Planning to send the same Black Friday/Cyber Monday offer to everyone on your database? Stop right there.

If you’ve started thinking about your Black Friday Cyber Monday (BFCM) marketing strategy – and we imagine you have, given that this huge sales opportunity is just around the corner – stop right there.

Every year, in the rush to capitalise on BFCM, and kick off what’s known as retail’s ‘Golden Quarter’, it’s common to see brands make decisions that ultimately dampen their sales.

Mistake 1: Focusing on acquisition only

The first peak-season pitfall? Focusing only on acquisition and failing to take care of your existing customers, says James Bennett, the co-founder of LoyPal, a platform that unlocks value from existing customers.

“BFCM is a great opportunity for a brand to acquire new customers. But these customers are often acquired through heavy discounting,” says Bennett. This means that the purchase comes at a cost; not only do brands relinquish some of their margin, but they must invest in acquisition costs to secure the customer in the first place. The biggest downside, however, is that customers attracted by deep discounting may only be interested in your brand when it’s on sale. That’s why it’s worthwhile to consider BFCM as a way to stimulate existing customers, not just new ones. 

“Many brands miss the opportunity to connect with their existing customer base during events that are acquisition focused.”

And those existing customers need careful consideration in order to drive maximum sales.

Mistake 2: Failing to segment your audience

Planning to blanket your entire customer database with the same offer? “This is a missed opportunity,” advises Bennett, who explains that identifying unique customer segments and then tailoring offers to each segment is more likely to drive sales.

“Segmenting allows a brand to talk to their existing customers in a way that is personalised – and by personalising its approach with a customer, a brand is increasing its relevance with that customer.”

For example, a brand could consider creating segments such as:

• Customers who have only shopped with you once

• VIP or high-spending customers

• Customers who recently abandoned their carts

• Lapsed customers

Each of these customer segments would then receive different offers. “A brand could give VIP customers early access to the BFCM sale. This makes them feel valued and special because they get first dibs on everything,” says Bennett.

“For a lapsed customer, brands might choose to emphasise a deep discount without making it feel like business as usual. This can be especially useful for premium brands that see discounts as misaligned to their brand.”

LoyPal co-founder Andrew Fisher adds that offering different discounts to different customer segments is a savvy way to protect margins. “Every time you offer a discount, you’re wiping a portion off your revenue and – particularly this year – that’s going to be a big concern for a lot of retailers.”

For example, says Fisher, brands might offer a discount on a product with low margins – but only to a limited customer segment, such as VIPs, while the general public might receive a broader discount on a product with higher margins. “So, there’s lots of opportunities to approach BFCM in smart ways.”

Mistake 3: Not collecting customer information

Sales are a great way to incentivise new customers to shop with your brand. But your BFCM strategising shouldn’t start and end in November. Instead, it’s critical to consider how you will transform one-time BFCM shoppers into loyal, long-term fans.

To do that, says Fisher, you need to ensure your staff are adequately collecting new customer information. Short-term incentives such as KPIs linked to transaction data or e-receipts may even be necessary during BFCM season.

“This is particularly important with physical retail. If you are going to offer a storewide discount, you need to think about how you will capture customer information, for example with electronic receipts. That way you’ll get the long-lasting benefit of that BFCM discount.”

To find out how LoyPal can help you make the most of BFCM sales or the festive season, enquire today.