Black Friday & Cyber Monday – Is the Juice Worth the Squeeze?

The yearly retail spectacle is nearly upon us. Retailers are rubbing their hands at the thought of more clicking, scrolling, and buying as shoppers snap up Black Friday and Cyber Monday (BFCM) deals.

These events are all about immediacy: High impact promotions which make waves and shift units. But should the retail industry be treating BFCM as an annual bonanza? Are opportunities being missed to turn one-time buyers into long-term customers?

That’s what we’ll explore here. And it’s worth exploring. Because according to research, existing customers spend 31% more than new customers and are 50% more likely to give new products a try. On that basis, it’s a nice, easy equation for many businesses – customer retention will be even more important than customer acquisition.

How does this tie back in with BFCM strategy? Let’s expand…

The real cost of customer acquisition

The numbers are pretty sobering. According to industry research, acquiring a new customer can cost up to five times more than retaining an existing one. Yet during Black Friday and Cyber Monday (BFCM), retailers pour massive resources into attracting new shoppers through aggressive pricing strategies, increased advertising spend, and a bigger operational capacity.

Let’s do the maths: A typical e-commerce business might spend £20-30 to acquire a new customer during BFCM, factoring in advertising costs, discounts, and operational overhead. If that customer makes a single £15 purchase at a 30% discount, the immediate return on investment is negative. The business needs that customer to return at least two to three times at full price just to break even on their acquisition cost.

Many retailers justify these costs by viewing BFCM as a customer acquisition channel, but data suggests around one in five Black Friday shoppers become repeat customers. This leads us to a question: Could these resources be better invested in nurturing existing customer relationships?

Contact centres under siege

Forget marketing budgets, the real strain of BFCM can be seen best in contact centres. These hubs of customer activity face unrelenting pressure during these events. Sadly, the result is often bad customer experiences that can damage long-term relationships. A typical contact centre might see call volumes spike by 300-400% during BFCM. That’s why just maintaining acceptable service levels can become a struggle.

It’s also not strange to see average handle times double as agents deal with complex promotional queries and technical issues. Even with the addition of new staff temporary staff, a drop in service standards can create a ripple effect of customer dissatisfaction. This might extend through the festive period and into the new year.

At this point, let’s pause and take stock of the problems we’ve discussed. In a nutshell, the rush to process high volumes of interactions during BFCM leads to:

• Extended wait times, frustrating both new and loyal customers
• Abbreviated problem-solving, leading to repeat contacts
• Stressed agents who can’t deliver optimal customer experiences
• Missed opportunities for meaningful customer engagement

Building bridges, not just transactions

Here comes the bit you came for. As a retailer, how can you shift your BFCM strategy from pure transaction-driving to relationship-building?

We recommend focusing on these other complimentary strategies which can push you BFCM promotions while encouraging loyalty, too:

• Exclusive early access for existing customers
• Loyalty programme integration with BFCM offers
• Post-purchase follow-up programmes
• Value-added services beyond discounts

Of course, there is always the option of shunning the price wars altogether. Take Patagonia’s approach: Rather than competing on price, the clothing brand emphasises quality, sustainability, and community. Their Worn Wear programme, which encourages customers to repair rather than replace items, has built a loyal following that transcends seasonal sales.

The trust factor

While we are on the subject of building long-term rather than targeting ‘quick hits’, here’s something to consider.

Modern consumers are very perceptive. They understand that a ‘one-day-only’ deal often isn’t as exclusive as advertised. What they value more is consistent, transparent pricing and reliable service throughout the year.

Research shows that 81% of customers say trust is a major consideration in their purchasing decisions. But because BFCM events can be one big sales push, this can actually undermine trust-building efforts due to:

• Limited-time pressure tactics
• Complicated terms and conditions
• Stock availability issues
• Inconsistent customer service experiences

Striking the right balance

It’s about finding a way. Rather than abandoning BFCM entirely, successful retailers are integrating these events into a broader customer relationship strategy. Here’s how:

• Segmented approaches – instead of one-size-fits-all discounts, offer personalised promotions based on customer history and preferences. This makes existing customers feel valued while still attracting new ones.
• Extended time windows – spreading promotions over longer periods reduces operational strain and allows for more meaningful customer interactions.
• Value-added services – complement discounts with services that enhance the customer experience, such as free shipping, extended returns, or premium support.
• Post-purchase engagement – develop specific strategies to convert BFCM shoppers into loyal customers through targeted follow-up programs and personalised communications.

Rethink where the value lies

So if you do take a moment for some commercial introspection after reading this, consider the following: Are we building sustainable customer relationships, or just chasing short-term sales targets?

As always – things are rarely black and white. The answer likely lies in finding a middle ground that honours the traditional retail calendar while investing in long-term customer loyalty.

To hit the sweet spot, incorporate success metrics such as:

• Customer lifetime value
• Repeat purchase rates
• Net Promoter Scores
• Customer satisfaction levels
• Social sentiment

Using BFCM as a platform for something which lasts

Black Friday and Cyber Monday aren’t going anywhere soon. But their role in retail strategy is evolving.

Smart businesses are moving beyond the traditional discount-driven approach to create more sustainable customer relationships. The real winners will be those who use these events as a platform for building lasting connections rather than just driving one-time transactions.

The juice can indeed be worth the squeeze—but only if we’re squeezing for long-term value, not just short-term gains. As we prepare for another holiday shopping season, we encourage a focus on creating experiences that customers will remember long after the discounts have expired.

Solutions from Cirrus drive your contact centre to keep delivering, even during the BFCM deluge. Read more about our contact centre success stories or speak to the team for more information on 0333 103 3333