Connect with us

Marketing Tactics

How To Prepare Your Business To Win Big On Black Friday

The shopping experience is all about maximising profit by selling as many discounted items as possible.

Published

on

black-friday-retail-trends

There’s no shopping day quite like Black Friday. Whether you participate online or battle your way through hoards of determined shoppers, Black Friday can be a stressful time for retailers looking to make money.

But just like how shoppers plan out their mall trips to maximise their time while getting everything they need, stores need to ensure they are equally prepared for a massive influx of shoppers. A little digital preparation can help you stay ahead of your shoppers while you compete with some of your larger competitors.

As you build out your Black Friday planning list, make sure to include some gentle research on your customers and their spending patterns, as well as what other businesses like yourself are doing for their marketing efforts.

It’s estimated that one in three Americans plan to shop on Black Friday and that number is expected to rise as stores take advantage of online marketing and add more days for consumers to shop.

Minimise your stress and any headache by preparing and putting your business in the best position to succeed.

1Research and engage with your customers

Like any other store sale, it’s important to research your customers and identify marketing tactics to research your target audience.

If you have an email list full of loyal customers, give your customers a heads up and let them know of the sales that are coming up. Or you can build hype around Black Friday by offering special rewards and loyal customer discounts for certain items.

Related: Improve Management Of Retail Returns For A Better Customer Experience

You can also utilise free tools like social media to encourage shoppers to come to your stores or hosting giveaways prior to Black Friday.

“The success of a Black Friday promotion is no longer determined by in-store deals, nor is it determined solely by sales on Black Friday itself,” says Steve Cuffari, Senior Content Marketing Manager from CouponBox.com.

“Most retailers now begin their promotions and sales well in advance of Black Friday and continue them long after. For example, big players like Best Buy and Bed, Bath and Beyond create promotions branded as Pre-Black Friday sales, Sneak Peeks and Black Friday Previews.”

2Organise all of your sales

organised-store-layout

While the goal of Black Friday may be to sell all of your products, you also want to make sure you keep track of all of your inventory. The holiday season is crazy hectic; it’s important to stay organised so you know exactly what you have in your stores at all times.

When you organise your products in a spreadsheet format, you can identify which products you want to put on sale and also determine how much of a sale you can afford to discount your items.

With an organised spreadsheet, you avoid mispricing items on-the-fly as customers roll into your stores, and it also helps you create a contingency plan if you need to order additional products prior to the sale.

The last thing you want is to face a horde of angry shoppers looking for a popular item that sold out in the first minutes of Black Friday.

Related: How Online Retailers can Reduce Shopping Cart Abandonment (Infographic)

3Put your stores to the test

If this is your first time preparing for Black Friday, you may want to test your website and store to ensure you can handle increased traffic.

One of the worst things that could happen to your store on Black Friday is your website crashing due to the surge in traffic, which could result in lower sales and increased customer frustration.

You also want to test your physical storefront to make sure your employees are ready to deal with waves of customers. Trina CEO of Primal Life Organics states. “We are using Shopify, you won’t have to worry about this. Thousands of high-volume Shopify merchants regularly experience huge traffic surges, including the infamous Shark Tank effect, without any interruptions.”

Now is also the time to clean up your stores; place items within reach and remove any items that may block the pathway for shoppers running throughout your storefront. Prior to Black Friday, communicate with any vendors and suppliers to ensure they can also keep up with the increased demands that come with the holidays.

4Optimise your email chain

email-chain-optimisation

In 2014, the average cart abandonment rate for shoppers on Black Friday was a whopping 65% and that rate fluctuates depending on what platforms your customers are doing their shopping. To prevent such a high abandonment rate, create abandoned cart emails to remind customers of the items they have not yet purchased. You should also make sure your website is mobile and tablet friendly.

Related: 8 Shopping Habits Of Millennials All Retailers Need To Know About

A 2015 IBM study found smartphones accounted for 44% of all online traffic on Black Friday and we should expect that number to grow as the number of customers with smartphones also increases. Optimise your website so it is fully functional and responsive on mobile devices.

Talk to your web designer and gain feedback from customers to identify what works and what needs to be improved before the holiday shopping starts. With a strong mobile presence, you ensure your customers can access your store no matter where they may be in the United States.

Black Friday is a major shopping day for retailers and customers alike. For the customers, it’s all about finding the best deals for anything they could possibly imagine. And for retailers, the shopping experience is all about maximising profit by selling as many discounted items as possible. With proper planning and a sound game plan in place, you can ensure your business – both large and small – can take full advantage of the shopping experience that is Black Friday.

This article was originally posted here on Entrepreneur.com.

Josh is an expert contributor to GOBankingRates and has been featured on National television as well as radio. Josh co-authored two bestselling books Transform with Brian Tracy, as well as SuccessOnomics with Steve Forbes.

Advertisement
Click to comment

You must be logged in to post a comment Login

Leave a Reply

Marketing Tactics

Useful Marketing Tactics For Growing Businesses

Customer acquisition, customer experience and content marketing can be identified as the three most important marketing strategy areas to focus on.

Jandre de Beer

Published

on

marketing-tactics

Digital marketing offers the business world so many advantages, including the ability to communicate with their target markets quickly and easily. Unfortunately, digital marketing has also opened doors for companies to flood mail boxes, news feeds and ad spaces with junk mail and spam resulting in customers tuning out to anything irrelevant and suspicious.

Customers have become less likely to trust companies and less receptive to messages. The only way for valuable messaging to stand out from the noise is if a business knows how to market itself properly.

Over and above advertising, there are a lot of other aspects that contribute towards an effective marketing strategy, these include research, email, content creation, list curation, social media and even customer service. To be a successful marketer it isn’t necessary to become an expert in every single marketing tactic, but it is important to master the most important areas. Customer acquisition, customer experience and content marketing can be identified as the three most important marketing strategy areas to focus on.

1. Customer acquisition

Of course, not all customers are the same. Some customers are only interested in buying products on sale from a particular brand and then never interact with that brand again. Acquiring, and of course retaining customers with a high lifetime value should be the overall objective for businesses, but this requires more time and money being invested in better, more qualified leads. While the upfront costs might be higher, in the long-term this investment will pay off with continued business from these lifetime customers.

2. Customer experience

Competitive pricing can’t be the only aspect that businesses focus on in order to stand out against competitors. In the current digital era customers expect a good customer experience when they deal with brands so this should be an important focus area for all businesses. Customers expect fast and seamless experiences such as intuitive user interfaces and processes, fast websites and service response times, as well as accurate information about the problems they face.

Customers don’t want to waste their time on websites that require them to jump through hoops, and they definitely don’t want to feel misled by anything a business is communicating. Customers will quickly move on to other sites that offer better experiences as well as other businesses that are more trustworthy. Good customer experiences can go a long way.

Offering more personalised, interactive engagement tactics and improving the customer technology interface should be high priorities for businesses.

3. Content marketing

Marketing is no longer about telling customers that your brand is the best. With the movement towards content marketing, marketing has become about showing customers why you are the best. Content marketing is a legitimate, effective strategy that every business and brand should make use of. While content marketing is a lot more cost effective than outbound marketing, it also generates three times as many leads and offers many other benefits.

Content is a key feature for growing businesses who want to survive in an information rich environment. Customers are looking for brands that provide value beyond their products so creating high-quality content can help you grab your audience’s attention.

In conclusion

Although there are many other factors that are involved in an effective marketing strategy, seeking out customers with a high lifetime value, providing them with a great customer experience while also providing them with valuable content is a recipe for success.

Continue Reading

Marketing Tactics

An ‘Outside-the-Box’ Approach to the e-Commerce Unboxing Experience

Get started by keeping three elements in mind – recyclable/re-usable packaging, personalised thank-you notes and free samples.

Daniella Shapiro

Published

on

ecommerce-unboxing

With a predicted 24,79 million e-commerce users in South Africa by 2021, online shopping is here to stay, making it impossible to escape the predicament of perfecting the art of product packaging. It’s time to think outside the box when it comes to creating a meaningful unboxing experience. Get started by keeping three elements in mind – recyclable/re-usable packaging, personalised thank-you notes and free samples.

Recyclable/Re-Usable Packaging

Certain types of product packaging are having a tremendous negative impact on our environment, with 5.35 trillion pieces of plastic debris littering the world’s oceans, and with 269,000 tonnes of this amount floating on the surface – and plastic isn’t the only culprit. Did you know that it’s impossible for Styrofoam to ever be broken down completely? And that 1 million single-use coffee cups wind up in landfill every single minute of every day? These statistics make it obvious as to why it’s becoming so important for business owners to be more conscious about the type of packaging that they use.

Many business owners wonder if their customers really care whether their business is doing its part to protect the environment. According to Forbes and a 2017 Cone Communications CSR Study, the answer is a resounding ‘YES, they most certainly do!’.

87% of the consumers surveyed stated that they always have a more positive image of a company that supports social or environmental issues, and 88% claimed that they usually feel more loyal toward a company that they know supports social or environmental issues.

Thoughtful Thank-You Notes

The unboxing experience should be a unique and personal one, and it should be just as memorable as the experience of utilising the product itself! So, make it all the more special and build customer loyalty by including a personalised thank you note. Address the customer by their first name, thank them sincerely for their patronage and end off by giving them some helpful advice regarding the product, or share an interesting benefit of using it. Go the extra, extra mile by hand-writing the letter too.

Free Samples

Everyone loves getting free stuff. Why not bolster the unboxing experience by sending over a little bit more than expected? Not only will a free sample put a big smile on the face of the receiver, if they actually enjoy using it, there’s also a good chance that they’ll be coming back to order more. According to Shopify, free samples have the potential to boost sales by as much as 2,000%.

When it comes to packaging, make the right choice. Sustainable, thoughtful, memorable. Your customers, and the environment, will thank you for it.

 

Continue Reading

Marketing Tactics

The Facebook Ads Strategy That Can’t Lose

It’s a numbers game.

Entrepreneur

Published

on

facebook-ads-strategy

Running a profitable Facebook Ads campaign is simple. Not always easy, but simple.

There is a formula that can guarantee a profitable Facebook Ad campaign. Once you know the formula and the values to plug in, you’ll never sink money into a losing digital ad campaign again. I know it sounds too good to be true, but stick with me…

The Guaranteed Growth Formula

Here’s the entire formula: CPA < AP

Were you expecting coefficients, remainders and dividing by polynomials? Nope, there are only two values that matter when assessing your digital marketing funnel.

1. CPA – Cost Per Acquisition

2. AP – Average Profit Per Client

If your Cost Per Acquisition, the amount you pay to generate a paying customer using Facebook Ads, is less than the Average Profit you make from each new customer you’re guaranteed a profitable campaign.

Calculating Average Profit

To get average profit per client, sum your total revenue from new clients and subtract what you spent to serve them. Divide the result by the total new clients. For example, if you made $75,000 from 10 new clients over the past year and it cost you $40,000 to serve them, your average profit is:

 ($75,000 – $40,000) / 10 = $3500 Average Profit Per Client

If your average acquisition cost for similar future clients is less than $3500, your campaign will technically be profitable.

Of course most businesses won’t want to spend all of their profit on acquisition. An average business can expect to invest at least 7 percent but no more than 15 percent of revenue in sales and marketing. If Cost of Goods accounts for 60 percent or more of total revenue, your low profit margin may make it difficult to afford successful advertising. Decrease operating costs by increasing efficiency or adjust your margin by raising prices.

Don’t make the mistake of calculating Average Profit based on revenue only from the first sale. Use at least six months of revenue or your lifetime client value as the basis for your calculation, or you risk underfunding your marketing and sales budget.

Related: Here Is Why Your Facebook Ad Campaigns Aren’t Producing Results

Calculating Cost Per Acquisition

Let’s assume you’ve considered all of your marketing and sales costs and determined you can spend $350 per new client on Facebook Ads. Let’s reverse engineer your ad campaign to see if a $350 cost of acquisition is reasonable.

The simplest Facebook ads funnel includes four metrics that build upon each other to determine your acquisition cost. I’ve included standard benchmarks for use as a starting point, but your results may differ:

1. Click-Through Rate (CTR) – Percentage of people clicking on your ad. Your CTR should be near or above 1 percent.

2. Cost Per Click (CPC) – The cost of one website visit. CPC should generally be below $3.

3. Lead Conversion Rate – The percentage of site traffic that becomes qualified leads. This value should be 20 percent or above.

4. Sales Conversion Rate – The percentage of leads that convert to a sale. Aim for sales conversion at or above 5 percent. (E-commerce companies often skip the Lead Conversion stage and have a Sales Conversion Rate of 1 percent or greater.)

If 10,000 people view your ad at a 1 percent CTR, you’ll get about 100 website visits. At a $3 CPC, you’ve spent $300. Since 20 percent of your traffic will become leads and 5 percent of those leads become closed sales, we can calculate that you’ll generate approximately 60 leads and three new customers.

Your estimated acquisition cost using Facebook Ads is $100 per client, which is well within your budget of $350. This cost may rise as you scale and target less optimal prospects, but as long as your acquisition cost is less than $350 you’ll make an acceptable profit.

Complex funnels can include several ads and conversion points, but the Guaranteed Growth Formula of CPA < AP still applies. There’s no immediate reason for concern if your metrics differ from the benchmarks. You can and should split test ideas for improvement if your numbers are far from what you expect, but don’t mess up a good thing until you’ve got a better one.

Optimising Your Guaranteed Growth Funnel

If unhealthy metrics cause your acquisition to cost more than what you’ve budgeted, start with these adjustments:

Click-Through Rate Too Low or Cost Per Click Too High

If your CTR falls far under 1 percent Facebook may stop showing your ads or show them to second-rate audiences causing your traffic to tank and CPC to increase. To improve your click metrics, adjust your ad copy (headline and body text), ad creative (image or video) and highlight the benefits in your offer.

Refine your audience. Tailor your copy, images and call-to-action to the audience you’ve selected and ensure that your audience has the desire and means to act.

Lead Conversion Too Low

If leads aren’t converting at 20 percent or more, either the promise made by your ad isn’t congruent with your landing page, or the process of moving forward is too difficult. Try using the same image and headline in your ad and reduce the form fields in sign-up forms to the bare minimum. Also try retargeting visitors who don’t sign up with ads stating the benefits of acting now, or with a different offer.

Related: Staying Relevant In The Facebook Age Of Meaningful Social Interactions

Sales Conversion Too Low

If you’re an Ecommerce brand with sales conversion below 1 percent your shopping cart or sales process may have too much friction. Simplify the sales process to decrease clutter, or increase trust by adding testimonials and trust signals near important calls to action.

Your sales process may need improvement, but that is beyond this article. In the meantime, you can still increase revenue by cross-selling and upselling those who convert. You may also improve client retention with recurring contracts. Yes, that’s why many software companies are switching to cloud-based subscription models.

When used properly, The Guaranteed Growth Formula of CPA < AP makes Facebook Ad marketing an investment, not an expense. Using the formula, the most you should ever risk is a small initial budget to test whether your estimated calculations hold true in practice.

If your net profit is 3X your acquisition cost, your funnel returns $3 for every $1 you invest. Instead of asking “How much should I spend on marketing?” The question becomes, “How much do I want to make?” I’ve built a Facebook Ad Growth Calculator that incorporates the Guaranteed Growth Formula to help execute your growth strategy. Input your revenue goal and it will estimate the Facebook Ad impressions and traffic required to reach it.

This article was originally posted here on Entrepreneur.com.

Continue Reading
Advertisement

SPOTLIGHT

Advertisement

Recent Posts

Follow Us

Entrepreneur-Newsletters
*
We respect your privacy. 
* indicates required.
Advertisement

Trending