Here's how to reach your ideal consumers this Black Friday
Read time: 4 mins
Meet Cate and Buck.
At first glance, Buck is a true VIP for your brand. The clue’s in the name: they spend the big bucks, buying your most expensive products without hesitation. When it comes to lifetime value, Buck’s in your top tier.
So this Black Friday, you’re set on acquiring more customers like Buck. That means heavily investing in unpredictable channels that offer no guarantee of decent returns, but what else can you do?
Meanwhile, Cate stays under the radar in your lower tier, making the odd purchase here and there. You know she might shop elsewhere this Black Friday, but losing Cate wouldn’t make a major dent to your profit margins.
… Would it?
Here’s the thing. Cate’s lifetime value is nothing to write home about – especially when compared to Buck’s – but she is doing something important for your brand.
Introducing new customers.
(Fun fact: Cate’s full name is actually Advocate.)
The power of a brand advocate
Cate might not need to buy more of your premium products, but she’s singing your praises to people who fit your ideal customer profile. In fact, if you totted up Cate’s extended lifetime value (that’s her own value plus that of all those she refers), you’d realise she’s easily one of your biggest VIPs.
And that’s especially important right now for two reasons. One, Black Friday is in 134 days. Two, the economy isn’t looking so bright.
In fact, some consumers are already waiting for Black Friday. With their wallets feeling the squeeze, they’re asking their friends where best to get that sofa/coat/exercise bike/other big-ticket item they’re patiently holding out for. And Cate is wasting no time telling friends and family that you’re the brand to get it from.
So when Black Friday swings around and brands slash prices while chucking endless budgets at advertising in a bid to get consumers’ attention, you’ll already have a steady stream of new customers sailing through checkout. They won’t even bother checking out the competition – why take the risk when Cate’s told them you’re the one?
Acquire your future best customers
And these aren’t your classic buy-and-bolt Black Friday customers, either. Cate’s good word means they’re spending more, are more likely to return, and are 5x more likely to tell all their friends about your brand, regardless of whether you have a sale on.
Before you know it, Black Friday will be over for another year. Six months from now, many of those customers you spent so much to acquire will have disappeared. They might have even forgotten your name.
Meanwhile, the crashing economy will cut the previously generous shopping budgets of Buck and their counterparts overnight, leaving you with a distant memory of a once valuable customer, alongside a fast-shrinking customer base.
Thankfully, you have Cate. What began as a couple of recommendations in the run-up to Black Friday has rapidly expanded into a fast-growing referral network bringing in serious revenue to your organisation.
Being careful with spending means the brand recommendation of a friend is more powerful than ever. Cate’s friends are returning, and they're bringing their friends with them. And those friends are bringing their friends, and they’re bringing their friends and… you get the idea.
One referral can rapidly lead to an expanding network of new, high-quality customers for your brand
Future-proof your business this Black Friday
So while other brands panic over shrinking marketing budgets and rising advertising costs, you can sit easy. Because you’ve got yourself a marketing channel that’s delivering ROAS making even your toughest stakeholder nod approvingly. Rather than helplessly watch your sales plummet in the new year, you’ve used Black Friday as an opportunity to build an ever-growing base of customer advocates who love your brand.
And that’s just the power of referral as an acquisition channel. Apply your first-party referral data to channels like paid social and search, and you can find more customers like Cate who love your brand enough to recommend it to others.
Taking your approach from ‘cross-your-fingers-and-hope-for-the-best’ to a fully optimised, multi-channel acquisition strategy. One that keeps on growing your business – throughout the tough economic climate and beyond.