Having a successful holiday season isn’t just about what you sell. It’s about when, where, and how you show up — long before December rolls around.
- Getting your brand percolating in potential customers’ heads now increases the chances they’ll remember you when it counts.
- Reminding previous customers about the amazing products they’ve bought in the past and highlighting new ones coming out gets them excited to purchase again.
- Rewarding customers for their purchases builds up their loyalty, making your brand the one they think of when they’re buying gifts.
What you do now, in Q2 and Q3, sets the tone for a fantastic end to the year.
Whether you're aiming to attract new customers, re-engage lapsed ones, drive repeat purchases from loyal shoppers — or all three — this checklist will help you prepare like a pro and avoid panic come November.
The best part? It’s rooted in real data from the $3B+ transactions that came through the Kard platform last year.
8 ways to get ahead of the holiday season
1. Recalibrate your Q4 goals (and Q1 expectations)
Why it matters: Since 1992, the average American has spent more in December than any other month. But in our Modern Consumer Journey Report, we found that several discretionary categories actually perform better in Q1.
Beauty spend in Q1, for example, is 59% higher than in Q4. Sporting goods spend is 53% higher in Q1. Even fashion has 22% more spend in Q1 than Q4.
This might mean people use gift cards they received during the holidays in the new year. Or, it could reflect a “New Year, New Me” mindset post-holidays. Either way, both present opportunities for brands to capitalize on people’s spending behavior.
Take action
- Take a moment to review your historical data. Do people really buy the most during the holidays? Adjust your ad spend to reflect when your audience is most likely to buy to avoid the sky-high CPCs during the holiday season.
- Build Q4 campaigns that tee up January product launches. Focus on pay-for-performance brand awareness strategies, via rewards-based or affiliate campaigns in Q4 so that people think of your brand when they’re ready to spend in the new year. Tap into “New Year, New Me” messaging to extend momentum into Q1.
- Lean on discounts and promos. Millennial and Gen Z customers love a good sale. Maximize your potential revenue during a time when people are willing to spend.
2. Identify your high-AOV heroes
Why it matters: In Q4, budgets are tight and CPCs are high. A good way to increase revenue without exorbitant spend on customer acquisition is to push higher AOV products in your marketing campaigns. The more of those expensive items you sell to existing customers, the fewer new customers you have to convert to hit your revenue targets.
Discretionary brand categories will have an easier chance of success with this strategy.
According to Kard’s internal data, travel has a 459% higher AOV than the average brand. Other categories with a much higher than average AOV include:
- Sporting goods: $85 (+215%)
- Department stores: $65 (+141%)
- Beauty: $62 (+130%)
- Fashion & apparel: $59 (+119%)
- Home goods: $59 (+119%)
Take action
- Highlight your big ticket items as much as possible. Create specific holiday bundles or gift sets around your highest margin products and promote them in third-party gift guides, social ads, and on your website.
- Use upsells and tiered incentives to encourage larger basket sizes. Run cash back offers (5 - 10%) to give value-conscious customers a reason to splurge.
3. Shift from clicks to performance
Why it matters: Programmatic CPMs can quickly become unsustainable — especially in competitive verticals. The more impressions you want, the more you’ll have to pay: for creative, for base ad fees, for premium placement. And the truth is, most brands don’t see a great ROI.
The best way to get and sustain new customers’ attention without blowing your whole budget? Use performance-based channels like rewards-based ads.
Kard, for instance, has a pay-for-performance model, meaning you pay only for actual conversions (not just impressions or clicks). Launching cash back campaigns now is an excellent way to start building meaningful brand awareness and loyalty leading up to the most important season of the year.
Take action
- Test rewards-based ads now to start reeling in new customers and engaging past customers. You’ll be more likely to be top of mind when the holidays come, plus, you’ll have some time to experiment with different strategies — like a flat % cash back vs. tiered rewards (15% for first purchase, 10% for second purchase, 5% for a third purchase).
- Use lessons learned to segment your audience more intelligently, think through your offer promotion strategy, and craft tailored marketing copy to plan November and December campaigns ahead of time.
4. Focus on convenience-first experiences
Why it matters: 77% of U.S. consumers cite convenience as a key driver in purchase decisions, and many are willing to pay 5%+ more for it. If you can prioritize shopper comfort, speed, and availability — especially in high-stress shopping seasons — you’re going to come out on top.
Take action
- Offer flexible fulfillment. in-store pickup, next-day delivery, mobile-optimized checkouts, and generous return windows can go a long way.
- Promote convenience perks. You could do this directly in your holiday messaging or you incorporate them into loyalty programs or flash promos.
- Make it easy for customers to be rewarded. Cash back offers, like the ones that can be triggered through Kard. On the backend, the Kard platform uses AI to process billions of transactions a day and link them to in-network offers. So whenever a customer makes a purchase that qualifies for a reward, they instantly get a notification in their app telling them they got X% cash back.
5. Nail your big-box and marketplace strategy
Why it matters: Our data (based on $3B+ annual transactions) shows that big box retailers like Walmart, Amazon, and Target captured 23% of holiday cardholder spend last year — far outpacing other categories, like gas & convenience and quick serve restaurants.
Part of the reason why might be their focus on convenience and their ability to serve a wide range of consumer needs. If you’re not already selling at or through these big box stores, this is a sign to get things moving.
Take action
If you are NOT selling through big box:
- Get the attention of these stores. It can take a long time to sell through a Target or Walmart, so you likely won’t get it done this year. But there’s no harm in putting feelers out to start the process.
- Explore fulfillment through other third-party marketplaces. Think about other creative options like dropshipping, wholesale, and strategic partnerships, too.
If you ARE selling through big box:
- Optimize your product pages by late summer, (1) so they’re in tip-top shape for the holidays, and (2) so that customers have a consistent branding experience across direct-to-consumer and third-party listings.
- See if you can run any joint promos, for example, maybe you could even run a cash back offer to consumers who buy specific items from your catalog through Target.
6. Audit your omnichannel experience
Why it matters: Consumers expect a seamless path from browsing to buying, regardless of channel. Yet a good chunk of brands aren’t meeting that expectation — McKinsey found that only 25% of consumers are satisfied with the omnichannel experience most retailers provide.
The good news is that, if you can figure out how to deliver an excellent omnichannel experience, you have a huge leg up. Consumers that shop on multiple channels are at least 1.25 times more valuable than single-channel counterparts.
Take action
- Sync promotions and inventory across your mobile app, website, in-store experience, and rewards. Do some testing yourself or run surveys to pinpoint where your omnichannel experience might be failing your customers.
- Try out new channels to get in front of more customers. For example, say you already get significant online traffic, but your stores are underperforming. Design cash back offers that only reward in-store purchases. Or, if you’re not getting the social commerce results you want, offer cash back to sweeten the deal.
- Hint: Soft-launch new campaigns to a small percentage of your customer base in Q2 or Q3. Then identify and double down on the highest performing channels by Black Friday.
7. Map payment preferences to audience segments
A survey from PayPal supports this, finding that 77% of younger consumers are more likely to trust businesses that offer their preferred payment methods.
And 36% of individuals aged 18 to 24 would choose a FinTech service over their traditional bank. From BNPL to digital wallets, offering flexible options builds trust among your consumers and reduces friction — something they also appreciate.
Take action
- Work with rewards demand platforms that work with emerging fintech. Kard, for instance, partners with companies like Atlas, BM Technologies, Varo, One, Kikoff, Marqeta, EBT providers, and even other rewards providers like Fetch to get your cash back offers in front of nearly 50M users who you may not have been able to target otherwise.
- Offer Apple Pay, BNPL (buy now, pay later), and alternative financing options. And highlight these payment options in your holiday messaging and FAQs.
8. Don’t ignore weekday warriors
Why it matters: Despite what you might think, our data shows that average Gen Z and Millennial daily spending was 27% greater on weekdays than weekends across most retail categories.
This weekday spending surge is prominent in high-AOV categories like home improvement, travel, electronics, and entertainment, where consumers are often planning and booking during the workweek. If you sell in one of these categories, use this timing to your advantage.
Take action
- Schedule Tuesday or Wednesday promos when open and conversion rates are historically stronger. Launching new products in the midweek also helps avoid the noise of weekend flash sales from competitors.
- Experiment with weekday-only offers that drive urgency and reward early action. Kard’s customizable offer notifications can help generate hype and nudge people toward a purchase.
Want a second pair of eyes on your strategy?
Chat with one of our experts at Kard today.
