Despite the runaway success of Black Friday 2020, this year is set to be even bigger. Consumers are expected to set a new record, spending 5 per cent more on Black Friday this year compared to last – bringing good news for retailers trying to recover lost profits or sustain sudden revenue growth following an unpredictable 18 months.
For retailers with an effective referral programme, an even bigger opportunity awaits. Mention Me anticipates brands to acquire 9 per cent more new customers through referral on Black Friday than on the day last year – and these customers are more likely to return and spend more than those acquired through other channels, representing significant long-term value.
Mention Me’s latest study indicates that Fashion and Health & Beauty will retain their places as the top two sales categories at Black Friday, with 2 per cent and 5 per cent more sales expected on the day compared to 2020. After increasing a remarkable 80 per cent year-on-year on Black Friday 2020, sales for Home & Garden brands are expected to fall in terms of growth, while retaining volumes that outperform pre-pandemic Black Fridays.
An up and coming category for Black Friday is online services and apps, like Music Magpie. These have been increasing in popularity each year with order volumes up 55 per cent in 2020 compared to 2018, spurred on by people treating themselves and friends to subscription-based, online services. Mention Me’s analysts expect this trend to continue in 2021 as more businesses move online and consumers become increasingly familiar with these online services.
Meanwhile, after a tough 2020, travel and hospitality is expected to recover, with Mention Me anticipating these brands to at least double their 2020 volumes in 2021.
Consumers look to friends and family for guidance on brand recommendations
The data shows that recommendations from those we trust are increasingly influential on consumer buying decisions, with brands typically acquiring 4 per cent more new customers through referral this year compared to last, after a surge in referrals in 2020. Mention Me predicts this to rise to 9 per cent on Black Friday this year. Across the Black Friday sales period Mention Me’s own clients have gained an additional £20 million in revenue from their referral programmes.
Though not typically associated with Black Friday, Food and Drink brands are gaining momentum in driving sales and referrals during the event. Last year, Black Friday orders for this sector almost tripled year-on-year. With this dramatic rise in orders and referral increasingly successful as an acquisition channel, currently 29% more impactful than last year, it will be an interesting category to watch this Black Friday.
Subscription services are also seeing referral increased in importance as an acquisition channel this year, with referral anticipated to account for 4 per cent of newly acquired customers.
Simon Dring, head of retail insights at Mention Me said, “While uncertainty continues to linger in 2021, there’s no doubt Black Friday is going to be a big opportunity for brands this year. It’s about more than just posting big trading figures, this is a crucial moment to acquire new high-quality customers and nurture existing ones. Our data around referrals demonstrates the compounding combination of referral and big ticket days.”
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