• Avoid an inventory shortage, execute more efficient promotions, and understand the best channels to reach your customers are key factors to increasing sales
Last year, Black Friday promotions translated to $3.7 billion on Thanksgiving alone, followed by another $6.2 billion on Black Friday, according to Business Wire. Saturday and Sunday brought in another $6.4 billion in online sales, but these totals were eclipsed on Cyber Monday, which hit a record of $7.9 billion in sales.
Black Friday and Cyber Monday 2019 are right around the corner, and retailers are preparing for both in-store and online sales. But, how do they select the promotions, and how do they know they can afford to sell inventory for such low prices?
Through the power of Predictive Analytics.
Since the rise of online sales and big data, Data Scientists have been tracking historical data to do Predictive Analytics to stay ahead of trends.
Predictive Analytics is powered by algorithms that help build, test, and predict which customers are more likely to purchase, and which products will produce the most revenue based on trends, behavior, item popularity, and profit margins.
Take your insights to the next level.
Retailers track consumers as they browse through websites to find out which items they view, add to their cart, remove, and purchase. Through this data, they are able to predict how likely a customer is to buy certain products during Black Friday and Cyber Monday promotions based on what the interest has been in the past.
The discounts and how much product to sell to still produce ROI is determined with the help of Machine Learning. The data can also be used for the rest of the year to determine if they can raise prices on high-interest items to make up for the holiday discounts.
Retailers also monitor social media to determine inventory and sales. Product reviews, the knowledge of other promotions, and hashtags can be collected and analyzed to decide the interest in products during the holiday promotions.
Download the complete Business Insights e-Book to take your learning to the next level.