Limited Supply Podcast Summary
Episode: S10 E5: 2024 BFCM Recap: Bigger, Better, Bolder?
Host: Nik Sharma
Release Date: December 4, 2024
Introduction
In the latest episode of Limited Supply, host Nik Sharma delves into the 2024 Black Friday Cyber Monday (BFCM) performance, analyzing key trends, successful strategies, and standout brand performances. Recorded amidst the hustle of BFCM, Sharma provides an insider’s perspective on what made this season "bigger, better, bolder" than ever before.
BFCM Overview
Sharma opens the discussion by highlighting the impressive statistics from BFCM:
- Black Friday Spending: Shoppers spent nearly $11 billion, marking a 10% increase from the previous year.
- Cyber Monday Projections: Anticipated to reach close to $13 billion, also up from last year.
“It looks like we've had a record-breaking Black Friday for Shopify, for Amazon,” Sharma notes at [02:50].
Black Friday Success Factors
Several factors contributed to the successful BFCM:
- Budget Scaling: Most brands increased their advertising budgets by 20% to 50%.
- Ad Performance:
- CPMs surged by 60% to 90% across accounts.
- Conversion Rates saw a notable rise, with some brands experiencing up to a 100% increase.
- Category Performance:
- Supplements: Excelled due to scalable offers and strong returning customer rates.
- Beauty Brands: Underperformed, potentially due to less compelling or fresh offers and challenges related to product variability like shades and expiration dates.
“Most brands that were not beauty had a pretty successful Black Friday,” Sharma observes at [05:00].
Strategies for Success
Sharma emphasizes the importance of preparation and strategic focus:
- Preparedness: Brands that succeeded were confident in their offers, website UX/UI, email flows, ad creatives, and overall campaign readiness.
- Retargeting Over Prospecting: Effective BFCM campaigns targeted existing customers rather than new prospects, leveraging past interactions to drive sales.
“They focused heavily on retargeting. They weren’t necessarily going for prospect or I should say like net new prospecting,” Sharma explains at [06:15].
Leveraging TikTok for BFCM
TikTok emerged as a powerful platform during BFCM, with brands adopting innovative strategies:
- Product Seeding: Brands collaborated with creators to promote Black Friday deals.
- TikTok Shop Execution: Effective use of flash sales, bundled offers, and updated product image carousels enhanced the shopping experience.
- TikTok Live Streaming: Companies like David Protein and Guru Nanda engaged audiences through live streams, showcasing products in real-time and interacting with viewers to drive sales.
“TikTok Live streaming…these live streams have hundreds, if not a thousand or a couple thousand people better alt,” Sharma enthuses at [22:10].
Standout Brand Examples
Sharma highlights several brands that excelled during BFCM through unique and effective strategies:
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Lemmy (Kourtney Kardashian’s Supplement Brand):
- Holiday Shop: A curated landing page with high-quality photography, holiday-themed messaging, and easy navigation.
- Example Quote: “You can use it for high level… or get really granular into the media buying analytics and data,” reflecting their versatile approach at [01:28].
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Mirrormate:
- Simple Promotions: Utilized site-wide banners with clear, straightforward offers like 25% off, ensuring ease of understanding for customers.
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Set Active:
- Curated Gift Guides: Created tailored gift guides (e.g., for the "Gym Brat" or "Hot Mom") through well-tagged collections, enhancing the shopping experience.
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Hexclad & Caraway:
- Holiday-Themed Imagery: Employed cohesive color schemes and festive elements in product photography to build trust and attract customers.
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Salud:
- Giveaway Strategies: Hosted contests where purchases entered customers into raffles, boosting engagement and sales.
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Jolie:
- Gift with Purchase: Offered high-quality tote bags instead of discounts, maintaining brand integrity while providing added value.
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Durf Avenue & Rare Beauty:
- Holiday Previews: Provided early access to holiday collections and detailed disclaimers, ensuring transparency and preparedness.
-
Revolve & iHerb:
- Social Proof Elements: Incorporated dynamic badges and Amazon-like star ratings to enhance credibility and drive conversions.
“Just thinking that Jolie has still never discounted their Shopify… they never had discounts in the back end while their competitors are offering similar products at 50% off,” Sharma remarks at [21:10].
Insights on Offers and UI/UX
Sharma distills key insights on what made certain offers and UI/UX designs effective:
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Simplicity in Offers: Straightforward promotions (e.g., 20% off one frame, 25% off two or more) outperformed complex discount structures.
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High-Quality Imagery: Professional photography not only builds trust but also enhances brand perception and facilitates higher click-through rates.
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Interactive Elements: Features like site-wide progress bars and gamified incentives kept customers engaged and motivated to reach purchasing thresholds.
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Clear Disclaimers: Comprehensive disclaimer pages prevented confusion and safeguarded brands against chargebacks and returns by clearly outlining promotion terms.
“Brands that crushed Black Friday did a good job of… making it very simple. Nothing was complicated,” Sharma emphasizes at [14:50].
Conclusion
Nik Sharma wraps up the episode by encouraging listeners to share their BFCM experiences and insights, offering a platform for further discussion and learning. He teases upcoming topics, including deep dives into Meta, health news, and platforms like Applovin, ensuring that listeners stay tuned for more valuable content.
“I'm curious to see what you guys saw. Also, as you're listening to this, if you hear something I say and you want to rebuttal it, you want to respond to it, you want to add to it, shoot me a DM on Twitter or shoot me an email,” Sharma invites at [18:55].
Key Takeaways
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Preparation is Paramount: Successful BFCM brands meticulously prepared their offers, website experiences, and marketing strategies in advance.
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Focus on Retargeting: Leveraging existing customer relationships yielded higher conversion rates compared to targeting new prospects.
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Embrace Platform Innovations: Utilizing platforms like TikTok for product promotion and live streaming can significantly enhance engagement and sales.
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Simplicity Sells: Clear, uncomplicated offers and high-quality visual content are crucial for driving consumer trust and purchase decisions.
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Transparency and Trust: Comprehensive disclaimers and professional imagery build brand credibility and mitigate potential post-purchase issues.
Join the Conversation:
For a deeper dive into the examples discussed, Nik Sharma invites listeners to join the Limited Supply Slack group where detailed links and additional resources are available.
Stay Tuned:
Don’t miss the next episode, where Sharma will explore Meta trends and Applovin strategies, continuing to cut through the noise in the DTC, CPG, retail, and e-commerce landscapes.
Thank you for listening to Limited Supply. Subscribe wherever you get your podcasts to stay updated on the latest industry insights and behind-the-scenes conversations.