Redefining BFCM as a long-term strategy

The speed at which Black Friday Cyber Monday (BFCM) has evolved is remarkable – even for eCommerce. Once the US-born bricks-and-mortar promotion hit Australian shores, it was almost instantly an inescapable discount frenzy. Now, as the event cements its place on the retail calendar, brands are thinking critically: redefining the sales period as a strategic growth opportunity. 

At The Working Party, we’ve worked with our brand partners to identify brand-aligned BFCM strategies that deepen customer relationships and build long-term value. These conversations, especially those with Alpha-H and LEO LIN, revealed a perspective we felt worth sharing with the eCommerce community.

In partnership with Klaviyo and Shopify, we hosted a Rethinking BFCM event at Sydney’s Chin Chin. For those unable to make it or keen to revisit the discussion, here are the key insights:

Lesson 1: Focus on profitability over revenue

BFCM’s explosive growth led many brands to pursue quick wins, often at the expense of brand value, unexpected logistical challenges, surging returns or worse of all, the expense of profitability. To tackle, factor pre, during and post BFCM trade conditions as considered part of your holistic annual strategy. 

How the experts do it: 

1. Profitability and retail partnerships: Tina Randello, Chief Commercial Officer at Alpha-H explained that after the records-breaking sales period of 2020 and 2021 during COVID, the brand’s attempts to build year-on-year growth didn’t deliver in 2022. They recalibrated their approach: reducing the frequency and depth of promotions to ensure their direct-to-consumer channel was complementing their retail channels. For the BFCM period, they create individualised approachs for Alpha-H.com and participating retail partners (such as Adore Beauty, Cult Beauty, individual salons and clinics) that considers customer preferences in each retail touch point and overarching focus of profitable growth.
   
   
2. Measure BFCM as an 8-week period: Laura Good, Head of Marketing at LEO LIN views the entire November to December period within a cohesive 8-week BFCM strategy rather than a standalone event. This allows them to manage inventory and create strategic, compelling ‘full-price moments’ to ensure December remains profitable. To start November strong, the team of LEO LIN will capitalise on low-cost paid media acquisition during September, building the funnel for a powerful BFCM period.
   
   
3. Calculate the cost of missed revenue: Cal Wilson, CEO and Founder of The Working Party, explained how JB Hi-Fi’s decision to migrate to Shopify Plus in 2019 was an investment in technical stability and user experience during crucial high-traffic periods. This removed previous limitations and maintained conversion rates: demonstrating an additional lever brands can pull, even those with a billion-dollar discount strategy, to capture even more sales during peak period. 

Lesson 2: Introduce creative and value-driven discount strategies

Participating in BFCM is not binary. Brands can strike a balance between a blanket sitewide discount and opting-out entirely, maintaining brand value while driving excitement and sales. Achieve this by using creative discounting tactics and value-driven offers that understand and serve your customer.

How the experts do it: 

• The buy-to-unlock discount: Cal highlighted the effectiveness of gated sales strategies, in which customers gain access to discounts by completing specific actions, such as SMS opt-ins, completing surveys or reaching loyalty program milestones. In some cases, brands require customers to purchase a qualifying item to unlock access to a premium offer. This creates a sense of exclusivity, enriches customer data and ensures discounts serve a strategic purpose.
  

• Complementary partnerships and GWPs: Alpha-H engages brand partnerships as an opportunity to make an excellent first impression with a generous gift with purchase. Collaborating with like-brands who share similar values, customer profiles and a complementary product offering, Alpha-H will offer bundles, value-adds and full-size products targeting customers across both brands. This broadens brand visibility while also creating an organic opportunity to reward existing customers with high-value gifts and experiences.
  

• Perfectly-timed product drops: LEO LIN released their Bridesmaids collection in August, generating buzz, a new customer segment, and an organic opportunity for non-discounted related acquisition in the lead up to BFCM. This specific collection offered another benefit too – a natural affinity to multi-item purchases, making it an ideal candidate for a special full-price bundling incentive during BFCM. In December, the brand will release the Lunar New Year collection, using another product-driven strategy to reduce potential post-BFCM sales decline. 

Lesson 3: Enhance BFCM performance through thoughtful experiences

The sales period is more than just a time to increase sales – it’s an opportunity to showcase your understanding of your customers’ wants and needs. This means moving beyond transactional interactions and mindfully creating engaging, memorable and personalised shopping experiences.

How the experts do it:

1. Keep customers in-the-know: Kyle Rifikin, Account Executive at Klaviyo, highlighted the value of clear communication with Jones Road Beauty’s story. Typically, the brand’s limited-edition BFCM products would quickly sell out, though little notice left loyal customers feeling neglected and revenue on the table. By introducing a Klaviyo sign-up form, integrating targeted messaging into evergreen flows and adjusting messages for different segments, the brand sold more in the first 30 minutes of Black Friday 2023, than the entire BFCM weekend in the previous year.
   
   
2. Deliver in-store expertise online: Alpha-H elevates their digital shopping journey and engages customers by offering virtual consultations with dermal therapists, replicating the personalised and expert service typically found in-store. This high-touch approach adds value and builds trust, reinforcing Alpha-H's position as not just a skincare authority, but a pillar of support to customers, even within a virtual environment.
   
   
3. Show love to loyalty members: Laura emphasised the importance of rewarding your loyal customers during the BFCM period, showcasing LEO LIN’s successful House of Leo Program and one loyal customer who spent almost $30,000 this year with the retailer. Loyalty members receive benefits such as early sale access, showroom shopping days, personal styling appointments, and exclusive lookbooks. They also receive gifts for Christmas and Lunar New Year. The approach is proven – House of Leo members spend four times more than general customers annually.
   

Lesson 4: Consider retention a core aspect of your BFCM approach

Retention is where the real value of BFCM lies. Brands that can successfully convert new buyers into repeat customers maximise long-term impact. Knowing the journey your customer takes from first purchase to loyalty, supported by a suite of well-executed technology solutions are key to this journey.

What the experts do:

• Seamless loyalty integration: Tina discussed how Alpha-H’s loyalty program, the brand’s main retention mechanic, links with Klaviyo and Shopify to drive cross-selling by delivering personalised offers. For example, Alpha-H’s Klaviyo flows enable loyalty points to be directly linked and appear in the custom mini cart, encouraging customers to use their points for additional purchases. This implementation has increased average order value while cultivating positive on-site experiences.
  
  
• Determine high-value customers from the outset: Kyle explained how Klaviyo's predictive analytics tool helps retailers to understand the potential lifetime value (CLV) of customers acquired during BFCM. Using historical data, machine learning and statistical algorithms, the platform can identify high-value prospects early allowing retailers to create tailored marketing campaigns to win hearts and minds of soon-to-be loyalists from their very first purchase.
  
  
• Reward behaviours beyond spend: Cal explained that many brands The Working Party works with are seeking more diverse, custom approaches to loyalty, not offered by many of the major platforms. Instead of a narrow focus on spend, he advocates for recognising engagement like purchase frequency, reviews, email/SMS opt-ins, and order size. These could include perks such as early access to collections, exclusive styles, in-person activations, or shipping offers. By rewarding a range of behaviours with creative solutions, brands create more dynamic loyalty programs that truly resonate with their best customers.

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