As the dust settles on Black Friday and Cyber Monday (BFCM), brands face a golden opportunity: the chance to gain key insights from a treasure trove of sales and customer data. This data can act as a roadmap for planning and optimizing strategies for 2024—but you need to run the right analyses to get the insights you need.
In this guide, we dive into how brands can analyze their BFCM data to understand their customers, drive product and inventory strategy, and optimize their marketing campaigns.
How To Leverage Customer Data From The Holidays
There are many ways to slice and dice your BFCM data. Let’s explore the top seven types of analysis to provide useful insights and drive better business incomes.
1. New Customer Analysis and Segmentation
The holiday season is prime time for brands to ramp up their customer base, but the real work starts after. The key is not just acquiring new customers but understanding them.
Start by segmenting new customers based on their initial purchases. This gives you valuable insights into their preferences and buying behaviors, and allows for more targeted marketing.
You can segment and target customers based on key factors such as:
- Product affinity: Determine which items shoppers are most likely to purchase in their second purchase, and make these products the focus of your follow-up communication.
- Price sensitivity: How price sensitive are your new customers? Put “low price point” customers in their own segment and test which products or discounts they respond to best.
- Discounts: If you offered discounts during the holidays, separate customers who purchased using a discount from those who did not. It’s likely that discount shoppers will only repurchase if offered another discount.
2. Product Analysis
Which items were the stars of the holiday season? Understanding why these products succeeded – whether it was due to pricing, marketing, or simply being the perfect seasonal fit – can inform your product strategy for the coming year.
But don't stop there. Take a close look at the underperformers. Consider why certain products didn't hit the mark. Was it a pricing issue, lack of visibility, or maybe just not the right fit for the season? This is crucial for avoiding similar pitfalls in the future.
Lastly, run a product affinity analysis to figure out which products are frequently bought together. This information is gold for creating bundles and promotions that can drive higher average order value (AOV).
3. Inventory Analysis
Did you run out of inventory for any key acquisition SKUs? Effective inventory management is crucial, particularly during high-demand periods like BFCM.
A thorough analysis of your inventory data can prevent future stockouts and ensure you're not overstocked on less popular items. Identify which products ran out quickly and adjust your future stocking strategies and inventory forecasts accordingly.
If you need a hand in developing more accurate inventory forecasts, Daasity’s agency team has predictive inventory models to assist in managing inventory levels. Drop us a message to learn more.
4. Lifetime Value (LTV) Analysis
Yes, your brand acquired new customers during BFCM, but how much are they really worth long term? Lifetime Value (LTV) can help you figure out what to expect over the next 3, 6, 12, and 36 months.
To predict the potential LTV of holiday shoppers, start by examining the LTV profile of customers acquired during the same time period in previous years. In the coming months, track the LTV of your new customers and benchmark these figures against historical values.
It’s also crucial to compare the LTV of holiday shoppers with those acquired at other times. You might notice customers acquired during the holiday season exhibit a lower LTV. In that case, it might be necessary to rethink your Customer Acquisition Costs (CAC) for holiday campaigns.
5. Campaign Analysis
Understanding which promotional campaigns were most effective during BFCM can guide future strategies. This analysis should consider timing, messaging, types of products featured, and how different customer segments responded to the campaigns.
6. Channel Performance
Identifying which channels—be it email, SMS, social media, or paid advertising—drove the most sales and profit is essential. This enables you to allocate marketing budgets more efficiently and decide which channels to focus on in 2024.
7. Customer Satisfaction and Return Rates
Analyze customer feedback and reviews from holiday shoppers. This data can provide actionable insights into what customers love and what needs improvement.
Be sure to track the reasons behind product returns or exchanges. Identifying common themes, like sizing, can shed light on issues you need to fix.
Set your brand up for success in 2024
Data from the holiday season is invaluable for any brand looking to grow and succeed in the coming year. By unpacking customer preferences and purchasing behaviors, you can make smarter decisions around product, inventory, ad campaigns, and more.
For a deeper dive into your data and personalized strategy advice, consider connecting with Daasity. Reach out to us to unlock the full potential of your holiday data and set your brand up for success in 2024. We'd love to help you turn your data into insights and action.