The Black Friday Cyber Monday Dilemma: To Discount or Not to Discount?

Ah, Black Friday and Cyber Monday (BFCM). For consumers, it's a shopping extravaganza; for brands, it often feels like a conundrum. You've spent months, even years, fine-tuning your products, establishing your pricing strategies, and building value. The idea of slashing your prices for a short-term revenue boost can feel counterintuitive, even forced.

Understanding the Hype

Firstly, let's contextualize BFCM with some hard numbers. In 2022, Cyber Week alone saw 196.7 million shoppers in the U.S., which was an increase of 8 million over the previous year. Together, they spent a staggering $35.3 billion.

Black Friday originated in the United States as a day following Thanksgiving where retailers would offer steep discounts to kick-off the holiday shopping season. The term "Black Friday" refers to stores moving from 'the red' into 'the black,' signaling a return to profitability as the year winds down.

Cyber Monday entered the scene (thanks Amazon!) with the rise of e-commerce and focuses on boosting online sales. With 130.2 million online shoppers during Cyber Week 2022, up 2% from the prior year, the BFCM weekend has become a retail phenomenon that generates billions in sales globally.

The New Normal

Whether you love it or hate it, offering promotions around BFCM has become somewhat of an industry standard. Consumers have been conditioned to expect deals, and your competition is probably doing it too. Ignoring BFCM entirely could mean missing out on a sizeable revenue opportunity.

The Timing Factor

Interestingly, shoppers are becoming increasingly proactive: 18% are halfway done with gift buying by October, and a whopping 60% have already started browsing and buying by early November. Clearly, the early bird gets the worm—or in this case, the deals.

This means it’s no longer enough to start your deals on Black Friday - most brands start their holiday offers around mid-November to capture sales from early shoppers.

Brands That Break the Mold

Not everyone jumps on the discount bandwagon. Brands like Apple rarely offer direct discounts, focusing instead on bundling or offering gift cards with purchases. REI, an outdoor retailer, shuts its doors on Black Friday and encourages people to spend time outdoors with its #OptOutside campaign. Both strategies resonate with their brand ethos and customer base.

Smart Alternatives to Massive Discounts

You don't have to give away the farm to engage with consumers during this period. Here are some tried-and-true alternatives that we've seen great success with if you don't want to offer blanket discounts:

1. Value-added Bundling: Offer complimentary products as a package deal. The perceived value goes up, and you're not undermining your brand by lowering prices.
2. Exclusive Previews: Use BFCM to launch a new product line at full price but give early access or added perks for BFCM shoppers.
3. Buy More, Save More: Instead of cutting prices across the board, offer tiered discounts based on the amount purchased. This encourages larger order sizes while still providing a sense of value.
4. Limited Editions: Launch limited-edition products that tie into the holiday theme. Scarcity creates urgency without the need for discounts.

The Cost of Getting It Wrong

When navigating BFCM, keep in mind that a misstep can be costly. Poor inventory management, technical glitches, complex offers and communication or poorly executed campaigns can mean not only lost revenue but also a damaged brand reputation. That’s why having an ironclad strategy and flawless execution is paramount.

Time to Act

If you're still unsure how to navigate the tricky waters of BFCM promotions, remember: it's better to act sooner rather than later. Strategy, planning, and testing take time. If you're looking for expert advice on how to maximize your ROI during this critical period, don't hesitate to get in touch with us.

BFCM is not a one-size-fits-all event. But with the right strategy and flawless execution, it can be a massive opportunity. You don't need to compromise your brand’s value to participate; you just need to be smart about it.

Don't wait until it's too late. If you're looking to ace your BFCM campaigns, we're here to help. Reach out to us now and let’s make this your most profitable season yet.

Feel free to connect with me or drop me a message if you're interested in fine-tuning your BFCM strategy for maximum impact. The clock is ticking, and the opportunity won't wait!