Black Friday Part 1 - Create a Compelling Offer | Matt Edmundson

Ever wondered why some brands skip Black Friday entirely and still win? Matt Edmundson reveals the framework that protects margins whilst creating compelling offers that actually increase customer lifetime value during Black Friday.

Episode Summary

In this first episode of our Black Friday mini-series, we explore why everything about Black Friday success comes down to your offer—and why that offer doesn't have to destroy your margins. Matt shares strategies from years of running Black Friday campaigns across multiple businesses, including some that opted out entirely. We discuss the critical ratio of margin to lifetime value, explore alternatives to deep discounting like gift with purchase and gift cards, and reveal why giving your best deals to your best customers might be the smartest move you make this November.

Key Point Timestamps:

01:00 - Why abstinence is okay (REI's brilliant opt-out strategy)

07:00 - The margin to lifetime value ratio

10:00 - Bundle and upsell strategies

13:00 - Flipping the loyalty script

14:00 - Gift with purchase revelation

16:00 - The IKEA gift card genius move

19:00 - Creating genuine urgency without deception

The Permission to Say No (01:00)

Matt opens with a revolutionary idea: you don't have to do Black Friday. He shares how outdoor brand REI turned opting out into a PR win by closing their stores and encouraging customers to go outside instead.

"If Black Friday means sacrificing everything that makes your brand special, pulling customers from profitable December sales into unprofitable November ones, and creating mayhem for minimal return—it's okay to sit this one out."

This permission to abstain is particularly relevant for brands with tight margins or strong values that conflict with the Black Friday frenzy. Sometimes the best strategy is no strategy at all.

The Margin to Lifetime Value Ratio (07:00)

The core framework Matt presents centres on one critical ratio: margin to lifetime value. Rather than asking "How much should I discount?", the question becomes "If I sacrifice margin here, how can I increase customer lifetime value there?"

Matt illustrates this with Vegetology's Omega-3 supplements—at £20 with tight margins, a simple discount would be devastating. But bundling multiple products at a discount increases the chance of creating repeat customers who've experienced the full product range.

"I'd rather give 20% off a £100 bundle and make £80 with good margin than give 20% off a £20 product and make £16 with terrible margin."

Revolutionary Loyalty Approach (13:00)

Matt challenges the industry norm of giving best deals to new customers only—a practice that frustrates loyal customers who see "new customers only" offers everywhere. Black Friday presents an opportunity to flip this script entirely.

By creating exclusive landing pages for VIP customers with better offers than the general public sees, brands can strengthen relationships with their most valuable customers. These customers don't just buy more—they become brand advocates.

The Gift With Purchase Strategy (14:00)

One of Matt's most successful margin-protecting strategies involved candles with a £4 cost but £20-25 retail value. Offering "Spend £25, get this £25 candle free" created massive perceived value whilst protecting core product margins.

The warning: don't try to offload unwanted stock this way. "I've tried clearing old stock this way, giving away products nobody wanted in the first place. Guess what? Nobody wanted them as gifts either."

Today's Host

Matt Edmundson

Host of The eCommerce Podcast

Founder of eCommerce Cohort

Website: eCommerce Podcast