Black Friday and Cyber Monday (BFCM) weekend has become increasingly important for Aussie retailers these past years, and with this year’s shopping period approaching, it looms large with high expectations. However, recent Shopify research uncovers a troubling trend –  only 15% of retailers feel fully prepared for the economic challenges ahead. Shaun Broughton Managing Director APAC at Shopify shares how you can prepare.

This gap in readiness underscores a pressing need for strategic action. Australian retail entrepreneurs know positioning themselves for success this BFCM means identifying strategies to grow their market share whilst ensuring operations are as efficient as possible.

How retailers can prepare for BFCM

Build stronger customer relationships with focused offerings and communications

Four in five (81%) of Australian retailers report acquiring and retaining customers as their biggest challenge, unsurprising in an environment where the majority of retailers are concerned about the impacts of inflation and weakened consumer demand. In this environment of heightened competition for share of wallet, retailers must work to create lasting connections with customers year-round, which can significantly impact their performance during high-stakes sales periods like BFCM.

To bridge this gap, retailers should prioritise building and nurturing strong customer relationships. This can be achieved in a number of ways. First, businesses should review their offering to ensure they are fit for purpose, for their customers in this current environment. Sometimes this may involve updating which products or product features a merchant heroes, or bundling certain products together.

The other way is to consider how they communicate these offerings with customers – finding opportunities to keep connected to customers with relevant, personalised engagement helps to keep you top of mind once they are ready to make a purchase. Ahead of this BFCM, 42% of merchants are launching exclusive offers and promotions, while 36% are using personalised email marketing to stay connected to customers.

Use digital tools to boost sales and inform decision-making

Most retail entrepreneurs’ customers are online, so it’s unsurprising 70% of them are focusing on social media engagement as a key lever for customer retention, while 63% are using social platforms for direct selling.

To maximise the impact of social media, retailers should develop a comprehensive strategy that includes regular, engaging content that resonates with their target audience.  This approach not only boosts engagement but also encourages a deeper connection with both potential and existing customers. Achieving this involves consistently interacting with customers by sharing promotions, behind-the-scenes glimpses, and user-generated content that highlights real customer experiences.

Beyond this, it’s important that leads and transactions generated on social media report back to your commerce platform. This is important in ensuring business leaders have the relevant data to make the right decisions at the right time. In fact, recent Shopify research found business intelligence was the number one priority for tech investment amongst Australian retailers, with 65% planning to increase their investment in it over the next 12 months.

Beyond social media, optimising your website for a seamless shopping experience is crucial. This includes ensuring that your site is mobile-friendly, fast-loading, and easy to navigate. A well-designed website can reduce cart abandonment rates and increase conversion rates, making it a valuable asset during peak sales periods.

Start preparing for BFCM early with actionable plans

To bridge the preparedness gap and ensure a successful BFCM, retailers need to focus on actionable solutions that enhance their overall strategy. Here are several key areas to consider:

Invest in Personalised Marketing: Consumers have grown accustomed to personalised messages and even product offerings, which is why 61% Aussie retailers are increasing their investment in personalisation over the next 12 months. The key to getting this right is collecting first-party data wherever possible, which gives retailers the insights to create differentiated customer experiences. Unifying touch points across online and offline is a good way to collect this data and form a truly 360° view of a customer.

Refine Promotional Tactics: Shopify’s Australian Retail Report found 59% of consumers say that consistently low prices and exclusive promotions are the best way to earn their loyalty. Effective promotions are crucial for BFCM success, offering a prime opportunity to attract new customers. With brands jumping on the BFCM bandwagon earlier and earlier each year, retailers should plan promotions well in advance, considering various tactics such as early bird specials, limited-time offers, and bundle deals. Ensure that your promotional messaging is clear, compelling, and aligned with customer expectations.

Leverage Digital Tools: 53% of Australian retail entrepreneurs are using AI for content generation, while around a third are using it to enhance product imagery (37%) and to drive marketing initiatives (35%). These tools can save time and ensure consistency in your messaging.

Prepare Your Supply Chain: While offers and marketing might bring a customer in, a poor experience with stock availability or delivery times might send them elsewhere next time. The majority of Australian retail entrepreneurs (80%) have cited this as one of their biggest pain points, and is especially important to ensure all is in order ahead of spikes in demand like those expected this November.  Having contingency plans in place can mitigate potential disruptions and ensure that you can meet customer expectations.

While BFCM is a fantastic opportunity for retailers, merchants must be well prepared to maximise sales and profits, while minimising stress and customer churn.

By carefully curating customer relationships, leveraging effective digital strategies, and implementing actionable solutions, retailers can position themselves for a successful BFCM. With a strategic approach, businesses can not only navigate the economic challenges but also capitalise on the opportunities that this high-traffic sales period presents.

Want more? Get our newsletter delivered straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter, Instagram, and LinkedIn.