Black Friday and Cyber Monday (BFCM) are two of the most important shopping events for small- and medium-sized businesses (SMBs). According to Adobe, in 2023, U.S. consumers spent $9.8 Billion on Black Friday and $12.4 Billion on Cyber Monday. To take full advantage of BFCM 2024, it's crucial to start preparing now to boost sales and streamline operations. A well-planned strategy, from inventory management to marketing and website optimization, will be key to success. For more detailed insights, explore Shopify’s Black Friday Checklist to guide your planning process.
In this blog, we’ll cover essential steps to prepare for BFCM and how Boundless can help you secure the capital needed to make this season your most profitable yet.
1. Available Capital
As BFCM is the biggest shopping event of the year, it’s crucial to stay on top of your cash flow and know how much capital you’ll need to meet demand and fund your marketing efforts. Consider these key questions:
Do you have enough to purchase new inventory?
Is there enough for your marketing budget?
Can you cover any miscellaneous expenses?
Do you have enough to pay your team?
If you answered “no” to any of these, don’t worry - Boundless can help you secure the capital you need for a successful BFCM. Let’s discuss how we can support you!
2. Start Planning Early
Planning is essential for BFCM's success. Nearly 50% of U.S. shoppers begin their holiday shopping before November. Early preparation helps you refine your strategy and set clear goals, whether it’s increasing sales, attracting new customers, or clearing out inventory. Analyze past performance to understand what worked and what didn’t, and tailor your strategy based on these insights.
3. Stock Up on Inventory
Demand during BFCM can skyrocket, and running out of stock means missing out on sales. To meet this demand, plan ahead by reviewing past BFCM performance and identifying top-selling items. You’ll likely need to order more inventory to avoid stockouts.
Securing capital to purchase additional inventory is crucial, and this is where Boundless comes in. Boundless will match you with lenders, ensuring you get fast and affordable financing to increase your stock without straining cash flow.
Interested to learn more about how we can help in ensuring you have the funding you need to avoid stockouts? Let’s chat!
4. Optimize Your Marketing Strategy
An effective marketing campaign can significantly boost your sales during BFCM. Focus on email marketing, social media promotions, and paid ads. Start early to build anticipation, offering exclusive deals to email subscribers or social media followers.
Email marketing has an impressive ROI, generating up to $42 for every $1 spent. Combine this with social media to maximize your reach:
Email campaigns: Send teaser emails, countdowns, and exclusive early-access offers to build anticipation.
Social media: Promote your BFCM deals on platforms like Instagram, Facebook, and TikTok. Use paid ads and work with influencers to increase your visibility.
If you plan to use paid ads during BFCM, be ready for higher Customer Acquisition Costs (CAC) due to higher competition, CAC is 13% higher during BFCM Week. Here’s how to manage that:
Test Ads Early: Start testing your BFCM ads now. Track how well they’re performing by looking at the click-through rate (CTR) and the thumbstop rate to understand how many people stop to watch your video ads.
Check Last Year’s Data: Look at what worked last BFCM - which creatives had the highest CTR and Conversion Rate? You might find you don’t need to create new campaigns from scratch.
Grow Your Email List: It’s never too late to build a bigger email list, giving you more people to reach when BFCM starts.
A well-planned campaign may require a higher budget than usual. Whether you need to invest in ads or hire temporary marketing staff, Boundless can help you scale up your efforts. Let's connect to ensure your marketing efforts have the capital backing they need during this busy period.
5. Ensure Your Website and Operations Can Handle Increased Traffic
Your website is your primary sales channel during BFCM, so it must be equipped to handle increased traffic and nothing is worse than your website crashing on one of the busiest shopping days of the year. Perform a thorough audit of your site, ensuring it can handle spikes in traffic. With 79% of consumers using smartphones for shopping, and 53% abandoning sites that take longer than 3 seconds to load - ensuring a smooth and fast experience is crucial.
Operationally, prepare for increased orders by streamlining fulfillment processes. You may need to hire additional temporary staff or equipment to handle the surge in demand.
This is where Boundless can offer support. If you need to invest in a better server, hire seasonal staff, or upgrade fulfillment systems, Boundless will help you get capital that enables these operational improvements.
6. Offer Early Bird Discounts and Exclusive Deals
Attract early shoppers by offering pre-BFCM sales or exclusive deals. Early bird discounts can help you smooth out demand and ease the pressure during BFCM itself. Consider bundling products or offering loyalty rewards to boost customer retention.
Providing such deals may require flexibility in your pricing and product offerings. To help offset costs, Boundless offers funding solutions that can be used for discount campaigns, ensuring you maintain profitability.
7. Prepare Your Customer Service Team
Expect increased customer inquiries and issues during BFCM. To provide excellent service:
Prepare FAQs: Create a comprehensive FAQ page covering shipping times, return policies, and order tracking.
Implement live chat support: Offer live chat or chatbots to provide immediate assistance.
Extend support hours: Consider extending your customer service hours to handle the higher volume of inquiries.
Effective customer support enhances the shopping experience and helps retain customers.
8. Simplify the Checkout Process
A complicated checkout process can lead to abandoned carts, which is a major issue during BFCM. To minimize cart abandonment:
Enable guest checkout: Allow customers to complete their purchases without creating an account.
Offer multiple payment options: Include various payment methods such as credit cards, PayPal, and Buy Now, Pay Later options.
Show all costs upfront: Be transparent about shipping, taxes, and any additional fees to avoid surprises at checkout.
A smooth checkout process helps complete sales and improves customer satisfaction.
9. Prepare for Post-BFCM Growth
BFCM is not just about making immediate sales; it’s about building long-term customer relationships. Plan for follow-up marketing campaigns and have the infrastructure to support new customers. Expanding your business post-BFCM may require additional funding, whether for hiring, inventory replenishment, or marketing.
Boundless continues to support your growth after the holiday rush. Whether you need working capital to sustain your post-BFCM momentum or plan long-term expansions, Boundless connects you to lenders that understand your business’s unique needs. Get in touch with Boundless to see how we can help you prepare for long-term success beyond BFCM.
10. Stay Flexible and Adapt
BFCM is fast-paced, so being adaptable is crucial. Monitor traffic, sales, and conversion rates:
Adjust marketing efforts: If a particular promotion isn’t performing as expected, modify your approach or boost visibility through additional channels.
Manage inventory: Keep track of stock levels in real-time to prevent overselling and disappointing customers.
Flexibility allows you to respond to challenges and capitalize on opportunities during the holiday rush.
BFCM 2024 offers incredible opportunities for businesses of all sizes. The key is preparation—stocking up on inventory, optimizing marketing, and ensuring your operations are ready for the surge in demand. With Boundless by your side, securing the capital you need to fund your BFCM plans is easier than ever. Let's discuss your funding options and make this holiday season your most profitable yet.
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