It’s hard to believe that the first “Cyber   Monday” was born just 13 years ago. The event, combined with Black Friday, gave birth to BFCM (Black Friday Cyber   Monday), today the longest intense shopping weekend of the year.  

In 2017, Shopify stores collectively processed more than $ 1 billion in sales during BFCM, which shows that online shopping has now grown to unprecedented levels.

While the growing popularity of BFCM is generating new opportunities for small businesses, competition is also growing when it comes to reaching new customers:

Advertising costs may increase during this promotional weekend.

The shops extend the sales beyond the weekend, sometimes during the following week.

Promotional emails invade the inboxes of each subscriber on your list.

The products are offered at over 50% discount to generate the maximum sales.

With all this hubbub, it becomes essential for all the brands to stand out during the BFCM in order to be successful. This is tantamount to proposing very creative promotions and establishing an action plan to implement them in order to achieve the sales objectives without getting ahead of the competition.

The disadvantages of widespread rebates

Since the Black Friday Cyber   Monday has evolved beyond a simple extended weekend of sales, we see more and more companies that extend their Offers in Sri Lanka to take full advantage of the season of promotions leading up to Christmas.

On the other hand, by limiting yourself to offering customers a widespread discount on your entire store, it will be difficult to maintain the craze for your promotion once you have announced it initially.

Your customers could also expect discounts that exceed 10  % or 15% over the BFCM weekend. In fact, today, with the growing popularity of welcome discounts for new customers and lightning promotions that are held throughout the year, buying cheaper online has become the norm for cyber-consumers.

That said, moving to discounts of 40  % or 50%, simply to compete effectively during BFCM, could end up making you lose profitability. Here’s what you could do instead.

Why you should focus on your average basket

A high average basket can offset your advertising costs and leave you a high-profit margin on each sale, which is more attractive than offering a significant discount on the entire online store.

For example, here is a comparison between two types of promotions:

A) 25% discount on the whole shop

The average selling price of a product: 80 euros

The sale price of a product (25%): 60 euros

Number of products purchased by the customer to benefit from the discount: 1

Customer’s basket with discount: 60 euros

Advertising costs: 20 euros

Cost of the goods sold: 20 euros

Your profit: 60 – (20 + 20) = 20 euros

B) Buy 2 and get 35% off

The average selling price of a product: 80 euros

Number of products purchased by the customer to benefit from the promotion: 2

Cart for 2 products: 80 x 2 = 160 euros

Cart for 2 products with 35% discount: 104 euros

Advertising costs: 20 euros

Cost of the goods sold: 20 euros x 2 products = 40 euros

Your profit: 104 – (20 + 40) = 44 euros

By offering larger volume discounts, you can dramatically increase your profit margins on every order, as you persuade customers to buy more products to benefit from discounts.

Shopify merchants can offer this type of promotion to their customers by configuring Automatic Discounts. Thanks to Automatic Discounts, it is possible to configure offers of the type “1 Purchased, 1 Offered” that will automatically be applied to customer baskets depending on the number of products purchased. The shopping experience is simplified because customers do not need to manually apply the discount code.

But winning your promotions is not just about winning over customers with a tempting offer – you need to make sure that the initiative will remain profitable for your business.

Set daily goals and work in the opposite direction

It is not uncommon to see e-merchants start planning their BFCM promotions months in advance. With all this craze for sales, one might think that the only way to get out of the game is to do the impossible to outperform the competition.

In fact, planning your promotions should not take you more than a few days – provided you ask the right questions. By developing a realistic plan for achieving strategic goals, you will be able to define what success is for your particular business. From there, it will be easier for you to work in reverse to create your offer.

To begin, we must answer these six essential questions:

1. What is my overall goal for turnover?

When setting your revenue goal, be sure to review your sales data from past seasons to make a reliable financial forecast. If you set unrealistic targets, you risk investing too much in advertising or inventory acquisition.

If this is your first BFCM, you can use the sales data from previous months to determine what you can do. Examine your e-commerce conversion rate, your website traffic, and the performance of your e-mailing campaigns to define your potential for BFCM.

2. What is the daily turnover that will allow me to reach my goal?

If your promotion runs from Black Friday Friday to Cyber   Monday Monday, you can split your sales goal over these 4 days. One of these days could be used to promote your best offer, and eventually generate most of the sales. You could also consider attracting new customers by offering a different offer each day. No matter how you plan your promotions, try to achieve your turnover over the 4 days of the event by setting an appropriate sales goal for each day of the BFCM.

3. What is the volume of traffic to generate to reach my goal?

To reach your goal, you must generate sufficient traffic volume on your e-commerce site. This volume will depend on your financial goal, your average basket, and the conversion rate of your website. Set goals for each of these indicators before launching your promotion, and follow them to make sure you meet your expectations.

4. Where will all this traffic come from?

The most important component of your planning will most likely be all your traffic sources. For starters, e-mailing provides the most reliable source of traffic.

By analyzing the size of your e-mail list, the average open rate, and the revenue generated by your e-mailing campaigns, you can predict the amount of traffic that will be generated by your promotional emails.

What will require more thought and planning will be the estimation of the traffic supposed to come from paid promotional initiatives – Facebook advertising, affiliation, or partnerships with influencers.

5. What is my advertising budget?

You should set your advertising budget based on your financial goals, too. For example, many merchants run advertisements to attract new prospects or retarget former visitors to their website before launching their promotions. To find out how much you can afford to invest in paid advertising, you’ll need to review data on the performance of past paid initiatives, such as cost per thousand impressions (CPM), and return on investment. advertising (RSIP).

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