Have you prepared for Q5? A retailer’s guide to the "Secret Quarter"

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4 min read
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Key Takeaways

For most retail brands, the year revolves around four quarters of planning, executing, and analyzing. But what if we told you there's a fifth quarter—one that’s often overlooked but bursting with opportunity? Enter Q5, the post-holiday period spanning from late December into early January. While it doesn’t appear on traditional calendars, Q5 is a unique season where savvy retailers can capture attention, drive sales, and set the stage for long-term customer loyalty.

What is Q5, and why does it matter?

Q5 kicks off immediately after the holiday rush, as the frenzy of Q4 subsides. Consumers are still in a shopping mindset, often armed with gift cards, holiday cash, and a desire to snag post-holiday deals. At the same time, they’re looking ahead—whether it’s fulfilling New Year’s resolutions, refreshing wardrobes, or upgrading tech for the year to come.

Brands that dismiss Q5 as an "off-season" are missing out on motivated customers, reduced competition (as many brands go quiet), and the chance to build customer relationships when others aren’t paying attention.

Why Q5 is a golden opportunity

  • Peak engagement
    Consumers are already primed to shop. From exchanging gifts to chasing sales, they’re in the habit of spending—and looking for brands to meet their needs. According to Meta, 41% of festive shoppers keep purchasing after the holiday season.
  • Less clutter
    With Q4's marketing deluge in the rearview, Q5 offers a quieter playing field. Standing out becomes easier, and your messaging won’t compete with as much noise. CPM (cost per mille) rates—essentially the cost of 1,000 impressions—tend to drop significantly, making it the most cost-efficient time of the year to advertise.
  • Data-driven insight
    With fresh data from Q4 campaigns, brands can tap into consumer behavior trends to create targeted, hyper-personalized offers during Q5.
  • Loyalty potential
    Shoppers in Q5 aren’t just transacting—they’re exploring. A well-timed, personalized offer can turn a one-time buyer into a loyal customer. In January, Meta saw a 16% increase in conversion rates compared to October.

Strategies for Q5 success

1. Segment and personalize like a pro

Use your Q4 data to identify key customer segments. Who purchased during the holidays but hasn’t engaged since? Who redeemed loyalty points or shopped at a discount? Tailor your Q5 campaigns to meet these customers where they are. For instance:

Offer exclusive post-holiday sales for your most loyal customers.

Incentivize first-time buyers with a follow-up discount or free shipping on their next purchase.

2. Leverage gift cards and exchanges

Gift cards are Q5 gold. Nearly 60% of recipients spend more than the card’s value (Fiserv, Gift Card Gauge). Encourage these transactions with "bonus cash" promotions or limited-time upsell offers. Additionally, make exchanges seamless to turn returns into opportunities for upselling.

3. Double down on digital

While brick-and-mortar may slow down after the holidays, online shopping remains strong. Use retargeting ads, email campaigns, and social media to keep the momentum going. Highlight messaging like “Start the Year Fresh” or “New Year, New You” to align with customer mindsets.

4. Clear out inventory with style

Seasonal stock doesn’t need to gather dust. Create urgency with flash sales or limited-time discounts on leftover holiday inventory. Consider bundling items or offering tiered discounts to encourage higher spend thresholds.

5. Focus on loyalty and retention

Q5 isn’t just about closing sales—it’s a prime moment to deepen customer relationships. Use loyalty programs to reward post-holiday purchases and engage your audience with personalized thank-you emails or early access to future sales. Learn more about Kognitiv Inspire, our robust loyalty management software to help you grow your customers’ lifetime loyalty.

6. Reframe the calendar year

Many consumers see Q5 as a “reset moment.” Tap into this sentiment by offering products or services that align with fresh starts—fitness gear, organizational tools, or educational materials.

Looking beyond the sale

Q5 is not just an extension of Q4; it’s a unique opportunity to listen, learn, and engage. While discounts and deals may dominate the period, don’t lose sight of what truly matters: building meaningful, long-term relationships. Brands that invest in understanding customer preferences during Q5 can position themselves for success—not just for the quarter, but for the entire year.

By acting strategically and using the season to engage and delight your customers, you can turn a traditionally slow period into a major win. So, are you ready to seize Q5?

 

Want to build deeper relationships with your customers and grow a loyal customer base? Let’s chat!

About Kognitiv

Kognitiv is redefining loyalty with its AI-native outcome-based technology. Our award-winning loyalty software and a suite of cross-channel intelligence and personalization products enable brands to deliver hyper-personalized experiences, predict and optimize customer engagement in real time, and achieve measurable results.

It’s time to move beyond transactions and earn customers’ lifetime loyalty. Discover how reimagining your loyalty strategy and customer engagement with AI can foster deeper connections and drive long-term success.

Track, predict, and optimize your customers’ lifecycles with Kognitiv Pulse.Learn more.

Enable 1:1 personalization at scale with Kognitiv Ignite. Learn more. ‍

Launch and manage a successful loyalty program with Kognitiv Inspire.Learn more. ‍

Intelligently acquire and engage customers across paid channels with Kognitiv Amplify.Learn more.

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