#HTE 241- 🔥Get Your Black Friday Pricing Strategy

November 11, 2023 • Estimated Reading Time: 15 minutes

Hello Marketers!! 🙌

🚀 Welcome to the Saturday Edition.

Today we’ll dive into the best practices for making your Black Friday a hit! Learn how to set prices, navigate TikTok Shop 🕵️‍♂️, and measure customer value easily 📊. Whether you're a pro or just starting, we've got you covered.

Let's get started and get your brand ready for a fantastic holiday season! 

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Creating Your 2023 Black Friday Pricing Strategy🛍️📈

‘Not Mind-Blowing’: Brands That Have Started Testing Out Tiktok Shop Say It’s A Slow Burn🧐

How to Measure Customer Lifetime Value With Segment Analytics 🙌

Brand of the Week 🔥

Top Reads 📚

Job Board😲

Creating Your 2023 Black Friday Pricing Strategy🛍️📈

Before your marketing team dives into promoting your eCommerce store’s Black Friday deals and discounts, they should have a solid pricing strategy in place. 🛍️

And no, just a few colorful coupon codes won't cut it. 🚫💳

Your pricing strategy isn't isolated. To come up with discounts and promo codes that truly resonate with your ideal customers, your sales team needs to consider your audience demographics and targeting. This often requires collaboration with your marketing team. 🤝

UNDERSTAND YOUR BUSINESS NEEDS

The crucial factor in developing your holiday pricing strategy is your business itself: its structure, current profitability, and the flexibility of your product prices. 

For instance, if your eCommerce business relies on affiliates or partnerships for inventory (as one of our travel industry clients does), your window for discounting product prices might be limited. You might be bound by prices set by manufacturers or providers, requiring creative approaches to your Black Friday and Cyber Monday (BFCM) offers. 🌐

However, most e-commerce retailers have room to offer specific discounts and promotions during the holiday shopping season, as long as these align with the overall business profit model. 💸🎁

If you decide to implement Black Friday sales discounts, keep the following in mind:

  • Focus on items with higher elasticity or profit margins for more attractive discounts (20%, 30%, or even 50% off) that appeal to holiday shoppers.

  • Avoid inflating prices artificially for false discounts. Shoppers are browsing early, and any deception could leave a negative impression. If needed, incrementally adjust prices throughout October. 📉

UNDERSTAND YOUR CUSTOMERS

Next, consider your customers and their buying motivations. 🤔🛒

  • What drives new customers to convert? Special offers, limited-time deals, etc.?

  • What motivates shoppers to return and become loyal customers? Segmented email marketing, special offers, etc.?

  • The answers will shape your Black Friday pricing strategy. 🎯

For instance, if first-time customers are likely to convert with a broader discount offer, like 20% off their entire purchase, that might be your promoted offer during Black Friday. 🆕

Similarly, for a loyal customer base of VIPs, consider targeted offers (e.g., 20% off popular items) as part of an early access email marketing campaign before Nov. 24. 🌟

Whatever you choose, ensure your holiday promotions are segmented for different target audiences. The more detailed your offers to specific customer lists, the more likely you’ll boost online sales and revenue this holiday season. 📈

CONSIDER THE BENEFITS OF YOUR ADS

Whether running Google Ads or Facebook Ad campaigns during the Black Friday period, the impact of strategic discounts cannot be understated. 💻

Price significantly influences eCommerce paid advertising click-through rates. Advertising a promo or discount code that outshines competitors in search engine results or social feeds enhances ad performance. 

However, while coupons are great for attracting visitors, they shouldn’t be the sole foundation of your discount strategy. They should be part of a comprehensive Black Friday marketing strategy, considering how customers will act when they arrive at your site (e.g., conversion rate optimization efforts). 🔄

CAN’T OFFER A DISCOUNT? TEST OTHER OFFERS

If your business model doesn’t support large Black Friday promotions, consider creative offers that grab attention without sacrificing profits. 🤔💡

We often recommend offering a free gift (with a minimum purchase) for Black Friday/Cyber Monday. Choose a product with high elasticity, such as a brand sticker or small accessory already on your site. 🎁🌐

This special gift adds value to the purchase, attracts attention, and promotes additional product bundling to increase your average order value. 📈

Other incentives to consider:

  • Free shipping 🚚

  • Free expedited shipping 📦✈️

  • Buy-one, get-one coupons 🛍️🔄

In summary, whatever you offer for Black Friday, make sure it aligns with your brand differentiators. Stand out during the crowded holiday shopping calendar by taking your offer up a notch or two. 

LOOP IN YOUR MARKETING TEAMS

Whatever Black Friday pricing strategy you decide on, you’ll need your marketing team’s help to spread the word to your most valuable customers. 📢🎯

The best BFCM campaigns are omnichannel, meaning your brand serves up similar messaging (and discounts) across:

  • Email marketing

  • Social media marketing 

  • Paid search advertising 

  • Website banners 

The earlier you involve your marketing teams, the more effective your promotional discounts will be, reaching the right people at the right time. ⏰🚀

Some of the Pricing Page Examples 

‘Not Mind-Blowing’: Brands That Have Started Testing Out Tiktok Shop Say It’s A Slow Burn🧐

TikTok Shop Impact Report: Brands Experience Moderate Sales Boost 📈

Some brands recently ventured into TikTok Shop in the U.S., reporting a moderate increase in sales. While not mind-blowing, these initial results showcase the platform's potential for e-commerce success. Let's delve into the details.

Sales Increment: A Closer Look at Brand Experiences 📊

BK Beauty co-founder Paul Jauregui notes a 10% to 20% increase in net new sales, while Digishopgirl Media founder Katya Constantine reports a 15% rise for a food client. Discover how these brands navigated the TikTok Shop landscape for the past seven weeks.

TikTok Shop Unveiled: A Marketplace Within Reach 🌟

On September 12, TikTok officially rolled out Shop, a marketplace where users can make in-app purchases. Brands and creators alike can join, presenting a unique opportunity for engagement and sales. Learn more about the features and aspirations of TikTok Shop.

Sales Projections: TikTok's Ambitious Goals 🚀

According to The Information, TikTok aspires to achieve over $10 million in daily sales through TikTok Shop in the U.S. by year-end. Current daily spending hovers around $4 million. Explore TikTok's ambitious goals and the potential impact on the e-commerce landscape.

Challenges and Triumphs: Navigating TikTok Shop's Terrain 🗺️

BK Beauty's Jauregui shares insights into the challenges of setting up a TikTok storefront and managing orders. Despite occasional hurdles, Jauregui emphasizes the "gold in the hills" and the success found in TikTok Shops, particularly through the affiliate program.

The Future of TikTok Shops: A Platform Beyond Ads 🔮

While TikTok grapples with integration challenges, Jauregui envisions a future where TikTok transcends being just another efficient ad platform. Discover the potential benefits for both brands and content creators as TikTok aims to bring various elements together under one roof.

Balancing Challenges and Opportunities ⚖️

Despite initial hurdles, brands and creators find promise in TikTok Shops. As the platform evolves, the granular controls, affiliate features, and seamless integration with e-commerce vendors showcase the potential for growth. Stay tuned for the unfolding story of TikTok Shop's impact on the world of e-commerce. 🚀🛍️

How to Measure Customer Lifetime Value With Segment Analytics 🙌

Some U.S. brands selling on TikTok Shop claim a significant boost in profitability, and here's a compelling strategy to further enhance your brand's bottom line—aim for a 25% or more increase in profits by simply elevating customer retention by 5%. As you're likely aware, acquiring new customers is substantially more expensive (about six to seven times) than retaining existing ones.

The linchpin to effective retention efforts lies in understanding Customer Lifetime Value (CLV). CLV gauges how much a customer is anticipated to spend with your company from their initial purchase to their final one. It serves as a compass for pinpointing your most valuable customers, enabling you to refine marketing campaigns and elevate satisfaction, retention, and ultimately, your return on investment (ROI).

The implications of CLV are far-reaching, influencing your marketing strategy, sales techniques, and even the products or services you develop. Essentially, it stands as one of the most pivotal metrics to comprehend and enhance. Various formulas exist for calculating CLV based on available data. Employing segment analytics involves categorizing customers into groups with shared characteristics, traits, or behaviors, allowing brands to compute CLV for diverse customer categories and compare their significance to the business.

Here's a step-by-step guide on how to measure CLV using segment analytics:

Define Customer Segments:

  • Utilize criteria such as demographics, location, purchase frequency, product preferences, etc.

  • Employ tools like CleverTap for comprehensive customer data analysis.

  • Create measurable, accessible, relevant, and actionable segments based on diverse criteria.

Calculate Average Revenue per Customer for Each Segment:

  • Divide the total revenue generated by each segment by the number of customers in that segment.

Determine Average Lifespan of a Customer in Each Segment:

  • Estimate how long a customer stays with your business before ceasing purchases.

  • Refer to past data or industry benchmarks for accurate estimates.

Multiply Average Revenue by Average Lifespan for Each Segment:

  • This yields CLV for each segment, predicting a customer's worth over their entire lifespan.

  • Example: CLV = Average Revenue Per Customer x Average Lifespan of a Customer

Compare CLV Across Segments to Identify Most Valuable Customers:

  • Target high CLV customers with personalized campaigns to optimize your marketing budget and boost satisfaction and revenue.

In essence, while all Key Performance Indicators (KPIs) hold importance, CLV emerges as a critical metric for navigating a dynamic, competitive market. Leveraging segment analytics to measure CLV provides deeper insights into your customer base, allowing for tailored marketing efforts and informed, profit-driven decisions.

Top Reads📚

Gen Z brand Cider opens NYC pop-up ~ 10  November 2023, Retail Dive

Brand of the Week 🔥

Meet the creators of Living PranaTM—Ryan and Brian. Ryan, a health guru, got seriously sick once. But with the help of healers and nutritionists, he found out how to be healthy. Brian, a business whiz, struggled with feeling bad about himself until he made a big change by eating better and moving more.

Now, these pals are on a mission. They've cooked up PranaCakesTM, pancakes filled with goodness. But it's not just about pancakes; it's about a brand, Living PranaTM. They want to share healthy, organic, and planet-friendly foods with everyone.

Ryan brings his health knowledge, and Brian adds his business smarts. Together, they're not just making pancakes; they're creating a brand that cares about you and the Earth. The idea is simple: good food, good bodies, and a good planet.

When you grab Living PranaTM pancakes, you're not just getting a tasty treat. You're joining a movement—making the world better, one pancake at a time. It's not just a brand; it's a lifestyle, a tasty and healthy one.

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