At Wunderkind, we've analyzed our 2023 client data to unveil strategies that not only enhance your holiday marketing but also bolster your annual marketing tactics.
The extended BFCM horizon
BFCM is no longer just a weekend shopping frenzy. It marks the beginning of a weeks-long shopping period. Insights from this period are gold mines for engaging consumers beyond the traditional holiday season, creating a sense of urgency and FOMO that lasts well into the new year.
The early bird strategy
Consumer interest in BFCM is starting earlier each year, sometimes as soon as early November. Our data confirms this trend, suggesting that retailers should kickstart their BFCM campaigns earlier to capitalize on early season revenue and gather valuable consumer data.
The purchase to consideration inversion
A shift from the typical purchase to consideration cycles is evident pre-BFCM, with consumers entering a 'window-shopping' mode. This phase is crucial for nurturing potential buyers and ensuring they convert when ready.
The permissioning goldmine
During this consideration phase, consumers are more receptive to marketing opt-ins, such as sale alerts. Our clients witnessed a 20-30% increase in opt-in rates in the weeks leading up to BFCM. Alongside smart opt-in tools, a strong identity partner can identify upwards of 50% of your unknown traffic, gathering intelligence from one of your blind spots.
Not only do these two tactics decrease acquisition costs for marketable contacts but it thrusts your owned channels into hyperdrive. Tapping email and sms, the most personal of channels for messaging and conversion tactics, also protects your cold hard cash during peak-season. Relying heavily on ads, driven mostly by third party cookies, is a losing battle, especially during the holidays. Not only do ad costs skyrocket, but consumer ad fatigue is real. Grab consumers while they’re willing to connect with you, starting pre-BFCM.
Abandonment behavior is an opportunity
A noticeable increase in cart abandonment behavior near BFCM isn't a setback but an opportunity. Employing robust cart abandonment solutions can transform these near-misses into sales, particularly when combined with real-time personalized offers via owned channels. But identifying unknown consumers is critical to maximizing your reach and conversions.
With nearly $3B in annual sales, Wolverine Worldwide increased abandoned cart emails by 300% while increasing total email revenue by 20%. Watch a 37 second video on how they did it.
New versus returning visitors
In the run-up to BFCM, we typically see an influx of new visitors, which shifts to returning visitors during Cyber Week. Identifying and opting in as much traffic as possible beforehand enhances the chances of converting these visitors into sales, especially via email and sms.
ROAS efficiency challenges
Seasoned marketers know what we’ve already stated: Return on Ad Spend (ROAS) efficiency almost always declines as BFCM approaches, due to increased competition and ad costs. Our analysis suggests that redirecting some of this spend to more efficient, bottom-of-funnel initiatives would be more fruitful.
Keep this in mind as 2024 is slated to see record ad spends around the US presidential elections. Can you capitalize on the data collection opportunities this holiday season to reduce dependency on ads in 2024 while boosting revenue from owned channels?
Year-round activation of BFCM insights
If we look at BFCM on its own, it’s a period that sees a massive spike in revenue for retail and ecom brands. In fact, It may account for as much as 50% of a brand’s total annual revenue. But just as we know revenue will spike in this period, so does the opportunity to collect and action key consumer data and activate pre-BFCM through holiday shipping deadlines. In January you should be focusing on conversions using newly acquired data to drive post holiday sales. But it can also inform your lifecycle marketing strategy all year long.
Beyond BFCM: other seasonal opportunities
Think about how BFCM trends can be applied to other seasonal events like Valentine’s Day, Mother’s Day, or Back to School shopping. Intelligent marketing tactics throughout the year are key to enhancing customer lifetime value and efficient customer acquisition.
Conclusion
These findings aren’t just meant to inform your strategy, it's a transformation in how marketers should view and utilize BFCM. This period is a treasure trove of insights, not only spiking revenue but also offering a blueprint for consumer engagement throughout the year. Embrace these insights, and you'll turn events like BFCM into a perpetual engine of growth, propelling your brand forward with innovative tactics and a deeper understanding of your customers. It's time to break the cycle of seasonal marketing and pave the way for sustained success.
