As we approach the holiday season, DTC brand owners and marketers are gearing up for the annual Black Friday and Cyber Monday surge (some of which has already begun for many brands). But here’s the truth: much of what determines a winning Q4 is the groundwork you laid in Q2 and Q3. By now, your early planning, investments in inventory, new customer acquisition, and customer retention strategies are setting the stage for your Q4 results. So, as we look ahead and focus on building a strong start for 2025, here are a few considerations for maximizing your Q4 this BFCM.
A profitable BFCM season isn’t built in November alone; it’s driven by the customers you acquired and nurtured throughout the rest of the year. While BFCM is a prime opportunity for new customer acquisition, it’s equally important for capitalizing on the returning customers who’ve shopped with you in previous months and years.
Returning customers during BFCM can “subsidize” new customer acquisition by offsetting costs, freeing up working capital, and boosting your end-of-year cash margin. The impact of returning customers will vary depending on your product category’s customer lifetime value (LTV)—for example, brands selling mattresses versus apparel will experience different retention rates.
As you set your targets for returning customer revenue, model out your Q3 new customer cohorts, their projected LTV velocity, and expected retention rates as you head into November-December.
Now is the time to secure strong partnerships with suppliers. Negotiating early can ensure priority placement and favorable terms during the holiday rush. If your supply chain involves regions that observe Chinese New Year, proactive planning will help avoid disruptions and maintain momentum into 2025.
Q1 and Q2 don’t have to be quiet if you plan effectively. Leverage insights from BFCM to align inventory and financial planning for a strong start to the new year. Reviewing Q4’s results early helps you transition out of holiday mode and sets your brand up for steady growth in 2025.
The holiday surge means more customer inquiries. Prepare your team to deliver efficient, friendly service that builds trust. Also, coordinate with agencies, developers, and tech providers to ensure your site, apps, and integrations can handle peak traffic without disruptions.
Strengthen relationships to avoid stockouts and effectively manage production lead times. This applies not only during the holiday season but throughout the year.
Immediately after BFCM, conduct a thorough post-mortem to uncover insights for future events. Analyze what worked well and where improvements can be made. Apply these insights to your evergreen strategies for an even stronger plan next year.
Keep the momentum going by using revenue insights from BFCM to guide inventory purchases and budgeting for the following quarters. This helps sustain cash flow and maintain customer engagement beyond the holiday period.
Maximizing BFCM revenues goes beyond this single weekend. With a balanced approach to inventory, promotional strategies, and post-BFCM analysis, you’ll enter 2025 with stronger cash flow, better customer data, and clear insights on how to keep growing.
