Optimize Your BFCM Pricing: Expert Tips for Boosting Sales
As every year Black Friday and Cyber Monday approaches, retailers brainstorm ideas on how to capture the attention of the shoppers and buyers that seek attractive offers. While it's all about promotional pricing with BFCM, there is more of an advanced need toward pricing so as to keep a perfect balance between customer acquisition and profit.
Discounts alone aren’t enough. To truly succeed, you need a smart pricing strategy that not only attracts customers but also maintains profitability. In this guide, we’ll explore key strategies, real-world examples, and how you can implement them to maximize your BFCM success.
1. Understand Consumer Behavior and Expectations
Before diving into specific pricing strategies, it’s crucial to understand the psychology of consumers during BFCM. Think back to your own experience: you’re up late, scanning multiple tabs for the best deals, adding items to your cart, and hoping the checkout process is smooth before the sale ends. You expect deep discounts, but you also want everything to be quick and easy—any hiccup and you’re off to the next website.
This behavior is common. In 2022, U.S. consumers spent a record $9.12 billion on Black Friday alone, according to Adobe Analytics. Much of that spending was driven by discounts, but convenience played a huge role in sealing the deal.
Key Takeaway:
Shoppers are looking for deals, but they are also keen to complete their holiday shopping quickly and conveniently. Balancing price with value and convenience is the key to attracting and converting customers. However, it’s equally important to know where to price your products as it is how to price them. Identifying the optimal price point for each platform—whether it’s your website, third-party marketplaces, or in-store promotions—is crucial. Adjust your pricing strategies for each platform based on competition, margins, and audience expectations.
How to Implement:
Conduct pre-sale surveys to understand what your customers are expecting from your BFCM offers. This can help you shape your discounts and promotions around their desires.
Use tools like Google Analytics and Hotjar to track user behavior and see where your customers are dropping off in the purchase journey.
Monitor competitor pricing in real-time to ensure your offers are competitive without undervaluing your products.
Consider using dynamic pricing on certain platforms while maintaining consistent pricing for high-ticket items across channels.
Create a streamlined checkout process to ensure the user experience is as seamless as possible, reducing cart abandonment.
2. When to Start: Timing and Cadence of the Lead-Up
The timing of your BFCM promotions is crucial. Just like you, as a consumer, begin researching holiday purchases well before Black Friday, your customers are doing the same—planning and comparing deals early on. Launching your campaigns ahead of the rush gives you an advantage. A well-timed cadence of pre-sale teasers and promotions keeps your brand visible and top-of-mind as shoppers finalize their buying decisions.
Example: Amazon’s Early Access Sales
Amazon starts building anticipation for Black Friday weeks in advance with "Early Access" deals and a steady flow of promotions. This keeps consumers engaged and gives Amazon a head start on capturing sales before the competition heats up.
How to Implement:
Begin teasing your BFCM promotions at least 2-3 weeks in advance through emails, social media, and website banners.
Offer exclusive early access to loyal customers or subscribers to build momentum.
Gradually increase the frequency of your emails and social media posts as Black Friday approaches, focusing on specific products or limited-time offers.
During the final week leading up to BFCM, ramp up your communications with daily (or more frequent) emails, SMS messages, and targeted ads.
Best Practices:
Use countdown timers or teaser campaigns to create excitement about upcoming deals.
Consider "soft launching" your sale with early-bird deals for your best customers.
Avoid overwhelming your audience with repetitive messaging—keep each communication fresh by focusing on different products, offers, or deal types.
Ensure your website is optimized to handle increased traffic from early promotions.
3. Tiered Discounts: Drive Larger Purchases
What makes you buy more? Is it the promise of saving even more as you add items to your cart? Tiered discounts work exactly that way. You’ve probably seen offers like "Spend $50, get 10% off" or "Spend $100, get 20% off," and suddenly, you're tempted to add just one more item to hit that next discount level. It feels like a win-win—you’re getting more value for your money while the brand increases its average order value (AOV).
By encouraging higher spending through bigger discounts, this strategy plays on the desire to maximize savings while subtly boosting sales.
Example: Target’s Tiered Discounts
In 2022, Target implemented tiered discounts to encourage shoppers to add more to their carts. By rewarding customers with higher discounts as they spent more, Target saw an increase in both sales and AOV.
How to Implement:
Identify key price thresholds where you want to encourage spending.
Promote the value of saving more by spending more in your marketing campaigns.
Ensure the savings are attractive but don’t eat into your margins too heavily.
4. Dynamic Pricing: Adjust in Real-Time
Have you ever noticed how prices seem to change right in front of your eyes during big sales events? That’s dynamic pricing at work. When demand spikes or stock starts running low, prices adjust in real-time to reflect those shifts. This strategy adapts based on factors like inventory levels or competitor pricing, making it perfect for BFCM when competition is fierce and consumer interest can change in an instant.
It helps you stay competitive while ensuring you capture sales without sacrificing margins.
Example: Amazon’s Lightning Deals
Amazon’s famous Lightning Deals are a prime example of dynamic pricing in action. During BFCM, Amazon offers time-limited discounts that fluctuate based on inventory and demand. This creates urgency and entices consumers to buy quickly.
How to Implement:
Use dynamic pricing tools like Prisync or Dynamic Yield to automate price adjustments.
Monitor competitor pricing and adjust your discounts in real-time to remain competitive.
Pair dynamic pricing with countdown timers to create urgency.
5. Offer Bundles to Increase Perceived Value
Bundling products together is an effective way to boost perceived value while offering a subtle discount on multiple items. By grouping complementary products, you encourage customers to buy more without needing to heavily discount each individual item. It feels like they’re getting a better deal, and at the same time, you’re increasing the total value of each purchase, creating a win-win scenario for both you and your customers.
Example: Apple’s Gift Card Bundles
During BFCM, Apple doesn’t traditionally offer direct discounts on high-ticket items like iPhones. Instead, they provide a gift card with the purchase of select products. This tactic gives customers a sense of added value, encouraging them to buy, while protecting Apple’s premium pricing.
How to Implement:
Bundle complementary products (e.g., tech accessories with electronics, or skincare kits).
Offer gift cards with large purchases to encourage future sales.
Promote bundles as exclusive, limited-time deals for BFCM to drive urgency.
6. Scarcity and Urgency: Leverage Limited-Time Offers
Think about the last time you saw a countdown timer on a product page or a flash sale that promised "only a few hours left." Your heart probably raced a little, and suddenly, buying that item felt urgent. That’s the power of a limited-time offer. During BFCM, creating this sense of urgency is key to driving sales. When customers feel like they might miss out on a great deal, they’re more likely to make quick decisions and complete their purchase on the spot.
Example: ASOS’ Countdown Timers
ASOS effectively uses countdown timers on product pages and emails during BFCM. These timers create a psychological urgency, prompting customers to complete their purchases before the deal expires.
How to Implement:
Use countdown timers on your product pages and in your marketing emails.
Offer flash sales or hourly deals to keep customers engaged throughout the sale period.
Highlight limited stock to drive scarcity and encourage immediate action.
7. Loyalty Programs: Reward Your Best Customers
Are you part of a loyalty program that gives you early access to special deals or exclusive discounts? Think about how that makes you feel—valued, like an insider with access to something others don’t get. Loyalty programs do exactly that for businesses. By offering your VIP customers early access to BFCM deals or special discounts, you’re not just rewarding them for their loyalty—you’re building a stronger relationship. This kind of recognition encourages repeat purchases, increases retention, and drives sales, especially during high-stakes times like BFCM.
Example: Nordstrom’s Early Access for Loyalty Members
Nordstrom offers their most loyal customers early access to BFCM deals. This not only rewards loyal customers but also ensures they get first dibs on sale items, increasing conversion rates among VIP shoppers.
How to Implement:
Create an exclusive early access event for your loyalty members.
Offer higher discounts or special offers to your VIPs to make them feel valued.
Promote loyalty program sign-ups before BFCM to build a customer base ready to take advantage of your deals.
8. Free Shipping: A Must-Have Incentive
You’ve probably experienced the frustration of finding great deals, only to get to checkout and see unexpected shipping costs that make you hesitate. It’s a common reason people abandon their carts, particularly during BFCM when every dollar counts. That’s why offering free shipping can be such a game-changer. It eliminates a major barrier to completing the purchase, helping to reduce cart abandonment and increase conversions by giving customers one less reason to walk away from their order.
Example: Zappos’ Free Expedited Shipping
Zappos is known for its free shipping policy, but during BFCM, they offer free expedited shipping to encourage faster purchases. This is especially appealing to last-minute shoppers.
How to Implement:
Offer free shipping on all orders or for orders over a specific amount.
Consider offering free expedited shipping for BFCM as an added incentive.
Clearly communicate the free shipping offer in your marketing emails and on your website.
9. Personalization: Tailor Your Offers
Have you ever received a sale email or SMS that feels like it was made just for you? That’s personalization in action, and during BFCM, it’s a key to boosting conversions. Whether it’s a targeted email, SMS, or ad, tailoring offers to each channel makes customers more likely to engage and buy. The more relevant the message, the higher the chances of converting.
Email Personalization: Emails can be tailored based on customer preferences, purchase history, and behavior. Personalized emails with product recommendations, special offers, or abandoned cart reminders can drive conversions. Example: A customer who previously purchased skincare products might receive an email offering discounts on complementary products like moisturizers or serums.
SMS Personalization: SMS is ideal for more time-sensitive offers. Personalized SMS messages can remind customers of limited-time deals, flash sales, or cart abandonment with a strong call-to-action. These messages need to be short, personalized, and highly relevant to the recipient’s preferences. Example: "Hey Jane, don’t miss out! Your favorite shoes are still available with 20% off. Act now!"
Ad Personalization: Personalization in ads often relies on retargeting based on browsing behavior or past interactions with your website. Displaying personalized ads to customers who have viewed specific products but haven’t purchased can bring them back to complete their order. Example: A Facebook ad showing the exact item a customer was browsing, paired with a limited-time discount, can drive them tocomplete their purchase.
How to Implement:
Use tools like Klaviyo or Segment to segment your audience and send personalized emails.
Automate SMS campaigns with tools like Attentive or Postscript to target specific customer segments with relevant offers.
Leverage retargeting ad platforms like Facebook Ads or Google Ads to serve personalized ads based on user behavior.
10. A/B Testing: Optimize Your Strategy
A/B testing lets you try out different pricing, discounts, and messaging to see what your audience responds to best. During BFCM, this is invaluable for fine-tuning your strategy in real-time. By testing different approaches, you can quickly adapt and optimize your offers to maximize conversions.
Example: Best Buy’s A/B Testing for Promotions
Best Buy regularly tests different promotional strategies to see what works best for their audience. By testing messaging, discount levels, and product placement, they can adjust their strategy to maximize sales.
How to Implement:
Use tools like Google Optimize or Optimizely to A/B test your pricing strategy.
Test different discount types (percentage vs. dollar amount) and promotional messages.
Analyze the data in real-time and adjust your strategy as needed.
11. Post-BFCM Offers: Retain New Customers
After BFCM, it’s easy to forget about the new customers who filled their carts during the frenzy. But think about how great it feels when, after snagging a deal, you get a follow-up offer—maybe a discount on your next purchase or a special thank-you. That extra touch makes you feel valued, and suddenly, you’re back for more. Businesses that keep this momentum going with post-sale offers can turn one-time shoppers into loyal customers, building long-term relationships beyond the holiday rush.
Example: Kohl’s Bounce-Back Offers
Kohl’s frequently offers "bounce-back" promotions where customers who shop during BFCM receive a discount for their next purchase. This strategy not only drives customer retention but also increases post-holiday sales by encouraging repeat purchases.
How to Implement:
Offer a discount or gift card for a future purchase to BFCM customers.
Send follow-up emails with personalized product recommendations based on their BFCM purchases.
Use post-BFCM offers to turn one-time buyers into repeat customers.
12. Bonus: Reward Your Best Customers and Encourage Social Sharing
Loyal customers are your best advocates, especially during BFCM. Offering them special rewards and incentives not only fosters loyalty but can also turn them into brand ambassadors. Encouraging them to amplify your deals by sharing them on social media can help extend your reach and drive more traffic to your store.
Example: Glossier’s Social Sharing Campaign
Your loyal customers, just like you, love being rewarded for their commitment. Offering them special perks during BFCM not only strengthens their loyalty but also turns them into your biggest advocates. When they share your deals on social media, tagging friends and showing off their finds, they’re helping to spread the word, driving more traffic to your store, and boosting your reach far beyond your usual audience.
How to Implement:
Offer your VIP customers exclusive discounts or early access to BFCM deals.
Encourage social sharing by offering an additional reward for those who post about their purchase on social media with your branded hashtag.
Track social media engagement and reward the most active customers with additional perks like discounts or free products.
Best Practices:
Make it easy for customers to share by providing pre-made social posts or share buttons on your product pages and order confirmation emails.
Run a social media contest where customers can win a prize for sharing their BFCM purchases.
Promote user-generated content (UGC) on your brand's social media channels to show appreciation and encourage others to do the same.
Your BFCM pricing strategy is the backbone of your overall success during the holiday shopping season. By understanding consumer behavior, leveraging urgency, offering personalized discounts, and implementing smart pricing strategies like bundling, dynamic pricing, and tiered discounts, you can stand out from the competition and maximize your sales.
Starting your promotions early and rewarding loyal customers with exclusive offers or social sharing incentives can amplify your brand’s reach and engagement. Plan your lead-up strategy carefully, and don’t forget to retain new customers with post-BFCM offers. By following these strategies, you’ll set a strong foundation for a successful holiday season.