2021 Guide for E-Commerce Referral Strategy on Black Friday
Black Friday provides a crucial chance for merchants to grow sales, recruit new consumers, and increase profit margins during what has been a difficult year for them. Given the current economic scenario, shoppers are even more focused on finding a good bargain, with many already planning to conduct their Christmas shopping during the seasonal sale.
E-commerce and multichannel companies may improve sales in a variety of ways on and around November 29. Referrals increased in lockstep with online order volumes, as customers suggested their favorite products to family and friends. Despite the reopening of stores, the trend for retailers in sectors has been positive year over year.
When you consider that people trust their friends' recommendations more than any other kind of promotion, a Black Friday referral campaign may help you recoup profit margins while also bringing in new clients who meet your target demographic.
Continue reading to find out how to set up a Black Friday referral campaign that will bring in new consumers who will return throughout the Christmas season and beyond.
1. Attractive, unique designs
Black Friday is an excellent time to reaffirm your brand's unique selling propositions and positioning. From language to tone of voice to design, use your referral campaign to promote your identity. From fashion labels to fitness and cuisine, our Black Friday lookbook is packed with examples.
It's also a good idea to use Black Friday-themed branding to help your promotion stand out. Add dashes of black to your typical color pallet to draw attention and make it clear you're taking part in the event. You may even give the celebration your own spin, like the vegan food business all plants did with their rebranding to 'Green Friday.'
2. Be ready
Don't be the brand that needs to terminate a campaign early due to a lack of preparation. Every Black Friday, some merchants face the bittersweet situation of exceeding expectations to the point that they run out of promotional codes. Consumers are unable to receive their referral bonus, and shops lose potential sales and value new customers as a result.
The current epidemic may put additional strain on your supply chain this year. To avoid this, plan ahead of time for things that are likely to sell out and have a strategy in place, such as suggesting similar, accessible alternatives.
3. Promotions
Because Black Friday is such a competitive holiday, it's critical that your campaign be well-publicized and pushed throughout the client journey. Put it on your site, use it as a post-purchase pop-up, and promote it on social media.
To improve your promotion, use what you've learned from A/B testing past referral campaigns. Use terminology that resonates (for example, 'give' a reward rather than 'receive' one, or vice versa) and display at the touchpoints you know your consumers connect with the most (what we call the curve of joy).
4. Be irresistible
Given the abundance of Black Friday discounts available, your incentive must stand out. Instead of making a blanket offer across your whole website, segment your consumers and make individual offers depending on what you know about them. Do your repeat clients prefer percentage or fixed-sum discounts, for example? Is a free gift or a chance to win a competition more motivating for recommended friends to buy for the first time? Include context by pushing your offer via solo emails and push notifications at times when you know consumers are most likely to respond.
Double discounts have a strong track record. While you may be concerned that this would reduce your profit margins, your referral program will almost probably be less expensive than digital marketing channels such as pay-per-click (PPC) and social media advertisements. Take advantage of this by providing a substantial reward. It might easily pay for itself; a larger discount than normal is more likely to increase sales and income than a less noticeable deal.
Discounts aren't the only thing that works. Other incentives for clients to suggest your company include free gifts, VIP invitations, and competitions. For subscription-based businesses, it’s also worth considering incentives like a free month’s service.
5. Retargeting
Customers might easily become overwhelmed during Black Friday, with so many businesses jostling for attention and yelling about their incredible deals. They could come to your site to look around before getting drawn away by another brand's offer.
Use advertisements to retarget visitors to your site who haven't finished their transactions yet. It's much better if it's customized. Follow-up emails with recently seen goods or their basket can be used to supplement these adverts. Customers frequently browse around for the best bargain, so they may have recognized the value of your offer and be ready to complete the transaction at this point.
6. Customer return strategy
By connecting with your clients throughout their journey, you may avoid the terrible aftermath of the Black Friday surge. Customers who are new to you are likely to have distinct traits than those who are already customers; adjust your interactions to reflect this. Shoppers are most likely visiting your site in search of a Black Friday deal, but connecting with them in the correct ways can improve the probability that they'll return and buy again.
Customers may join your loyalty program for special access to new collections, for example. Share engaging and educational material with them, such as how to get the most out of their Black Friday buy or consumers discussing similar purchases on social media.
7. Rise and shine
Black Friday can be a stressful time for businesses as they try to break through the clutter and reach out to customers. Take advantage of the fact that 51% of consumers trust a reference from a friend or partner more than any other kind of promotion.
This isn't the only method to go about it. Launch a competition that encourages user-generated material, for example. It's simple for a potential buyer to scroll past an advertisement, but if they're following a lot of people – friends or influencers – who are all sharing information related to your Black Friday campaign, it's certain to catch their eye.
To put it in a nutshell
Despite the development of new media, marketers are increasingly finding it difficult to reach their target demographic. We are constantly bombarded with marketing messages that are entirely unrelated to us as consumers. The lack of trust in mainstream advertising is a second major issue. According to recent Nielsen data, consumer trust in marketing has eroded over the last five years. These challenges can be overcome with a solid referral marketing plan.
According to Talk Triggers, 83% of Americans say that word-of-mouth recommendations from people they trust make them more likely to purchase a product or service.
According to Neilson, people are 4 times more likely to buy a product after a friend refers them.
Acquire high-value clients at a low cost, increase retention and grow revenue through a targeted referral program.