The importance of focusing on customer LTV this Black Friday

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Major sale events, like Black Friday, require you to be well-prepared in advance in order to make the most of these opportunities. Adopting the right strategies will ensure you grow your business on solid foundations and pursue long-term success. True magic lies in making customers stick around and not just pop in for a one-time purchase. Think of Black Friday as your introduction; to keep your customers turning the pages, a discount isn’t enough; you’ve got to offer a narrative they want to be a part of.

 

What is customer LTV?

Customer Lifetime Value (LTV) is the projected revenue a single customer generates for a business throughout their lifetime as a customer. Acquiring a new customer can be 5 times more expensive than retaining an existing one.

Therefore, especially during events like Black Friday, where brands often emphasise on immediate sales, it’s essential not to overlook how these short-term marketing strategies can impact revenue on the long-term.

Focusing on Customer LTV is crucial during this period for several reasons.
Most importantly, while immediate sales can undoubtedly be positive, real value lies in converting these one-time buyers into loyal, repeat customers. Investing in strategies that prioritise long-term relationships will yield more revenue in the long run than a single sale. Businesses that focus on Customer LTV are often more stable and less dependent on single sales events.

Shopify states that 64% of online sellers observe that customers gained during Black Friday events typically have a reduced LTV compared to customers acquired at other times. 

 

So here are some tips to follow to maximise retention post-Black Friday.






1. Make sure you fulfillment is spot on

Prepare in advance! You cannot afford delays or mistakes during these high-demand periods. A seamless fulfillment process not only boosts your sales but drives customer loyalty, as timely deliveries and accurate order handling are crucial for determining the quality of their entire shopping experience. Any misstep can negatively impact your brand’s reputation and trust. Thus, investing in a reliable fulfillment service, which allows you to focus better on your sales strategies, is vital to ensure your brand’s long-term growth.

A partner like eLogy will support you in providing the best shopping experience for your customers, ensuring your promotions and campaigns are a real success.

 

2. It’s not just about the sale. Focus on communication

Customers like being cared for, and when brands communicate with them effectively, they are more likely to come back. 

Send order confirmation emails and follow-up emails. These are also an excellent opportunity to cross-sell and upsell. For follow up emails after a purchase, consider sending tips on how to use a product or complementary product suggestions. This shows customers you care about their experience beyond the initial sale. Remember to ask for a review! To incentivise them to leave feedback, offer a gift or discount to those who spend time to do so.

 

Personalise your customers’ unboxing experience

Create memorable first impressions by customising your packaging, which is the first tangible encounter people have with your brand. Plus, people love sharing on social media. If your packaging is visually striking it becomes highly shareable content. Customers will share their unboxing experience and make their followers curious about your brand.

 

Put something special in the box

 

Why not surprise your customers with a special offer flyer or a little extra something in their package. It will leave them wanting more and they will perceive getting more value from their purchase.  

Send discount codes

 

Encourage customers to come back to your store by offering discounts through ‘bring a friend’ or “% off your next purchase” solutions.  Personalise offers based on customer preferences. For example, if you know a user prefers a certain product, send them a tailored discount for that. If you offer a particular service, incentivise bulk purchases at a discounted rate. 

 

Offer subscription models

 

Black Friday is the perfect time of the year to introduce discounted subscription rates. A significant initial discount can attract plenty of new customers destined to stay. Get new subscribers by offering a few months at a discounted rate. Also, especially for products that are more likely to be bought again and again at certain intervals, offering advantageous subscriptions eliminates the hassle of reordering. For example, if you own a cosmetics brand, a subscription will ensure your customers automatically receive their favourite products regularly and never remain without..

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