By Dennis - Last updated: November 29, 2017 - Comments: 4

Icon by Noun Project

Black Friday, Cyber Monday and all the days around it were a HUGE success.

    • The biggest and baddest online retail day ever seen!
    • More traffic in a single day than in a normal year
  • Triple digit revenue growth!

Retailers put out statements and press releases. Ecommerce platforms discuss gross merchandise volume. Vendors talk about their massive impact on transactions.

And the industry media gobble it all up and make sure it spreads.

And if I a look at my client’s’ performance of the past days, I also see strong to very strong sales numbers.

But there is a cost to all of this. One that’s too often glossed over.

Because while most of us are killing ourselves to provide amazing discounts, we’re really fighting for a piece of Amazon’s crumbles.

Especially on days like this.

So what’s going wrong?

#Winning At Black Friday

So what does winning Black Friday look like?

  1. Biggest revenue day in your store’s history?
  2. Adding more customers in a weekend than you would normally do in 2 months time?
  3. Profit?
  4. Customer lifetime value?

Usually all that’s talked about is #1. Overall sales.

Sometimes #2 is mentioned, the overall number of new customers. Ignoring that customers that come in on a heavy discount might not be the very best ones.

But that’s where it stops. Granted online stores making killer profits won’t be (and shouldn’t be) shouting from the rooftops. But profit and customer lifte time value is what it is ultimately all about for most of us.

In private conversations with clients, or with fellow ecommerce experts, these things do come up.

There is a single mantra: more sales at any cost.

Can you really afford to give out 25-30-40 or even 50% off? And pay for free shipping on top of that? And pump more money into expensive advertising to notify people of those amazing deals?

Most people are jumping on the bandwagon, and too few ask the hard questions whether this kind of behaviour is valuable in the long run.

The more I think about it, the more I feel we’re playing someone else’s game.

The Mastermind Behind Black Friday

So is this all part of a conspiracy theory and are there some evil overlords playing us retailers as puppets?

Invented a long time ago by the retailers association to drive extra sales in the slump after Thanksgiving, the media eagerly picked it up.

In recent years I think it has become a me-too event. There is this peer pressure because you can’t be left out.

And media and vendors are turning up the pressure. In the months leading up to Black Friday, that’s literally all you see.

Tips, best practices, must-dos, checklists, guides, etc. Shopify even had a countdown timer on all their merchant’s dashboard 50 days in advance.

Everything to make it the best day of the year. But for whom? Themselves or their retail clients?

So if steeper discounts aren’t the answer, what can you do against all this pressure?

The Cure

So what? Am I suggesting you just walk away from one of the biggest sales moments of the year?

No of course not. Consumers are looking for good deal and their wallets are open.

But do it at your own terms and not at all costs.

Here are a couple of things that I’ve seen retailers do that are very sensible answers to all of this madness.

1. Go earlier

Everyone starts promoting and sending emails around the same time.

So one thing you can do is to get ahead and push out your promotion or pre-sales before anyone else.

This isn’t a very sustainable tactic since that just spreads everything out over more days. But its something I’ve seen happen in the weeks before Black Friday 2017.

A good example comes from Dutch retailer Coolblue. They came up with Blue Friday. It’s Black Friday, but just a week earlier.

They packaged well. Claiming the postal services would be overburdened on actual Black Friday, they wanted to make sure that their customers would receive their orders in time. This angle allowed them to attract some PR to their event.

coolblue blue friday

2. Exclusive early access for customers

A small variation on the above is the put out an early access deal exclusive for your existing customers. This has the additional value of rewarding them for their loyalty.

And if you have a couple of items that are at risk of selling out, you can play on the scarcity.

3. Limited discounts

Put together a good deal, but something that still is profitable to you. You might not maximize sales, but you will be closer to maximum profits.

You don’t know the economics of other stores, so don’t blindly copy their discounts.

4. Different promotions

Black Friday and deep discounts aren’t the best fit for every brand. Training customers to expect or wait for discounts is a slipperly slope.

And if you have a premium brands, those discounts might hurt you.

5. Boost cart value

Here is a promo from shoe retailer Anothersole, 40% off on the 2nd pair. This is a smart deal, the big discount will get people to take action right now, but the full margin on the first item will offset some of that 40% to preserve overall profitability.

How To Create Your Own Black Friday

For retailers, there are only a handful of days/periods through the year that can really boost sales: Black Friday, Cyber Monday Christmas sales, Halloween, Valentine’s Day, Back to School, Super Bowl, World Series, etc.

But these are also the days when every other retailer is fighting for the same customers

You want to do your own thing and push hard when your competitors are asleep at the wheel.

The ever-amazing Seth Godin has come up with a blueprint we can follow to create our own Black Friday style event.

  1. Find something that people are already interested in doing (in this case, shopping)
  2. Add scarcity, mob dynamics, a bit of fear
  3. Repeat the meme in the media. Press releases, B roll, clever statistics regardless of veracity
  4. Do it on a slow news day, and mix in famous names, famous brands and even some hand-wringing about the plight of worker

It’s easier said than done. Creating and promoting a new event to promote your store might seem like a roundabout way to drive sales.

But if done well, the potential is huge.

Let’s take a look at two examples below to get some inspiration.

Amazon Prime Day

The company that has won, and will win all Black Friday’s in the foreseeable future of course is Amazon.

But that doesn’t mean that it is their prime focus.

To celebrate their 20th birthday, back in 2015, Amazon started with Prime Day.

Now it’s a recurring event in the middle of July, definitely a time when sales slide a bit for most of stores.

You need a Prime subscription to participate.

Like Black Friday, this has been picked up by media & vendors. The only difference is that’s this is Amazon’s own holiday.

The coverage surrounding Prime day is getting bigger with every year. The biggest websites on the Internet are giving the free publicity. And nobody seems to mind.

Knowing that there is money to be made, their huge affiliate network goes into overdrive to collect their own affiliate fees.

Not to mention that this event is in July. A Prime membership is required to participate. So when Black Friday rolls around, guess who has added a healthy stack of new members?

Nordstrom Anniversary sale

The second example is Nordstrom Anniversary sale, an event which generates “Christmas-like sales“.

The mechanics are very similar to Amazon’s Prime Day: middle of summer, huge discounts & affiliates pushing hard.

They have even refined their approach further, with Nordstrom credit card holders getting early access to the best deals.

Back to you

What will you do different next year? Let me know in the comments!

About the author

Dennis

Dennis is the founder of Store Growers. He's an ecommerce PPC expert from Belgium and has been running Google Ads campaigns for over 8 years.

His goal is to cut through the BS when it comes to ecommerce advice and provide you with tactics and strategies that will make you more money.

Read more

4 responses to “The Black Friday Hangover

  1. Great post, I think with the growth of Ecomm, people are so focused on competition that unfortunately it can result in a lot of work for not enough bottom line profit in the end. More sales does not mean more profit every time.

Leave a Reply

Your email address will not be published. Required fields are marked *