A cautionary tale of retention marketing strategies, regret and how to avoid it  

Here ye hear ye! The eve of Black Friday is upon us! Are ye ready for what is to come? Are ye prepared for the unspeakable horrors of consumerism?? Hast ye repented??? 

Well, it matters not. Time has run its course. Whatever thy strategy, ye must remain steadfast in thy resolve. Perchance thou hast prepared for the day of reckoning itself, but hast thou prepared for the bloody and brutal aftermath that ensues? 

Historically, the days and weeks following this harrowing event take their toll on businesses, with many suffering a clear and painful decline in coin. This post-Black Friday lull can be devastating and should not be taken lightly. 

Many a valiant merchant hast trifled with this period, drunk on short-term success, stumbling blindly into the mist ahead. Only to lose their footing and stray from the path, coming to their senses days later and realising they have wasted the huge potential for more coin. Hark! Heed my words and prepare thy soul (and business) for what lies ahead! 

What evil could cause such nightmarish loss?

Great question. This post-BFCM lull can be attributed to a number of things. Here are a few…

Consumer exhaustion:

Black Friday’s fiery intensity means consumers often exhaust their budgets, leading to a decline in purchases after the deals subside. They’re also bombarded with ads and promotions during the Black Friday period, leading to decreased responsiveness to further ad campaigns - also called marketing fatigue.

Shift in consumer focus:

Following Black Friday, consumers are usually preoccupied with the real world, such as social gatherings, travel, or other seasonal events. Naturally, they care less about retail when they’re preoccupied with living. Unluckily for business owners, this can lead to a decline in sales. 

External economic factors:

There are also external economic factors. Because a lot of customers are experiencing increased financial hardships, such as inflation and extortionate energy prices, people having even less money to spend.

Post-holiday hangover:

The excitement and urgency of holiday shopping naturally diminishes after Black Friday, inevitably leading to a decrease in sales. Similarly, heavy discounts during Black Friday mean customers may not be as willing to pay full price for products afterwards - these huge discounts can also reduce profit margins.

Delivering the goods:

Businesses often experience challenges in managing inventory around BFCM, leading to shortages or excess stock after the big day itself, which obviously impacts sales. Then there’s the matter of shipping delays. This can result in customers receiving their orders after the Black Friday excitement has subsided, potentially leading to dissatisfaction and fewer repeat purchases. 

‍And last but not least… Your nemesis, competitor Strategies:

Whether you like it or not, your competitors are likely hatching some scheme of their own. So, regardless of whether or not you’re plotting away, they most certainly will be. Don’t shoot yourself in the foot. Instead, get one step ahead and prepare yourself for the misty path that lies before you.

Strengthening thine strategies

Idle hands do the devil's work… Do not let your guard down! Plot, scheme and conspire your way into the new year! For the greater good! Hark my words and strengthen your retention marketing strategies with these simple steps.  

Extended return policy:

Consider an extended return policy for gifting clients - for clothing, for example. After all, little Timmy might not be as fond of his new jumper as his Grandma is. Aside from the obvious benefits for your customers, this will also make things easier for you logistically - as this is usually a period of high returns. Only 41% of retailers offer extended returns during this period, so if you want to place yourself above the majority this is the way to go.

Maintaining stock:

Speaking of logistics, maintaining stock is absolutely crucial. Remember, Q4 is not the biggest season. That title belongs to Q1, specifically January. Trust me when I say, you do not want to run out of stock early in the game. Of course, selling as much as possible is your aim, that goes without saying. That said, don’t burn out early and disappoint customers right before Christmas. Make sure to restock before it’s too late.

More engaged segments:

I would also recommend including more engaged segments in your emails post-BFCM to ensure core customers are prioritised. Make them feel special, you know? Nothing too soppy, just a clear indicator that you see and appreciate them (and you have something to suggest/recommend/they simply can’t live without - if you catch my drift).  

Timeline for subscription products:

You could also make a timeline for subscription products. So that when you get to 3 months you get x free, 6 months x free, 12 months x free and so on. This makes people feel as though you are doing them a sweet deal, at very little extra cost to you. Naturally, this encourages people to sign on for longer whilst building trust in your brand. 

Pushing urgency

I’m sure you’ve heard it before, but some folk just need reminding! Pushing urgency around the festive period is about as crucial as a Christmas tree (if you celebrate it). You need to pay close attention to the external factors like shipping cut-offs, and signposting this to your customers. You should also send low-stock, limited stock and final-chance emails to build a convincing sense of time passing quickly. Nefarious! 

Pushing exclusive products:

In addition, you could try pushing exclusive products. These could be limited-time products (maybe with a festive theme) that would obviously have greater appeal at this time of year. Granted, this is specific to certain brands and not everyone would be the right fit, but it’s worth considering nonetheless.

Gift with purchase:

Next up, have you considered a gift with purchase? You could specifically offer loyal customers something a little extra to say thank you for 2023. I’m thinking of the 80/20 rule here. In short, your loyal customers (roughly 20%) are going to generate about 80% of your revenue. Keep this in mind and target initiatives such as this at them.

January sale:

And last but not least, a January sale. As I mentioned before, it’s important to take into account that many people will be super low on cash around Christmas especially, even throughout the whole Winter period. So, run a January sale to compensate for that. It doesn’t have to be a massive discount by any means, but I guarantee it’ll help. 

And what of ye acquisition merchants?

Well, learned shoppe-keep. Now that you've got your retention marketing strategies nailed down, let's look at acquisition strategies you can use to keep the customers coming in. 

Trading will be key post-BFCM, so how is your offer going to differ going towards Christmas from BFCM? You’ll need to work on content angles to make marketing relevant to the time and focus on fresh content and angles to aid with advertising spending efficiency.

It’ll also be worthwhile trying to acquire new customers; different periods call for different tactics because of the different contexts of shopping, understanding this will allow you to target new customers who are seeing your brand with fresh eyes.

Alongside this, I’d recommend a gifting push to new and existing customers. Naturally, you’ll have generated a lot of them over BFCM and if they like your product it should be simple enough to get them to come back a second time - for themselves, or perhaps as a gift.

Regarding the big day itself, I’d suggest a Christmas push until the shipping cut-off. Then after that, push gift cards. This way your strategy should flow seamlessly along with whatever external factors are running parallel.

If you run an established brand and are looking to push the limits of your overall marketing strategy - book a call today and let's talk about how we can use email marketing to push revenue past 100k a month and beyond.

Written by Conel Freeman Harrison - Content Marketing Executive.

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