Should B2B companies participate in Black Friday sales?
Isn't it wild how Black Friday has become such a big thing. In the USA Black Friday as a shopping event dates back to the early 1960’s. The term “Black Friday” was first used in Philadelphia to describe the day after Thanksgiving when large crowds of shoppers would flock to the city.
Black Friday began to gain traction in Australia in the early 2010s, influenced by the rise of e-commerce and exposure to international retail trends. Initially, Australians shopped on U.S.-based websites for Black Friday deals, which prompted local retailers to adopt similar sales strategies. The significant turning point occurred with the arrival of Amazon in Australia in 2017, which brought Black Friday and Cyber Monday into the mainstream of Australian retail. I might be showing my age but I still think of boxing day sales as the primary shopping event, but Black Friday is growing more and more popular and a vital part of Australia's retail calendar and let’s be honest such a great time to get our Christmas presents at a discounted price!
In 2022, Australians spent AUD$6 billion during the Black Friday and Cyber Monday shopping period .
You may be wondering as a business that sells to other businesses, if you too should jump on this bandwagon…
Here’s why Black Friday is not just for retailers and could work for your industry too.
Changing buyer expectations: Today's B2B buyers, over 70% who are millennials, expect shopping experiences similar to those they encounter as consumers. They appreciate fast transactions, attractive discounts, and exclusive offers. This shift in buyer behaviour indicates that B2B companies can leverage Black Friday to meet these evolving expectations.
Targeted industries: Certain industries are well-suited for Black Friday campaigns, including B2B companies that sell fast-moving consumer goods (FMCG), office supplies, and products relevant to retailers, as these sectors often align their purchasing behaviours with consumer shopping trends, making them receptive to time-limited offers.
Construction companies that sell tools, machinery, or safety equipment can also take advantage of this opportunity by offering limited-time discounts or bundle deals.
Many contractors may look to stock up on essential supplies during this period, allowing construction businesses to increase sales and attract both new and repeat clients through strategic promotions that resonate with seasonal consumer spending behaviours.
Things to consider before joining the Black Friday frenzy!
Market fit: Not all B2B businesses will benefit from participating in Black Friday. Companies need to assess whether their products align with the shopping habits of their target market.
Strategic planning: A successful Black Friday campaign requires careful planning and a clear strategy. Companies should consider offering limited-time discounts on lower-priced items or products that are frequently ordered.
Sales cycle dynamics: B2B purchases typically involve longer sales cycles and more complex decision-making processes compared to B2C transactions. This means that while impulse buying is common in consumer markets, B2B buyers may not respond similarly to discount-driven urgency.
The more complex B2B companies require multiple individuals across a company to approve a tender and on average, it takes 6 to 7 stakeholders in the decision making process. With such a long purchasing journey, it is guaranteed that 10 B2B leaders won’t be sitting in front of the same monitor on Black Friday, refreshing B2B product pages. So, if your company fits into this category, it just might be a good time to get your Christmas shopping done instead.
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