Black Friday presents an exceptional opportunity to drive customer acquisition, but retaining those newly acquired customers can be challenging. Research indicates that 64% of brands find Black Friday shoppers have a lower lifetime value than customers acquired at other times of the year. The key to overcoming this is leveraging loyalty programs to turn one-time buyers into repeat customers. During our recent Virtual Conference, Loyalty Connect: Autumn Edition, we caught up with some of our experts – Adam Goodman, Product Manager; Hannah Cook, Senior CSM; and Sammy Newton, Onboarding Manager – who shared valuable insights on the best strategies for retaining shoppers during peak selling periods. Let’s take a look.
Key strategies to drive loyalty during sale periods
As the peak sales season kicks in, your loyalty program can be a powerful tool to attract new customers and strengthen relationships with existing ones. You can maximize customer engagement and drive sales by strategically balancing loyalty offers with promotions, providing exclusive experiences, and using targeted communication. Here are some key strategies to implement during the sales to retain customers and boost their loyalty.
Balancing loyalty offers and discounts
When planning a Black Friday strategy, finding the right balance between offering discounts to new customers and rewarding loyal customers is essential. For existing loyalty program members, providing early access to Black Friday sales or double points during the promotion period can make them feel valued and incentivize continued engagement. For new customers, a simple sign-up offer or bonus points upon creating an account can effectively bring them into the loyalty program.
With the time between Thanksgiving and Christmas being the shortest possible this year, starting promotions early and providing early access to sales can help capture attention. This approach rewards loyal customers and generates excitement among new shoppers.
Using loyalty points alongside promotions
There’s no one-size-fits-all answer to whether customers should be allowed to use loyalty points and promotional discounts. Some brands prefer to avoid voucher code stacking, while others are more flexible. The key is clearly communicating your policy in the lead-up to Black Friday, ensuring customers know what to expect.
Transparency is crucial for brands that decide against allowing loyalty points to be used with discounts. Communicate any restrictions well in advance to avoid disappointment. If you allow it, ensure the integration is seamless to enhance the customer experience.
Making use of your email marketing tools
Email marketing plays a critical role before, during, and after Black Friday to keep customers engaged. Leading up to the sale, email campaigns can help build anticipation by sharing details about loyalty program benefits, upcoming promotions, and member-exclusive rewards. This is especially valuable as consumers prepare their wish lists.
During the sale, reminding customers of the points they could earn or the tier benefits they might unlock can drive more purchases. Post-purchase emails are equally crucial for retention, informing customers of the points they’ve earned and encouraging them to create an account if they haven’t already. Personalized emails, including points balances or tier status, add an extra layer of engagement.
Creating a VIP experience through your loyalty program
Building a VIP experience can set your brand apart during Black Friday and beyond. Providing early or gated access to sales for loyalty program members creates a sense of exclusivity, which can result in a higher average order value (AOV). It also serves as a soft launch, allowing you to gauge the promotion’s reception and adjust accordingly.
Beyond early access, there are other ways to reward loyal customers. For example, you could run prize giveaways exclusively for loyalty members, offer point giveaways as holiday gifts, or even refund orders for a small group of loyal customers to recognize their support.
Key strategies to drive loyalty during sale periods
Once the excitement of the sales period dies down, the real work begins: turning one-time buyers into repeat customers. The post-sales phase is a critical opportunity to encourage account creation, build deeper connections, and drive future purchases. With well-planned follow-up initiatives and ongoing loyalty incentives, you can keep customers engaged and motivate them to return. Here’s how to retain shoppers and make the most of the post-sale period.
Encourage account creation and program enrollment.
Once the sales period ends, turning one-time purchasers into long-term customers is essential. Start by running initiatives that capture customers who checked out as guests, encouraging them to create accounts and join your loyalty program. This is a great opportunity to promote double points for referrals, incentivizing existing members to invite friends and family. The more members you can enroll after the sale, the larger your pool of loyal customers will become.
Drive repeat purchases
Keep the momentum going by using automated marketing flows to encourage customers to shop again after their initial purchase. Consider offering a bonus, such as extra points or discounts, if they make a repeat purchase within a specific timeframe. You can also create time-sensitive offers encouraging customers to redeem their points quickly, providing a compelling reason to return. These strategies help maintain engagement and drive further sales in the weeks following a big promotion.
Use loyalty tiers to build engagement
Your loyalty program’s tier structure can be a powerful motivator for customers to stay engaged. Offer increasing points-per-currency spent as customers move up through the tiers, demonstrating the value of reaching higher levels. Ensure tier benefits are clearly communicated, allowing customers to easily see the perks they can unlock by becoming even more loyal. Visibility into tier progress can motivate shoppers to make an extra purchase to reach the next level. We have some new components in this space that highlight tier progress much more clearly. These can be integrated into your loyalty page so customers can see where they stand now and where they are in the full-tier spectrum.
Leverage free product rewards
Use excess inventory to offer free product rewards, allowing customers to redeem their loyalty points. This encourages point usage and helps clear out leftover stock from the sales period. Free product rewards are a popular way to incentivize customers and add value to your loyalty program, keeping shoppers excited about the benefits they can receive.
Ongoing strategies for encouraging repeat purchases
Customer retention doesn’t stop after a single purchase or sales event; it’s an ongoing process that requires consistent effort. Implementing ongoing strategies can help create a loyal community that repeatedly chooses your brand. These approaches sustain engagement and help your customers see the value in staying connected long-term. Here are some ways to keep the momentum going year-round.
Referral programs
Encourage customers to share their positive experiences by offering generous rewards for referrals. Enticing incentives can make it worthwhile for them to bring friends and family into your loyalty program. “Give and get” schemes can be highly effective, such as offering 15% off to the referrer and the new customer. Including referral links in post-purchase emails makes it easy for customers to share and spread the word, expanding your customer base organically.
Customer reviews
Encourage customers to leave reviews to boost engagement and build trust. Offer loyalty points as a reward for sharing their feedback, which increases transparency and fosters a sense of community around your brand. Positive reviews can significantly influence new shoppers’ decisions, so incentivizing this kind of customer participation is a smart way to reinforce the value of your loyalty program.
Tracking and analysis
Monitor your loyalty program’s performance closely with detailed dashboards. Track key metrics, such as new member acquisition and the impact of Black Friday activities, to gain insights into what’s working. Establish baseline metrics before the sales period begins to better understand your success. This way, you can measure progress accurately and adjust strategies for future campaigns based on the data you gather.
Conclusion
Retaining customers acquired during Black Friday requires a strategic approach to loyalty programs. From balancing offers and personalizing email communications to creating VIP experiences and tracking metrics, there are several ways to ensure that your brand attracts new customers and keeps them coming back.
By implementing these tactics, you can maximize the value of your loyalty program, turning seasonal shoppers into lifelong customers. As the holiday season approaches, remember that each interaction is a chance to strengthen your brand’s relationship with its customers. The right loyalty strategies can help you capitalize on Black Friday’s potential and set the foundation for sustainable growth.
Get in touch with our team today to find out more about building your successful loyalty program.
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