Test Yourself: Should You Increase Marketing Budgets for the Holidays?

Planning to increase your holiday marketing budget? Take a moment to assess if it’s the best move for your brand that truly aligns with your long-term strategy.

Ofer Moskovitch

The holiday season is a bustling time when many brands boost their budgets and roll out promotions to compete in a saturated market. But is this the right move for every brand? Jumping into an aggressive discount battle or significantly increasing advertising budgets isn’t always the best strategy and could result in brand devaluation, loss of loyal customers, or attracting an audience less aligned with your brand. Before taking action, pause and ask yourself: Are additional promotions and budget increases the right choice for you?

Are Your Discounts Eroding Brand Value?

  • Key Question: Are deep discounts diminishing the perceived value of your brand? Many brands offering large discounts risk harming their positioning, sending a message that their products are worth less.

  • Important Consideration: Often, customers buy not just for the price but for quality, service, and experience. Consider targeted offers, such as exclusive discounts for club members, to maintain your brand’s perceived value.

The Power of a Customer Loyalty Program During the Holidays 

  • Key Question: How can you maximize your loyalty program during the holiday season? Instead of competing with broad discounts, it may be better to offer exclusive benefits to club members.

  • Important Consideration: Direct mail with personalized offers for loyalty members fosters a sense of belonging and lets you offer discounts without compromising your brand’s position.

What Really Happens When You Increase Budgets?

  • Key Question: Does increasing your marketing budget during the holiday season yield a positive return on investment? The intense competition during this period raises media costs, potentially reducing the efficiency of your investment.

  • Important Consideration: Can you reduce dependence on expensive channels and focus on organic marketing, user experiences, and smart use of your loyalty program?

Do You Really Want Customers Who Only Shop During Sales?

  • Key Question: Do holiday promotions bring in loyal customers or just “bargain hunters”? Customers attracted solely by discounts may not return once promotions end.

  • Important Consideration: Think about whether the new customers you draw in during the holidays will continue to buy from you once sales are over, or if they will vanish with the season’s close.

Could Holiday Promotions Alienate Your Existing Customers?

  • Key Question: Will your loyal customers feel like they’re getting genuine value during the holidays, or will they turn to competitors offering larger discounts? Brands that neglect existing customers may lose them to more aggressive competitors.

  • Important Consideration: Creating unique offers for loyalty members, personalized deals, or early access to promotions can keep your customers engaged, even in a competitive landscape.

How to Retain Existing Customers During the Holidays

  • Key Question: How can you add value for existing customers to prevent them from switching to competitors? Existing customers feel more appreciated when they receive personalized offers, VIP service, or unique loyalty program benefits.

  • Important Consideration: Emphasize experiences such as fast shipping, personalized support, or small gifts that can strengthen the bond with current customers.

Conclusion 

The holiday season offers opportunities but also challenges. Is increasing marketing budgets and offering deep discounts the right approach for your brand? Promotions and discounts can help attract new customers, but are they the customers you want? And what about your existing customers—are you investing enough to retain them? Before launching your holiday plans, it’s worth reassessing your strategy to ensure it supports your brand in the long run.

More interesting content

Want to join our family?

Skip to content