2018: A good year for e-commerceAmazon reports that 2018’s Cyber Monday smashed the company’s records and was the biggest shopping day in its history. A report from Adobe Analytics had predicted that US shoppers would spend $7.8 billion on Monday alone, an 18% hike from 2017. Alibaba made $30.8 billion in sales over 24 hours from a similar event, the Singles Day celebration 2018, which has now become the biggest shopping event on earth. With these eye-watering statistics, how can your business prepare to get it right and capitalise on sales on Black Friday and Cyber Monday?
1. Frontload investment in content and mediaOne of the best strategies is to frontload the investment in your content and media to prime your customer-base before BFCM. This is because key performance channels such as Google and Facebook are considered biddable media (which is the process of buying advertising space) meaning that they have a limit on their advertising inventory and the more competition the more they can inflate the price.
2. Understand your objectivesAs for setting yourself up, it’s key to understand what your objective is for the BFCM period. For some businesses, this will be their sales volume, their profit or to capitalize on new user action. This involves nurturing customers over a long period and increasing the LTV (loan-to-value ratio). Prepare well in advance and establish your objectives as soon as possible so you can align offers, messaging and marketing collateral across all of your social and digital communication channels.
3. Upsell existing customersOne of the key strategies for success in upselling existing customers and focussing media spend on lower-funnel audiences who are already aware of the brand and product proposition. This combined with a time-sensitive offer can be extremely effective and can help to generate record sales numbers for your e-commerce clients. Customers like to think that they are ‘special’ and that the brand they support is giving them something back by way of a thank you. It makes the brand more personal to them as they feel as if they are being dealt with directly and this encourages loyalty, support and then sales.
4. Remain true to your brandYou have created a brand that you are proud of so don’t sell your soul and go off-brand during BFCM int the hope for quick sales. Remaining true to your brand is critical and shouldn’t be compromised. Offering a sale or discount code during this period doesn’t make your brand any less premium, but it’s how you go about it. It is imperative that you run this activation in a way that maintains your brand values and communicates with the audience in a way that they resonate with. As an example, a brand like Burberry saying ‘It’s our biggest sale ever! 50% Everything SHOP SHOP SHOP!’ is very much off-brand and therefore won’t resonate with their customer base and ultimately, won’t work!
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