Retention Up 20%, Revenue Up 5x: How One Heritage Brand Defied the Holiday Discount Frenzy

Christmas bells have faded, and the New Year countdown has begun. For retail, this is the busiest—and cruelest—time of the year. Deep discounts, ad saturation, and the fierce war for traffic are the norm. We often assume that the loudest voice with the lowest price wins.

But the market is signaling a dangerous shift: Loyalty bought with a “race to the bottom” is collapsing.

According to the Customer Loyalty Index 2025 (released by SAP Emarsys, Dec 2025), “True Loyalty”—built on genuine trust and emotional connection—has dropped by 5%, the largest decline on record.

Replacing it is “Trend Loyalty”. Consumers may queue for a viral hit or an influencer recommendation this week, only to forget you the next. As the saying goes: A discount wins a transaction, but it doesn’t buy a relationship.

The Case Study: 5x Growth Without the Price War

In the beauty industry, a sector heavily reliant on promotions, a 50-year-old British heritage fragrance brand offers a textbook example of how to break the cycle.

Facing the challenge of digital transformation, they refused to devalue their brand with blind discounting. Instead, they partnered with SAP Emarsys to bridge the data silos between SAP Commerce Cloud and their backend ERP.

The result? They achieved a 5x increase in email revenue and a 20% boost in customer retention. Here is what they did right.

Strategy 1: Treating Customers as “Individuals,” Not “Traffic”

Indiscriminate “batch and blast” marketing during holidays causes 23% of customers to churn due to annoyance.

By unifying omnichannel data, this brand reconstructed accurate customer personas. They discovered, for instance, that Gen Z users were averse to emails and preferred social media engagement, while mature clients responded better to email. They tailored their outreach accordingly. In modern marketing, not disturbing the customer is the ultimate form of respect.

Strategy 2: Unlocking the Invisible Growth of “Shared Values”

Data analytics revealed a hidden, high-value segment: customers deeply concerned with Sustainability (ESG).

The brand targeted users who had browsed eco-friendly pages with messaging about their “refillable packaging” and plastic reduction efforts. The results were striking: this segment’s Average Order Value (AOV) was 22% higher, and their purchase frequency was 37% higher than the average customer. Proof that emotional resonance drives consumption more effectively than price wars.

Our Advice：Turning Peak Traffic into Long-Term Business

For global brands, the holiday season shouldn’t just be a blip on a financial report—it should be the start of a long-term relationship. As an SAP Platinum Partner, Acloudear suggests three strategic shifts for your marketing automation:

1. From “Batch Sending” to “Smart Triggers”: Don’t wait for a holiday to reach out. Use AI to predict intent (e.g., when a product is running low) and trigger personalized reminders exactly when needed, rather than blasting SMS on the big day.

2. Awakening “Dormant” Value: The holidays are the best time to wake up one-time buyers. Instead of generic discount codes, recommend complementary products based on purchase history. A recovered customer via personalization is far more valuable than a new customer acquired via low prices.

3. Omnichannel Consistency: Whether via WeChat, Email, or in-store, breaking down data silos is the only way to provide a consistent, coherent experience wherever your customer is.

In an uncertain market, being “understood” is far more valuable than being “cheap”.

Ready for 2026? If you are building a smart, precise, and high-ROI DTC strategy for your global expansion in 2026, Acloudear is ready to provide professional guidance based on SAP solutions.

About Acloudear

As an SAP Platinum Partner, 2020 Pinnacle Award Winner, and United VARs member, Acloudear specializes in SAP Cloud ERP solutions. Powered by the twin engines of “AI + Globalization,” we deliver one-stop cloud solutions—from process reconstruction to AI innovation—for over 300 customers across industries like Automotive, High-Tech, and Life Sciences. Acloudear is a pioneer in China’s cloud-native services. By combining SAP Best Practices with our unique “1+X” innovation matrix, we reshape corporate digital DNA and empower enterprises to unlock the full potential of the cloud. Our commitment to excellence has earned us multiple recognitions as the SAP Best Cloud Partner.

This article "Retention Up 20%, Revenue Up 5x: How One Heritage Brand Defied the Holiday Discount Frenzy" by AcloudEAR. We focus on business applications such as cloud ERP.

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