Once the stomping ground of only the biggest US brands, Black Friday has now become a universal sales period that for many – it is too costly to ignore.
There are brands out there who don’t embrace the annual price-cutting chaos – for example, Apple, Ikea, and the UK’s Walmart cousin, Asda. However, with 30% of annual retail sales occurring between Black Friday and Christmas (almost 40 percent for jewellery retailers), it’s easy to see why so many are still getting stuck in.
Discounting periods are proving costly for retailers the world over with UK-market leader, John Lewis, recently citing having to match twice as many discounting extravaganzas in 2018 as the key reason for a major fall in profits. The rising number of discount days retailers must acknowledge, combined with the lower lifetime value of a customer acquired during a discounting period, is a key reason why merchants must focus on securing longer-lasting loyalty from one-time shoppers acquired during the sales.
Let’s get started with five simple ways that you could be optimizing your email strategy in order to secure longer-term customer loyalty, both during BFCM and once the sales are over:
1. Segmenting your customer base from the get-go
When it comes to email, it’s tempting to adopt a one-size-fits-all approach and send the same messages out to everyone. It’s even more tempting to take this approach following BFCM, when you have a large collection of customers who have only purchased once, but you want to re-engage with as soon as possible.
You might not know everything about these customers just yet, but use the information that you do have to segment your customer base and send the most relevant emails.
Whether you segment by the type of products purchased or by the brand or collection purchased from, make sure that the first message that you send post-BFCM is highly targeted and relevant. Customers who believe that you understand their individual behaviors are more likely to return and engage again.
2. Sending emails triggered by personal events
80% of customers are more likely to shop at brands that offer personalised experiences. At the most basic level, you can achieve this by sending special messages, offers or discounts on a customer’s birthday. At a deeper level, you can send messages that are tailored around their shopping anniversaries.
For example, celebrate with them each time they unlock a reward, qualify for a higher tier on your loyalty program, or reach a specific number of purchases with your store.
Whether you offer them simple discounts in return for their ongoing engagement, or offer them more exclusive perks such as free shipping or early access to sales or new product ranges, customers will appreciate the fact that they have received an email entirely unique to them and their actions or buying behaviors.
3. Re-engaging at-risk customers with incentives to return
Customers acquired during BCFM are proven to have a lower lifetime value than those acquired at other times of year. This means that they are less likely to return and make their next purchase, leaving them ‘at risk’.
In order to prevent at-risk customers from churning, ensure that you’re giving them reasons to come back and shop again. One approach is to credit customers with points within your emails.
Even if those customers do not immediately return to use those points, you have differentiated yourself by giving them something for doing nothing – something not many retailers will do. We recommend crediting enough points so that at-risk customers can instantly unlock a new reward.
You might also consider moving customers up to a higher tier in your loyalty program, allowing them to unlock more generous or exclusive rewards that are worth returning to use. There is no cost to this strategy, and also no doubt that your customers will be pleased they stopped to open that email!
4. Making the benefits implicit
Use emails you are already sending – such as post-purchase emails – to make sure that customers know what they are missing out on if they don’t return and repeat purchase. We don’t necessarily mean other sales or discounts they could be accessing, but instead, the rewards and benefits they could be unlocking with another purchase.
Use your post-purchase emails to show customers how many points they have or could have earned with their BFCM purchase, and remind them what that could translate to in terms of rewards and benefits.
You can also let them know how many points they would need to earn to unlock other, even more valuable rewards, incentivising them to come back to your store and shop again, sooner.
5. Reiterating your brand values
For many customers, purchasing decisions around BFCM are based solely on price, rather than shared values or beliefs. That’s why we encourage merchants to take the time to share their brand values once the shopping period is out of the way and customers are thinking more clearly.
Loyalty programs are all about community and relationships, and shared values are a key incentive for customers to join and engage more with your brand. Build messaging into your welcome and post-purchase emails, so that customers immediately see how your brand resonates with their own personal values. This is a key step to building longer-term relationships that will drive customer retention and increase lifetime value.
This year, all we want for Christmas is to see merchants making the most of every opportunity to turn Black Friday Cyber Monday into a resounding retention success story, rather than just a spike in acquisition. Have a chat with one of our team to find out more, or head to the LoyaltyLion Academy to learn more about improving the effectiveness of loyalty emails.
LoyaltyLion is a data-driven loyalty and engagement software for fast-growth ecommerce merchants. Thousands of retailers worldwide use LoyaltyLion to add their own fully customizable loyalty programs and increase customer engagement, retention and spend. Stores using LoyaltyLion typically generate at least $15 for every $1 they spend on the platform.
Reblogged 5 months ago from blog.dotmailer.com