Create a Winning Pricing Strategy for Black Friday and Cyber Monday in 10 Easy Steps

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Episode 56 of the eCommerce Matter's Podcast is now available, entitled ‘Create a Winning Pricing Strategy for Black Friday and Cyber Monday in 10 Easy Steps’.

Philip Huthwaite, Founder and CEO at BlackCurve, and Dr. Rob Horton, Chief Product Officer at BlackCurve, share valuable insights on how retailers can thrive during the high-stakes Black Friday and Cyber Monday shopping season.

The hosts dive into ten essential steps to help retailers prepare for and excel during the Black Friday and Cyber Monday rush. These steps encompass a wide range of pricing strategies and data-driven techniques. From using pricing tools to understanding market positioning and optimizing Google Shopping visibility, they cover it all.

The episode emphasizes the importance of data-driven decision-making, competitor analysis, dynamic pricing, and even simplifying product pricing to improve conversion rates. They discuss the significance of transparent shipping costs and the impact of framing product prices. Additionally, they touch on assessing organic search positions and choosing which products to discount strategically during the promotional period.

With the holiday shopping season fast approaching, these practical steps are essential for retailers looking to make the most of Black Friday and Cyber Monday. If you're in the world of eCommerce, this episode offers valuable insights to help you succeed during this critical time of the year.

Tune in to discover how to create a winning pricing strategy that can set you apart from the competition and drive success during Black Friday and Cyber Monday.

For even more in-depth insights and supporting materials, be sure to check out the accompanying blog post series on the Blackcurve website.

Where to listen

🎧 Available to listen now on all major podcasting platforms.

🎧 Available to listen to now on Apple.

🎧 Available to listen to now on Spotify.

Podcast Summary

Introduction

In this episode of eCommerce Matters, Philip Huthwaite, the Founder and CEO of Blackcurve, and Dr. Rob Horton, Chief Product Officer at Blackcurve, delve into the intricate world of pricing strategies for retailers during the high-stakes Black Friday and Cyber Monday (BFCM) promotional period. As the holiday season approaches, retailers are gearing up for a period of intense competition and skyrocketing customer demand. The hosts aim to equip listeners with a comprehensive set of pricing strategies and data-driven tactics to not only survive but thrive during the BFCM shopping frenzy.

Step 1: Get the Tools for Pricing Success

The episode kicks off with a crucial step: the importance of having the right pricing tools. Huthwaite emphasizes that data is king in the pricing game. Without pricing tools, retailers would be making decisions based on gut feelings. They urge retailers to set up the right pricing tools, like Blackcurve, to analyze data before, during, and after the BFCM period. The podcast encourages listeners to visit the Blackcurve website for a 14-day free trial to get started.

Step 2: Significance of Market Positioning

Step two highlights the significance of market positioning during BFCM. It stresses that merely discounting products is not enough; retailers need to align their pricing with the market. Using Blackcurve, they suggest identifying products that are priced too low and products that are too expensive compared to the market. By adjusting these outliers, retailers can optimize their pricing strategies.

Step 3: Improve Google Shopping Visibility

The hosts move on to discuss the importance of improving Google Shopping visibility. They mention that Google Shopping visibility scores are often less than 100%, indicating that a portion of a retailer's inventory remains undiscoverable on Google. This can lead to missed opportunities. To address this, retailers should ensure their Global Trade Identification Numbers (GTINs) are correctly sorted within their Google Merchant Center accounts. Blackcurve offers a free tool to help identify and correct GTIN errors, leading to improved visibility.

Step 4: Data-Driven Competitor Pricing

Step four emphasizes the importance of data-driven competitor pricing. The hosts suggest that retailers need to identify who their true competitors are online, considering factors like product overlap, brand power, price range, supplier relationships, and more. By using data to segment competitors, retailers can make informed pricing decisions and focus on competing with those who matter most. Blackcurve offers tools to help retailers analyze their competitive landscape on Google Shopping.

Step 5: Optimize Google Ads with Competitor Price Positions

The episode then discusses optimizing Google Ads using competitor price positions. It highlights that the cost per acquisition (CPA) during BFCM can spike significantly due to increased competition. By tagging products based on their competitor price positions, retailers can assign different bidding strategies. This approach allows retailers to focus their ad spend where it's most effective, ultimately acquiring more customers cost-effectively.

Step 6: The Power of Dynamic Pricing

Step six dives into dynamic pricing and its significance during the BFCM period. Dynamic pricing allows retailers to respond in real-time to market changes, including competitor pricing changes, sales trends, and stock availability. Blackcurve offers a solution for implementing dynamic pricing, ensuring prices are adjusted automatically to stay competitive. Safeguards are in place to prevent extreme price fluctuations.

Step 7: Simplify Prices to Drive Better Conversion

In this step, the hosts discuss the power of simplifying prices to improve conversion rates. They recommend testing the way prices are presented to customers on your website. Small changes, such as removing decimal places or using clearer formatting, can enhance the shopping experience and potentially boost conversion rates. Even a small percentage increase in conversions can make a significant difference during BFCM.

Step 8: Shipping Transparency for Reduced Cart Abandonment

Step eight emphasizes the importance of transparent shipping costs during the BFCM period. High shipping costs and unexpected fees are common reasons for cart abandonment. Retailers are advised to include shipping costs in the total price or clearly communicate shipping fees upfront. This transparency not only reduces cart abandonment but also builds trust with customers.

Step 9: Assess Organic Position vs. Price Position

The hosts discuss assessing the organic search position versus the price position in step nine. They highlight that the cheapest price doesn't always guarantee the best organic position in Google Shopping. The algorithm considers various factors, including product feed, click-through rates, reviews, and domain authority. Retailers are encouraged to use tools like Blackcurve to monitor their positions and understand where they can maintain prices despite not being the cheapest.

Step 10: Data-Driven Product Selection

In the final step, the hosts emphasize the importance of data-driven product selection for discounting during BFCM. Retailers should carefully choose which products to discount based on data insights. This includes targeting excess stock, testing slow-moving products, and strategically adjusting prices. The goal is to maximize sales and profitability during the busy shopping season.

Conclusion

The episode concludes with a reminder that success during BFCM is not solely about offering the lowest prices. Retailers must leverage data, strategic thinking, and a range of pricing techniques to stand out in the competitive world of retail. By following these ten steps, retailers can be well-prepared and increase their chances of having a successful BFCM season.

Key Takeaways

Data-driven decision-making is crucial for pricing success and discount success.
Proper pricing tools are essential to make informed decisions.
Understanding your true market position is a vital foundation for optimising prices.
Improving Google Shopping visibility is a key strategy. If consumers can’t find you, they can’t buy from you.
Data-driven competitor pricing is essential. Don’t blindly follow the competition. Only use the competitor data that matters.
Optimie Google Ads with competitor price positions makes your advertising costs work harder.
Dynamic pricing ensures real-time adjustments to market changes, meaning you will convert correctly throughout BFCM.
Simplified pricing can boost conversion rates.
Transparent shipping costs reduce cart abandonment.
Assessing organic position versus price positions on Google Shopping drives the best pricing behaviour.

With these insights, retailers can approach Black Friday and Cyber Monday with confidence, making this year's shopping season their most successful one yet.