Black Friday and Cyber Monday (BFCM) have become monumental events in the e-commerce calendar. For many online retailers, the stakes are high, but the rewards can be astronomical. However, it's essential to make decisions backed by solid data, ensuring that investments and strategies yield profitable results.
Here are five ways to effectively leverage your e-commerce data to make strategic decisions for BFCM:
1. Historical Sales Review:
- Why it Matters: Last year's data is a goldmine. It can reveal what worked, what didn’t, and what can be improved.
- Action Plan: Examine the products that were top-sellers, times when traffic peaked, and the marketing channels that drove the most conversions. By identifying these patterns, businesses can forecast trends and align their strategies accordingly. With Glew, you can easily go back historically isolating last year’s BFCM. Keep in mind one decision can cost you thousands!
- Why it Matters: BFCM deals shouldn't erode your profits. Understanding the cost of goods, operational costs, and price elasticity can help you set discounts that entice customers while preserving your bottom line.
- Action Plan: Analyze the profit margins of your products. Consider factors like cost of goods, shipping, and potential returns. Armed with this data, decide on the depth of discounts or offers that can be provided without harming profitability. Glew automatically calculates your profitability by taking into consideration your cost of goods and advertising spend. One suggestion we have is to offer bigger discounts on products that have a higher AOV so you’re giving a discount but maximizing your profitability as well.
3. Website Optimization:
- Why it Matters: A smooth online shopping experience is crucial, especially during high-traffic events like BFCM. A difference between even a 0.1-second improvement in site speeds can result in a 10.1% increase in conversions.*
- Action Plan: Analyze website performance metrics from the previous BFCM. Pinpoint pages with high bounce rates, slow-loading elements, or abandoned carts. Enhance these areas to improve user experience and drive conversions. It’s key to make sure your site is easy to navigate on all devices too: mobile, desktop, and tablet, with 73% of BFCM purchases made on mobile devices in 2022.*
4. Customer Segmentation:
- Why it Matters: Not all customers are created equal. Segmenting allows for a more personalized marketing approach.
- Action Plan: Group customers based on their purchasing behavior, demographic details, or browsing patterns. Tailored campaigns can then be designed for each segment. For instance, first-time buyers should receive a different BFCM offer compared to loyal, repeat customers. Use Glew’s 31 out-of-the-box pre-defined segments or create countless personalized segments using Glew's 75+ filterable metrics. This makes it easy to use for email marketing, as well as personalizing your ads on Meta, Google Ads, etc!
5. Inventory Management:
- Why it Matters: Overstocking hurts profit; understocking hurts reputation.
- Action Plan: Begin by analyzing past sales data to anticipate product demand. Lean on historical sales insights to gauge product demand. Implement Glew’s alerts which can help with hourly stock insights, facilitating prompt marketing or supply adjustments. Additionally, maintain a safety buffer of bestsellers to account for unexpected demand surges. As the event concludes, strategize clearance promotions for any overstocked items, ensuring a rapid inventory turnover. Lastly, refine the entire process by reviewing the inventory performance post-BFCM, setting the stage for even more efficient management in the future.
BFCM presents e-commerce businesses with a valuable opportunity to significantly boost sales. By leveraging your data and conducting thorough analyses, you can make well-informed, strategic decisions that can maximize your profits during this pivotal shopping season. Remember, it's not just about splurging on flashy marketing campaigns or discounts; it's about using data to drive every strategic move, ensuring a successful and profitable BFCM.
*According to the Shopify article: https://www.shopify.com/blog/bfcm-checklist