There are a few myths about how Black Friday originated in the US and why it started, but for the UK Amazon actually introduced us to this concept in 2010. From then on Black Friday and Cyber Monday have been gathering momentum.
Everyone loves a bargain, and it seems an easy marketing stunt but just because your competitors are slashing their prices, is it beneficial for your company?
This blog isn’t to discredit this sales period but aimed at making us all review what the main KPI is and are we really achieving it.
From a testing perspective we have tested prominent banners, count downs, urgency messaging during our work with multiple eCommerce companies from a wide range of industries. During our tests we track as much information as possible based on each customer sale.
For example we can see whether we are generating more sales from a product line that has a bigger profit margin or are we seeing a negative impact on the revenue stream. Or is a test losing because AOV is significantly down, but overall we are generating more repeat purchases. Therefore, please make sure you consider the data you are reviewing to help you gain maximum insight to the success of your campaigns and the sales period.
A few scenarios to consider, if you haven’t already:
– Customers may buy more for less: WIN for the customer, but is this a WIN for you?
– Yes, it’s great to see more units bought per customer, but how hard is your AOV being impacted?
– Are you paying for free delivery and returns? If so you may see returns increase after this sales period, and you will be left with the cost, is that acceptable?
– Lastly what about your profit margins? Are these now so small you wonder what all the manic mayhem and hype around this promotional season was really for?
Lastly, I wanted to bring to your attention a few companies that aren’t afraid to do something a little different and to expand their campaign message beyond sales discounts:
On Black Friday in 2016, Patagonia donated 100% of sales* to grassroots organizations working to create positive change for the planet in their own backyards.
Are donating $10 for every order to help put an end to single-use plastic.
Are offering a 23% discount throughout November across every product from every brand at Deciem.com, so there really is no need to hurry.
On Black Friday itself they will close down their shop both online and instore, calling it “Black out Friday”
These brands are being creative with their Marketing, brand appearance and adding something a little extra to heavily discounted promotions.
That said I hope you have a successful and insightful Black Friday and Cyber Monday!
If you’re interested in finding out more about testing your customers’ buying behaviours on your site or the tracking available through our testing platform then please click here to get in touch.