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I think it really depends on who might come to your service. We have found that the families from our congregation and the community with smaller children come out of the woodwork for an afternoon Christmas Eve service. We like to do something between 2 and 4. We really aim that at families. There is a lot of energy - to put it mildly. Then a late night service (8 pm to 11 pm) is great for people who don't have kids (or have teens) and want something more contemplative. Your congregation/community may not want one or the other, or something different. Depends who comes. Don't underestimate the power of exposing new people to God's presence in your church on this day, as is already mentioned.
As for Christmas Day. i'm a heretic (gladly). I think the only people who come are long retired people, and most of them out of obligation. I think it is our job to get Christmas off on the right foot (we do that with Advent, and Christmas Eve) and then to get out of the way. Let families celebrate by themselves. What's this about always making people come back to the church building? Do we think they need to come both days? Are there many people who couldn't come to one of the Eve services? Give people materials to have a brief worship or meditative time with their families. A short and good devotion to do with the Advent wreath.
Taking Christmas Day off is also a way of allowing staff, worship leaders and others involved in worship time ministries a chance to honor the Holy Day with their families. A sabbath. That is very important as well.

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