This episode provides a tactical breakdown of how DTC brands can strategically approach Black Friday and Cyber Monday. It emphasizes the importance of defining clear goals—either new customer acquisition or profit maximization—and tailoring discount and promotional strategies accordingly to navigate the Q4 sales rush effectively. For ecommerce operators, this episode offers a robust framework for planning, executing, and optimizing their BFCM campaigns beyond just steep discounts.
Key takeaways
Prioritize customer acquisition goals (new customers vs. existing customer profit) to dictate your BFCM strategy; don't try to achieve both simultaneously with the same offers.
For new customer acquisition, offer significant discounts (30%+), aggressive limited-time offers, or BOGOs to cut through the noise, focusing on a hero product that best represents your brand and has low return rates.
For profit maximization with existing customers, use bundles to increase average order value (AOV) and bake in discounts without solely relying on percentage-off deals.
Start BFCM promotions earlier (e.g., "Black November" or 10+ days out) by targeting VIPs and email subscribers first, then broaden the reach to capture gifting budgets before they are spent elsewhere.
Optimize paid ad campaigns for BFCM by using single, broad-appeal carousel ads with multiple offers that can run longer, allowing the algorithm to exit learning mode, and direct traffic to a single, rotating landing page to simplify management and avoid "passing out" from complexity.
When selecting products for new customer acquisition, prioritize items with low return rates and high customer satisfaction that truly represent your brand's essence. Think 'gateway' products that could lead to future purchases, like Allbirds' runners or Bombas' socks.
To protect margins while offering deals, consider bundling lower-margin products with higher-margin complementary items (e.g., fashion with jewelry) or focus on adding value through bundles and gifts-with-purchase rather than just steep discounts.
Plan for the Q1 "hangover" during BFCM strategy development by considering how to sustain growth and demand when CPMs are lower and competition is less fierce after the holiday rush. If competing in the BFCM "knife fight" isn't viable, consider holding back for Q1. Also, be mindful that CPMs increase and profit margins decrease during BFCM due to higher ad costs and discounting.
For gift-focused campaigns, create segmented landing pages (e.g., "Gifts Under $50") to help customers find products at their desired price point and compete effectively with other gift options.
Consider offering bundles that encourage "gifting yourself" (e.g., buy one for a friend, get one for yourself) as people are more price-insensitive in Q4, but aim to increase AOV through these bundles rather than just taking a hit on margins. In cases where deep discounts are not feasible, focus on adding value instead of taking away from margins by including complementary products or creating compelling bundles. A bundle around products that have strong margins will allow you to maintain profitability.
Utilize products with 'virality' or a 'special sauce' (like Bombas' charitable giving) for new customer acquisition during BFCM to encourage word-of-mouth and customer retention.
If you can't afford a 30% discount, focus on creating unique bundles, such as "product X, get product Y," which can appear as a better discount while maintaining profitability. Ensure all products in bundles and promotions have strong margins overall. Consider that some brands opt out of the BFCM "knife fight" and instead focus on Q1 when CPMs are lower to create demand more effectively.
When creating offers for new customer acquisition, choose products that have been battle-tested with low return rates and high satisfaction. Avoid products with sizing issues or other potential pain points that could lead to post-purchase dissatisfaction.
For fashion brands, if you sell pants, be extremely cautious with promotions that target new customer acquisition due to the high likelihood of sizing issues and returns. Instead, focus on hero products with fewer size-related complications.
In this episode, Jim joins the ECWID team to dive into key tactics and approaches that fuel e-commerce growth, helping brands make the most of Black Friday and Cyber Monday sales events.TOPICS DISCUSSED IN TODAY’S EPISODE GrowthHit story and new businesses.Tactics: Black Friday and cyber MondayNew customer acquisition or profitActivation offersWhen to startCarousel adHow to win giftingBundlingEmails and pattern interruptsOffer led growthInfluencer campaignsResources: Jim Huffman websiteJim's TwitterGrowthHitThe Growth Marketer's Playbook Additional episodes you might enjoy:Startup Ideas by Paul Graham (#45)Nathan Barry: How to Bootstrap a Company to $30M in a Crowded Market (#41)How I Met My Biz Partner and Less Learned Hitting $2M ARR (#44)Ryan Hamilton on his Netflix special, touring with Jerry Seinfeld, & how to write a joke (#10)How We're Validating Startup Ideas (#51)</
What does this episode say about paid acquisition?
Prioritize customer acquisition goals (new customers vs. existing customer profit) to dictate your BFCM strategy; don't try to achieve both simultaneously with the same offers.
What does this episode say about dtc strategy?
For new customer acquisition, offer significant discounts (30%+), aggressive limited-time offers, or BOGOs to cut through the noise, focusing on a hero product that best represents your brand and has low return rates.
What does this episode say about conversion & cro?
For profit maximization with existing customers, use bundles to increase average order value (AOV) and bake in discounts without solely relying on percentage-off deals.
What does this episode say about customer retention?
Start BFCM promotions earlier (e.g., "Black November" or 10+ days out) by targeting VIPs and email subscribers first, then broaden the reach to capture gifting budgets before they are spent elsewhere.
What does this episode say about paid acquisition?
Optimize paid ad campaigns for BFCM by using single, broad-appeal carousel ads with multiple offers that can run longer, allowing the algorithm to exit learning mode, and direct traffic to a single, rotating landing page to simplify management and avoid "passing out" from complexity.
