Q5 is that magical time between Christmas and when everybody stops spending money. While much of the hype is around Black Friday, executing  Q5 properly can easily raise your daily performance by 20 to 50% every day for the next year. When done really well, it can help you easily 2x to 10x your business in 2023.
Scaling Between BFCM and Q5
Black Friday is usually a great surge of revenue for a lot of brands, and those increased sales can often last all the way until and throughout the holiday season. That added revenue is often used to handle, operating costs and collect profit. However, if we instead decide to reinvest that additional money into scaling our daily operations for growth and acquisition, or even to prioritize the acquisition of a higher quality customer, our next year can see massive improvements.
One of the most effective ways to pay for Q5 ad spend is to invest every single penny made in profit during the Black Friday/holiday season.
During Q5, we should be focusing on selling very specific types of offers that bring in higher AOV’s... and more importantly, multiple transactions that will lift our LTV across the brand.
Remember, we are not concerned with trying to make a profit off our customer's day, one of their customer journey with us, but instead, we prioritize the acquisition of profitable, customer journeys over time.Because we are trying to acquire future cash flow, and the future cash flow that we acquired previously can pay for our day-one losses on a new customer, we can use this time to massively Scale our Revenue baseline for Q1.
How To Scale Your Ecommerce Business Into 2023
Consumer behavior during Q5 tends to be far more aspirational with its average spending volume being much higher than we will see in late January or early February. This is really important when deciding how to pay for even more Q5 ads spend.
If we have a media budget for January, February, and March... and we know that at least 1/4 to 1/2 of that period of time will be far less effective for us than the Q5, then we can borrow from the future budget, to more aggressively scale during the optimal buying behavior window of Q5.
Part of being an effective CMO, and having a very effective marketing strategy, is the optimization of when you spend. Often answering the question of “When” can be far more effective than “what” or “where”, when the rest of the business is dialed in. Money spent in Q5 is almost always a better investment than money spent in the first week of February.
The 3 Best Offers for DTC Brands in Q5
Q5 is all about acquiring the highest quality customer with the best projectable, cash flow, and LTV profile for the business. This comes in the form of acquiring future transactions for these customer journeys and prioritizing, either volume of sales or a growing LTV. There are three types of offers that do this better than anything else and should be you’re number one priority in the execution of a proper Q5 strategy.
Q5 Offer #1: Buy more, Save more.
This is often the simplest type of offer to improve AOV. However, we can also use this to prove the LTV of a customer. Because Q5 is an aspirational buying period, customers are more likely to make a larger commitment to decisions than they normally would otherwise. A great example of this might be, selling a three-month supply to somebody when they might typically only buy one month at a time, and the average customer might only buy 2 1/2 months before they leave the brand. Because you sell the three months upfront, any additional purchase is likely to improve the LTV significantly, and that second purchase will be acquired more efficiently.
Q5 Offer #2: Vertically Integrated Bundles
Often brands scale on the back of a single hero offer. However, when we are able to dissect the average customer journey and offer multiple touch points in the journey in a single bundle, we can overcome objections that other customers might have that prevent them from taking the first purchase in the first place. Offering vertically integrated bundles, also allows the end consumer to create a psychological attachment to more than one type of product, which can dramaticallyreduce customer attrition. Also, just like a buy more, save more bundle, the AOV of this offer often competes with the LTV of the typical customer and these customers are more likely than a single purchase customer to buy a second time.
Q5 Offer #3: Memberships and subscriptions.
Selling quarterly or annual packages for memberships or subscriptions to a brand or service is much easier to accomplish when people are aspirational in their buying behavior. These are longer-term billing. Also, reduce customer attrition because you’re not reminding the customer that they’re getting billed every single month.
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