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Avoid stocking issues, execute more efficient promotions, and learn the best communication channels to maximize your sales and competitive advantage this holiday season.
“Black Friday'' is a name most people recognize, but where did it come from? The term was first coined in Philadelphia in the 60s, when police began using it to refer to chaotic traffic generated in the city on the day following Thanksgiving. It took around two decades for retailers to catch on and use the term themselves, which is where we most commonly see it today.
It’s no surprise that Black Friday is most popular in the U.S., holding over 21% of global searches for the term. In 2022, American consumers spent over $9 billion online during Black Friday, up 2.3% from the year prior. In fact, Black Friday sees online traffic increase by 300% compared to an average day in October. A whopping 53% of Americans plan to take advantage of the pre-holiday sales; 25% of which are actually planning on shopping in-store, despite the general global shift towards online shopping.
It is precisely because of these impactful statistics that more and more retailers are wondering how to prepare themselves for Black Friday and its inevitable host of challenges. From excessive customer demand and inventory management challenges, to complicated logistical planning and tricky pricing strategies, there’s no shortage of hurdles for retailers on the most popular shopping day of the year. Fortunately, today’s modern Data & Analytics tools can help you solve these challenges.
Using Advanced Analytics techniques, it’s possible to create predictive models based on sales data from recent years, data from conversations on social media, and/or nationwide macroeconomic data. Predictive models can help provide answers to important questions such as:
- Which products will be best-sellers, and will we need to increase their stock availability?
- What will the consumer trends be?
- What offers and incentives will be most effective?
- What is the appropriate discount to find a balance between competitive pricing and solid profit margins?
- What’s the best way to communicate offers, and what messaging will generate the most impact?
- How much online traffic will there be, and how many of these visitors will convert to buyers?
Black Friday season produces a lot of valuable data. Through correct analysis and application of prediction tools, you can anticipate trends and extract other valuable insights that will allow for better decision making and more competitive promotions. Predictive analytics can empower retailers to maximize Black Friday sales, traffic, inventory levels, and customer satisfaction, ultimately providing a significant competitive advantage during this peak sales period.
SDG can help connect you with the tools you need to succeed. Contact us today to learn more and strengthen your Data & Analytics strategy in time for the upcoming holiday shopping season.
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