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Loyalty Programs: What is the Return on Investment (ROI)?

Here's how to calculate the return on investment of your loyalty program. Calculate the expected ROI of your loyalty program, or your past ROI.

Francesca Nicasio

Content Strategy Manager

Every business owner understands it’s easier to retain an existing customer than to acquire a new one. That’s why many merchants use loyalty programs to incentivize customers to come back and spend more with them. When done right, loyalty rewards, discounts, special early access, etc. can help to drive incremental revenue and maximize your customer lifetime value (CLV).

All that being said, it’s important to remember that loyalty or reward programs are long-term undertakings. Yes, they’re super beneficial to your company, but to reap those advantages, you need to periodically evaluate your loyalty program performance. Some consider loyalty programs to be money pits — and they can be if you don’t keep track of your loyalty program ROI.

So, let’s back up a bit: return on investment (ROI) is a financial metric that evaluates how profitable an investment is. To calculate the ROI, you need to divide the net profit by the cost of the investment, and express it as a percentage. The greater the ROI, the more profitable the investment.

To get a handle on your loyalty program’s success, you need to measure its ROI. The results will help you decide if your loyalty strategy is working or not. If it’s working, you can continue what you’re doing and double-down on your initiatives. On the flip side, you can rejuvenate poorly performing loyalty programs by optimizing offers, running referral programs, or getting customer feedback.

Listen to this post instead:

 


 

How do I calculate ROI for my loyalty program?

As with any business initiative, the success of a loyalty program can be measured by its ROI. The formula to calculate it is pretty straightforward.

Return on Investment = (Total Revenue - Total Cost of Running the Loyalty Program) / Total Cost

download free loyalty program roi calculator

Loyalty program ROI calculation: A real-life example


Here's an example from a merchant we have been working closely with. I'm not going to share their name, but I can share their anonymized results so you can see how we assess the impact of their loyalty program.

Real life example (1)

Challenges in measuring loyalty program ROI

The formula for calculating your loyalty program ROI is simple enough to understand. However, there are a few challenges that can make it more difficult to accurately measure your ROI.

Attributing revenue to the right sources

One of the biggest challenges lies in capturing key metrics and pulling the necessary data from various sources — such as your marketing, sales, finance, tech teams, etc. You need to make sure that you’re attributing your revenue gains to the right sources.

For example, your regular customers are your most valuable ones, with or without a rewards program. How can you be sure their value is attributed to your loyalty program?

It can also be tricky to figure out if a purchase was triggered by loyalty program benefits or if it’s just a customer’s normal buying behavior. You need to have the right tracking mechanisms in place to be able to accurately calculate a loyalty program’s ROI. 

Some of the ways to do this include using robust loyalty apps (like Marsello), discount codes, coupons, etc. to track customer behavior that can only be attributed to loyalty programs.

With Marsello, you can track the metrics like change in repeat purchase rate and increase in turnover from loyalty members, as we've done above. This will get you a much more accurate picture of your return.

It takes time to see results

Not only will you need considerable time to gather the data required to calculate the ROI, but it may also take time for your points programs to show results. Customers must first be aware of such programs, engage with them, and rack up enough points on their loyalty cards. It may take months (or more) for your loyalty program to start paying off, so you won’t know your true ROI right away. 

💡 Pro tip: Rather than committing to a 3 month trial across all your sites, commit to one site for at least 1 year (expanding to other sites if you see results earlier). Starting with fewer sites but allowing for a longer time period will give you a much better indication of the impact of the program for your business.

Metrics to consider when measuring the impact of your loyalty programs

Beyond the ROI calculation above, there are many ways you can measure the impact of loyalty programs. You can look at how they affect your revenue, customer base growth, and engagement, among other things.  

You could choose to measure success purely based on financial returns or through KPIs such as engagement rate, brand awareness, etc. Here are some of the data points you may need to track.

  • Transaction volume
  • Average order value
  • Total revenue
  • Cost of loyalty program memberships
  • Marketing cost
  • Purchase frequency of members and non-members

The key is to track these over time. Remember, it takes time to build loyalty, so running a successful rewards program is a marathon, not a sprint. 

And before you calculate the ROI of your loyalty program, make sure you’re clear about your business objectives. What are your specific goals? Do you want to increase revenue by a certain percentage? Reduce your marketing expenditure while boosting sales? Grow your repeat customer base?

This will be essential for setting targets for your loyalty program and understanding its impact on your bottom line.

download free loyalty program roi calculator

Direct ROI of loyalty programs

Direct loyalty program ROI can come in several forms, including:

Increased sales and revenue from repeat purchases

A loyalty program can significantly contribute to a business' goal of increasing revenue and profit. According to a 2023 report by Gitnux, the likelihood of selling to a new customer is less than 20%. Conversely, this probability rises to nearly 70% for an existing customer.

By enhancing customer satisfaction, fostering brand loyalty, attracting new customers, and gathering important customer data, your loyalty program can lead to tangible financial gains. You can also make informed decisions about product development and marketing strategies, further amplifying revenue.

Ultimately, loyalty programs serve as strategic tools for driving sales, revenue growth, and long-term profitability in any business endeavor.

Just ask Scotty’s Makeup & Beauty, which was looking for an email marketing solutions provider when it came across Marsello. Very quickly, the business realized the full potential of Marsello’s tools and decided to also set up loyalty programs. This resulted in Scotty’s Makeup & Beauty unlocking new audiences, increasing its customer engagement, and doubling its revenue.

scottys-makeup-and-beauty-discount

Reduced marketing costs through targeted promotions

Acquiring new customers through marketing efforts and sales outreach can be resource-intensive, consuming both time and funds. Customer acquisition costs pile up especially when leads opt for competitors.

Since loyalty programs help drive sales from existing customers, they enable your brand to mitigate the expenses linked with customer acquisition.You spend less to drive sales, which leads to a higher bottom line.

Indirect ROI of loyalty programs

Now that we’ve covered the direct ways to measure ROI, here’s a look at the indirect metrics that you may want to track.

Improved customer retention

When customers feel valued and content, they are more inclined to remain loyal and make repeat purchases. Implementing a loyalty program can significantly contribute to this effect.

For instance, imagine being a long-term participant in a supermarket’s loyalty program, accumulating rewards for discounts or free items. Such incentives foster loyalty, encouraging folks to continue supporting your brand despite alternative options.

Enhanced brand loyalty and customer satisfaction

Loyalty programs enhance customer appreciation by rewarding purchases with discounts or complimentary items, fostering a sense of value. Tailoring rewards based on individual preferences demonstrates care and enhances the shopping experience.

This helps to elevate customer satisfaction levels. Satisfied customers are more likely to return, which just goes to show the role of customer loyalty programs in enhancing overall satisfaction and fostering repeat business.

Positive word-of-mouth and referrals

Referral marketing, aka word-of-mouth marketing is a highly effective and sought-after strategy for customer acquisition. Recommendations from friends and family, along with good reviews on social media carry more weight than brand messages.

This is one of the most significant gains from loyalty programs — devoted customers become brand advocates, sharing their positive experiences and benefits received from your business. Through their advocacy, your company can gain new customers organically, without incurring any additional costs.

Data collection and insights for better business decisions

Understanding customers is crucial for business success. Rewards programs offer valuable insights into loyal customers, including their personal details and preferences. This enables businesses to enhance customer experiences and satisfaction by tailoring their services to meet individual preferences.

Bonus points if your loyalty program works across multiple channels. Going omnichannel with your loyalty efforts means you can collect data from all customer touchpoints, while providing a seamless experience no matter where or how they’re shopping.

Fashion label ALPHA60 was looking to improve its customer-first marketing efforts by providing all its customers with the same great experience. ALPHA60 brought in in-store and online sales data into Klaviyo, allowing the brand to display points balances, segment customers, and send personalized emails, no matter how customers shop.

Alpha60 earn options

By using Marsello for loyalty and marketing, ALPHA60 was able to attain a repeat purchase rate of 70%, wildly surpassing what is considered to be a good repeat purchase rate in the industry (between 20% and 40%).

Tools to track your metrics

Loyalty program solutions like Marsello give you a whole host of tools required to track metrics related to loyalty programs. 

The platform's built in marketing analytics capabilities can shed light on which channels and strategies yield the best results. Plus, you can track your loyalty program performance overtime, so you can improve both in the short- and long-term. 

Final words

Loyalty programs can offer substantial returns on investment for your business. The right program can enhance customer satisfaction, drive repeat purchases, and boost retention rates. It also provides valuable data and insights for informed decision-making and optimized marketing strategies. 

That’s why it’s so important to invest in the right solution AND track your return on that investment. Measuring your loyalty program ROI helps you improve, so you can continue to delight customers and keep them coming back.

Need help doing just that? Check out our ROI Calculator to see how your loyalty programs are performing or talk to an expert to discuss opportunities for revenue growth.

Frame 6 (4)download free loyalty program roi calculator


 

Get advice from a loyalty expert and start driving repeat sales.

Book a demo

 


 

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

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    Winning Black Friday 2023: Building Customer Loyalty that Lasts

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    You win a lot of new business over Black Friday, but do they stick around? Learn how to keep new customers coming back after the sales season.

    You win a lot of new business over Black Friday, but do they stick around? Black Friday isn't just about sales; it's a unique opportunity to build long-lasting customer relationships and strengthen brand loyalty.

    While the typical approach emphasizes short-term gains in the form of sales and revenue, this strategy falls short in fostering lasting loyalty beyond the holiday season. So, how can you transform Black Friday into a platform for building customer loyalty that endures?

     




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    Prioritizing Relationship-Building Over Discounting


    Black Friday presents an opportunity to engage customers on a deeper level. While many shoppers chase discounts, true brand loyalty goes beyond price reductions. Consider your own shopping habits – you likely have loyalty to brands that resonate with your values and engage with you through various channels. Brands that prioritize customer experience, for example, tend to have more committed customers.

    Building authentic relationships with your customers creates a defense against competition and discount-driven strategies, enabling your brand to thrive even in a volatile market.

    The 3 Types Of Black Friday Shoppers


    There are three types of customer who jump on a Black Friday sale. Some customers you’ll want to avoid entirely, while others will be left with a lasting, positive impression of your brand (and come back for more).

    1. Bargain Hunters


    These Black Friday shoppers are notorious for scoping out the best deals and discounts, rather than building long-lasting relationships with brands. They’ll look for the store with the best price on the products they’re looking for, and will happily choose Amazon over you.

    2. Loyal Regulars


    Your most loyal customers love keeping tabs on your sales so they can enjoy the odd discount. They’re shopping with you at most times of the year anyway, but sometimes there’s that item they couldn’t quite justify at full price and they’re elated to pick it up at 10% off. This segment will also typically purchase more items from you over sale periods than other segments.

    3. Brand Newcomers


    This is your ideal segment of new customers. These customers are first-time shoppers who discovered your brand because they spotted a sale, and were overjoyed by the product and brand experience. They loved what they found, and they are more than happy to sign up to your loyalty program or email list to hear from you more. Let’s take a closer look at the second two segments, and how you can maximize sales from each of them during (and after) Black Friday.

     

    Maximize Black Friday Sales To Your Regulars


    Black Friday is the perfect time to show your loyal customers some extra love. This shopping season, you can boost your sales by following a few key strategies. Let's dive into these tactics to make this Black Friday a memorable one for your loyal customer base.

    Black Friday email campaign

    Send more campaigns


    Send more emails and SMS messages—the normal marketing rules don’t apply. If you run a loyalty program, make sure you’re using your customer purchase data to send targeted discounts and offers where possible.

    Prepare your loyalty program


    There’s a lot you can do to add value over Black Friday beyond discounting. You can award more points per dollar spent, introduce exclusive seasonal rewards, or offer limited-time access to a higher loyalty tier.

    Give them special treatment


    Make your existing customers feel even more loved by giving them VIP or early-bird access to your sales. Alternatively, you can offer a kickstarter voucher as a bonus—an initial $10 off to stack onto their Black Friday discounts.

    Encourage them to share your sales


    Encourage your customers to let their friends know about your sales. Offer incentives for referrals. You can sweeten the deal by offering extra loyalty points or rewards for sharing over the Black Friday campaign period.

    Remind them of the value they earned


    Send frequent points balance emails to remind these customers of their rewards, reinforcing the value you delivered over the sales period. (This has the bonus effect of encouraging them to return and redeem their rewards!)

     

    Attract Newcomers Who Will Stick Around


    Over Black Friday, you’ll welcome newcomers into your customer base who have potential to become loyal supporters in the long run. Let’s explore some strategies to keep newcomers engaged beyond the sales season.

    Prepare your loyalty program


    Will Brand Newcomers get anything extra in your loyalty program if they sign up over Black Friday? Double or triple points for a Black Friday purchase perhaps? A 10% voucher on their next purchase? Make sure your offers are all set up, ready for your campaigns.

    Capture their details!


    Make sure you effectively communicate the benefits of joining your loyalty program to increase your customer attachment rate during the holiday season. This will grow your marketable database and help you retain them beyond Black Friday.

    Customer attachment rate: The percentage of your total sales that are linked to a customer profile. A higher customer attachment rate signifies superior data quality and enhances your ability to effectively market to your database.

    Encourage them to share their experience


    Promote active participation in your loyalty program and create opportunities for these customers to share their positive experiences with friends and family. Encourage them to refer new customers and reward them for doing so. This not only helps you acquire new customers but also solidifies the bond with your newly discovered audience.

    Ask for their feedback


    Asking for private customer feedback can reinforce positive interactions and help iron out any hard feelings. Customers who reciprocate by leaving feedback (good or bad) indicates a promising level of engagement, and can mitigate bad reviews.

     

    How Marsello Helps Merchants Sell More Over & After Black Friday


    Marsello merchants went over and above in Black Friday in 2022—running extra loyalty program incentives, rewarding customers for referring friends, and sending countless email and SMS campaigns. Over the Black Friday / Cyber Monday sales period, more than 2.6 million orders were placed by their loyal customers.


    Black Friday points campaign

    How do Marsello merchants set up for success?


    • A beauty retailer in the US sent a whopping 2-7 emails per day over the sales period, and made more than $350k in revenue Black Friday sales, with one email making over $26,000.
    • A food retailer in the US sends around 1 email per day over the BFCM period. Their points earned by customers triple in November and December each year compared to other months.

    Top tactics to retain and grow Black Friday customers

     

    • Points campaigns: To award more points per dollar spent over a particular time period or in a specified store
    • Tiered loyalty: To incentivize shoppers to unlock more valuable rewards and spend-to-points ratios
    • Prompts for staff at POS: Add reminders at point-of-sale so staff remember to add customers to each sale. Lightspeed users can do this with the Advanced Marketing add-on, powered by Marsello.
    • QR codes & digital membership cards: Help to increase customer attachment rates by making it easy for them to identify themselves at point-of-sale.
    • Referral programs: Make the most of the sales frenzy by offering referral incentives. Drive word-of-mouth and brand awareness from regulars, and let new shoppers know about the program too.

     


     

    Final Words

     

    Black Friday is undoubtedly a powerful tool for businesses to boost sales and revenue. However, its true potential goes beyond the short-lived excitement of discounts and one-time transactions.

    To truly harness the value of Black Friday, companies should shift their focus towards prioritizing relationship-building over discounting.

    While Bargain Hunters may provide a quick spike in sales during the holiday season, their loyalty tends to be fleeting. Instead, businesses should concentrate on cultivating relationships with Loyal Regulars and Brand Newcomers.

    Loyal Regulars, who already have a connection with your brand, can be nurtured further through personalized marketing efforts, VIP access, and special offers during Black Friday.

    On the other hand, Brand Newcomers, attracted by the sale, present an opportunity to convert them into long-term customers through effective communication, loyalty programs, and referral incentives.

     


     

    Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

    Why Patagonia & Other Retailers Are Canceling Black Friday in 2023

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    While Black Friday works well for some retailers it's not right for everyone. Some risk cutting into margins, alienating customers or their diluting brand.

    The most hyped sales day of the year is just around the corner. But not everyone embraces Black Friday.

    While Black Friday undeniably works well for some retailers, others partake because they feel they have to. In these cases, they risk cutting into margins, alienating loyal customers or diluting brand equity.

    Since 2011, retail brand Patagonia has been subverting traditional Black Friday messaging. Now many others are following suit, symptomatic of a major shift in consumer culture. Retailers the world over are finding new ways to break consumerist cycles: promoting recycled materials, fair trade and the repair and re-use of old goods.

     

     


    Quick Links:


     

    3 Reasons Retailers Are Opting Out Of Black Friday This Year


    1. They can’t compete with big-box retail brands

    Retail giants have the purchasing power to bulk buy loss-leaders and attract Black Friday shoppers by the masses. Smaller retail brands don’t have the deep pockets to compete, so many find that running Black Friday sales just cuts into margins.

    2. Their audience is made up of conscious consumers

    The kinds of people who shop at smaller retailers are both more loyal and more conscious consumers than those that flock to the likes of Amazon. They’re more suspicious of broad-stroke sales and promotions such as Black Friday, and could be turned off or confused by hyperconsumerist marketing.

    3. Their brand values simply aren’t aligned

    Running Black Friday sales just feel antithetical to their brand. Brands with strong social or environmental purpose and values don’t feel comfortable participating in a sales day that promotes unnecessary consumption and waste.

    We’ve worked with an increasingly large number of brands who don’t want to participate in Black Friday. But you can take an anti-Black Friday position, or subvert the normal marketing messages, and still leverage the hype. 

    Our advice? Use that position to your advantage. Take the hype of Black Friday, participate in trending conversations, and build your brand and marketing strategy around it.

     

    Take a position on Black Friday


    You know your customer best. So take the time to think about what approach works best. By choosing the position that’s right for your brand, you’ll engage your customer base and build brand equity. 

    Remember: Whichever position you take, you can leverage the hype around the sales season. Even if you’re taking an avoidant or subversive position, you can leverage Black Friday keywords and trending social hashtags to get your message out to a wider audience.

    1. Avoid it: If your target market is predominantly comprised of conscious consumers, are traditional Black Friday campaigns the right fit? Some brands opt out of Black Friday altogether. Some businesses even close their stores, asking their customers to just go outside and enjoy the day rather than spending their time chasing the sales.
    2. Subvert it: Do Black Friday, but with a self-aware twist. Or leverage the hype around Black Friday to promote your purpose—for example, brands running Blue Friday campaigns to raise money for ocean clean up projects.
    3. Lean into it: If Black Friday works for you, then that’s okay too. You can still go all in for Black Friday, and use creative, unique campaigns to stand out from all the noise.

    Once you’re steadfast in your position, be consistent. Otherwise, the campaign will feel inauthentic and confused. Craft all your hooks around your core campaign message. You can use these across your social posts, email subject lines and ads.

     

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial

     

    Position 1: Avoid It


    Last year, the British Independent Retailers Association (BIRA) reported the highest number of smaller brands boycotting Black Friday they’d ever seen—a whopping 85%. This shows a growing movement against the likes of Amazon, who dominate the market and can offer huge discounts, bundles, deals and free shipping.

    Here are some ways you can express your anti-Black Friday position:

    • Encourage your customers to reduce waste and think about what they really need on Black Friday. 
    • Volunteer time or money to plant trees, or donate to offset some of the carbon emissions generated by Black Friday consumption.
    • You can even close your stores, like sustainable underwear brand Pantee.

    True to their vision and values, Ecolateral never runs Black Friday sales or events promoting hyperconsumerism.

    "We're about helping people to make genuine and sustainable changes in their life for the benefit of the planet. And if we're true to our vision, people respect that."

    — Jamie Stott, Ecolateral


    jamie-at-ecolateralSource: Ecolateral Instagram

    Position 2: Subvert It


    Patagonia’s “Don’t buy this jacket” campaign famously subverted traditional sales messaging around Black Friday.

    The conscious retailer is known for its clever use of marketing around sales season to boost its brand profile, PR and social media engagement. In 2016, they used Black Friday promotions to raise money for charities with environmental purpose.

    If your audience doesn’t resonate with hyper-consumerism, taking a subversive position can be an extremely clever approach.

    You might not see the same revenue success as those leaning into Black Friday, but the objective (the bet) is to build brand awareness and customer loyalty that will last longer than one day in the retail calendar.

    patagonia-dont-buy-this-jacket-1Source: Patagonia

    Here are some ways you can subvert traditional Black Friday messaging:

    • Use Black Friday to promote upcycling, repairing and reusing. Patagonia has an online store, Worn Wear, dedicated to resales of pre-loved clothing. Hoopla Kids does the same.
    • Take part in Blue Friday, an initiative pioneered by a group of small businesses as an alternative to Black Friday. All participating businesses pledge to donate a percentage of sales from Blue Friday to support ocean conservation projects.
    • Donate a percentage of sales made over Black Friday weekend to a good cause. Out of the Box Gifts donated 10% of all their 2021 Black Friday sales to a local food bank.

     

    “It’s time for us as a company to address the issue of consumerism and do it head on. The most challenging, and important, element of [Worn Wear] is this: to lighten our environmental footprint, everyone needs to consume less. Businesses need to make fewer things but of higher quality. Customers need to think twice before they buy.”
    —Patagonia

     

    Position 3: Lean Into It


    If you are leaning into Black Friday this year, here are some marketing tips to help you hit your revenue targets.

    Tip #1. At peak sales season, the normal marketing guidelines don’t apply.

    Don’t send emails on the weekend? Don’t schedule social posts after 8pm? Don’t send more than 3 emails for week? Forget it.

    Consumers are receiving more emails, SMS messages and targeted ads than ever around this time. Don’t be afraid to dial up the frequency of your marketing messages. Be prepared to get some unsubscribes, but the resulting sales will more than outweigh that.

    Tip #2. Get personal with segmentation.

    This tactic has helped our retailers get more Black Friday sales, and higher average order value. 

    Slice up your database by type of products purchased. For example, if you’re a technology retailer, you could create segments for “Photographers”—people who most frequently buy photography equipment.

    Send targeted Black Friday or Cyber Monday campaign emails and SMS messages to those segments, adding only products from their preferred category. Of course, you can add a “See All Deals” call-to-action below your product blocks to pull in more general interest to the broader sale categories.

    For higher impact, start strong with a personalized subject line:

    “Alice, get 60% off everything photography! 🤑📸”

    Tip #3. Black Friday is about more than just revenue targets.

    Did you know sales season is bigger than just hitting holiday revenue targets???

    Collect customer details over these heavy traffic periods to build your list of re-marketable customers.

    According to the Pareto principle, around 80% of a business’s profits come from just 20% of its customers. That means regular customers, who buy from you again and again, are worth A LOT to your business.

    It’s more expensive to acquire new customers to retain them, so make the most of your campaign spend and continue selling to Black Friday participants long after November has been and gone.

     

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial

     

    How To Use Sales Season To Acquire Lifelong Customers

    In the current economic climate, consumers are much more price-sensitive, so they’re more willing to switch brands on a whim. That’s especially true around peak sales season. Any new customers you’ve acquired over the holiday season have more than likely found you through a sale or promotion.

    So how do you keep new customers in your orbit year-round?? With a value-packed and engaging loyalty program they won’t want to leave!

    After the holiday rush, run double points days, VIP sales, personalized deals and creative in-store shopping experiences. Regularly deliver value to your loyal customers with birthday gifts, loyalty rewards and freebies—they’ll love you for it.

    As a consumer, what are your favorite loyalty programs you’re part of? There are always a few standouts you can learn from!

    Read next: Top 8 Marketing Hacks For Black Friday/Cyber Monday Campaigns

           Marsello-Tik-Tok-post-and-revenue

    Marsello: All your marketing, in one place.

    • Schedule social posts
    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Track the direct impact of all your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                           

    5 TikTok Trends Retailers Should Be Using This Black Friday

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    Need inspiration for your Black Friday TikTok posts? We have put together a list of 5 tried-and-tested TikTok formats that we see working over and over...

    The opportunity for sales through TikTok is colossal. 67% of TikTok users say they feel an impulse to shop while scrolling through their feed. 20.6% of consumers who have bought products through social media say they frequently purchase on TikTok.

    In addition, TikTokers use the platform as a search engine; TikTok crawls comments, tags, and captions for keywords to provide highly relevant search results.

    This illustrates a rapidly growing preference for organic, user-generated content over keyword-stuffed blog posts in traditional search engine results.

     

    black-friday-tiktok-search-trends

     

    As Black Friday approaches, users jump on the app to find deals and see what their favorite TikTokers are buying. It’s no wonder TikTok is the place every retailer wants to be this Black Friday…


    Quick Links:


     

    Why User-Generated Content Works Best


    TikTok is all about authenticity.

    TikTokers are more discerning than any other social media user. They’re social natives, raised by influencer culture and reality TV, so they know when someone’s there to sell them something.

    On the other end of the authenticity spectrum… you’ve got traditional, big-box, branded Black Friday campaigns.

    But that doesn’t mean you can’t harness the power and influence of the For You page to stand out from the crowd this sale season.

    The key? User-generated content, or UGC.  That’s right, you want to make content that looks like it was made by one of your customers, NOT by your marketing team.

    Let’s dive in!

     

    Top 5 TikTok Trends To Use This Black Friday


    These are not new or fleeting trends. (Nope, we’re not going to make you edit corn into your next collection promo video).

    TikTok moves fast, so trying to plan out content ahead of time can be a headache. You don’t want to awkwardly miss the beat on a trend, it’ll be very obvious. For quick, hot-and-fast trends, you want to jump on them right away.

    Once you’ve spent a bit of time on the platform, you will get a pretty clear idea about what kinds of trends will last a few days or weeks, and what will stand the test of time. 

    If you aren’t super au fait with TikTok just yet, never fear. We have put together some tried-and-tested successful formulae that we see working over and over again. With these trends, it’s all about creating a hook that entices the user and gets them to stop scrolling.

    1. Black Friday Hauls


    Create a video of someone shopping online or in your physical stores, then cut to them showing all their new products. Walk the viewer through the discounts, bundles, and deals.

    Example of a Black Friday haul:

     


    Some hashtags to add: 

    #blackfridaydeals #blackfriday #haul #christmashaul #shoppinghaul

     

    2. Deals You Need To Know About


    Create a video showcasing your brand’s deals. To level up the authenticity, promote some complementary deals from brands you collaborate with too. It’s all about community!

    Example of a deal finder:

     

    Some hashtags to add: 

    #cybermonday2022 #blackfriday2022 #blackfridaydeals #christmasgiftideas #giftguide2022

     

    3. Unboxing Experiences

    These work particularly well if they’re ‘oddly satisfying’ or ASMR inspired. You can add a mention that the product was on sale on a Black Friday deal.

    Example of an unboxing:

    @dermalogica Our limited-edition holiday kits just hit the site and they won't last long. 💙 #dermalogica #skintok #unboxing ♬ The Lost Stray Dog - Official Sound Studio

     

    Some hashtags to add: 

     #unboxing #blackfriday #ASMR (if applicable)

     

    All your Black Friday marketing, in one place.
    Manage all your Black Friday/Cyber Monday campaigns in Marsello. Drive repeat sales with loyalty, send email & SMS campaigns, set up automations, and more. Then track the impact of your marketing on sales.

    Start free trial



    4. Get Ready With Me (GRWM)


    Make this trend Black Friday relevant with a “GRWM: Black Friday edition” showcasing all your Black Friday deals. Mix and match with non-sale items, or do a full ‘on sale’ promotion. This works for clothes, make-up, beauty, accessories… get creative!

    Example of a GRWM:

    @merrell Take yourself out on a cute lil park date with your hydro mocs like @The Halliday Twins #hydromoc #merrell ♬ original sound - merrell

     

    Some hashtags to add:

    #outfit #winter (or any applicable season) #grwm

     

    5. Come shopping with me


    If you have a bricks and mortar store, bring the viewer "shopping" with you. Take a timelapse of walking into your store from the street, looking around, then slow down to pick up products and deals. Show the viewer you’re adding it to your basket, all while showcasing your in-store experience candidly.

    Example of a shop with me:

     

    Some hashtags to add:

    #comeshopwithme #mallshopping #shoppingaddict

     

    Dos and Don’ts for Black Friday TikTok success

     

    Don’t brand your videos.


    Use TikTok’s native fonts, instead of your own branded fonts. This will give your content a much more organic feel, and won’t stick out as “marketing” content on TikTok’s For You page.

    TikTok’s native fonts include Proxima Nova Semi Bold, Kaufmann Bold Script and Georgia Bold. You can mix and match fonts and styles.

    Do make sure your videos are well lit.


    Good lighting is essential for creating high-quality content. Every successful TikToker has this down. If you can, film in good natural light (but not direct sunlight). Golden hour (when the sun is setting) will give your content a warm, radiant glow.

    As a second-best alternative, invest in quality artificial lighting, such as a ring light. 

    Do get creative with transitions.


    If you’re feeling confident, try some creative transitions between shots. TikTokers are known for using manual camera tricks to enhance the overall feel of their videos.

     

     

    Do get familiar with editing apps.


    If you’re creating content in advance, TikTok’s native editor is not ideal. Use an editing tool like CapCut to get a cleaner final result. You can download it for your phone, tablet or desktop.

    Don’t try and tell your whole brand story.

    While it can be tempting to start talking about how great all your products are and listing all the benefits, stick to the short, hook-based formats above.

    All your Black Friday marketing, in one place.
    Manage all your Black Friday/Cyber Monday campaigns in Marsello. Drive repeat sales with loyalty, send email & SMS campaigns, set up automations, and more. Then track the impact of your marketing on sales.

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    Don’t use muffled audio.


    If you’re doing voice-over style videos, it’s important to get crisp, clear sound. Invest in a small microphone you can clip to your clothing, like a lapel mic, that plugs into your recording device (i.e., your phone). These are affordable and easy to find online. 

    Most TikTokers find it’s simple and effective to record straight into Voice Memos or similar. Your phone’s inbuilt voice recording app serves the purpose just fine.

    Don’t spend thousands on equipment.


    I can’t iterate this enough. Even the best quality user-generated content doesn’t need anything more than good lighting, good audio, your smartphone (as long as it has a decent camera), and a tripod.

    Do have fun with it!

    Express your personality, and have fun—otherwise, it will become just another marketing chore, and that won’t produce good content. Making TikToks is a creative process, so enjoy it!

    Read next: Social media planning for BFCM - 7 Best Practices to Implement

          Marsello-Tik-Tok-post-and-revenue

    Marsello: All your Black Friday marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts
    • Track the direct impact of your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                           

    Social Media Planning for BFCM: 7 Best Practices to Implement

    ClockIcon  READ
    We’ve put together a list of the top social media planning practices your brand should follow to attract and retain customers in the 2022 holiday season.

    Black Friday and Cyber Monday (BFCM) weekend is coming up fast (just where did 2022 go?) It’s high time for brands to begin planning for this massive, revenue-generating shopping event.

    179.8 million unique shoppers shopped in-store and online during the BFCM holiday weekend in 2021, despite the disruption caused by the COVID-19 pandemic.

    With 2022 seeing record rates of inflation and more cautious consumer spending, brands will need to pull out all the stops to wow customers this holiday season.

    Although still associated with shoppers streaming into store locations, BFCM weekend is becoming increasingly digital and mobile-first. According to Nosto, mobile outperformed desktop at 69% versus 31% when it came to product discovery and browsing, where social media emerges as a key channel. In fact, 54% of Gen Z shoppers and 58% of Millennials say that social platforms are better than online search for finding products and brands.

    In sum, a robust social media strategy is now essential for a profitable BFCM weekend.

    We’ve put together a list of the top social media planning practices your brand should follow to attract and retain customers this holiday season — and how Marsello’s brand-new social media toolkit can help.

     


     


    Quick Links:



     


    1. Use data to inform your BFCM initiatives and planning


    Not sure where to begin with your social media planning? A good place to start is to look into what strategies worked for your brand last year — and what didn’t. 

    Social media metrics such as engagement, impressions, click-through rate, website traffic, and conversion rate will help you to gauge the performance of previous initiatives and where you can build on this success. Likewise, learning from past mistakes, such as posting at the wrong time of day for your audience, is one of the best ways to set yourself up for a profitable BFCM period.

    social-launch-email-campaign-marsell-app-functionality-screenshotsArtboard 2 copy 2

    Using Marsello, look back on what kinds of posts generated the most sales over past campaigns.

    In addition to using your own data, don’t ignore the power of industry trends. Knowing what’s hot with social media users is a great way to stay innovative and serve up the content consumers want to see. 

    For example, short-form video is gaining traction across all social platforms in 2022, with 26% of social media marketers investing more in short-form video than any other content format. If your target customer belongs to the Gen Z demographic, this should definitely be in your BFCM toolkit.

     

    2. Iron out the BFCM promotions you’ll be running


    Running seasonal promotions is an essential part of BFCM, and your followers will expect you offer some compelling deals and discounts throughout the weekend. To maximize engagement with your social content, make sure you’ve planned out all the core details of your promotions, such as:

    The type of content. Are you using a single image, carousel, or video to publicize your promotion?

    The type of promotion. The size of the discount/offer, what products are included/excluded, etc.

    Length/timing of the promotion. How long the promotion is valid and whether you might extend it to increase conversions

    However, be careful not to make your social media feeds too promotion-heavy. Constantly pushing discounts over BFCM weekend can become boring and repetitive for your followers. Consider mixing up your feed with other types of content and putting aside some time to plan out your content streams. This includes promotional offers, gift inspo, and user-generated content.

    examples of holiday instagram posts

    Starbucks is a great example of a brand that posts a careful mix of content during and in the lead-up to BFCM. In addition to posting about their seasonal drinks range and limited-edition holiday cup promotions, its social media feeds also include user-generated content and question prompts designed to encourage engagement.

     

    All your Black Friday marketing. In one place.
    Add Marsello to your store now, and kickstart your Black Friday Cyber Monday campaigns with email campaigns, SMS, automations and more. Track the impact of all your marketing on sales, and measure your return on investment.

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    3. Create compelling images


    Consumers’ newsfeeds and inboxes are being inundated by promotions and discounts during BFCM weekend, trying to persuade them to drop everything and shop right now. But don’t join the race to the bottom by choosing the steepest discount possible; focus on creating eye-catching visuals that entice consumers to stop scrolling and check out your offer.

    To tap into those short attention spans, your images need to have a “wow factor” that’s pleasing to look at and primes people to explore what you have to offer.

    anthropologie example of a beautiful holiday post

    Known for its stunning social media feeds, Anthropologie does a great job at putting its followers in the mindset of holiday shopping ahead of BFCM. This fun visual swipe post allows Anthropologie fans to “turn on” the Christmas lights at one of their flagship stores — a clear sign of more holiday-themed content to come.

    💡 Pro-tip: You can crop and edit images right inside Marsello to create compelling, attractive content for your social media campaigns.

     

    4. Use a calendar to track and schedule your BFCM content


    It can be tempting to post all your social media content on the fly. But while there’s room for spontaneity in your content (for example, jumping on a trend while it’s still viral) you don’t want to leave your BFCM content to chance. 

    Peak season is a busy time for brands, and it’s time-consuming and stressful to plan and post content as you go. More importantly, a scattergun approach also runs the risk of missing key promotional opportunities during Thanksgiving weekend.

    Using a calendar tool is a great way to maintain control over your BCFM social media planning. Marsello allows you to add individual social posts to your calendar and add relevant information such as launch dates, copy, or associated promotions, ensuring that your team always knows what’s in the pipeline.

    marsello-social-launch-tiles-3

     

    5. Keep your marketing collateral organized


    BFCM is one of the biggest revenue-producing periods of the year for retailers, so your business is likely to be using more social media collateral in the form of graphics, videos, and product photography during this period to increase engagement. 

    With so much revenue on the line, it’s vital to make sure your marketing team has a system to store and organize these assets. After all, nobody wants to lose a vital photo or video right before posting!

    social-launch-email-campaign-marsell-app-functionality-screenshotsArtboard 2 copy 3-1

    The Marsello media library is an excellent way to keep all of your BFCM collateral in one place where it’s easily accessible to your team. The media library connects seamlessly with all major storage systems, including Google Drive and Dropbox, so you can retrieve your assets as you need them for emails, social media, and other campaigns being run by Marsello.

    All your Black Friday marketing. In one place.
    Add Marsello to your store now, and kickstart your Black Friday Cyber Monday campaigns with email campaigns, SMS, automations and more. Track the impact of all your marketing on sales, and measure your return on investment.

    Start free trial

     

    6. Keep your BFCM initiatives consistent across all platforms


    If you’re planning on running a big promotion (or several) over BFCM weekend, it makes little sense to only publicize your offer on a single platform. To drive as much traffic as possible to your website and storefronts, all of your marketing channels — including social media, email, and even your store signage — need to be working together in harmony. 

    It’s easy to say that the more channels you use, the stronger your promotional strategy will be. But it’s not quite that simple; more channels also means more time spent making sure that your messaging stays consistent. 

    Here is a great example from Sephora, which successfully reinforced last year’s Cyber Monday sale across email and social media by using the same graphic and messaging:

    sephora cyber monday sale post

    sephora cyber monday sale campaign

    Marsello’s campaign calendar makes it easy to achieve coordinated campaigns like Sephora’s. Social media, SMS, and email can be planned within a single dashboard to streamline your social planning and ensure consistency across channels.

    7. Optimize your BFCM social media accounts for sales by leveraging built-in social selling features


    Social media is no longer simply a marketing channel designed to direct shoppers to where the action takes place. Thanks to the birth of social commerce, many platforms now boast a range of tools that enable users to purchase products directly within the app.

    Social commerce has a range of benefits for both shoppers and brands during BFCM. If prospective customers see a great holiday gift option, they’re going to want to move fast. By shopping directly within an app, consumers only have to tap the product tag to be taken directly to the product page and checkout. Redirecting shoppers to your ecommerce website, where they’ll need to find the product themselves and place it in their cart, takes extra time and effort and may result in them abandoning the purchase.

    In addition to speeding up the checkout process, social selling makes your product catalog easy and seamless to navigate. For example, Walmart has created a range of collections in its Instagram store to address different shopper needs:.

    walmart instagram store collections

    Collections have a ton of applications for BFCM weekend. Consider catalogs such as “‘Top holiday picks for under $30”’ or “‘red-hot Black Friday deals” to optimize your sales strategy and drive consumers toward high-value merchandise.

    💡 Pro-tip: Tag products and collections in your social posts in Marsello to see potential generated sales.

     

    Final words


    Black Friday and Cyber Monday are among one the most important holiday shopping weekends on the calendar, and brands need to begin their social media planning early to maximize the promotional opportunities available. By following the social media planning tips above and utilizing Marsello’s social media tools, you’ll be well-placed to make your BFCM 2022 the best yet.

     

        

    Marsello: All your Black Friday marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts
    • Track the direct impact of all your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                           

    Top 8 Marketing Hacks For Black Friday/Cyber Monday Campaigns

    ClockIcon  READ
    Here are the Top 8 Black Friday & Cyber Monday marketing strategies that big-box retailers use — and don’t want you to know.

    BFCM marketing hacks big-box retailers don’t want you to know 👇

    Black Friday is creeping up fast. But while we’re still a decent way out, here are 8 of the best marketing tips you should be considering in your campaign planning.

    These strategies are used by some of the world’s biggest and most successful retailers; however, they’re all actually incredibly simple. Some of these tactics can even wait until the last minute (if you’re “deadline driven” like I am!) and they’ll still be high impact.

     


     


    Quick Links:



     


    Run pre-Black Friday sales


    Black Friday is BIG. It has global awareness, with merchants participating in countries in and outside of Canada and the US (even those that don’t recognize Thanksgiving). Needless to say, it’s on everyone’s minds for months in the lead up.

    So—why not run sales before the actual day? Savvy retailers are using this strategy to capitalize on the hype without shouting in the crowd at peak time.

    For example, Rubber Monkey, a technology retailer, runs a VIP Black Friday “Countdown Campaign” with several pre-Black Friday sales ahead of the big date.

    Blog-Graphics-BCFM-Rubber-Monkey-3-waves

    Rubber Monkey’s lead-up campaign emails included dates for not one, not two but THREE separate Black Friday sale dates.

    Alternatively, in lieu of running a multi-stage sale, simply send Black Friday / Cyber Monday previews. Tease your database, give them a sneak peek of what’s around the corner, and build hype.

    You can also include a Google Calendar or Outlook Calendar invite, so your subscribers have your sale top of mind and receive automated reminders directly from their calendar app.

     

    Segment your database for personalized deals


    A blast to all customers is not always an effective marketing strategy. Instead, segment your database by type of products purchased. For example, if you’re a technology retailer, you could create segments for “Photographers”—people who most frequently buy photography equipment.

    Send targeted Black Friday or Cyber Monday campaign emails and SMS messages to those segments, adding only products from their preferred category. Of course, you can add a “See All Deals” call-to-action below your product blocks to pull in more general interest to the broader sale categories.

    For higher impact, start strong with a personalized subject line:
    “Alice, get 60% off everything photography! 🤑📸”

    cyber-monday-technology-campaign

    I love how this Cyber Monday email jumps straight into product collections from the category I’m most interested in: photography.

     

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial



    Add urgency with a countdown timer


    Ah, the old FOMO trick. Let your subscribers know when your sales start, so they don’t miss a deal. Using a dynamic, live countdown timer in your emails will capture visual interest, and drive urgent action.

    black-friday-email-countdown

    Drag-and-drop the countdown timer into your campaigns with Marsello’s email builder. You can customize your timer to match your brand and campaign specs. I also love how this email uses a ‘Wishlist’ call-to-action—getting subscribers engaged with the sale in advance.

    Leverage the 98% deliverability of SMS


    Did you know…

    • 75% of consumers want to receive text messages with special offers
    • 90% of SMS messages opened within three minutes of being received

    Scott Home Delivery uses SMS for their Black Friday campaigns, with incredible results. Some of their campaigns see up to a 26% click rate—much higher than the average email click rate (around 3%).

    example-of-a-black-friday-sms-campaign

    When used in the right context, SMS remains one of the most powerful marketing tactics on the block. The key? It’s really not rocket science: it all comes down to following the tried-and-true recipe for success:

    • There’s one clear offer (50% off)
    • Urgency (Only a few days left!)
    • A CTA and link to drive conversions
    • And there are instructions for how to opt out (a necessary inclusion)

    Pro-tip: Get even more personalized and use merge tags in your SMS campaigns—include loyalty points balance, first name and more.

    Send product recommendations with a discount code


    You don’t have to discount specific products, but you could offer a discount code. That way, you can send an email with product recommendations to your customer database, and offer a discount code so they can go and spend it on the products you know they’ll love. 

    Marsello’s product recommendation algorithm uses the same model as Amazon. We use customer purchase data to determine which products they’re most likely to be interested in buying next.

    You can drag-and-drop this pre-built block into any of your Black Friday campaign emails. Beyond that, we recommend using this feature in all kinds of email campaigns!

    drag_drop_recommend_products

    Here, we show how you can drop the block into an automated Happy Birthday email using Marsello’s super easy email campaign builder.

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial

     

    Run VIP offers to your existing customers


    Send exclusive Black Friday deals and offers to your existing customers. Rubber Monkey sent customers an extra $10 voucher to use over and above their Black Friday purchases.

    Black-Friday-Cyber-Monday-Rubber-Monkey-VIP-voucher

    Rubber Monkey’s additional VIP Black Friday offer to their email subscribers.

    Set up automated Abandoned Cart reminders


    Don’t let those Black Friday deals sit idly in customer carts. Use marketing automation to set up automatic abandoned cart reminders. Use triggers to set up a delay—around one hour is usually about right for a one-day sale, but you can test what works best with your customer database.

    automated-abandoned-cart-reminders-black-friday-cyber-monday

    Take a look at Ozzie Collectables’ Abandoned Cart campaign, for example. This series of three emails has an overall conversion rate of 28%. In fact, automated email flows alone are generating 38% of their total revenue.

    Ozzie-Collectables-Recover-My-Cart-Email-Automation-Flow-1

    Marsello has a collection of pre-built email templates you can add to your Abandoned Cart flows. You can even tweak your flows in the days around Black Friday / Cyber Monday to include more relevant, urgent messages.

     

    All your Black Friday marketing. In one place.
    Manage all your Black Friday and Cyber Monday campaigns in Marsello. Schedule social posts, emails, SMS campaigns and more. Then track the impact of your marketing on sales.

    Start free trial

     

    Last but not least, build your customer database!


    Think bigger than Black Friday. Collect customer details over these heavy traffic periods to build your list of re-marketable customers.

    According to the Pareto principle, around 80% of a business’s profits come from just 20% of its customers. That means regular customers, who buy from you again and again, are worth A LOT to your business. And they’re cheaper to market to as well.

    The other 80% of your customers only make up the remaining 20% of your profits. These customers include your one-time shoppers, infrequent visitors, and any other more casual consumers.

    It’s more expensive to acquire new customers to retain them, so make the most of your campaign spend and continue selling to Black Friday participants long after November has been and gone.

    Read next: Social media planning for BFCM - 7 Best Practices to Implement

        

    Marsello: All your Black Friday marketing, in one place.

    • Send email and SMS campaigns to customers
    • Create set-and-forget marketing automations
    • Schedule social posts and track sales
    • Track the direct impact of all your marketing on revenue
    • Build a customer database

    Start free trial

                                                                                                                         

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