Black Friday and Cyber Monday (BFCM) are only months away, and it’s time to get ahead of the game. While it’s tempting to see BFCM as just a quick sales boost, it’s also a key opportunity to emphasize long-term strategies to keep your customers coming back.
Let’s explore the role that customer retention plays in your brand’s BFCM success, and how subscription models can serve as the vehicle to get you there.
Key takeaways
- To boost your BFCM sales, offer a compelling subscription model with clear value, flexible plans, and personalized deals tailored to customer segments.
- Enhance your BFCM strategy with a subscription management platform that provides automated billing, detailed customer analytics, and scalability for seamless operations and valuable insights.
- Choose between annual and monthly subscriptions based on your business goals and customer preferences, promoting annual plans with attractive discounts to maximize BFCM appeal.
Why BFCM matters: Beating a record-breaking 2023
BFCM is more than just a shopping spree—it’s a chance for ecommerce businesses to gain new customers and expand existing relationships. According to Shopify, BFCM sales hit a record high in 2023, with Shopify merchants driving $9.3 billion in BFCM sales alone. If this is any indicator of what’s to come in the 2024 season, early prep and smart planning are key to reaping the benefits.
During BFCM, shoppers are hunting for deals and eager to buy. This is your moment to attract new customers. But the real win? Turning these shoppers into loyal customers. That’s where customer retention comes in.
The impact of subscription models on customer retention
Keeping customers is cheaper than finding new ones. Plus, loyal customers buy more and tell their friends about you. According to Forbes, increasing customer retention rates by just 5% can increase profits by 25% to 95%.
Subscription commerce offers an ideal model for boosting customer loyalty. It offers recurring payments and consistent value, creating a reliable revenue stream and keeping customers engaged. Here’s how they can boost loyalty, especially during BFCM:
- Customer convenience: Subscriptions automate repeat purchases, making life easier for customers.
- Consistent engagement: Subscriptions keep customers coming back.
- Predictable recurring revenue: Regular payments help you plan better.
Crafting the perfect subscription offer
To maximize BFCM sales, you need a compelling subscription offer. Here are some key elements to consider in your subscription model:
- Clear value: Show off benefits like cost savings and exclusivity.
- Flexible plans: Offer different plans to meet various needs and budgets.
- Personalization: Tailor your offers to individual customer preferences.
Segmenting customers based on behavior and preferences allows for targeted offers. Offer special deals on annual subscriptions to loyal customers or exclusive bundles for new subscribers during BFCM.
Brands like Oats Overnight, Crunch Labs and Wildgrain have nailed it with subscription models. They offer convenience, quality, and personalization, keeping customers happy and loyal.
- Oats Overnight: With over 90% of revenue from subscription orders, Oats Overnight have mastered retention by focusing on customization and personalization in their subscription model.
- Crunch Labs: Tapping into customer curiosity, Crunch Labs has been innovating with creative subscription box offers like the “Robot in a Box.” This approach provides a unique engagement opportunity, fostering stronger customer connections and increasing lifetime value.
- Wildgrain: By leveraging deep customer insights to develop curated subscription boxes—Wildgrain has significantly decreased churn and increased customer lifetime value, while providing a personalized subscription experience for their 40,000+ subscribers.
Top features to look for in subscription management software
A good subscription management platform can streamline your BFCM strategy and provide strategic insights to steward customers long beyond the holiday season. It automates billing, manages customer data, and provides insights into customer behavior. At a minimum, you should consider a platform that offers:
- Automated billing: Smooth recurring payments.
- Customer analytics: Understand customer preferences and behavior.
- Scalability: Handle increased demand during BFCM.
Annual vs. monthly subscriptions
Choosing between annual and monthly subscriptions depends on your goals and customer preferences. Both have their perks, and when comparing models you should consider:
- Annual subscriptions: Higher upfront revenue, marketed as cost-effective.
- Monthly subscriptions: More flexible and lower commitment.
Promoting annual subscriptions
- Exclusive Discounts: Offer special deals on annual plans.
- Bundled Offers: Combine annual subscriptions with extra perks.
Subscription gifts for BFCM
Subscription gifts are a unique way to attract holiday shoppers. They’re thoughtful and convenient, making them perfect for BFCM.
Preparing for a stellar BFCM: 5 quick tips
When it comes to ensuring a successful BFCM season, early is on time. Start focusing on strategies that enhance customer retention and optimize your subscription model. Here are key steps to improve customer engagement and boost your subscription sales. Here’s a quick Readiness checklist for BFCM success:
- Audit subscription offerings
- Ensure your subscription plans are competitive and aligned with customer needs.
- Introduce limited-time offers and exclusive benefits for subscribers to enhance perceived value.
- Optimize your website for retention
- Ensure your website is ready for high traffic and seamless user experiences.
- Implement features like easy subscription management, personalized recommendations, and streamlined checkout processes to enhance customer satisfaction.
- Plan targeted marketing campaigns
- Develop campaigns that highlight the unique benefits of your subscription model.
- Use personalized email marketing and retargeting ads to engage existing customers and entice them with special BFCM offers.
- Enhance customer support
- Train your team to handle increased inquiries efficiently, focusing on resolving subscription-related questions quickly.
- Provide proactive support through live chat and dedicated help sections to assist customers with subscription management.
- Implement retention strategies with at-risk customers
- Use data analytics to identify at-risk subscribers and engage them with personalized offers or incentives to renew.
- Foster a sense of community through exclusive content, early access to sales, and special events for subscribers.
By focusing on customer retention and leveraging effective subscription models, you can maximize your BFCM sales and build a loyal customer base. Start now to ensure a successful BFCM season and sustained growth beyond the holidays.
