BFCM: Don’t Bet The House on New Customer Acquisition
Q4 is Here...
As we enter Q4 at Akers, our team has been diligently preparing, analyzing forecasts, and strategizing for the upcoming BFCM rush. As partners with Klaviyo, we learned that understanding your consumers and their purchasing habits will be pivotal for this year's BFCM success. So, let's dig in and start with segmentation to pinpoint where significant sales opportunities lie.
The economics of BFCM
The opportunity to amp up sales during BFCM is undeniable, but the season is not without its risks for merchants. Who’s buying what over the holidays—and how much is spent getting them to do so—is often misunderstood by executives and investors focused solely on adding new customers to the fold. While customer acquisition is important for the long-term health of your business, it should not be your primary focus during BFCM. Current customers are a much more lucrative path to BFCM sales, and those sales set you up for customer acquisition year-round.
The importance of defining success
It is imperative that you put a stake in the ground prior to BFCM that defines success during the holiday season as lifetime value (LTV), return on ad spend (ROAS), average order value (AOV), segmented engagement rates, and cart abandonment rate—not as net new customers. Consider what a “grow the customer base, period” mentality can actually cost you, especially during the hyper- competitive holiday season.
Segmentation is the key to your BFCM success
First-person customer data can tell you their average order values, purchase frequency, personal preferences, and more, all of which are incredibly valuable when it comes to standing out during an intensely competitive shopping season. Segmenting effectively will help you determine which strategies and tactics to deploy for maximum gain. These are the segments we’re focused on during this BFCM season.
Build BFCM strategies that increase sales and set the stage for customer acquisition
Craft a robust and effective BFCM strategy around known audiences to reach your goals during Cyber Week.