October 31, 2023
Strategies to sleigh BFCM this year: No Tricks, Just Treats for your business
If you thought the holiday season was fast approaching, you’re wrong, it’s already here, creeping in like a ghost on Halloween night (couldn’t resist, it’s Halloween after all)!
As new research reflects, customers are starting their annual holiday shopping earlier than ever. Holiday wish lists are currently being penned, and Christmas is taking over the spooky season in retail stores, as early as October.
However, tis’ NOT the season to simply boost revenues and clear your inventory. It’s also a time to attract new customers and increase brand loyalty; and we’ve got a few strategies wrapped and ready for retailers looking to celebrate their best year yet.
But first, let’s take a look at some findings from Lexer’s annual holiday benchmark analysis. While evaluating 78 brands across Australia and the United States, retailers saw $2 billion in transactions across 14.9 million orders. Overall, there was an 8.6% and 15% increase in revenues over Christmas and Boxing Day periods respectively.
Other notable findings from the study included:
- Higher discounting practices in the lead up to Black Friday / Cyber Monday
- The earlier commencement of retail promotions to alleviate stock and delivery delays
- 3% increase in returns with notable spikes post-BFCM and Christmas periods
- Gift card sales were higher than expected, with sales peaking 1 week before Christmas
While the increase in revenue during the 2021-2022 holiday season could evoke positive sentiments among retailers; our analysis found that inflation was a key driver in this uptick. And with the continuing impact of inflation coupled with the current cost of living crisis, there’s still potential for these factors to affect customers’ spending habits. Which is why it’s imperative that retailers are proactive in their sales and marketing efforts this year.
For retailers gearing up for the BFCM sales frenzy, the key to success lies in harnessing the power of your first-party customer data. A CDXP (Customer Data and Experience Platform) empowers retailers to glean invaluable customer insights that not only supercharge this year's BFCM campaigns but also lay the foundation for next year's strategies.
A Unified Customer View:
A CDXP enables organizations to combine disparate datasets into a single, clean view of the customer. In the world of retail, understanding your customers is half the battle. CDXPs like Lexer allow retailers to break down silos and bring together data from online and offline transactions, website behavior, email engagement, and more. This unified view creates a comprehensive customer profile, enabling retailers to target their audience with pinpoint accuracy.
Predictive modeling capabilities take customer insights to the next level. By analyzing historical data, retailers can anticipate customer behavior during BFCM and tailor their campaigns accordingly. Predictive analytics help retailers make data-driven decisions, such as what products to feature, pricing strategies, and even which marketing channels to prioritize.
Reducing Return Rates:
Returns can be a retailer's worst nightmare during BFCM. A CDXP can identify patterns in return rates, allowing retailers to optimize product descriptions, images, and sizing information. By addressing these pain points, retailers can proactively reduce returns and enhance customer satisfaction.
Bridging the Gap: Online vs. Offline:
In an omnichannel retail landscape, understanding the relationship between online and offline transactions is crucial. A CDXP enables retailers to compare these two realms, shedding light on customer preferences, conversion rates, and the effectiveness of marketing efforts across channels. Armed with this knowledge, retailers can fine-tune their BFCM strategies.
A CDXP’s ability to transform raw, granular data into structured attributes is a game-changer. With over 160 attributes, covering everything from lifetime value to email engagement, retailers can build highly detailed customer profiles. These attributes evolve with changing data, ensuring that retailers always have the most up-to-date insights at their fingertips.
Transforming Retail: The Power of a CDXP in a Customer-Centric Era
Gaining a competitive edge is essential. Leveraging a CDXP ensures retailers make precise, data-driven decisions, optimizing campaigns like BFCM. The shift towards a customer-centric model is paramount, with consumers desiring personalized experiences. By harnessing insights from one BFCM season to the next, continuous improvement is achieved. Retailers adopting these tools and insights are best positioned to thrive during crucial sales periods and lead in the future of customer-centric retail. Companies should take this opportunity to dive into this transformative approach and lead in the retail sector.
Lexer is the secret weapon for retailers looking to dominate the BFCM season and thrive in the evolving world of retail. By unifying customer data, predicting trends, reducing returns, and bridging online and offline realms, it reshapes the way retailers approach BFCM campaigns. With Lexer in place, retailers not only gain a competitive edge but also ensure they're prepared to meet and exceed customer expectations in the future of retail.
Don't miss out on the retail revolution – embrace the power of Lexer today!