Harnessing AI to unlock retail success post-Black Friday

Blake Jackson at Dotdigital shares insight how AI can help retailers succeed this holiday season

 

As we approach Black Friday, the peak season of cross-channel marketing is poised to take off. Given that email marketing equates to around 15% of online holiday sales, brands need to ensure their marketing strategies don’t drown in the flood of Black Friday communications.

 

The challenge is to plan and structure campaigns successfully in readiness for the holiday rush. And recognising that Black Friday success is not made in just one weekend but also in the months that follow.

 

Research from Finder forecasts that during this year’s Black Friday and Cyber Monday sales, shoppers will spend an average of £189.59. This is a 31% drop from last year yet doesn’t signify a lack of interest in these sales events. Customers, despite their tighter budgets, are still hunting for bargains.

 

Intelligent marketing strategies

 

Winning over these customers and achieving conversions requires intelligent marketing strategies. This is where artificial intelligence (AI) comes into play.

 

Personalisation and segmentation become crucial in times of heightened shopping activity. The goal is to maximise revenue and relevance while reducing waste – AI-powered marketing segmentation tools can play a significant role here. Triggered emails and messages, driven by customer actions such as cart abandonment, can engage customers meaningfully and enhance conversions.

 

Harness customer data through AI

AI significantly amplifies the ways marketers can use customer data. Before Black Friday and the wider holiday period, review your customer database using a model that considers engagement, recency, frequency, and monetary value (eRFM).

 

Monitor your automated programmes’ performance to action these insights for an edge over the competition. Customise your messaging and offers for your engaged frequent customers as well as new shoppers. Use your predicted customer lifetime value (CLV) metrics to shape your marketing strategy.

 

Prioritise customer experience

Ensure a smooth customer experience. Pay attention to smaller yet crucial factors like fast, cost-effective shipping, and easy returns - these can make or break a sale. Combine this with a secure, easy-to-navigate checkout process, and you could outshine numerous competitors this Black Friday and into the holiday period.

 

Leverage notifications and reminders

Take advantage of back-in-stock emails, a useful tactic considering popular items may sell out quickly. Or consider new-in-store recommendations to help customers discover new products.

 

AI-led product recommendations in these emails can offer customers real-time product availability information, potentially driving more site visits. For customers who don’t always engage with your email marketing, consider other channels like SMS, WhatsApp or push notifications to deliver your message to the palm of their hand.

 

Use on-site popovers

Consider using an on-site popover for customers abandoning carts or exiting your website. Offer these customers alternatives, showcase customer reviews, or help returning shoppers pick up where they left off through welcome-back popovers.

 

Targeting customers who’ve stopped interacting with your emails during holiday periods could be fruitful. It’s the perfect time to remind them of your deals and holiday-themed products.

 

Introduce urgency

Creating a sense of urgency is an effective way to boost sales. AI can help businesses formulate engaging subject lines and calls to action playing on potential customers’ fear of missing out. For example, with Dotdigital’s WinstonAI™, brands can present real-time recommendations during the Black Friday sales, composing captivating subject lines that draw customers to your Black Friday specials.

 

Excitement throughout the season

 

Remember, Black Friday success isn’t solely down to heavy discounts and most definitely isn’t confined to the most talked about weekend in the retail calendar alone. Its after-effects can be exponential for brands who put in the legwork in the crucial months that follow.

 

Differentiate yourself by offering added value through unique initiatives, such as expert shopping advice, giveaways, charitable gifts, and holiday-themed social events. Harness the season’s excitement to ensure your Black Friday victory.

 

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Blake Jackson is Global Head of Marketing at Dotdigital

 

Main image courtesy of iStockPhoto.com