Setting the Right Goals for Black Friday

Nevin and Mike break down how eCommerce brands should think about setting goals for Black Friday. How should you allocate budget throughout the funnel? Net new vs. Re-engagement? The your data will tell you the story and help you make the right decisions, as long as you know what you're looking at. In this episode, the hosts discuss the importance of finding the right balance between acquiring new customers and marketing to existing ones. They emphasize the significance of determining the number of new customers needed to "refill the gas tank" during Q4, as well as the potential revenue that can be generated by marketing to existing customers. The hosts highlight the cost-effectiveness of marketing to existing customers compared to acquiring new ones. They suggest using remarketing campaigns and first-party data to target existing customers, while also emphasizing the benefits of having a good return policy and taking care of existing customers. Overall, the hosts stress the need to continuously bring in new customers while nurturing and marketing to existing ones. The type of product being sold, whether it is a consumable or apparel, can significantly impact the promotional strategy and seasonality concerns. The hosts discuss how different promotional activities are required for selling consumables like coffee compared to selling apparel. For consumable products like coffee, the hosts mention Liz Roque from Lizzie's Fresh Coffee, who manages her own marketing. Since coffee is a consumable product, customers are likely to repurchase it regularly. Liz calculates the customer lifetime value and knows how often she can tap back into her existing customers. This suggests that for consumable products, the promotional strategy may focus more on customer retention and repeat purchases. On the other hand, selling apparel presents different challenges. The hosts mention that apparel brands excel at using promotional strategies during transitionary periods and dead seasons when they have excess inventory to move. They often send email marketing campaigns to their existing customers, offering discounts on the inventory. This strategy allows them to clear out excess inventory and can be more effective in the apparel industry, where distinct seasonal clothing lines exist. Additionally, the hosts mention that when it comes to attracting new customers for apparel brands, the lowest buy-in point is crucial. They highlight Black Friday and Cyber Monday as opportunities for customers to take a risk on a new brand with discounted prices. This suggests that for apparel brands, promotional strategies during peak shopping seasons can be used to attract net new customers. Overall, the type of product being sold, whether it is a consumable or apparel, influences the promotional strategy and seasonality concerns. Consumable products may focus more on customer retention and repeat purchases, while apparel brands may utilize promotional strategies during transitionary periods and peak shopping seasons to attract new customers. The hosts mention that they have previously covered when and how to start preparing for Q4 and the Black Friday season. This indicates that the episode provides guidance on the timing and steps to take in order to prepare for this important sales period. Furthermore, the hosts mention that they have moved on to discussing promotional strategy and learnings in relation to Black Friday. This suggests that the episode goes beyond just the initial preparation and delves into specific strategies and insights that can be applied during this time. Based on the transcript, it is mentioned that the episode is being recorded in the middle of October, aligning with the recommended timeframe for starting preparations for Q4 and Black Friday. This further supports the idea that the episode provides relevant information on when and how to start preparing for this sales season.