Black Friday, the 25th of November, is a special day when companies give huge discounts, and consumers do a massive amount of shopping. This is a two-day event: Black Friday and Cyber Monday; which is on the 28 of November. Get ready because you wouldn’t want to miss out on the opportunity to maximise your gains from the most important retail event of the year!
You can earn gargantuan revenues as you plan and execute successfully in the short term. But this is more than a single event. You can attract consumers who do not frequently buy from you, have bought competitor products before, or have never bought any product in your category before this event. You can build a database of them by collecting data from their Black Friday purchases. You can then use this database for future campaigns.
You can create closed and specialised campaigns after Black Friday to increase market share and brand equity using Black Friday purchase data in the long term. Thus, creating a long-lasting, sustainable opportunity for your brand!
Why is it Called Black Friday?
After Thanksgiving, Black Friday has been known as the unofficial start to an active holiday shopping season. The term Black Friday was noted in the 1960s by Philadelphia police dealing with crowds of shoppers. Moreover, in the accounting sense, black ink was used to mark for profit, and red ink was used to mark for loss—That’s why this event is called Black Friday.
Feeling the Immediate Impacts of Black Friday Campaigns.
Your company can use these two days to make massive sales to maximise profits. To do that, you must decide on the average basket size to target and the discount rate. You have to promote this event, and you have to get ready by producing and distributing the right amount to retailers in enough time ahead of this event.
The target audience is your current clients, competitors’ clients, and first-time users, while targeting them to buy in bulk, more than what they usually acquire per transaction. dat
It All Starts with a Local Approach.
- 🇬🇧 In 2019, Black Friday and Cyber Monday generated 8.566 million pounds in the UK. (Statista)
- 🇬🇧 The average Black Friday discount offered in the UK is 62%. (Black Friday Sale)
- 🇬🇧 In 2019, online UK retailers received 194 million visits during Black Friday. (BlackFriday)
- 🇩🇪 In Germany, shoppers expect Black Friday and Cyber Monday discounts of more than 10%. Steep markdowns attract the German customer. (Statista)
- 🇩🇪 German consumers primarily shop for electronics during Black Friday weekend, with top searches ranging from Nintendo Switch to iPad. (eCommerce Germany)
- 🇪🇸 In 2019, Spanish retailers saw 444% growth in sales on Black Friday versus during the first four weeks of October. (Criteo)
- 🇫🇷 French retailers saw a 201% increase in sales on Cyber Monday compared with sales during the first four weeks of October. (Criteo)
How Much Money do Consumers Spend on Black Friday?
Here is the average basket size for black Friday for the last 2 years by Simon-Kucher & Partners. For FMCG brands, product bundling can be a good idea for Black Friday sales to maximise sales volume.
What Do Consumers Expect From You?
Black Friday campaign metrics are like that of other campaigns. The difference is that many people know about it, which reduces promotion costs. The discount rate is higher than usual, and visitors are ready to buy in bulk; which means increased basket size, and there are way more buyers than average, growing the total units sold.
So you can afford high discount rates on Black Friday up to a limit to maximise short and long-term profit.
The total gain in the long term would be (the lifetime value of a client- the cost of acquiring the client), for each client added up.
The best quantity of units sold, the demand.
As the discount rate increases, the number of units sold increases until the equilibrium for Black Friday is reached. The demand is made of 3 components, the basket size x number of people visiting x percentage of people who would buy your product.
The volume of shopping during this event is significantly higher than on regular promotion days. So, unlike your average consumers, at this event there is a different and larger audience that you can convert as your customers to keep on later if you can get hold of their data.
So act now to gain the short and long term benefits of the upcoming Black Friday, you can maximise profit in short term, and increase market share and brand equity in the long term. Don’t miss out!