Black Friday, which takes place the day after Thanksgiving, has historically been the biggest shopping day of the year in the US. By offering high discounts, retailers unofficially announce the start of Christmas holiday shopping fever.
Black Friday, which takes place the day after Thanksgiving, has historically been the biggest shopping day of the year in the US. By offering high discounts, retailers unofficially announce the start of Christmas holiday shopping fever.In the last decade, the biggest shopping holiday has spread not only over the Thanksgiving holiday weekend, but over a five-day period. It is now lasting from Thanksgiving Thursday (called also “Grey Thursday”) to Cyber Monday, when additional discounts for on-line shopping are being offered.
In today’s post, we will share with you a case of Slovenian retailer Big Bang, that is experiencing a December sales lull, after a Black Friday craziness.
Black Friday and Slovenian retailer Big Bang
In Slovenia, the Black Friday shopping holiday has become popular only in the last few years. Many Slovenian retailers have packed this custom together with accompanying events and special promotions into so called “Late Night Shopping”.
Big Bang Ltd., the biggest Slovenian Consumer Electronics Specialist, has also prepared days of exceptional discounts for its buyers during Black Five Days. Basically, the Black Friday Activity is set as short-term sales promotion activity. However, it also has a long-term goal of generating sales growth. Namely, it is used as a tool to improve price perception of the brand and as a Lead Generation tool, with the aim of gaining high-quality leads from the website.Exclusivity during 3-step “teasing” period, creation and set-up of special landing pages, attractive visual images, prize game with iPhoneX as the main award, CPC advertising, an extensive mix of external and internal communication channels (GDN, social media, banners, mailing, POS material, special promotion catalog etc.) and media exposure, are only a few ways Big Bang has used to promote Black Friday i.e. Black Five Days campaign.
5 key improvements Big Bang has experienced
Black Five Days campaign goals have not only been realized, but exceeded the expectations on at least 5 fronts:
- E-mail marketing base of Big Bang (potential) buyers has increased for 40%.
- Compared to last year Black Friday activity, there was a 70% increase in search of the Black Friday/Cyber Monday in combination with Bing Bang on Google search.
- Better results have been achieved on all key parameters, regardless the buying channel (on-line/off-line). Improvement was realized when making various comparisons – with the same period one week before and after the campaign, with YTD average and with Black Friday campaign in the same period previous year.
- When we compare on-line parameters with the same activity performed last year, a 49% YOY growth in sessions, 72% YOY growth in transactions, 77% growth in revenue and 16 p.p. growth in Conversion Rate can be evident. Biggest growth was achieved when comparing the results of Cyber Monday only. Cyber Monday was the second largest online shopping day in 2017, followed by Black Friday.
- Off-line parameters comparison with the same activity performed previous year shows a 4% YOY increase in the number of shopper walking into brick-and-mortar stores, 5% increase in closing rate, 3% increase in sales volume and 16% increase in sales value.
November boost slows down December sales
As evident from the given results above, pre-Christmas spending surged over last year Black Five days. But can we expect to see a slowdown in December, as firstly experienced in the previous year? Namely, the total sales performance of November 2016 was 15% stronger relative to the November in 2015, while December sales figures were 8% weaker. The drop can already be evident also for this year, when comparing MTD sales figures for December 2017 with December 2016.
Have your say!
It seems that the Black Friday effect of boosted sales in November slows retail sales in December. People are saving their purchases for Black Friday or for Cyber Monday, for that matter. However, this is experienced by a Slovenian retailer and our question is – is or was this the case also in other countries/industries? Please share with us your opinions!
About Big Bang
Big Bang Ltd. is the biggest Slovenian Consumer Electronics specialist, with clear strategy focused on added value services and convenience for the consumers. It is a multi-channel retailer, with 18 Brick And Mortar stores and online webshop, 370 employees and more than 100 mio Euro yearly turnover. Accordingly to GFK, Big Bang covers 30 to 60% share in consumer electronics market in Slovenia, depending on the category. Multi-channel business model focused on services and convenience for the consumer, following consumer trends and implementation of understanding Customer Decision Journey in Category Management and marketing, gave Big Bang an advantage of being the biggest Slovenian Consumer Electronics retailer.