17 Nov 2017 Why Black Friday Is Bad For Small Business Owners
If you’re a retail business we guess by now the festive rush is well and truly under way…and you’re looking forward to what should be a great time for sales throughout December.
But before all of that we have ‘Black Friday’. The discount ‘holiday’ that made its way over from the USA back in 2010 where many businesses slash prices and push deals and offers upon us for one single day.
Sounds good doesn’t it…well maybe not….
Traditional Black Friday Marketing Is Expensive
It’s undeniably more difficult for small independent businesses to partake in Black Friday in comparison to the online and high street giants. Margins are usually tighter and marketing resources are limited.
Never mind the time it takes to create, send and manage campaigns…and here at Swipii we should know.
Our team create and send hundreds of marketing campaigns every day on behalf of the businesses that use Swipii.
So, how can small business owners gain buyers attention when there are big budget marketing campaigns splashed all over the High Street, TV and Online?
Well, you can’t really afford to make your product any cheaper and many would argue that you shouldn’t have to – mass retailers are having to up the ante every year and even they are struggling.
But independent retailers can still swoop in and take the gold…
…with Grade A customer service and a much better overall customer experience.
So with all of this in mind, it’s time for us to be upfront…
We Don’t Think You Should Get Involved In Black Friday
Black Friday goes against everything we believe in here at Swipii when it comes to small business marketing.
Here’s two quick reasons why…
#1 – Black Friday completely ignores customer loyalty and customer service for 24 hours…and the aftermath can be tragic for a lot of businesses.
Chances are, the new customers that walk through your door on Black Friday will never make a purchase from you ever again. Ouch!
There have been numerous studies showing the true value of loyal, repeat customers versus one time purchasers who are hunting for bargains on daily deal sites or waiting for Black Friday.
One study showed that customers who buy once have only a 27% chance of returning. In other words, 73% of first time customers will never return.
Let that sink in for a second.
#2 – By selling your products and services at a much reduced rate, you’re basically telling customers that it’s ok to pay the reduced price because your products are not really worth the full price.
Is that what you want customers to think when it comes to your business?
There’s no recovering from that. We can pretty much guarantee that customers will never pay full price for your product again, unless…
You are collecting your customers data…
If you really insist on getting involved in one of the biggest discount sales days of the year then you really ought to have a quick and effective way of capturing your new customers data.
I mean, how else do you plan to engage and communicate with the 73% of customers who are likely to never return?
After they walk out the door with their bargain, it’s too late – unless you have collected their contact data.
(You can see in the video below how Swipii helps our businesses to collect their customers crucial contact data in less than 12 seconds. No hassle. No queues. Just quick and easy data collection.)
By making it easy to collect your customers data at your point of sale, you are enabling your business to engage with the big time bargain hunters in a way that’s fun to them now and in the future.
Swipii’s customer-facing tablet is vivid and sparks interest among customers. Once they enter their email address they are able to collect points in your store which can be exchanged for bespoke offers and rewards.
Over one million users are signed up to Swipii because they love how the marketing offers they receive are personalised to them. They’re not receiving spam offers which are of no interest.
Customer Data Is The Lifeblood of Your Business
So, we’ve told you that you need to collect customer data and why it’s important, particularly on Black Friday. And we can hear you all asking…
“What actually happens with the data I collect?”
The customer data you collect is analysed by your very own Customer Success Manager who will present the key insights to you on a regular basis.
Taking these insights and marrying it up with their aggregated knowledge of what is working across the country in your sector, they will create and send targeted email campaigns for you that will drive customers back to your business more often, and spending more.
Here’s a quick example:
You have 200 customers who scanned into your store more than three times last month but haven’t returned this month. Wouldn’t it be great to get them back into the business to make a purchase? Think of that extra revenue!
Your Customer Success Manager will create for you a customised email that incentivises those people to return to your business. Perhaps this could be a free doughnut when you buy a tea or coffee before 10am.
They will then report back to you to inform you of how much extra revenue was made from that one campaign!
Here are some examples of real Swipii Email Campaigns from some of our businesses:
In summary then…
By collecting new customers data you can then continue to engage with them after they leave…and gradually convert them to become a loyal customer.
Note. Loyal customers don’t need big discounts to make a purchase – they already love what you offer and are happy to pay full price for it (although an occasional thank you gift or discount is never a bad thing).
Making use of customer data collected from your busiest periods is an essential element in combatting the natural January dip for brick and mortar stores.
Collecting customer data and using it smartly is crucial for the future of your business.
Do you own a small brick & mortar business? Interested to see how Swipii can bring your customers back more often and keep them away from the competition? Click here to learn more.
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