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Is Your Loyalty Rewards Program Ready for Black Friday & Cyber Monday?
During BFCM season, your loyalty program should do two things; activate your existing customers and attract new ones to your brand. Are you ready for the sales surge?
There isn't a retailer out there who isn't obsessively planning for the Godzilla of all sales days, Black Friday and Cyber Monday (BFCM). Undoubtedly, your competitors are well under way with their plans to earn consumer dollars on the biggest retail days of the year - are you ready?
If you're looking to not only increase your net transactions, but also your cart value and repeat purchases, look no further than your customer loyalty and rewards program. If done right, you can not only grow sales from your existing customer base, you can also differentiate yourself to new customers in an increasingly competitive market.
Some customer loyalty statistics from Black Friday and Cyber Monday sales in 2022:
- On Black Friday and Cyber Monday, members of loyalty programs spent an average of around $1,200.
- Compared to non-members, loyalty program participants were 42% more likely to shop on Black Friday and 55% more likely to make purchases on Cyber Monday.
- Retailers with loyalty programs enjoyed a notable 12% boost in sales during these two shopping days.
- Customers enrolled in loyalty programs are 6x more inclined to make repeat purchases and 4x more likely to recommend the brand to friends and family.
- Online sales on these days were projected to hit $10.1 billion in 2022.
- The most popular perks within loyalty programs included free shipping, discounts, and early access to sales.
- An impressive 78% of consumers indicated a higher likelihood of shopping with brands that offer loyalty programs.
These statistics show that customer loyalty programs have an undeniably significant impact on Black Friday/Cyber Monday sales. In 2022, loyalty program members spent an average of $1,200 on Black Friday and Cyber Monday, which was 42% more than non-members. Retailers with loyalty programs also saw a 12% increase in sales on these days.
If you're not already using a loyalty program, I encourage you to consider implementing one. It's a great way to show your customers that you appreciate their business and keep them engaged with your brand year-round.
If done right, loyalty programs keep your existing customers connected and engaged with your company year-round. You've put in a lot of time and spent a lot of money to build your customer base; make sure they have you top of mind during the BFCS season.
Activating Your Existing Customer Base
The weeks leading up to Black Friday/Cyber Monday is a great time to update your promotions and rewards to make the most out of this incredibly important retail season. Here are three practical tips that you can put in place today:
Elevate Your Loyalty Benefits
It's essential to keep your loyalty program dynamic and adaptable. Now is the moment to evaluate its effectiveness. If certain perks no longer resonate with your customers, it might be time to retire them. Conversely, if you observe that specific rewards are highly popular, contemplate enhancing their value or expanding their availability.
Nudge Your Members About Their Rewards
If you've got a loyalty program going, your customers have probably racked up some cool rewards just waiting to be unleashed. This is the perfect moment to remind them about how they can cash in during the Black Friday and Cyber Monday.
Member-Only Discounts and Early Bird Perks
Treat your loyal squad like the VIPs they are. I mean, they've stuck around, right? Show 'em some love with exclusive discounts and first dibs on Black Friday and Cyber Monday deals.
Some things to consider:
- Early Access: While other shoppers must wait until Black Friday itself to access our Black Friday/Cyber Monday deals, our VIP/loyalty club members get the advantage of BFCM prices a whole week before the big day.
- Exclusive Privileges: Beyond our regular Black Friday and Cyber Monday deals, members of our loyalty program can enjoy exclusive discounted rates and special offers.
- Extra Rewards: To boost loyalty club transactions during the Black Friday/Cyber Monday weekend, consider offering extra rewards. For instance, if they typically receive $10 in store credit for every $100 spent, increase it to $20 in rewards for purchases made on Black Friday/Cyber Monday.
Attracting New Customers to Your Brand
The Black Friday/Cyber Monday sales surge is also a great time to leverage your loyalty program to convert new customers and differentiate yourself from the rest of the pack. Here are three practical tips that you can put in place today:
Not only does a welcome discount serve as a powerful way to encourage a first purchase, it also acts as a powerful incentive for these new customers to join your loyalty program. In the competitive landscape that is the BFCS sales season, offering a compelling welcome discount can differentiate your brand from competitors. It can even attract customers away from other options and make your brand more appealing.
While the welcome discount might result in an immediate reduction in profit margins for the first purchase, the goal is to foster a long-term relationship with the customer. Over time, the increased customer retention and repeat purchases can more than offset the initial discount.
Double Down on Referrals
While the surge in sales during November and December is undeniably appealing, what if you could simultaneously invest in long-term customer retention, harnessing the momentum of holiday revenue?
By doubling down on your referral marketing efforts, you get access to new, higher spending customers. If you’re currently offering $20 for a new referral, offer $40 on Black Friday and Cyber Monday, or add an element of gamification like a chance to win a sweepstakes prize with every referral on BFCS.
Leverage Social Media
Use your social media channels to promote your Black Friday and Cyber Monday deals by leveraging your loyalty program members. Give them points or discounts for sharing your posts, or promotional material to their social network to “hack” organic traffic and extend your brand reach on each platform.
Considering that advertising on social platforms can cost upwards of $10 CPM, the ROI on these task-based rewards programs can be absolutely incredible.
The impact of customer loyalty on Black Friday and Cyber Monday is undeniable, especially when you look at the stats from 2022.
If you're not already on the loyalty program bandwagon, it might be time to hop aboard. Not only can it boost your Black Friday and Cyber Monday sales, but it also keeps your brand top-of-mind all year round. Add dynamic perks, remind members about their rewards consistently, and treat them like VIPs with early access and exclusive discounts.
Loyalty programs take work and time to really gain traction, but think of it as an investment in turning one-time customers into customers for life.
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