In 2016, Black Friday moved in the Brazilian market about R$1.9 billion, a record since the date was incorporated to the trade calendar.
Such growth will extend to the 2017 edition mainly for the e-commerces that manage to retain the loyal customer. According to Google’s “Thank God it’s Black Friday” survey, 77% of consumers surveyed said they continue to shop on the same sites, with 34% doing almost all of their purchases in the same store.
“The date is already anticipated by the Brazilian consumers. There is no such thing as the ‘Black Fraud’ idea that existed in 2013,” said Jose Melchert, head of the Google Retail Industry.
In addition to the importance of customer loyalty, small e-commerces have been performing better than bigger brands, which have also grown, but at a slower pace. According to a survey, SMEs recorded a 161% increase on Friday, while the largest reached 134%. Considering just the Thursday before Black Friday, small businesses were the only ones that kept the three digits.
Recently, in her Forbes column, Katherine Black (Retail and Consumer Specialist) wrote about why customer loyalty has become primordial in retail. For Black, the entire chain of commerce experiences a small growth, and this is the result of several factors, such as Millennials and the constant evolution of digital platforms, resulting in disruption in the industry and stagnating growth. Although cost cutting may be the first strategy to be adopted, in the current Market the focus is on retention and customer loyalty
Strategical planning for customer loyalty is a way to increase and sustain market share. Those consumers who already have a relationship with a brand are more likely to keep loyal.
Still, corporate executives continue to acknowledge the importance of these actions, but they fail to put them into practice: “The process is not cheap. Investments in customer loyalty can represent 5% of sales. Therefore, in order for the money invested to return to the company it is necessary to reach the right consumer and a sustainable financial model. Understanding what your customer’s lifetime value value is key – but it is not always what will save more money.
In other words, being aware of how your company has been dealing with loyal customers is a key step in building the relationship, especially when we think of Black Friday. Differentiated actions and solid strategies gain even more importance when 370,000 people are expected to enter the market and buy for the first time in 2017, which accounts for 10% of all new e-shoppers in the year. Please them more than ever: focus on both customer and relationship!