It's 11:59 PM on Thanksgiving night and your finger hovers over the "Launch Campaign" button. You've got a killer deal, a website that can (hopefully) handle the traffic, and inventory all stocked up. Your heart races as you prepare to unleash the same 50% off message to your entire customer base.
Here's the kicker: your one-size-fits-all will rarely work, especially during the BFCM frenzy.
Not All Shoppers Are Created Equal
Segmentation allows you to scale up your revenue from marketing by sending more emails, serving ads, or reaching out to them on different channels, over time to the people on your list. You minimize the risk of annoying them (and leading them to unsubscribe or mark you as spam potentially) by being relevant and valuable and tailoring the content to each group.
Good segmentation starts with good data. The more data points you have about your customers, the better your segmentation will be. Traditionally, you’d see demographic, geographic, psychographic, etc.
- Customer Attributes: Age, gender, country, city, First purchase date, unresolved support tickets, etc.
- Metric-based: AOV, First Order Value, Total Discounts, etc.
- Behavioral/RFM: Purchase history, frequency, site activity, order value, etc.
- Engagement: Email/SMS engagement, clicks, etc.
- Zero-party data: Interests, preferences, goals (drink coffee because of the taste or it helps them crank out 1000s of words a day), etc.
Pro-tip: Don't go overboard with your segmentation. Having 74 micro-segments might sound impressive, but if you can't create meaningful differences in your approach to each, you're just making your life harder. Aim for segments that are distinct enough to warrant unique strategies.
Engaging With Key Customer Segments During BFCM
Combining traditional RFM segmentation with BFCM-specific behavior is like mixing peanut butter and jelly–you get delicious results! Let's break down how these segments align and how to approach them for BFCM success:
1. Champions (a.k.a. BFCM Veterans)
Your Champions are your top 10%ers–recent buyers who purchase often and spend big. In the BFCM context, they're likely to have participated in previous BFCM sales and are eagerly awaiting your offers this year. They know your brand, love your products, and are primed to make significant purchases during the big weekend.
RFM Characteristics: Recent buyers who buy often and spend big
BFCM Behavior: Likely to have participated in previous BFCM sales
BFCM Strategy
You need to roll out the red carpet for them. Focus on making them feel special and providing exclusive offers that go beyond mere discounts. Here are some campaign ideas to consider:
Early access to BFCM deals
Give Champions 24-hour early access to all BFCM deals. Include a personalized "thank you" message from the CEO to make them feel truly valued. This exclusive preview not only rewards their loyalty but also creates a sense of privilege.
Exclusive bundles or limited-edition products
Create special product bundles available only to Champions during BFCM. These could be curated sets of bestsellers or complementary products offered at a significant discount. For example, you could offer a "Luxury Skincare Set" that includes your top-tier products at a 30% discount, available only to Champions.
Golden Ticket Surprise
Include a "golden ticket" in Champion orders placed during BFCM. These tickets can offer chances to win exclusive prizes such as limited edition products or unique brand experiences. This adds an element of excitement and gamification to their BFCM shopping experience. Or, like how De Soi did a reverse sale:
Double Rewards
Offer double loyalty points on all BFCM purchases for Champions. Additionally, provide a special gift with purchases over a certain threshold. This not only incentivizes higher spending but also boosts the value of their loyalty program membership.
Exclusive Preview Party
Host a virtual or in-store event for Champions to preview BFCM deals. Include a Q&A session with product designers or brand ambassadors. This exclusive event makes Champions feel like true insiders and strengthens their connection to your brand.
Pro-tip: Track how many Champions return each BFCM. If this number dips, it's time to revamp your loyalty program!
2. Loyal Customers (a.k.a. Full-Price Fashionistas)
Loyal Customers are your steady backbone – consistent buyers who make purchases throughout the year. When it comes to BFCM, their behavior can vary. Some may wait for BFCM deals, while others buy when they need something, regardless of sales events. What sets them apart is the consistent value of your brand beyond discounts.
RFM Characteristics: Consistent buyers over time
BFCM Behavior: May or may not wait for BFCM to make purchases
BFCM Strategy
Your BFCM strategy for this segment should focus on reinforcing their loyalty rather than relying heavily on discounts. Emphasize exclusive products or early access over deep price cuts.
Exclusive Collection Launch
Release a limited-edition product line available only to Loyal Customers during BFCM. Include a behind-the-scenes look at the creation process to make them feel like true insiders. This exclusivity can drive excitement and sales among your loyal customer base.
Loyalty Rewards Boost
Offer triple loyalty points on all BFCM purchases. For example, "Earn 3x points on everything this BFCM - that's 300 points for every $100 spent!" This significant boost in rewards can encourage higher spending and reinforce the value of their loyalty.
Referral
Give Loyal Customers exclusive discount codes to share with friends and family. Offer additional rewards for successful referrals during BFCM. This not only makes your loyal customers feel valued but also helps in acquiring new customers through trusted referrals.
Pro-tip: Compare BFCM vs. non-BFCM spending for this group. If they spend more during BFCM, consider more year-round loyalty perks.
3. Potential Loyalists and Promising (a.k.a. The Ghost of BFCM Present)
This segment includes recent first-time buyers with high spending or those showing promising signs of developing brand loyalty. In the BFCM context, they may have made their first purchase during last year's BFCM event. These customers are at a critical juncture – they've shown interest in your brand, and now it's time to convert them into loyal fans.
RFM Characteristics: Recent first-time buyers with high spend or showing promising signs of loyalty
BFCM Behavior: May have made their first purchase during last year's BFCM
BFCM Strategy
For this segment, focus on converting their initial interest into long-term loyalty. Create campaigns that acknowledge their history with your brand and make them feel like insiders. Here are some campaign ideas to consider:
BFCM Anniversary Special
Offer a personalized discount based on their first purchase date. For example, "Celebrate your 1-year anniversary with us - enjoy 20% off your favorite product!" This personalized approach shows that you value their business and remember their history with your brand.
Insider's Guide to BFCM
Create an exclusive guide with early access to certain deals and behind-the-scenes content. Include tips from loyal customers on how to make the most of the sale. This not only provides value but also makes them feel part of an exclusive group.
Complete Your Collection
Offer bundle deals on complementary products to their previous purchases. For instance, "Love the moisturizer you bought last BFCM? Complete your skincare routine with 30% off our matching cleanser and toner!" This strategy encourages additional purchases while providing genuine value to the customer.
Pro-tip: Identify Potential Loyalists and Promising customers using RFM by looking for those who have purchased within the last 90 days, made 2-5 purchases in the last year, and have an average order value near or slightly above the median.
4. New Customers (a.k.a. BFCM Newbies)
New Customers are first-time buyers who have made a purchase within a recent timeframe but have no previous BFCM history with your brand. BFCM presents a golden opportunity to wow these customers and set the stage for long-term loyalty.
RFM Characteristics: First-time buyers within a recent time frame
BFCM Behavior: No previous BFCM history with your brand
BFCM Strategy
For New Customers, focus on creating a memorable first BFCM experience that will set the stage for long-term loyalty. Provide guidance, excitement, and special bonuses for first-time buyers.
BFCM Welcome Package
Send a digital or physical welcome package with a guide to your BFCM sale. Include a special first-time buyer discount code. This package can help new customers navigate your sale and feel valued from the start.
Quiz
Create an interactive quiz to help new customers discover the best BFCM deals for them. Offer a discount on their quiz-recommended products. This personalized approach can increase engagement and help customers find products they're likely to love.
First-Timer Flash Sales
Host exclusive flash sales only for new customers during BFCM. For example, "New customer? Unlock a secret 1-hour sale every day of BFCM!" This creates a sense of exclusivity and urgency that can drive purchases.
Social Share Boost
Encourage new customers to share their first purchase on social media. Offer an additional discount on their BFCM purchase for sharing. This not only incentivizes repeat purchases but also leverages social proof to attract more new customers.
Pro-tip: Compare the lifetime value of customers acquired during BFCM vs. other times of the year.
5. Need Attention and About to Sleep (a.k.a. Silent Scrollers)
This segment includes customers with declining engagement or those on the verge of becoming inactive. In the BFCM context, they might be showing low engagement with your pre-BFCM marketing efforts. BFCM is your chance to rekindle the flame and re-engage these customers before they slip away entirely.
RFM Characteristics: Customers with declining engagement or on the verge of becoming inactive
BFCM Behavior: Low engagement with pre-BFCM marketing
BFCM Strategy
For this segment, focus on re-engagement and rekindling their interest in your brand. Use BFCM as an opportunity to remind them why they chose your brand initially and encourage them to return. Here are some campaign ideas to consider:
"We Miss You" Countdown
Send a series of emails counting down to BFCM with increasing offers. For example, "5 days to BFCM: 10% off, 3 days to BFCM: 15% off, 1 day to BFCM: 20% off". This creates anticipation and gives customers multiple opportunities to re-engage.
Personalized Product Recommendations
Notify customers of BFCM deals on products similar to their past purchases. Use AI to suggest new products they might like based on browsing history. This personalized approach shows that you remember their preferences and can reignite their interest.
Win-Back Spin-a-Wheel
Create an interactive game where customers can spin a wheel for various BFCM discounts. Guarantee a win with every spin to ensure engagement. This gamification strategy can make re-engagement fun and rewarding for the customer.
Second Chance Specials
Recreate past popular deals that these customers might have missed. Frame it as a "greatest hits" BFCM sale. This can remind customers of what they loved about your brand and give them a chance to get deals they previously missed out on.
Pro-tip: Identify Need Attention and About to Sleep customers using RFM by looking for those whose last purchase was 90-180 days ago, have made 2-3 purchases in total, and have an average order value below the median.
6. Can't Lose Them and At Risk (a.k.a. The "It's Complicated" Relationship Status)
This segment comprises high-value customers showing early signs of disengagement or previously regular customers who have yet to buy recently. In the BFCM context, they may have unresolved issues or negative experiences from previous BFCM events. You need to win back these valuable customers, and BFCM provides the perfect opportunity.
RFM Characteristics: High-value customers showing early signs of disengagement or previously regular customers who haven't bought recently
BFCM Behavior: May have unresolved issues or negative experiences from previous BFCMs
BFCM Strategy
For these high-value customers showing signs of disengagement, focus on rebuilding trust and demonstrating your commitment to their satisfaction. Use BFCM as a chance to address any issues and reignite their interest in your brand. Consider the following campaign ideas:
Choose Your Own BFCM Deal
Allow these customers to design their own BFCM deals. For example, "Choose any 3 items and get 40% off, or any 5 items for 50% off". This level of customization gives the customer control and can encourage larger purchases.
Feedback-to-Savings
Offer increasing BFCM discounts for providing detailed feedback. Use this information to improve their future experiences. This not only incentivizes engagement but also provides valuable insights for your business.
Exclusive BFCM Preview
Invite these customers to a special event to preview BFCM deals. Allow them to vote on which products should have the biggest discounts. This makes them feel valued and gives them a stake in your BFCM offerings.
Pro-tip: Track the success rate of your win-back campaigns during BFCM compared to other times of the year.
7. Hibernating (a.k.a. The "Ghost of BFCM Past")
Hibernating customers are those long-inactive buyers with no recent purchases. They may have purchased during a BFCM long ago but haven't engaged since. BFCM presents the perfect excuse to wake them up and remind them of your brand.
RFM Characteristics: Long-inactive customers with no recent purchases
BFCM Behavior: May have purchased during a BFCM long ago but haven't engaged since
BFCM Strategy
For Hibernating customers, use BFCM as an opportunity to reintroduce your brand and remind them of why they chose you in the past. Focus on what's new and improved since their last interaction with your brand. Here are some campaign ideas to consider:
Blast from the Past
Remind customers of their past purchases with a nostalgic email campaign. Offer special discounts on updated versions of products they've bought before. This can rekindle positive memories associated with your brand and showcase your product improvements.
Re-engagement
Create a multi-step re-engagement program leading up to BFCM. Offer increasingly attractive incentives for each step of engagement. This gradual approach can help ease dormant customers back into engaging with your brand.
Direct Mail Campaigns
Send a physical postcard (If you’re using Peel Insights, we integrate directly with PostPilot) with a QR code leading to exclusive BFCM deals. Make it playful: "Scan this to see if you're still dreaming, or if these deals are real!". This approach can stand out in a sea of digital marketing and capture attention.
The Comeback Collection
Curate a special collection of new bestsellers since their last purchase. Offer a steep discount on their first purchase from this collection. This introduces them to what they've missed and incentivizes them to try your latest offerings.
You’ve got this!
By dividing your customer base into distinct groups, you can tailor your offers, messaging, and timing to resonate with each segment. It makes all the difference between shouting into the void and whispering sweet deals into the ears of people who actually want to hear them.
So go forth, segment those customers, personalize those offers, and may the BFCM odds be ever in your favor. Now, if you'll excuse me, I need to go segment my leftover Halloween candy. The fun-sized Snickers are definitely in the high-value category.