14th November, 2024
As the holiday season approaches, many small businesses face both challenges and opportunities.
With Black Friday and Cyber Monday (November 29 and December 2, 2024) sales becoming increasingly popular in our market, savvy entrepreneurs can use these events as a springboard to not just survive but thrive during the later period of the year.
Here’s how to make the most of these shopping extravaganzas as you gear up for the “silly season” and set your business up for success.
Black Friday and Cyber Monday are major shopping events that mark the beginning of the holiday shopping season in the United States and now globally, too.
Black Friday, the day after Thanksgiving in the U.S., traditionally features significant in-store discounts and has historically seen large crowds of shoppers at retail locations.
Cyber Monday, which follows three days later, was created in 2005 as an online shopping equivalent, offering substantial deals through e-commerce websites.
While Black Friday originally focused on brick-and-mortar stores and Cyber Monday on online shopping, the distinction has blurred in recent years, with many retailers offering deals both in-store and online throughout the entire long weekend.
While Black Friday and Cyber Monday originated in the United States, they’ve gained significant traction in Australia and New Zealand over recent years.
According to MYOB’s latest SME Performance Indicator report, 51% of respondents now expect all businesses to offer Black Friday discounts or offers in Australia.
Additionally, 27% of respondents are more focused on buying from Australian businesses, with 61% of respondents also saying they’re willing pay more for an Australian product or service.
So, how will this impact retail businesses?
New research predicts that more consumers than ever will embrace the Black Friday/Cyber Monday sales window and are set to spend a record $6.7 billion during the four days (29 November to 2 December).
This is an expected increase of 5.5% compared to the same time last year.
With shoppers being savvier than ever right now, this trend for seeking out deals in the lead-up to Christmas presents a golden opportunity for businesses to boost sales and customer engagement.
To capitalise on the Black Friday and Cyber Monday shopping frenzy, start planning well in advance.
Begin by analysing past sales data to identify top-selling products and potential deals.
“Before placing an order for more stock, review the past year’s sales to understand the patterns in sale quantities,” says Beth Dowsett, a Product Marketing Manager for SMEs at MYOB.
“Don’t just jump ahead and order the same amount of stock you ordered for last year’s holidays. While it’s important to know the percentage increase in sales, you need to look at the trends for the current year, too.
“Run a report on inventory sales and include a column with current stock to evaluate what’s been moving and what hasn’t.
Optimising your online presence is another crucial for success during these shopping events.
Ensure your website is mobile-friendly, as lots of shoppers browse and make purchases on their smartphones.
Implement a robust search function to help customers find deals quickly and use clear, attractive product images and descriptions to entice buyers.
Remember, in the fast-paced environment of Black Friday and Cyber Monday, a user-friendly website can be the difference between a sale and a lost customer.
Plus, don’t forget to ensure your website and payment systems can handle increased traffic, thus preventing costly downtime during peak shopping hours.
Creating compelling offers is at the heart of Black Friday and Cyber Monday success.
Focus on providing genuine discounts that offer real value to customers.
Consider bundle deals or “buy one, get one” promotions to increase average order value.
To build customer loyalty, provide exclusive deals for your email subscribers or long-time customers.
These special offers can help you stand out in a sea of discounts and promotions.
Email marketing remains a powerful tool for driving sales during events like Black Friday and Cyber Monday.
Build anticipation by teasing deals in advance, and segment your email list to provide personalised offers based on customers’ past purchases or browsing history.
During the events, send timely reminders to drive urgency and prevent shoppers from missing out on limited-time deals.
A well-executed email strategy can radically boost your conversion rates.
Social media is a prime part of effectively promoting your Black Friday and Cyber Monday offerings.
So, it pays to create a content calendar specifically for these events, using popular hashtags like #BlackFridayAU and #CyberMondayAU to increase visibility.
Consider partnering with influencers to promote your deals, leveraging their audience to expand your reach.
Engaging content and timely posts can create buzz around your brand and drive traffic to your website or physical store.
With the boost to sales and enquiries that come from shopping events like Black Friday and Cyber Monday, it’s vital to ensure you’re prepared to provide excellent customer service.
Prepare your team for increased customer support by offering new training and setting up live chat support during peak hours.
Be sure your workers know all about the shipping times and return policies you’ve set, too, so they can answer questions knowledgably when they arise.
Having a list of common FAQs and their answers printed up for team members to refer to will make customer service more efficient and reduce the likelihood of wrong responses being given out, too.
Consider boosting your workforce with more casuals for this latter part of the year.
Run reports in your account software to check your available cashflow for new hires, and use self-service employee onboarding, such as that offered through MYOB’s software solutions, to ramp up your staffing quickly.
Beth says, “The integrated Flare feature makes onboarding new staff easy because it’s all digital, and your staff complete the forms themselves.
“Tax, super, and banking accounts are collected all at once, plus you have a digital record that the employee has received their Fair Work statement.
“Having your employees enter the details themselves not only saves you time but reduces the chance of errors when relying on paper forms.”
You can also save yourself headaches by using helpful tech tools to log staff hours.
“If you rely on your team clocking on and off for their shifts or submitting timesheets, save yourself some time by doing this through a system that integrates with your payroll.
“Your staff can download the MYOB Teams app to manage their time, including breaks, from their phone. From there, the details can be sent to the approving manager to sign off.”
Use these events to attract new customers and collect email addresses.
Implement a loyalty program to encourage repeat purchases during Christmas.
Use discounts to clear out older inventory, making room for Christmas stock, which improves cash flow and warehouse efficiency.
Introduce new product lines during these events to gauge interest and use this data to inform your Christmas inventory decisions.
Use data from Black Friday and Cyber Monday to predict Christmas trends – learn what people are looking for most in this latter part of the year.
Adjust your marketing and inventory strategies in December accordingly.
Use the revenue boost from these events to invest in Christmas inventory.
Consider offering gift cards during Black Friday to secure future sales, too.
Implement a clear, customer-friendly returns policy for purchases made during Black Friday to Cyber Monday and in the lead-up to Christmas.
Use returns as an opportunity to upsell or cross-sell other products.
By effectively leveraging Black Friday and Cyber Monday, you can survive and thrive during the Christmas period.
These events provide a valuable opportunity to boost sales, attract new customers, and gather insights to inform your holiday strategy.
With careful planning and execution, you’ll soon turn these popular shopping periods into a launchpad for a successful and profitable Christmas season.
Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.