It’s not a secret that marketers’ expectations for this black friday are quite different than previous years. The lockdown has influenced consumer purchasing decisions, with smaller budgets and less visits at brick & mortar, consumers are more likely to refrain from buying in quantity even while receiving promotions from their favorite retailers.
What it’s true, is that this black friday is the perfect time to retain customers and engage existing ones, including those who started shopping during the lockdown, with the help of loyalty programs.
“It is 5 to 7 times more expensive to attract a new customer than it is to retain an existing one.”
Without a doubt loyalty plays an important role in retaining customers and here are some points to take into consideration:
Customer Loyalty programs as a way to improve the holiday experience
According to the KPMG’s survey on customer loyalty, 81% of customers will spend more if they are part of a loyalty program, and 78% of customers would switch to a company that offers better benefits as part of their loyalty program. Without a doubt Loyalty programs are essential in the retail industry, especially on the biggest shopping day (or week) of the year, due to its possibility to connect with the customer, in a hyper-personalized way, not only during the holidays but for the rest of the year, becoming a part of customer’s daily life.
Personalized communication to retain customers on special occasions
According to The truth about customer loyalty, 59% of consumers globally think they are likely to feel a strong and personal connection with the companies they are most loyal to. It’s true that price is a key purchase decision but when it comes to retaining existing customers and building loyalty to the long term, personalized communication is essential to make customers feel they are valued, which keeps customers coming back again and again, and look for those personalized discounts during Black Friday. These actions become easy for retailers who have gathered enough customer data through their loyalty programs and combine it with a strong loyalty strategy to retain them.
Black friday is more than just one day of discounts
Black Friday is a day accompanied by offers related to the Christmas season and this is something retailers have to take advantage of. It’s an opportunity to start offering promotions much earlier, leveraging the shopping season before and after the official of black friday holiday.
Furthermore, For many retailers, it’s one of their most important times of the year and this is something that they have to keep in mind when it comes to delivering exclusive shopping experiences. As it is a great opportunity to collect new customer data, it is also a great opportunity to interact with your most loyal customers and meet their expectations.
Digital tools, key drivers on purchase decisions
Digital tools are transforming customer behaviour, and for retailers it is essential to implement a sales strategy that includes setting up a seamless mobile experience.
The consumer is increasingly connected to the digital world and the ease of purchasing wherever they are, is a key factor when it comes to choosing one brand over another.
Undoubtedly, this Black Friday is special, and represents a great challenge for retailers. The key is adapting to the new shopping behaviour, looking to build relationships with new customers by convincing them to become part of your loyalty program , and use consumer data you’ve acquired through your program to nurture the relationship with the most loyal ones.