What’s Better to Focus on in Q4: Retention or Acquisition?
Retention in Q4:
1. Q4 is Noisy and Expensive for Acquisition:
- With high competition, the acquisition is costly. Focus on getting new users into your CRM in September and October for more cost-effective acquisition, then market to them using internal channels like email and SMS in November and December when paid ad costs peak.
2. Build Desire Before Key Buying Periods:
- Many consumers plan purchases for Cyber Weekend and big-ticket items before payday. Use the lead-up to communicate key offers, understand their wish lists, and personalise offers so you’re at the top of your mind for Black Friday.
3. Loyalty & Repeat Purchases:
- Existing customers are more likely to convert during the holiday season. Offer personalised promotions or early access to sales to encourage repeat purchases and increase AOV.
4. Cost-Effectiveness:
- Retaining customers through email, SMS, and loyalty programmes is cheaper than acquiring new ones, maximising returns during Q4.
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Acquisition in Q4:
1. Capitalise on Increased Spending:
- Consumers are in a buying mindset during the holidays. Targeted holiday campaigns can draw in new customers.
2. Start Early:
- Focus on acquisition in September and October, when ad costs are lower, and use internal channels to re-target them during the peak buying period. Don’t think sales promotion, think about how you maximise data collection - get incentives to encourage them to sign up to your CRM - use high conversion tactics like competitions.
3. Target Casual Shoppers:
- Q4 brings more casual shoppers, like gifters. Cater to them with personalised services, like gift reminders, to retain them for future purchases.
Recommended Strategy:
Prioritise retention , but grow your CRM aggressively before November with competitions or exclusive deals. Once the peak period hits, focus on understanding customer intent and personalising offers. For acquisition, be consistent with messaging , don’t change discount daily, new customers get disgruntled if they see a better deals and stops pre-planning and consider strategies like basket builders or spread payment tools to drive AOV.
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