Can Black Friday Competitive Intelligence give you an advantage in 2024?
Black Friday 2024 is approaching fast, with online spending set to reach $10.8 billion – a 9.9% increase from 2023.
Since Amazon introduced the concept in the UK in 2010, the world has changed a lot. Digital channels, mobile-first shopping and consumer loyalty are shifting faster than ever. So developing a Black Friday strategy has become the norm for many retailers.
Every year there are new expectations and trends set against the backdrop of a challenging economy. To get their strategies right, retailers need to be well-informed. They need to understand competitor strategies and plans and how position themselves for success.
That’s where AI-powered competitive intelligence has a significant role to play. In this article, we’ll look at the role of Black Friday competitive intelligence. We’ll explore how retailers can use competitive intelligence to gain and maintain an advantage.
What is Black Friday Competitive Intelligence?
It refers to insights about competitor and market activity gathered using AI-powered platforms.
In the context of Black Friday, it identifies insights on how competitors and consumers have approached the event in the past. Plus, more recent activity that may inform how they’ll approach Black Friday 2024.
The AI technology automates the collection of data online and in some cases analyses it too. Human analysts also play a role in curating the information. Retailers using competitive intelligence gain relevant and timely insights to inform their Black Friday strategies.
Consumer Behaviour Trends Shaping Black Friday
Black Friday shoppers today have evolving expectations. Knowing these trends helps retailers stay relevant in a competitive space. Here are the biggest shifts shaping this year’s retail landscape.
Mobile Shopping Surge
Mobile shopping has surged. In 2023, mobile devices accounted for 79% of all Cyber Week e-commerce traffic. Today, customers expect a fast, seamless experience, wherever they shop. For retailers, optimising mobile shopping is essential. It’s the first step to meeting customer needs.
AI-powered CI helps track competitors’ mobile functionality. By doing so, it lets retailers see where they stand. Are competitor mobile experiences smoother or faster? Knowing the answer helps businesses improve their own mobile platforms and stay competitive.
Social Media’s Growing Influence
Social media now plays a key role in buying decisions. Last year, 81% of consumers used social platforms like Instagram, Facebook, and TikTok to decide on purchases. Gen Z is especially influenced by digital engagement, turning to influencers and social ads for advice.
AI-powered CI can track how competitors perform on social media. It provides insights into engagement, campaign performance, and follower growth in real time. These insights allow retailers to adjust social media strategies, target the right platforms and reach specific audiences effectively.
The Shift to Sustainable and Cause-Driven Shopping
Shoppers – especially younger ones – now prefer sustainable brands. Over 64% of Gen Z and millennials choose products with purpose. Companies highlighting sustainability or social causes are capturing this audience.
Competitor tracking through AI CI helps brands spot these strategies early. By observing how others promote eco-friendly products, businesses can adjust their own messaging. This keeps them relevant to a growing group of conscientious shoppers.
Optimising Omni-Channel and Fulfilment Options
Omni-channel is critical for Black Friday success. One trend to watch is the growing use of Buy-Online-Pick-Up-In-Store (BOPIS). In 2023, 28% of Black Friday shoppers used BOPIS, showing that customers now want convenience and flexibility more than ever.
BOPIS and Convenience-Driven Shopping
BOPIS combines the ease of online shopping with the speed of in-store pick-up. This hybrid model meets the needs of modern shoppers, bridging the digital and physical worlds. For retailers, tracking BOPIS options through CI provides valuable insight into competitor performance.
AI CI tools can track fulfilment metrics, such as BOPIS options and delivery times. This allows retailers to ensure they meet or exceed competitor convenience and delivery speeds.
Real-Time Competitor Fulfilment Tracking
Knowing competitor fulfilment speeds and options can be a game-changer. With AI-powered CI, retailers can gain real-time insights into competitor fulfilment. For example, if a competitor offers same-day delivery, retailers can see that quickly and respond. Real-time data like this allows agile adjustments and boosts competitiveness.
Pricing and Promotion Strategies for Black Friday Success
Black Friday is competitive. The right pricing and promotions can make all the difference. AI CI helps retailers track competitor discounts and promotions in real time. These insights help companies make fast, data-driven decisions that drive sales without sacrificing profits.
Benchmarking Discounts in Real Time
Last year, Cyber Week saw discounts averaging 27% globally. AI CI allows companies to track competitor discount percentages and see how those impact sales volume. This real-time insight helps retailers set attractive discounts that boost sales while protecting profits.
Creating Urgency with Scarcity Marketing
Scarcity marketing, like time-limited sales and exclusive product drops, works well. In 2023, 31% of Cyber Week shoppers were motivated by these tactics. AI CI can help track competitor scarcity marketing, from product drops to flash sales. This lets retailers strategically plan their own time-limited offers to create urgency.
The Role of AI Competitive Intelligence in Black Friday Success
Black Friday moves fast, and retailers need to adapt quickly. Traditional CI methods can’t keep up. But AI-powered CI provides a crucial advantage. It lets retailers track, analyse and respond to competitor actions as they happen.
Real-Time Monitoring for Immediate Adjustments
AI CI provides immediate insights into competitor changes. This lets companies adjust their pricing or promotions on the fly. The result? Retailers can respond quickly to market shifts, keeping them competitive and agile.
Benchmarking Across Key Metrics
AI CI helps retailers benchmark themselves across critical metrics, from pricing strategies to mobile performance. Real-time tracking of these metrics ensures that retailers keep up with shifting market trends and customer expectations.
Implementing Black Friday Competitive Intelligence
For retailers new to AI CI, here’s a straightforward process to start:
- Define Clear Goals: Know what you want to achieve this Black Friday. Whether it’s driving mobile traffic or optimising discount rates, clear goals help guide CI initiatives.
- Choose the Right Platform: Select an AI CI platform that aligns with your goals, such as one focused on tracking discounts or social engagement. This ensures the right data reaches your teams.
- Focus on Relevant Metrics: Track the metrics that matter most, like discount rates, social media engagement, or fulfilment speed. AI CI lets retailers monitor these in real time.
- Regularly Analyse Data: Establish a routine for analysing CI data and sharing it across teams. This enables informed, agile decision-making throughout the Black Friday period.
- Evaluate and Refine: After Black Friday, assess your CI efforts. Look at what worked and adjust for future events. This creates a foundation for continuous improvement.
Conclusion
Black Friday 2024 will be highly competitive, but AI-powered CI gives retailers an edge. From tracking consumer behaviour to benchmarking pricing and monitoring fulfilment, AI CI provides the insights needed to succeed.
Retailers who use AI CI to understand competitors and adapt in real time will stay ahead, positioning themselves strongly for both Black Friday and future retail success.
Black Friday Competitive Intelligence FAQs
- What makes sustainability important for Black Friday? Sustainability resonates with younger shoppers. Over 64% of Gen Z and Millennials prefer brands that support eco-friendly or social causes. Adopting a purpose-driven approach can drive loyalty and sales.
- How can retailers optimise for mobile-first shoppers? Mobile accounted for 79% of Cyber Week traffic in 2023. Retailers should ensure fast-loading pages, easy navigation, and secure checkouts. Monitoring competitors’ mobile strategies can reveal improvement areas.
- Why is personalisation critical during Black Friday? Personalised content drives higher engagement and conversions. Tailored offers based on consumer behaviour ensure that shoppers see relevant deals, increasing the likelihood of purchase.
- What are the benefits of real-time competitive monitoring? Real-time tracking of competitor pricing, promotions, and social media engagement allows retailers to adjust strategies instantly. This agility is key to winning Black Friday sales.
- How can social media strategies capture broader audiences? Platforms like Instagram and TikTok are essential for Gen Z, but other demographics are increasingly active. A cross-generational approach ensures maximum reach and impact.
- What role does omni-channel readiness play in Black Friday success? With 28% of shoppers planning to use BOPIS, seamless omni-channel solutions are crucial. Competitors offering faster or more convenient options can easily win customers.
