Three tactics for a successful Black Friday
Black Friday is just two months away and the stakes are especially high this year. As retailers put the finishing touches to their peak trading strategies, it’s important to keep in mind that discounts alone aren’t enough to make last year’s customers come back. Instead, customer experience has become the deciding factor to success.
Our research backs this up. We found that customer loyalty is at an all-time low: 84% of consumers would consider switching away from the shops they usually buy from, and 81% would switch to shops that offer a better service1. Retailers who fall behind on customer experience stand to lose out not only on revenue and new customers, but they also risk losing existing customers to the competition.
Of course, a great overall online experience should be the cornerstone of every online store – but this can mean different things to different teams. Every Black Friday campaign should use tactics that are proven to provide real, sustainable competitive advantage by increasing conversion rates and customer spend, as a foundation.
So, which techniques are most effective in improving customer experience and driving customer spend?
To find out which optimization and personalization techniques have the biggest direct impact on online revenue, Qubit ran a four-year study of 2bn online user journeys and 120m purchases. We wanted to get as close to real business impact as we could, so the measurements in our study used Revenue per Visitor (RPV2) as the success metric. Our analysis revealed that six personalization techniques are especially powerful, with the three most powerful techniques being:
- Scarcity: Techniques that indicate low stock levels are the most effective of all the experiences in our dataset, returning an average RPV uplift of 2.9%.
- Social proof: Reviews, ratings or trending/popular products return an average 2.3% increase in RPV.
- Urgency: Experiences that impose or highlight time limits for purchase generally achieve an uplift of 1.5% on average.
To get the full list of the six most powerful tactics and find out how to incorporate these during peak trading season, watch our on-demand webinar with IMRG Editor Andy Mulcahy or download our ‘Reaching peak personalization’ guide. In both, we have included real-life case studies from Evans, Chemist Direct, Halfords and more, and reported back about the revenue uplift these tactics drove for these retailers respectively.
1Survey of 1,197 consumers in the US and UK conducted online by Toluna Quick Surveys on behalf of Qubit on May 25, 2017
2Defined as the expected revenue from a single visitor. The most effective experiences were ranked by the average incremental contribution to the revenue from visitors being measured.