Exploring BFCM’s Loyalty Potential: Insights from Industry Experts
Black Friday and Cyber Monday: the dynamic duo of the retail universe. Shoppers will soon swarm in search of great deals, and brands will eagerly vie for their attention.
It’s a frenzy, to say the least, but amidst all the chaos, there’s an ongoing debate - can Black Friday and Cyber Monday (BFCM) create customer loyalty?
I sat down with Tom Peace, Managing Director of The Loyalty People, to get insights on this very question. Tom is no stranger to the nuances of loyalty, and his expertise offers a unique perspective on BFCM….
Striking the Right Balance between Acquisition and Loyalty
Nurturing Customer Relationships
Tom emphasises that Black Friday is predominantly about discounts, and not necessarily about creating loyalty: “Consumers are primarily looking for the best deals”. Consequently, the initial focus for brands is on acquiring new customers during this period.
The key dilemma for brands on BFCM is getting a balance between prioritising immediate sales and investing in longer-term relationships. After all, most brands want to keep their new customers after the sales end…
Businesses must recognise the value of nurturing customer relationships beyond this period: “Think very carefully about how you are going to engage customers in your loyalty program after their purchase”. Loyalty may take time to develop, but provides huge benefits in the long run.
Acquiring New Customers on BFCM
Making a Lasting Impression
BFCM deals often lead consumers to try new brands - its significance as a customer acquisition opportunity cannot be overstated.
But businesses get one crucial opportunity to make a lasting impression. And discounts are only one part of the equation; brands must also deliver a seamless shopping experience that lingers in the customer’s memory.
Our top tip: ensure your shopping experience is frictionless, user-friendly and goes beyond transactions. Have a post-purchase retention strategy in place so you can nurture customer relationships long after their discounted purchase.
Personalisation for Long-Lasting Loyalty
The Era of Hyper-Personalisation
Tom highlights the importance of personalisation during this retail season: “Hyper-personalisation is just table stakes now for brands. You need to know things about them - why they are buying your product, what are they using it for, etcetera”.
Now that hyper-personalisation is the standard, it is no longer about knowing names and emails, but about understanding who people are and what they do. Learn from the likes of Adidas, Nike, and Strava when it comes to a super-personalised customer experience.
💡 Check out these examples of personalisation
Generational Approach to BFCM
Meeting the Preferences of Different Demographics
Targeting different customer age groups, especially Gen Z and Millennials, demands a nuanced approach: “Younger generations value instant rewards and prioritise convenience and value”.
In targeting these demographics, brands should provide instant gratification, as well as consider ESG factors (environmental, social, and governance). Sustainability and a positive brand image are crucial for earning their attention and loyalty.
💡 Here's everything you need to know about Gen Z loyalty
The Future of BFCM
Innovative Approaches for BFCM
Looking forward, Tom believes that Black Friday is here to stay, but may need some innovation. Brands must embrace creative methods to engage customers, especially in an environment where data collection takes on ever-increasing significance. Strategies could include offering additional discounts or perks when customers join loyalty programs or interact with CRM systems.
Innovative brands, however, will go a step further. They will use BFCM as a platform to showcase the value of their loyalty programs and offer unique experiences.
A case in point is Starbucks, who have pioneered Starbucks Odyssey, an extended version of their rewards program. Through this initiative, loyal customers can participate in online games, quizzes, and activities to earn ‘journey stamps’ (NFTs) and points. These rewards then unlock ‘one of a kind, exclusive, and immersive’ coffee experiences…
💡 Looking for some unique ways to reward customers?
Tune into the full podcast episode to find out Tom’s favourite loyalty program, what he’s set to buy this BFCM, and insightful gems about loyalty in the retail space…
Conclusion
So, what’s the verdict? Can BFCM create customer loyalty?
We think that BFCM serves as a valuable entry point for brands to capture new customers. However, the true test of success lies in the post-season efforts to nurture and solidify these relationships over time.
Undoubtedly, BFCM can lay the foundation for long-term loyalty, but in order for it to become authentic advocacy, brands must make strategic moves. The key is not just in acquiring customers, but in the art of keeping them, well after the BFCM dust has settled.
Chat with one of our experts to see which loyalty and retention strategies will work best for your business.
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Helen Walker
Senior Content Marketing Executive
Helen is our Senior Content Marketing Executive. She shares valuable information about the Future of Loyalty and will keep you up to date on the latest industry insights...