, and to have open dialogue with them.”
Consider rewarding customer-centric behavior. Managers can recognize and reward employees who go above and beyond for customers. This could be done publicly or through internal incentives. This recognition reinforces that customer-centric behaviors are valued and encouraged.
Key Differences in Holiday vs. Non-Holiday Customer-Centricity
1. Greater Focus on Empathy
Customers are often more stressed during the holidays, so empathy and patience from retail employees become even more critical. During non-holiday periods, interactions may be more relaxed, but the holiday season demands a deeper understanding of customer frustrations.
2. Higher Stakes for Customer Retention
Customers shopping during the holidays often shop for gifts, which means a mistake or bad experience can have larger emotional consequences. Customer-centricity during the holidays is about ensuring that one bad interaction doesn’t lose a customer permanently.
3. Increased Volume, Same Level of Personalization
In a non-holiday setting, personalization might involve longer interactions and more customized solutions. During the holiday rush, the challenge is to maintain this level of care and attention in shorter, more frequent interactions.
While speed is a priority in holiday retail, especially for online or in-store pickups, the customer-centric approach emphasizes that speed shouldn’t come at the cost of quality service. Retailers must maintain the same level of care and attention they would offer during non-peak times, even when rushed.
Customer centricity is about forming real connections with your current and future loyal customers. Investing in a customer-first strategy leads to tangible benefits that extend well beyond the holiday shopping period, positioning your retail organization for continued success year-round.