It’s the most wonderful time of year…unless you’re in customer service. Shopping malls (what’s left of them) are at maximum capacity; websites are overwhelmed; that package your mom sent you is nowhere to be found—despite the fact she paid an extra $50 for expedited shipping. Lines are long and hold times are even longer as millions of customers search for the perfect gifts for everyone on their list.

The holiday season is the most important time of year for retailers to get the customer experience (CX) right. Not just because of the sheer volume, but also because this may be the only interaction customers have with them for months to come. What companies do in November and December can cement their brand reputation and set the tone for future success (or failure). That in mind, here’s exactly what retail companies can expect this holiday season, and what they can learn to better prepare for next year.

Getting in the Christmas Spirit

A lot rides on the holiday season for retailers. End of year sales have an outsized impact on overall success, averaging about 19% of total retail sales. This year, that portion could be even greater, with holiday sales expected to increase 10%-12%. But it’s not just about how many shirts or candles you sell in November and December – today’s CX performance sets the tone for the following year and beyond. Done right, it can help kick the new year off with a bang; done wrong, companies will lose out. Seventy six percent of consumers would stop doing business with a company after just one bad customer experience. In fact, a bad phone experience – due to rude agents, long hold times, or too many transfers – was the second most common reason to stop doing business with a company, behind high prices. And with 67% of companies focusing on customer retention instead of acquisition, there’s more pressure than usual to nail the customer experience.

The Holiday Forecast

To make the most of the rest of this year, it’s imperative for companies to know what to expect. According to data from my company, Interactions LLC, call volume begins trending upwards on November 1, rising 50-75% throughout the month. In December it increases an additional 50-100%, ultimately peaking between November 29 and December 27. Customers most often call 11am-4pm ET, similar to the rest of the year. The primary request during this boom is order status (over 20% of callers). By New Year’s Day the chaos is over, with January volume totalling half of December volume. However, January is when companies see an increase in return and exchange requests for non-perishable items, like clothing and electronics.

Make Your List and Check it Twice

Everyone overexerts themselves during the holidays, whether that’s spending too much money or committing to one too many holiday parties. Come New Year’s, everyone reflects and vows to do better. Companies can—and should—do the same.

The chaos of the season lays bare any gaps in the existing CX strategy, shining a light on what isn’t working and illuminating opportunities to do better next time. For example, if live agent requests actually decline during this peak period, should companies lean into virtual agents? Should technology investments be a priority in 2023 to better prepare? Do companies only need extra staff 11:00 – 4:00 ET? Just like individuals make New Year’s resolutions, companies need to take the time to reflect honestly on what worked and what didn’t to make appropriate adjustments.

Companies, don’t land on customers’ naughty lists next year because of terrible experiences; if this is the only touchpoint a customer has all year, make sure it’s outstanding. Lean on past experiences and real-life data to ensure this is the most wonderful time of the year – even in customer service.

Samantha Gott is Senior Director of Customer Success at Interactions, the world leader in conversational AI. Samantha has 10+ years of experience in the Customer Experience software industry focused on Customer Success. Most recently she was a Global Customer Success leader at Genesys, where she developed key processes at scale to onboard and increase time to value for the cloud customer base. She brings a robust background of CX, IVR and Contact Center technology experience to Interactions, along with her passion for customer success. A graduate of Radford University, she received her undergraduate degree in Journalism and Psychology, and eventually found her way into the technology space.