Data Driven Black Friday: Increasing your sales with the help of data analysis
Posted: Sun Dec 22, 2024 7:17 am
In just under two months, there will be a new edition of Black Friday and being a data-driven company will make all the difference when it comes to capturing consumers.
According to a survey conducted by Nielsen , 59% of Brazilians want to make purchases on this date. The main niches sought by consumers are: cell phones, clothes, notebooks and furniture.
To ensure profitable offers that attract consumers, it is necessary to use analytical approaches to understand data from previous editions in order to bring efficiency to pricing, stock levels and consumer experience.
Who is the Black Friday consumer?
We can say that consumers who buy during Black Friday are divided into two groups: those who wait for the date to buy something they needed and those who look for good deals, even for items they don't need so urgently.
Therefore, there are two strategies that need to be considered when analyzing the data that will be responsible for pricing, and they are the ones that define the KPIs that will be decisive for decision-making:
Immediate profit with low discounts
It is one that applies sufficient discount margins to attract consumer interest, but that preserves some profit margin. However, it can directly impact the company's profitability and therefore, fixed and variable costs need to be considered.
For this strategy, the fundamental KPIs are: contribution margin per product; revenue and profit.
Future profit with aggressive discounts
This strategy aims to win new, recurring customers. Therefore, one of the actions is to malaysia phone number example reduce profits so that future results compensate for the loss.
The evaluation of results in this case consists of checking whether these customers bought again. However, it takes at least three months to be sure that it was successful.
For this strategy, the fundamental KPIs are: rate of new customers acquired; rate of customer return and average sales cycle.
What KPIs to measure on Black Friday?
But the above indicators alone do not guarantee a good overview of what is happening, and especially of what happened on Black Friday. It is necessary to go further in defining KPIs.
Therefore, we have listed here some of the indicators that cannot be missed in your analysis:
Product stock level
Average Ticket
Sales growth, comparing products that were or were not discounted
Website traffic
Traffic origin
Time on site
Number of sales
Conversion Rate
Shopping cart abandonment
Customer retention rate
CAC (Customer Acquisition Cost)
BI as an ally for Black Friday
The list of KPIs that can help managers make decisions, in addition to being extensive, is made up of numbers of different natures, making the analysis more complex.
Without knowing exactly what to do with this data, or understanding how it can be strategic and profitable for the business, instead of making intelligent decisions, the result can be a shot in the dark.
With the help of a BI tool, information can be monitored in real time by integrating it with other e-commerce tools. It is possible to monitor online and store sales, cross-referencing data and monitoring inventory, as well as managing the audience in a segmented manner.
BUT BE CAREFUL: Data is the basis for any good operation and when it is not structured, it does not provide the best answers.
Knowing your business data in detail allows you to access valuable information that facilitates the planning and projections needed to offer the best experience during Black Friday.
If you still don't use a Business Intelligence tool or don't know its full potential, watch our practical BI demonstration.
According to a survey conducted by Nielsen , 59% of Brazilians want to make purchases on this date. The main niches sought by consumers are: cell phones, clothes, notebooks and furniture.
To ensure profitable offers that attract consumers, it is necessary to use analytical approaches to understand data from previous editions in order to bring efficiency to pricing, stock levels and consumer experience.
Who is the Black Friday consumer?
We can say that consumers who buy during Black Friday are divided into two groups: those who wait for the date to buy something they needed and those who look for good deals, even for items they don't need so urgently.
Therefore, there are two strategies that need to be considered when analyzing the data that will be responsible for pricing, and they are the ones that define the KPIs that will be decisive for decision-making:
Immediate profit with low discounts
It is one that applies sufficient discount margins to attract consumer interest, but that preserves some profit margin. However, it can directly impact the company's profitability and therefore, fixed and variable costs need to be considered.
For this strategy, the fundamental KPIs are: contribution margin per product; revenue and profit.
Future profit with aggressive discounts
This strategy aims to win new, recurring customers. Therefore, one of the actions is to malaysia phone number example reduce profits so that future results compensate for the loss.
The evaluation of results in this case consists of checking whether these customers bought again. However, it takes at least three months to be sure that it was successful.
For this strategy, the fundamental KPIs are: rate of new customers acquired; rate of customer return and average sales cycle.
What KPIs to measure on Black Friday?
But the above indicators alone do not guarantee a good overview of what is happening, and especially of what happened on Black Friday. It is necessary to go further in defining KPIs.
Therefore, we have listed here some of the indicators that cannot be missed in your analysis:
Product stock level
Average Ticket
Sales growth, comparing products that were or were not discounted
Website traffic
Traffic origin
Time on site
Number of sales
Conversion Rate
Shopping cart abandonment
Customer retention rate
CAC (Customer Acquisition Cost)
BI as an ally for Black Friday
The list of KPIs that can help managers make decisions, in addition to being extensive, is made up of numbers of different natures, making the analysis more complex.
Without knowing exactly what to do with this data, or understanding how it can be strategic and profitable for the business, instead of making intelligent decisions, the result can be a shot in the dark.
With the help of a BI tool, information can be monitored in real time by integrating it with other e-commerce tools. It is possible to monitor online and store sales, cross-referencing data and monitoring inventory, as well as managing the audience in a segmented manner.
BUT BE CAREFUL: Data is the basis for any good operation and when it is not structured, it does not provide the best answers.
Knowing your business data in detail allows you to access valuable information that facilitates the planning and projections needed to offer the best experience during Black Friday.
If you still don't use a Business Intelligence tool or don't know its full potential, watch our practical BI demonstration.