Prepare your retail business for Black Friday
Black Friday this year, 2023, will take place on Friday, November 24th, with many brands and retail chains extending days befora and throughout the weekend.
Since 2020, Black Friday has had a significant impact on retailers’ online sales, although physical points of sale are not left out of the equation. On such important dates, omnichannel retail becomes more important than ever.
The origin of Back Friday dates back to 1961 in Philadelphia, where on the Friday after Thanksgiving, the streets collapsed due to the large number of people doing their Christmas shopping. That day was named Black Friday and officially kicked off the holiday shopping season.
The interest in this date has increased by more than 120% in the last 5 years. Spaniards will spend up to 284 euros on average during these discounts. There will be a 35% increase in spending compared to 2022, with strong power of e-commerce.
Preparing for Black Friday isn’t just about adjusting prices and hoping for the best; it’s a strategic art that involves understanding your audience, anticipating their wants and needs, and planning a strategy that will lead you to victory. In this article, we’ll unlock the secrets of effective preparation and provide foolproof tips to help you approach Black Friday with confidence and intelligence.
1. Know your audience
Knowing your audience at such an important time is like having a map in an unknown territory: essential getting lost in the multitude of offers on the market. Here are the key techniques for understanding your customers:
Analyze buying trends of your target audience
Sumérgete en los datos de compras de tu empresa y en cómo ha sido el comportamiento de tus clientes durante este fecha en años anteriores. Así podrás identificar patrones y tendencias. ¿Qué productos fueron los más buscados? ¿Hubo algún momento específico de mayor actividad? Estos insights te ayudarán a anticipar la demanda.
Dive into your company’s purchasing data and see how your customers have bahaved on this data in previous year. This will help you identify patterns and trends: Which products were most in demand? Was there a particular time of peack activity? These insights can help you anticipate demand.
Segment your customers
Not all customers are the same. Segment your audience based on preferences, purchase history, and behavior. This allows you to tailor offers to specific groups for maximum relevance. You can also offer special discounts on groups of products to generate more interest.
Surveys and feedback
Use surveys and solicit feedback to directly understand your customers’ expectations and desires. You can create posts or publications on your social networks or send out mailings asking customers for information such as “What special offers would you like to see this Black Friday?” Thei answers can give you valuable insights into their buying intentions.
Collaboration with influencers
Influencer marketing is here to stay, it’s a multi-million dollar sector that can bring great value to brands if they choose their ambassadors correctly. Work with those who are relevant to your audience, share your brand values, and are located in your geographic area.
Knowing your audience not only helps you anticipate their needs, but also allows you to connect with them in a more meaningful way. In the chaotic retail landscape of Black Friday, the ability to provide personalized and relevant offers is the secret to turning simple shoppers into loyal fans of your brand.
2. Develop an intelligent pricing strategy
Pricing is a dual-use weapon for retailers, allowing them to differentiate themselves from the competition and attract customers with irresistible offers. It is important to have a smart pricing strategy that balances attractiveness with profitability.
Attractive and competitive discounts
Creating discounts that stand out is critical. Research your competitors to ensure that your offers are competitive and irresistible to your audience. A significant discount will attract attention, but consider product bundles or combination offers to increase perceived value.
Special offers for early birds or loyalty program members
Reward loyalty and anticipation. Offer extra discounts to those who buy early or to your most loyal customers. This not only creates a sense of exclusivity, but also encourages customers to plan their purchases, helping you to manage demand more efficiently.
Offer aditional rewards to your club members, such as access to advance offers in your stores for those who are members. At Cosin Consulting we are partners with Intersolve, the gift card and loyalty solution chosen by some of the largest retail chains in the world. Having a loyalty programme integrated into all your processes will help you create a much smoother customer experience.
Constant monitoring of competitors
El Black Friday is a constant race. Keep an eye on ypur competitors’ pricing strategies and adjust your offers accordingly. You can differentiate yourself by offering more attractive discounts or, alternatively, by adding value that others are not offering.
Dynamic pricing strategy
Consider implementing a dynamic pricing strategy. Adjust your discounts in real time based on demand, inventory, and customer behavior. This flexibility allows you to quickly adapt to changes.
Bundle & Upselling
Don’t limit yourself to discounts. Create product packages or bundles that add value and increase customer spending. Implement upsell strategies by suggesting additional porducts or upgraded versions during the purchase process.
While attracting customers is key, don’t lose sight of your margins. Set clear limits on your discounts and offers to ensure that your business remains finacially sustainable even with Black Friday retail promotions.
After Black Friday, conduct a thorough analysis of your pricing strategies. Evaluate what worked, what didn’t, and how you can improve for future events. This post-event reflection is essential to refining your tactics for the future.
Balancing attractive discounts with sustainable profit margins will not only attract customers, but also build a solid financial foundation for the continued success of your business.
3. Prepare your inventory
Inventory management is key to keeping your customers happy and finding wht they want. How do you get your inventory right?
Make sure you have enough stock of the most popular products
Most importantly, never underestimate demand. Based on previous analysis, identify the products that are most in demand and make sure you have enough stock. Shortages can lead to unhappy customers, while a well-managed overstock can be sold at a later date.
Real-time delivery scheduling and inventory
Customers are impatient and unforgiving of delays. Plan your deliveries by coordinating closely with suppliers and shipping services. Real-time inventory management is essential; Retail Pro allow you to monitor your inventory and product movements in real time to avoid unespected out-of-stocks or unnecessary overstocks. Retail Pro’s advances inventory management features and applications make this task much easier. Use replenishment automation to ensure that the most in-demand products are automatically replenished when stock levels drop, avoiding interruptions in availability.
Real-time data analysis
The ability to analyze data in real time is invaluable. Retail Pro gives you this capability, providing detailed reports on sales and inventory movements. This allows you to make informed replenishment decisions and adjust strategies based on current demand.
Retail Pro Prism facilitates the integration of your sales channels, allowing you to manage inventory consistently whether it is in-store or online. This is critical to avoid overstocking or out-of-stock when customers can buy from multiple channels.
Preparing your inventory for Black Friday in retail is a game of balancing supply and demand, and Retail Pro is an essential ally in this task with its real-time inventory management and analysis capabilities, you can be sure that your inventory is in the best condition to face this event.
4. Smooth shopping experience
On days like Black Friday, expertise goes a long way. From the optimization of your website to the efficiency of your physical stores. Develop a strategy backed by the best solutions to ensure every customer interaction is smooth and memorable.
Make sure your site can handle the increased traffic that comes during Black Friday sales. It is important that your site remains fast and stable in the face of increased transactions. Ensure a smooth online experience that makes it easy for customers to browse and shop.
Simplifies online purchase process
Simplify the online checkout process to make your ecommerce transactions fast and secure. Efficient retail payment integrations like Adyen that enable both online and in-person payments minimize friction, especially during Black Friday when every secon counts for online shoppers.
Power your physical stores
Leverage powerful point-of-sale capabilities, such as Retail Pro Prism, to streamline transactions at your physical retail locations. The ability to process transactions quickly and offer flexible payment options ensures a seamless shopping experience. Make your stores as efficient as possible and try to reduce wait times as much as possible, not only to increase the number of transactions, but also to improve the customer experience.
Provide efficient and proactive customer service
Prepare your team to provide the best possible customer service and to handle inquiries and problems in real time. Just like in a physical store, you need to prepare your store team to be as efficient as possible, provide good customer service and have the necessary staff available. The combination of Retail Pro Prism and Adyen contributes to a smooth post-sales experience to effectively manage refunds and returns.
Both Retail Pro and Adyen provide essential tools to optimize both online and in-store transactions, ensuring that your customers have a seamless and memorable experience, regardless of how they choose to shop.
Retail Pro Prism can be your best ally for an effective Black Friday 2023 strategy. It gives you the tools you need to ensure consistency, real-time visibility, and a superior customer experience.