While many may lament the idea of ultimate shopping deal days like Prime Day, Cyber Monday, or Black Friday, shoppers still mobilize and purchase in droves during these special events. In 2017, Black Friday crushed analyst expectations (of $3.52 billion) with $5.03 billion being spent online. Last year, online spending reached $6.22 billion with more than $2 billion in sales occurring on smartphones.
It’s easy to get caught up in the excitement of processing new sales orders on Black Friday, but the wise company sets sail with proactive marketing efforts geared toward hanging on to that new business for the long haul. Research has shown that it’s at least five times cheaper to keep an existing customer than it is to solicit a new one. By focusing Black Friday marketing tactics on retaining customers, you’ll not only save your company tons of money, but you’ll breed loyalty and create the potential for a steady stream of future sales.
How Valuable Is a Retained Customer?
Annex Cloud reports:
- A new customer is at least 60% likely to buy from you again. (In other words, they’re “warmed up” for another sale.) By contrast, the probability of selling to a new prospect is 5-20%.
- The average customer spends 67% more in the third year than the first year.
- Businesses lose $1.6 trillion a year when customers switch brands.
Small Biz Trends also reports that just a 5% increase in customer retention can boost profits anywhere from 25% to 95%.
How to Retain Customers After the Sale Ends
After you’ve hosted your Black Friday sale, you’ll want to:
- Thank shoppers. Customers like to feel recognized and appreciated. They know it’s a competitive marketplace and that numerous companies are vying for their individual business. In fact, 79% of consumers say they only buy from brands that show they understand and care about them.
- Use email to reach out. The average welcome email open rate is 42%, so you’ll want to capitalize on this opportunity to reach customers effectively and nurture the new relationship. Introduce your brand and set the stage for future promotional interactions without pushing too hard.
- Reward customers. Customer loyalty programs remain extremely popular among U.S. consumers, growing at a rate of 15% per year, with about 3.8 billion loyalty program memberships. By providing incentives for repeat purchases, companies greatly increase the odds that a customer will return. Those who participate in loyalty programs want to save money and earn rewards for their patronage.
- Personalize. These days, 63% of shoppers want personalized recommendations based on their shopping history. They’re willing to give up personal data if it means a better customer experience. For example, Amazon’s “Products You Might Like” uses purchase history to personalize product recommendations. It makes sense for companies to have the technology in place to capture data, segment users, and base marketing efforts on recommending the next best action.
- Keep them engaged with mobile. An app like Shopkick opens the door to future interactions with a brand. Using the Shopkick app, shoppers earn “kicks” (reward points) for engaging with a brand through their mobile devices, whether they’re at home or in the store. Considering 90% of shoppers use a combination of online and offline options to complete their purchases, it makes sense to engage with shoppers on-the-go.
- Merge experiences. Shoppers like the convenience of switching channels as it suits their needs. Last year on Black Friday, 73% of orders were “click-and-collect,” where shoppers purchased online and picked up in stores like Target, Kohl’s, and Walmart. Not surprisingly, many of the shoppers who run in to pick up their purchases end up buying more. According to Retail Dive, 37% of click-and-collect shoppers make additional purchases they were not planning on once they’re in the store.
Looking for New Black Friday Marketing Ideas? Shopkick Can Help.
Try partnering with Shopkick this Black Friday to engage new shoppers and increase sales online, or in the store. Shopkick builds loyalty along the entire path to purchase by rewarding consumers for doing all of the things they normally do, like watching videos, walking into stores, engaging with products at-shelf, and making purchases. And unlike other shopping apps, Shopkick drives loyalty and sales using rewards rather than margin-busting coupons or discounts that dilute brand equity.
Kraft partnered with Shopkick when the brand wanted to boost sales of its baking products at Walmart locations during the busy holiday shopping season. In-store, Shopkick created a fun and memorable experience by sending shoppers on a scavenger hunt to seek out the featured products in-aisle. At shelf, Shopkick drove consideration as shoppers physically engaged with the products by scanning their barcodes for rewards points. Finally, by offering elevated kicks for purchasing all three featured Kraft baking products, Shopkick increased purchase likelihood and boosted sales.
Try partnering with Shopkick this Black Friday to engage new shoppers and increase sales online, or in the store.
The campaign drove over 9 million in-store product engagements at Walmart locations across the nation, and over 18 million total campaign impressions. With an average of 27% of scanners converting to purchase, the campaign drove an impressive ROI of 7.6:1. Additionally, the campaign was successful in driving incremental purchases. In fact, on average, 55% of purchasers were not planning to buy the featured Kraft baking products before their visit to the store.
If you’re looking for Black Friday marketing ideas, consider leveraging the power of Shopkick to build brand awareness and encourage brand loyalty. See how our partners use Shopkick to reward consumer loyalty and contact us to get started.
Image courtesy of Monkey Business Images