Diversified full-funnel partnerships are the real MVP of BFCM

As we move through retail peak, Partnerize's Lee Boulton emphasises that top-performing brands rely on more than deep discounts and expensive ad auctions for BFCM success. The optimal marketing mix includes diversified partnerships across all stages of the funnel, utilizing smart tools and tactics within channel activities, and acting on real-time performance insights for success.

The power of partnerships for 2024 retail peak success

Brands are preparing for BFCM 2024 in a retail landscape that is more competitive than ever. Early discounts, price-conscious consumers, and shifting buying patterns have made it essential for brands to refine their strategies. Adobe predicts online sales will reach $40.6bn during Cyber Week, while Partnerize forecasts that shopping will commence earlier than in previous years. In this landscape, partnerships and affiliates play a critical role in driving success, encouraging brands to be more strategic in their campaign execution to build sustainable growth in traffic and revenue.

​​Key shopping period

In the UK and Europe, the peak retail period for BFCM in 2024 is expected to mirror previous years’ trends, with intense consumer activity during the nine-day window spanning from the days leading up to the US Thanksgiving through Cyber Monday. However, there’s a shift towards earlier spending, driven by events such as Amazon’s second Prime Day which took place in early October (to mixed results), and other early sales initiatives.

A shifting market: consumers are price sensitive, but don’t wait for Cyber Monday

One of the defining trends of the upcoming BFCM season is heightened consumer price sensitivity. With inflation continuing to impact spending habits, Adobe forecasts that strong discounts – up to 30% across major categories – will entice consumers during the holiday season​. However, starting early will be critical, with consumers spreading purchases across the entire peak period. Brands that jump on early opportunities, build upper funnel attention, and maintain consistent, compelling offers through BFCM will have the upper hand.

Diversifying partnerships for success

A diverse mix of partners is essential to a successful BFCM strategy. Brands should already have optimized and diversified beyond traditional affiliate models such as cashback and discount sites, tapping into influencers, content creators, closed user groups, and fintech partners to broaden their reach.

Partnerize data highlights that content and loyalty partners were the most prominent in terms of spending during BFCM 2023, and these trends are expected to continue into 2024. Buy Now Pay Later (BNPL) partners are also predicted to grow in influence, with their share of total spending increasing from 2-4% last year to 4-6% in 2024​. A recent BankRate survey found that 11% of consumers plan to use BNPL services during the holidays.

Optimize for omni-channel shopping and mobile-first partner types

Mobile shopping is also expected to grow significantly, accounting for a larger share of online sales. This shift highlights the importance of optimising mobile experiences and creating seamless pathways for consumers, especially when working with the likes of BNPL affiliates, where shoppers typically shop mobile-first.

BFCM strategies for success include:

1. An optimized partner mix: successful brands continually evolve their partnership composition, expanding beyond traditional cashback and discount affiliates and reducing reliance on any single partner type. An effective portfolio might include content partners, creators and influencers, loyalty programs, and closed user groups. Engaging younger, tech-savvy audiences on platforms such as Twitch and Discord, and targeting communities such as students or key workers through platforms such as Unidays and BlueLightCard, allows brands to deliver exclusive offers to a wide range of consumers. Diversifying partner types can enhance reach and resilience during BFCM campaigns.
2. Exploring emerging fintech partners: fintech partners such as Klarna and Zilch can provide brands with valuable connections to Gen Z and Millennial audiences while boosting basket values by offering flexible payment options that allow consumers to spread out their purchases. Brands that embrace a varied partner portfolio can build stronger relationships with high-value audiences that might otherwise be overlooked. This strategy can create a more robust BFCM approach, positioning brands to meet diverse customer needs and preferences.
3. Leveraging real-time data insights: affiliate marketing has moved beyond a “set and forget” approach. By utilizing Partnerize’s real-time performance insights, brands are better equipped to adjust their strategies on the fly – whether by modifying commission rates or reallocating spend based on data-driven insights. This enables brands to reward high-performing partners or scale back underperforming ones, often marking the difference between an average and an exceptional BFCM season.
4. Split attribution and dynamic commissioning: strategic use of split attribution models, increased commissions for specific partner types, and incentivized exposure for content publishers ensures more accurate tracking of audience reach and engagement. Tailoring commissions to performance metrics helps brands accurately capture and reward the value of each partnership, creating a data-driven approach to BFCM success.

5. Exclusive offers and product innovation: a strong BFCM strategy often includes exclusive offers paired with product innovation to capture consumer interest during peak shopping periods. Brands are increasingly optimizing their full-funnel approach as consumers become savvier, frequently searching for codes and hunting for vouchers. Exclusive, site-specific offers that aren’t widely available to other partners can drive more direct site traffic and enhance brand visibility. These offers – such as specially curated multipacks and kits or limited-edition bundles – are crafted to engage both new and returning customers, keeping the brand top-of-mind during BFCM. 

   Additionally, offering personalized experiences, such as virtual consultations, can create a unique, value-added service that resonates with customers, with conversion rates reaching up to 50% in some cases. These competitive differentiators help brands stand out in a crowded market, attracting consumers who value both quality and personalization. By focusing on exclusive offerings and innovative experiences, brands can strengthen customer loyalty and encourage repeat purchases.

Melissa Peters, director of partnerships at Partnerize says: “With the retail and e-commerce environment becoming increasingly aggressive, we’re seeing brands starting their offers earlier and relying heavily on sitewide discounts. To combat this and maintain share of voice, brands have been ramping up editorial content and engaging with upper-funnel partners. Brands can also focus on maintaining share of voice through direct, exclusive customer offers. As we approach Black Friday, we’ll see advertisers leaning into lower-funnel partners like discount and cashback sites with refreshed holiday campaign messaging. With strategies spanning varying types of offers, exclusive products and tailored attribution splits for partners, brands can have greater confidence of driving meaningful results this season.”

Setting up for success

As brands approach BFCM 2024, the importance of strategic partnerships cannot be overstated. Diversifying the partner mix, leveraging real-time data, and offering personalized experiences are essential for standing out in a crowded marketplace. Brands who demonstrate thoughtful partnerships and data-driven strategies can deliver meaningful results during peak shopping seasons, and beyond.

For more information on how Partnerize can help retailers succeed during peak and beyond, visit partnerize.com.