Black Friday’s over for another year and the sales figures are in! But what’s the bigger picture—short-term gains or long-term growth? As the dust settles, how confident are you about the results? Perhaps there's a niggling doubt about the real cost of your decisions:
Did those deep discounts erode too much margin?
Will returns start flooding back, eating into your profits?
Are you questioning whether every decision was the right one?
Here’s some refreshing insight from Datitude's treasure trove of retail data: deep discounts don’t always mean deep regret. In fact, they might be a golden ticket to building long-term customer value.
The Hidden Value of Black Friday Shoppers
Customers acquired through promotions can outperform full-price shoppers in the long run. Surprised? Our data proves it.
Take Black Friday last year: we saw how customers acquired via promotions demonstrated a 20% higher lifetime value compared to full price customers. Not only have they placed slightly more orders, but their average order value (AOV) is nearly 40% higher. That makes them not just valuable, but significantly more profitable.
This data shows the hidden value of newly acquired Black Friday customers and turns the usual scepticism about discount-driven shoppers on its head. Done right, promotional customers can become your brand's most loyal advocates. The key to unlocking this value lies in your data.
From One-Hit Wonders to Long-Term Loyalty
When is the most critical moment to engage these new customers? Immediately after their first purchase.
Our analysis of new customers acquired on Black Friday 2023 uncovered a fascinating trend:
50% of customers place a second order within 7 weeks of their first purchase
80% reorder within 6 months.
This tells us two things: speed matters and the second purchase is pivotal. Without it, the risk of losing these customers for good skyrockets.
What Should You Do Next?
Turn those Black Friday one-timers into 2025 loyalists by focusing on their next move. Here’s how:
Act Fast: Nurture relationships within the first 7 weeks. A compelling follow-up offer, personalised recommendations, or exclusive content could make all the difference.
Make It Easy: Ensure frictionless experiences—seamless navigation, hassle-free returns, and easy reordering can convert first-timers into repeat buyers.
Measure What Matters: Use data-driven insights to monitor the lifetime value of these customers and refine your strategies.
By focusing on this critical post-purchase period, you can transform a promotional surge into sustained growth, and turn Black Friday into a springboard for long-term success.
The Takeaway?
Black Friday discounts are only a liability if you don’t understand the long-term value of the customers they bring in. With the right strategy, those “discount” buyers could become your most profitable ones yet.
Ready to make data your superpower? Let's talk about how we can help you build lifetime loyalty with smarter insights for acquiring and retaining customers. Call us on 020 3003 5000 or email hello@datitude.co.uk.
About Datitude
We do data! Whatever your data needs, you can trust us to deliver.
Datitude is transforming how businesses connect, integrate, and unify their data. Our award-winning data platform and service provide the unifying framework to enable retailers and brands to get everything they need from their data. Data where it needs to be, on time, in the right format. A true single source of truth. No silos.
The managed data platform for modern commerce. Proven to deliver and trusted equally by mighty retailers and fast-scaling brands who need better access to their data, and valuable intelligence and actionable insights they can rely on.