Last year, Shopify reported that for 64% of the merchants that used their platform over BFCM, the new customers they acquired had a much lower overall lifetime value. Despite this, our research showed that 46% of customers would return to a shop they have bought from before – versus just 14% who said they wouldn’t. Failing to engage with the influx of new customers and converting them into long-term fans of your brand is clearly a missed opportunity.
This blog post sets out three important strategies you can implement after BFCM which can engage new customers and increase their customer lifetime value, even if their initial purchase was discount-driven.
1. Run double discount events for your loyalty program members
To keep your customers’ lifetime value consistently high, consider putting in place strategies that encourage customers to keep coming back to you after BFCM.
Add a little sparkle to January by giving your new program members double points for spending with you for the second time or, perhaps, grant them exclusive (or preferential) access to sales. This will highlight the value of staying loyal to your brand into the new year.
For example, make-up and skincare brand Mirenesse run “triple love point” events where loyalty members can earn two points for every dollar they spend as opposed to the usual one point per dollar. This encourages customers to return, make a purchase and earn even more points while they’re there.
2. Always room for improvement
Your loyalty program can give you precious insight into the online purchasing behaviours of your customers. Analysing how they interact with your program – what they look at, what they’ve previously purchased and when they buy – can give you valuable information on how you might make improvements that will benefit your customers and your bottom line.
After the mania of BFCM is over, dive into the data to see which rules and rewards your customers responded to. Make the most of this quiet time after the discount season to decide whether the current value of your points and rewards system will continue to work for you next year, or if there are any adjustments you could make to optimise your offering.
You could also observe the number of members who are earning points and redeeming rewards. If the rate of redemption is low, it might be that you’re not rewarding customers with enough points or perhaps you’re not giving customers enough opportunities to earn points.
3. Dangle a carrot
It’s quite common for customers who join a loyalty program to lose interest after they’ve claimed their first reward. To keep your customers hooked after BFCM, place them in tiers within your program. This way, there will always be another level of incrementally better rewards to aspire to, and they can easily see how they can get hold of them. With something to aspire towards, they’ll be more likely to return and shop with you.
For example, lingerie brand Lively put their loyalty program members into tiers so members can earn more exclusive rewards as they move up the ladder. They also keep customers notified as to where they are along that journey and how close they are to redeeming their next reward – incentivising further spending through reward proximity.
BFCM is a huge event in retail and sees an influx of new shoppers eager to spend money on sales and discounts. The key thing for brands is to retain these new shoppers after the event is over and increase their customer lifetime value in the process. Three key strategies to implement after BFCM weekend to keep your new customers returning for more are:
Running double discount events for your loyalty program members
Assess how you can improve your loyalty program and make changes in the new year
Keep customers inspired to unlock more rewards
Want to learn more strategies to retain loyal customers this holiday season? Have a read of our previous blogs outlining how to prepare for BFCM and what to do to cut through the noise.
Managing your program
