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Crafting loyalty beyond Black Friday: The untapped potential in retail and e-commerce
November 6, 2023 Marketing & Sales Black Friday Customer retention
Are you an e-commerce manager, CMO, or marketing manager? If so, you're well aware of the impact that Black Friday & Cyber Monday (BFCM) have on sales. These two shopping events generate an unprecedented surge in customer activity, with irresistible discounts driving customers to flock to both online and physical stores. But what if we told you there's an untapped opportunity within this gold rush?
Through extensive research on 2 million consumer transactions, we've discovered a surprising fact: during BFCM, most brands only attract one-time buyers. Despite major campaigns, high-priced ads, and tempting discounts, a staggering 79% of customers make only a single purchase on Black Friday, compared to the usual 55% during an average week. This means customers are 125% more likely to make a second purchase during a regular week than during BFCM. It's a perplexing situation, considering the amount we invest in gaining single-purchase customers.
But here's the good news: there's immense potential to convert these one-time purchasers into loyal customers! The key lies in
- strategic segmentation,
- efficient use of Customer Data Platforms (CDP),
- and compelling marketing automation.
While many BFCM customers may be solely seeking the best deals, this trend can be shifted.
Imagine you could motivate just 2.5% of the one-time BFCM buyers to make a second purchase. Your overall revenue would experience a 6% spike compared to the earnings from BFCM alone. Now, envision doubling this figure to a 5% activation rate, resulting in a 10% increase in revenue. And if you reach a 10% activation rate, the revenue boost would be a staggering 20%. By neglecting to follow up with BFCM buyers, you're essentially leaving a fortune on the table.
Therefore, there needs to be a shift of focus from the sales peak to the entire customer journey. Once a customer makes a second purchase, the likelihood of subsequent purchases increases significantly. Retail and e-commerce managers need to uncover the hidden potential within their BFCM buyers. They have the necessary tools – customer data, segmentation, and marketing automation – at their disposal. It's about time to leverage these resources to transform every Black Friday purchase into a stepping stone towards customer loyalty!
Action Plan for Retailers: Transforming BFCM Buyers into Loyal Customers
To maximise BFCM and convert your one-time buyers into loyal customers, here are some practical steps you can take:
- Pre-BFCM Campaigning: Target customers from previous BFCM and other sales peaks, as they are likely interested in discounts and will appreciate advance notice of your upcoming BFCM offers.
- BFCM Landing Page: Develop a dedicated landing page showcasing your best BFCM deals. Share this page with your BFCM enthusiasts in advance to build anticipation.
- Ad Targeting: Utilise past BFCM buyers for your BFCM ads on Meta and Google. By syncing this audience to your ad platforms and creating lookalike audiences, you can expand your ad reach and improve effectiveness.
- Post-BFCM Follow-up: Implement an automated follow-up strategy to convert your BFCM first-time buyers into repeat customers as soon as possible. Plan follow-up emails and SMS messages strategically.
- Follow-up Discounts: Consider including discounts in your follow-up messages. If suitable for your business model, this can incentivise customers to make that all-important second purchase.
By implementing these steps, you can begin transforming your BFCM buyers into loyal customers, maximising your BFCM earnings, and building a robust customer base for future success.
