Your 3-step countdown to bigger sales this BFCM

A decade ago, Black Friday and Cyber Monday (BFCM) sales barely registered in Australia. A US sale tied to Thanksgiving had little relevance for Aussies on the opposite side of the world. 

Today, that history is just that. BFCM has become the unofficial start of the holiday gift-giving season, eclipsing the once-unassailable Boxing Day/End-of-year sales and driving double-digit growth for retailers. 

Last year, Australians made 15 per cent more purchases over the BFCM weekend, while Afterpay orders jumped higher still – by 38 per cent.

Want to make the most of BFCM? Here’s your three-step plan to driving more sales during this increasingly important retail moment.

Step1: Grow your audience

BFCM, with its discounts and promotions, is a great way to land quick sales, but savvy retailers will be thinking longer term – and starting their strategy early. The ‘warm-up’ period in the weeks leading up to Black Friday is a key time to build a bigger audience, increase your potential customer pool and boost your revenue.

“Our data tells us that the vast majority of sales come from a retailer’s existing database,” says e-commerce consultant Greg Randall, who has worked with brands such as Levi’s, Krispy Kreme, Wittner and David Jones.

“Growing an existing audience is far more effective than targeting entirely new customers [during a sale].”

Here’s how to grow your audience in the lead-up to BFCM: 

Offer sign-up incentives

Encourage sign-ups by offering exclusive discounts, early access to sales, or free shipping for those who join your database. 

“Use banners that announce, ‘Not ready to buy just yet? Black Friday is coming soon! Sign up here to be the first to learn about our huge deals and discounts,’” advises Randall.

Make it effortless

The easier it is to sign up, the more conversions you’ll get. Place sign-up forms on multiple pages online and use clear and concise language, such as “Sign up for exclusive Black Friday deals!”

“It has to be easy,” says Randall. “Don’t use coupon codes, because this forces people to remember a phrase to capitalise on the offer. Don’t rely on mental effort.”

Retarget dormant buyers

Now is the moment to re-engaging subscribers who haven’t interacted for six months or more.

The best way to do that? Send a compelling, personalised offer, says Randall. “Every retailer has a percentage of their database that is deemed ‘dormant’. This is how you bring them back to life.”

Double down on what works

Track click-through rates, conversions, and return on investment (ROI) to pinpoint which tactics and products are pulling in new customers.

“Look at what’s working well for you,” says Randall, “Temporarily reduce the marketing budget on the non-performing items and put it all into the ones that are working well, where you’re getting the most eyes.”

Step 2: Create and promote your offer

Flat discounts, bundled deals, limited-time offers, gift-with-purchase incentives, scaled discounts – the options for BFCM offers are endless.

The trick is determining which offers will attract the most sales, while also maximizing profit. 

“Pricing and profits should always be taken into account when creating your offers,” says Salena Knight, the CEO of The Retail Strategists. “Where chain stores can absorb discounts, and product brands have a higher margin, independent retailers need to know what they can afford when it comes to dropping prices.”

A few key principles:

Discount to your own beat

Releasing new offers daily keeps customers’ interest piqued, but requires plenty of planning. Knight’s advice: keep it simple and profitable. 

“It’s fine to focus on clear, straightforward discounts rather than complex offers. I’m all about making money for retailers, not giving it away!”

Get creative

Think beyond discounts: consider mystery boxes or tactics that ‘gamify’ the buying experience to create a sense of FOMO. “One of our retailers did a secret sale, where customers had to sign up for SMS, to get the GPS coordinates for the location,” says Knight. “Customers went nuts.”

Segment your promotion

There are many ways to divide your audience. Common segments include top spenders, those who’ve bought recently, last year’s BFCM shoppers, lapsed customers, new recruits and cart abandoners. 

“Be highly specific in your segmentation,” says Randall, “and target your segments with relevant discounts.” 

Map out your merchandising

Stand out in the sea of cyber weekend deals by considering how to capture customer attention in store and online. 

“For bricks and mortar stores, it’s about changing out windows, making sure your hot spots are merchandised appropriately, and that deals and pricing are clear,” says Knight.  

Don’t forget to position Afterpay’s visual merchandising assets near higher-priced items.

Online: consider homepage banners, pop-ups, retargeting ads and abandon-cart offers, and ensure that Afterpay messaging is clearly displayed, including on the product page, with a price breakdown to demonstrate how the cost is split into four payments.

Spell it out

Clarity is key during BFCM. “Set out the discounts clearly,” says Randall. “Cite the before price, the sale price, the discount and the percentage when it’s a good one. Don’t make people do maths!”

Stage 3: Get ready to sell

Execution is everything. By the time November 28 rolls around, make sure your team - online and in-store - is ready to handle the rush.

For bricks-and-mortar retailers, extended trading hours have become standard, with some opening past midnight.

Staffing levels should be optimised and training and processes bedded down. “Make sure that your team have clear processes on how to deal with not only the influx of customers, but also the customer requests and support tickets that inevitably see a major increase,” says Knight.

For online retailers, stress testing of your website is essential. “And not just the home page,” says Randall. “That’s often just pictures and words where the load speed might be two or three seconds. Check it’s running just as smoothly on the product pages. If it takes more than 10 seconds, no one’s waiting around that long!”

All in all, be prepared. “If you don’t already have the systems and the team in place, cyber weekend isn’t the time to test,” says Salena. “[The weekend of] BFCM isn’t the time to try new things."