It’s Not All About Price! How Retailers Win On Black Friday
How do retailers score big on Black Friday? Do you offer sales early? Open on Thanksgiving? Focus your strategy around on your e-commerce channel? There are plenty of options but the best way to create a successful Black Friday strategy is to analyze the data collected you collected from your shopper and tailor your offerings to fit your target market needs. In other words, find your shoppers sweet spot and push it…
- Know your customers: If you’re a huge retailer, like Best Buy, Home Depot or Target you’re in a good place to do incredibly well on Black Friday. Shoppers expect great deals from those stores and they know they can shop for everyone on their list. Smaller and boutique retailers fare less well. So this is where you emphasize uniqueness. There’s always somebody with a quirky hobby who is hard to shop for or who wants to find some great deals for themselves. Make sure your regular customers and those with abandoned carts know what great deals you offer. Focus on uniqueness.
- Play Couch Friday: In 2016, online sales exceeded $3 billion and sales from desktops—vs. mobile or other devices—accounted for 69 percent of sales. They also had a 3.6 percent conversion compared to about 1.5 percent for iOS and Android. So offering your best Black Friday deals online as well as in the store is prudent. This is what’s known as “couch Friday” and it grows more than 20 percent year over year.
- Make Sure Your Site Is Ready: Forbes reported that, in 2016, Macy’s, QVC, Walmart, Victoria’s Secret and Newegg, the the Gap family including Gap, Old Navy, and Banana Republic all experienced outages, and Williams Sonoma experienced slow loading times. If shoppers can’t get on your site and use it easily, they’ll shop elsewhere. Shopify recommends using a load tester like loadimpact.com or Blitz.io before the big day so you have time to add servers, streamline your site or otherwise prepare.
- Make Sure Your Store Is Ready: Whatever your hottest deals are, make sure you have suppliers on standby to bring more in case you start to sell out. While the prospect of the item selling out is a good motivator for shoppers, if it really happens it’s bad news for retailers. Also, ensure you have enough staff that day not only at the cash registers but to set the store to rights behind crazed shoppers. News reports carried stories in 2016 about the Nike store that was trashed, with shoppers wading knee-high through shoeboxes. Prepare associates for possible carnage.
- Create Irresistible Deals: This is not the time to pawn off your clunky, out-of-date electronics, your off-brand athletic shoes, your oversized luggage with the faulty wheels. Unless you want to be known as the White Elephant purveyor of Black Friday, find some items that are in hot demand and mark them down as much as you can.
- Target Your Demographic: Millennials were the biggest Black Friday weekend shoppers in 2016, according to the National Retail Federation. They reported that eight in 10 shopped over the weekend.
The most important way to strategize is to know your shoppers. What age groups do you serve and how do they shop? What are the hot items you have to offer this year and how are your competitors pricing them? Should you lower prices to make your products more appealing or start selling early those items that shoppers might snap up for fear of losing out?
Black Friday Is Not For Every Shopper But Don’t Give Up
Some people love Black Friday madness but more and more people seem to want to avoid the chaos. The easier you make it too buy your fabulous bargains, the better you’ll cash in on Thanksgiving weekend.