Black Friday Cyber Monday is a flurry of sharp elbows and huge discounts and can be a little daunting for any retailer.
Results from 2018 showed that Black Friday alone generated $6.2 billion in online sales, while Cyber Monday hit an estimated $7.9 billion. Amazon commanded a 26% share of the total retail industry over the full week of discounts, with customers ordering 180 million items from the online retailer.
The notion that BFCM can bring you a horde of new, eager customers with money to spend is a seductive one. However, according to 64% of retailers, shoppers acquired during BFCM have a lower lifetime value than those obtained at other times of the year. These deal-seeking and discount-hungry shoppers provide value for your business in the short-term but rarely come back to buy again.
With so much online noise being generated by retailers over this period, it can feel like opting out of BFCM just isn’t an option but, at the same time, your chances of being heard above the clamour feels slim.
However, when we asked the BFCM shopper about the behaviour they exhibited over the holiday season, 46% of them stated that during peak sales they would return to sites they have shopped with before; just 14% said they would be less likely to return to sites they have previously shopped with. Fostering connections with customers throughout this period is therefore crucial for keeping your business at the forefront of their minds.
It’s easy to equate a myriad of discount-driven sales around BFCM with having gained new, long-term customers for your brand. Unfortunately, many of these customers are fleeting – they’re unlikely to stay loyal in the long term as they’ll only buy when you discount and will happily ignore you for the rest of the year.
To get around this, try making the customer realise that, if they sign up to your loyalty program, they get value from your brand even when things aren’t discounted. Give them points as they spend – regardless of whether the item is discounted or not – and show them the rewards they get longer-term. This added value, will start to build a much-desired, long-term connection.
For example, accessories brand Zox keeps its customers engaged by rewarding every dollar spent with five points that they can redeem at a later date. They can then claim the points against money-off vouchers.These rewards provide customers with a feel-good factor, making them see the value in engaging with your brand both over BFCM and beyond.
To sweeten the relationship further, Zox also rewards customers for non-transactional activities – such as social media follows. This shows customers that they’re not only giving value to customers who spend over BFCM, but also to the customers who take the time to engage over the peak period.
There is so much noise around BFCM that it can be difficult to feel heard. Instead of mindlessly shouting about your offers, use this peak period to tell your existing and newly acquired customers about who you are as a business, what you stand for and what your main missions are.
In amongst all of the flash sales, your narrative will stand out and resonate with shoppers much more than yet another mindless, aggressive sales push. According to one study, 65% of customers buy on the basis of their beliefs. Emphasising your brand values over BFCM is a great way to acquire new customers and reinforce relationships with existing ones.
For example, adventure-clothing brand Wildish allow customers to spend their rewards on environmental or social initiatives. This means that customers who also align on the same issues are likely to head straight to them during BFCM as they know they’ll be helping a cause they’re passionate about as well as finding a discount on something they want.
Experiential marketing is on the rise, with the main goal to create a memorable impact on the consumer. In fact, 77% of marketers use experiential marketing as a vital part of a brand’s advertising strategy.
Use BFCM as an opportunity to show new customers the value you can bring if they shop with you. You could do this through the exclusive and experiential rewards you offer through your loyalty program. This way they’ll see that you offer more in exchange for spending with your business.
For example, beauty brand Mirenesse give members of their loyalty program early access to product launches so that they’re the first to know about exciting brand developments.
BFCM is a huge event in retail – possibly the biggest of the year – and sees an influx of new shoppers eager to spend where they see sales and discounts. However, the key to retain BFCM shoppers into the new year is to work hard to convert them into loyal customers. The three key strategies to implement over BFCM to keep your newly-found customers satisfied and returning are:
If you want to know how to prepare for BFCM, check out our previous post where we explained three key loyalty strategies that will help you engage and excite your existing customers ahead of the seasonal sales.
Or, check out our BFCM 2019 loyalty pack, full of ways to win this Black Friday Cyber Monday.
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