Black Friday has gone. Next-up? Christmas.
The problem:
Q4 is by far the most expensive quarter of the year to get new customers. Everyone fights for the end-of-year share-of-wallet. We tend to forget this. Allocating the budget is a challenge next to keeping a clean catalog.
The solutions pt. #1 - The planning:
Try to get new customers on board at the beginning of the year. The months of February to October to be more precise. After that, go all in on retention during the last months of the year.
To do this, you'd need a product catalog that is, ideally, seasonal. To make products look appealing during these first months. You can cross-sell or try to awaken old customers at the end of the year.
Foresee during those last 2 months 20% of your budget for branding. You got to keep reaching new eyeballs at all times! 80% of the budget goes to conversion with a campaign containing revival products.
Split into 20% new customers vs 60% existing customers, as a benchmark to start. Once the campaign is running, it will balance itself out.
The solution pt #2 - The catalog
As mentioned before, a clean catalog is everything! The only thing that's often missing? Catalogs aren't always built for customer convenience. This means that every product should have an up-selling alternative. A cross-selling add-on. And a revival product.
Definition: A revival product is a product to help awake sleeping customers. Most of the time, revival products are added on top of a one-time and limited-in-time offer to add more value. It’s often a product or service that is low in price and most of the time has a lower margin. Its functionality and costs outweigh the reactivation!
Fictive example Media Markt:
Product: €600 Smart Samsung TV
Alternative: €800 Smart Samsung TV
Cross-sell: €200 Blue-ray player
Revival #1: €50 free 12 months insurance (service)
Revival #2: €25 free universal remote controller
See how convenient this would be for the customer?
There are at least 4 bundles available for new customers
For existing customers, the blue ray player and the revival product could be an interesting offer. Whether it's a universal remote controller that works as well with the TV and Blu-ray or the €50 free insurance.
Got them to buy? Great! Now you can go sell them blu-ray movies or concert DVDs.
Why not try the revival product strategy at the end of the year?
You can do this too. Check the fitness space. They constantly do revivals with giveaways on top of bundles and subscriptions.
ps: If you're having automation cross-selling the TV with blue-ray players active, you have forgotten all the other segments ;-)
Be careful.
Every now and then, I share some whiskey as well.
This week, I’d like to recommend The Glenlivet Single Malt 12 years.
I like its smooth and taste silk somewhat vanilla taste.
Anything you’d recommend? Reply to this e-mail.
Love to discover new whiskeys.
