Lena Kleinwechter, Customer Engagement & Loyalty Strategist at TalonOne takes a look at the fast approaching Black Friday and Cyber Monday and says the rules are changing…. here’s what you need to know:
The latest IPA Bellwether report showed marketers spent less on sales promotions in Q3, for the first time in two years.
We’ll still see promotions ramp up and peak again in Q4. But this data is a sign that marketers might be approaching promotions more strategically – eliminating wasteful blanket discounts in Q3, in favour of smaller, strategic and timely promotions in the run up to Black Friday and Cyber Monday.
Crucially, loyalty programmes will play a major role in enabling this efficiency as they use loyalty as a lever for long term customer engagement.
So why are brands reassessing how they approach promotions this Black Friday? And how are retailers using promotions and loyalty programmes hand in hand to drive profitability?
Reducing the wastage of blanket discounting
Too often, blanket promotions are used as a short-term fix marketers reach for when they need immediate gains. But it’s one of the costliest mistakes brands can make.
It’s a reliable sugar high for businesses, as they see a swift surge in sales numbers. But while discounts and promotions can be an incredibly powerful tool, if your customers are so conditioned to discounts that they never buy full price, they’re not loyal. And you’re not boosting profitability.
Indeed, BCG estimates 30% – 40% of promotions are inefficient or unprofitable – a figure that underscores why many boardrooms are reappraising how their businesses approach promotions.
This shift away from indiscriminate discounting is opening the door for more strategic, loyalty-driven activity.
Using Black Friday as a strategic moment for loyalty programme onboarding
While Black Friday and Cyber Monday is seen as a purely promotional event, it is fast becoming a key “loyalty onboarding” moment for retailers, as they realise its potential to recruit new customers to loyalty programmes – and build loyalty and engagement more sustainably.
Last year, Talon.One’s data showed sign-ups to schemes surged 35% during Black Friday week, compared with the six-month average.
Brands can do this by “firewalling” promotions behind a loyalty programme, and making access to offers contingent on becoming a member. In an economy where shoppers are prioritising value, integrating promotions into loyalty programmes allows brands to not only give value to the consumers seeking it, but also start building a stronger and longer-lasting relationship with new customers.
Escaping a sea of sameness with personalised touchpoints
But whilst Black Friday presents an opportunity to drive loyalty scheme sign-ups, this doesn’t guarantee cut through or keep loyal customers into the new year. With 80% of Brits signed up to at least one loyalty scheme, there is a risk of oversaturation.
This means increased pressure and need for retailers to avoid falling into a sea of sameness – to differentiate their loyalty programmes so that they effectively onboard new customers and retain them beyond the initial sign-up incentive.
One way of doing this is to move from a blanket approach to using data to create smart, highly personalised touchpoints with customers.
There are clear benefits to be had from a personalised, data led approach. Earlier this year, a Harvard Business Review study, conducted in partnership with Talon.One, found 94% of businesses personalising promotions are seeing positive results, and 62% have directly increased sales as a result.
Beyond personalisation, some retailers are redefining the promotional calendar itself by creating their own “lightning strike” moments to help them stand out from the Black Friday bun fight. In 2025, we saw several shopping peaks spread throughout the year, driven in large part by exclusive sales events geared toward loyalty programme members well ahead of the holiday rush – AdiClub Days are a great example of a brand doing this well.
An evolving approach to peak season promotions
There are positive signs that this Black Friday will mark a shift in how retailers approach seasonal sales.
In the UK, ASOS is setting an example of brands taking a refresh approach. Members of ASOS.WORLD are being offered exclusive previews of the products about to go on sale, without revealing the discounted price. This encourages members to spend more time browsing products, and encourages deeper, repeated engagement.
The retailers that look to evolve and integrate promotions into a more holistic loyalty strategy will be best placed to protect their margins, deepen customer relationships, and ultimately build an advantage that lasts well beyond the festive season.
