Original article published by Revista Varejo Brasil
Black Friday is much more than just a date to lure customers with discounts and special offers: It is an opportunity to generate awareness, increase brand exposure and engage audiences. However, to stand out from the competition and achieve good results, it is not enough to run isolated promotions. It’s important to have a clear plan and objectives, from communications to pricing and logistics. At a time when hundreds of companies from different industries are fighting for the public’s attention, some tactics can help brands stand out and make strategic use of this time.
What to expect from 2021 Black Friday
Consumers, still reeling from the effects of the pandemic, are increasingly critical and informed. We are seeing important changes in behavior and purchasing profiles. When we talk specifically about Black Friday, anticipation of purchase intent surveys has already become standard. People no longer wait for the day of the event to search for the products they want. Warming up and starting to communicate weeks before the event will help ensure the brand is remembered on the big day, especially in the face of increased competition.
The growth in sales at this time of year follows the trend of the e-commerce market. A tally compiled by Social Miner in collaboration with Compre&Confie and Neotrust, Yapay, Octadesk, All iN and Opinion Box showed that e-commerce sales reached R$5.1 billion between November 26 and 27, a 31% increase over the same period in 2019. This was a milestone for Brazilian e-commerce, as it was the highest sales volume ever recorded in the country
How brands can stand out in the face of competition and high demand
The main mistake brands make on big promotion days is that they want to talk to everyone and are unable to communicate with anyone. At the stage where the campaign plan is being created, companies that focus on data-driven marketing are ahead of the game. There are a number of tools that provide data that can be used to customize communications and offers based on, for example, purchase and search history on the platform.
Offers during the purchase process are also important. It is possible to generate a so-called “tying-up” when the user searches for a product and eventually buys a complementary product, thus increasing the sales margin. Setting specific products for discounts provides predictability in sales and helps with inventory management, orders, and future promotions.
Besides the technical and more analytical part, creativity is another fundamental point. It may seem pretty obvious, but that’s how even the big brands miss the big day. Remember that consumers will be bombarded with offers from all sides. Now is the time to get the entire creative and marketing team together and develop a strategy to grab the audience’s attention and create buzz with the results of a successful marketing campaign that includes countdowns, offers, and promotions via ads, email, and social media leading up to the event.
We can also point out two technical aspects that every IT team must consider: scalability and security of the e-commerce platform. There’s nothing worse than losing sales because the platform crashed because it could not handle the volume of access. Planning for Black Friday should also focus on after-sales, where flexibility in delivery and quality of product exchange and return services are critical to ensure customer loyalty.
E-commerce needs to provide accessible service channels such as chat, phone, emails, WhatsApp and other social media. All these aspects that make up what we call omnichannel need to be carefully considered. Good service creates empathy and brings your brand closer to your customers.
Product, promotion, place and… PRICE!
More than half of purchase decision factors, even during Black Friday, are related to trust and level of service. People are more likely to buy from well-known brands, even during times of great deals. But do not be fooled! Price is still an important factor during these times. Last year, 69% of people said they abandoned a purchase because they felt the prices were the same as the previous period.
2020 was also the year when international retailers began to more aggressively explore offers and promotions in the Brazilian market, making the date even more significant for the industry. Another turning point was the evolution of technology in terms of payment methods and benefits such as cashback. Retailers used several strategies to differentiate themselves.
In addition, product and service categories with lower prices are expected to gain traction this year. These include food, beauty products, alcoholic beverages, apparel, and accessories. With high purchase volumes and low unit values, pricing strategy will be the difference between a completed sale and an abandoned cart.
*Felipe Macedo is the CO-CEO of CoreBiz
Corebiz is an omnichannel specialized agency with large retail and industrial clients from various segments. With a wide range of services, it offers services from consulting to project execution, divided into three business units: Experience, Marketing and Technology. The company has offices in Brazil, Mexico, Chile, Argentina and Spain and has executed projects in more than 29 countries. More information: https://www.corebiz.ag .