Black Friday: Use data to drive your ecommerce strategy
Mobile usage for online shopping has grown by 55% over the past year, according to the annual PayFast Ecommerce Performance (PEP) Index report.
This highlights the importance of getting online ahead of the 2021 Black Friday season, as well as the critical role of data-driven insights, when it comes to planning a successful strategy for the biggest retail event of the year.
“Last year, Black Friday fell on 27 November, which is two days after payday for most people. Despite this, sales started to increase a week before Black Friday – peaking on the day itself, as well as on Cyber Monday.”
“With big online retailers like Takealot launching campaigns such as Blue Dot Countdown sale, shoppers are on the lookout for deals from the start of November already.”
“The lesson to merchants is not to wait until Friday to drive sales,” says Colleen Harrison, Head of Marketing at PayFast.
PayFast offers the following advice for businesses looking to capitalise on this year’s Black Friday excitement:
- Offer multiple payment methods: With QR code payments increasing by 178% in payment volumes in 2021, it’s critical for businesses – whether brick-and-mortar, online, or a mix of both – to consider the customer’s expectations and accommodate any scenario of sale, from contactless payments to options for buy now, pay later.
- Build a strong online presence: While businesses don’t necessarily need to have a digital storefront to sell their goods or services, they do need to give customers an opportunity to find their products online. While 92% of PayFast merchants currently use Facebook to sell and market their products according to a recent survey, businesses can also consider up-and-coming platforms like TikTok to reach a different customer demographic.
- Make room for more: Last year, total payment volumes increased by 283% on Black Friday, compared to other high-volume days, such as payday. This left some businesses scrambling to fill and dispatch orders on time – which can result in unhappy customers. By looking at your 2020 bestsellers and ensuring a seamless order-to-delivery journey for your customers, you should be able to plan ahead. If delays are going to occur, ensure those are communicated with your customers as soon as possible to manage their expectations.
“Black Friday is going to be about more than just the deals you are offering your consumers. From social commerce to mobile and instalment-based payments, this year will include a big focus on how your customers find and pay for their purchases.”
“Leveraging information generated by your online store, social media platforms, and buyer data is the best bet when it comes to meeting customer expectations,” says Colleen.
Due for release in early November, PayFast’s second annual PEP Index provides an extensive analysis of digital retail trends and unpacks the legacy of Covid-19, to help businesses prepare for the age of ecommerce.
The report includes industry, payment, and buyer data, sourced from the PayFast payment engine over the past year, as well as key findings from their 2021 merchant survey, and interviews with industry leaders across the retail and ecommerce sectors.
You can find more tips on how to prepare for Black Friday at www.payfast.co.za/blog.
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