We asked a couple of members of Team RevLifter for their predictions for Black Friday 2023. And they very nobly obliged.
Let's start with Leigha Beynsberger, one of our Customer Success Directors:
"The past few years have been economically challenging for most, so I'd expect consumers to be more considered with their purchases and on the hunt for great deals!
Because of this, when and how retailers deliver their offers will be more important than ever, so I think we'll see a real focus on audience segmentation and personalization."
Then over to the head honcho Simon Bird, RevLifter's co-founder and CEO, who also shared his thoughts with IMRG:
"There is way more emphasis and interest around testing and experimentation this year. One trend I’ve noticed is that retailers are entering the Black Friday window with many offer variants.
The idea is to build enough data to inform which offers should be pushed and which should be dropped. Usually, it would take weeks to prove which offers are working, but the appetite for Black Friday makes testing, learning, and acting on your results quicker."
They are wise people, Team RevLifter. Let's dive into their predictions a bit more.
Showing the customer you care on Black Friday
Discounting in tough times
In a challenging economic climate, offering discounts can be critical in an eCommerce strategy. During such periods, customers are more likely to tighten their spending habits, seeking the best value for their money. In response, discounts can be a powerful tool to stimulate customer spending and maintain sales volume.
According to a survey by RetailMeNot, over 80% of shoppers believe that deals or discounts influence their purchasing decisions to some extent. Therefore, sales promotions like Black Friday provide an excellent opportunity for eCommerce businesses to boost sales and attract new customers, even amidst economic downturns.
Discounts can also enhance customer loyalty and satisfaction. A well-timed discount can create a positive customer experience, promoting repeated business and customer retention.
Personalization enhances customer experiences
Personalization can play a vital role in the context of Black Friday and other sales events. By tailoring deals and offers to individual customers, brands can ensure they deliver value, meet customer expectations, and create a memorable shopping experience. This personalized approach to sales promotions and excellent customer service can translate to higher customer satisfaction and more repeat business.
According to a study by Epsilon, 80% of consumers are more likely to make a purchase from a brand that provides personalized experiences. Not only does personalization influence buying decisions, but it can also contribute to a more positive overall experience, leading to increased customer loyalty and retention.
The value of great customer experiences
Evidence suggests that customers appreciate and reward businesses that show they care. Businesses prioritizing customer service and customer experience during challenging times have seen increased customer loyalty and higher customer lifetime value.
According to a study by PwC, 73% of all people point to customer experience as an important factor in their purchasing decisions, just behind price and product quality. Moreover, an American Express study found that 90% of Americans use customer service to decide whether or not to do business with a company.
These studies underscore the importance of customer-centric business practices in building and maintaining consumer loyalty, especially in challenging economic times.
Black Friday and the quest for test validity
Black Friday represents a unique opportunity for businesses to experiment with targeting and testing various offers and promotions:
- The sheer volume of shoppers during this period makes it an ideal time for gathering robust data on customer behavior and preferences.
- Shoppers are typically more open to trying new things and taking advantage of deals, providing a platform for businesses to test out different promotional strategies and gauge their effectiveness.
- The diverse demographic that is drawn to Black Friday sales allows businesses to fine-tune their targeting strategies and understand which segments respond best to which offers.
One of the challenges when running tests and experiments in any marketing channel is ensuring that your experiment is valid with enough data. This is where the volume of Black Friday shoppers becomes advantageous. The larger the sample size, the more reliable and generalizable the results will be.
Controlling for bias
However, obtaining a sufficient volume of data is only the beginning.
Ensuring the validity of marketing tests and experiments involves careful planning, proper segmentation, and consistent methodology. Biases or confounding factors can easily distort results, leading to inaccurate conclusions.
For example, the data may not represent typical consumer behavior if an experiment is run during an unusual period. Therefore, it's crucial to account for potential influencing factors and control them as much as possible. This ensures the data collected is reliable and provides an accurate snapshot of consumer preferences and behavior.
Designing a statistically valid Black Friday test plan
To conduct a statistically valid test during the Black Friday event, it can be beneficial to implement the following concepts:
Hypothesis formulation
Begin by formulating a clear and measurable hypothesis. For instance, you may hypothesize that offering a 30% discount on items above a certain value will increase sales by 15%.
Random sampling
To avoid selection bias, ensure your sample represents the entire customer base. This can be achieved through random sampling, where every customer has an equal chance of being selected.
Control groups
Implement control groups to compare the effect of your test conditions. For example, a group of customers exposed to the 30% discount (test group) and another group that sees the regular price (control group).
Time frame
Determine a specific time frame for your test. It's critical to run it long enough to collect sufficient data and remember the uniqueness of the Black Friday event.
Statistical significance
This will determine if the results observed are likely due to the change you made or just random chance. Use statistical tools and calculations to verify the significance of your results.
Replication
To confirm the reliability of your test results, replicate the test under the same conditions. If you get similar results, it increases the validity of your findings.
Remember, the goal is to ensure your test's results are reliable (consistent if repeatable) and valid (accurate measurement of what it claims to measure).
REPLAY: Maximising your Black Friday gains: Retaining customers and harnessing data
Watch a recording of a LinkedIn Live session with our VP of Marketing, Dan Bond, talking to Sol Wilkinson from Hello Partner about how to make the most of Black Friday:
Making the most of Black Friday
Black Friday presents a golden opportunity for businesses to delve deep into customer behaviors, gauge the effectiveness of various promotional strategies, and refine their marketing approach.
It's not just about capitalizing on the spending frenzy but also about learning, iterating, and improving your strategies for the future. This approach ensures that Black Friday becomes a long-term investment that pays dividends long after the sales event has ended.
