Black Friday Sale Tip: How to Double Your Profit
Did you know that you could use Black Friday to 2x your revenue next year?
One of the biggest mistakes brands make is they view Black Friday sales as cash grab opportunities.
The real value of Black Friday, or any sales promotion, is to generate new customers who are willing to pay you more than old customers will.
Black Friday should be used to sell BUNDLES to new customers and drive up the average order value (AOV) beyond the existing lifetime value LTV.
What you need to do now is to inspire that second purchase, which will help you more than 2x your LTV & scale your business forever.
Because the Black Friday purchase was of greater monetary value than your normal product at full price, we can assume that most people will be willing to buy the full price product or another bundle.
So we need to incentivize the purchase of a full-price product or another bundle. There are a lot of ways to do this, but one option is to offer a gift card to the customer several days before they are likely to buy again.
Remember every customer who buys a second or third time should do so at a regular cadence. Your customer might buy a second time after a week, or a month, or 90 days. Your job is to know what that is and anticipate.
Before that customer knows that they want to make an additional purchase, incentivize them to make that purchase and do so in a way that inspires them to pay you more money than the list price for your primary product.
A gift card on an overpriced bundle is still profitable because you can make the sale with an email or an ad. But the discount is a lower loss on the profit margin than trying to sell a normal price offer.
A $10 discount on a $100 product that you can sell for $25 is a $65 profit.
A 20% discount on a $50 product that you sell for $30 is a $10 profit.
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