(2) Offer, Consumer and Urgency

(2) Offer, Consumer and Urgency

1. Consumer Psychology on Black Friday
2. Urgency and Marketing Biases
3. Crafting an Irresistible Offer, Multiple Offers

Consumer Psychology on Black Friday

What happens during November:

Europe:

• Nov 1st to Nov 10th: full salary available, I can spend
• Nov 10th to Nov 20th: ????
• Nov 20th to December 1st: it’s BFCM and my November salary is coming very soon / just hit , so I can spend
• Spain and some other countries: double pay December !!

USA:

• Payday approx:
  November 1st
  November 15th
  December 1st

Looking at myself, and others around me, Black Friday is used for a few reasons:

1. Buy things on impulse, just because it’s Black Friday
2. Buy things that I usually buy, but just get them at a better price (restock supplements, gym clothes, sneakers, some technology, …)
3. I buy things from brands I discovered in September, October, November and I’ve been seeing their ads often, just didn’t have a strong reason to buy (RETARGETING !!!!)
4. Buy gifts that I will have to buy anyways in December, just get rid of the task now

In general, people are much more open to trying new brands.

1. Macroeconomic Context
   Low consumer confidence.
   
   This can mean that people concentrate their spending on BFCM, and they cut spending between summer holidays and BFCM/XMAS.
   
2. Disposable income & pay-cycle timing
   How much money is on the bank the day of Black Friday, or is the salary coming soon.
   
3. Perceived value & deal credibility
   Is this a real discount? Am I getting a great deal?
   
4. Social proof & scarcity cues
   Is this discount desired by other people?
   For how long will this discount be available?
   
5. Gifting pressure & deadlines
   I will need to receive this gift before December 20th, so better buy it now and make sure.

So, we’ll have 2 types of customers on Black Friday:

1. EASY BUY: They have seen your ads for a long time, they are in your email list, they follow you on IG
   
2. IMPULSE BUY: I think people are in a hurry. They don’t want to consume long videos. They are scrolling like choosing. What do you sell and what’s the offer?

Urgency and Marketing Biases

Why do we buy?

And how to use that in your ads and website?

1. Scarcity and Urgency:
Time-limited offers or messages like “only X left in stock” make people feel the need to buy before it’s too late.

2. FOMO (Fear of Missing Out):  

Create FOMO by having messages like “the biggest discount of the year” and also by having messages like “33 people already bought this today”.

3. Social Proof (same as above):  

This has a double effect: if everyone is buying it, I’m not afraid to buy too. But it also triggers FOMO, as you feel like the only one not invited to the party.

Example:

• ADS: Black Friday Last Hours
• Website header: countdown 12h:30m:10s
• Website PdP: below the product name
  “12,403 Reviews 4.6”
  “The best (product) I’ve ever bought… thanks!”

Crafting an Irresistible Offer, Multiple Offers

Elements to craft the offer

1. Discount
2. Shipping
3. Returns
4. Free Gifts
5. Message / Purchase Motivation (the biggest discount of the year)

Goal of the offer:

1. Ads: increase the CTR
2. Website: increase the CVR and AOV

Ways to structure the offer:

• Flat Discount
  25% off sitewide
• High perceived discount, based on net margin
  Up to 60% off
  Low selling products at -60%, best sellers at -10-20%
• Tiered discount based on spending
  On ads: Up to 50% off
  Website: -20% if <€40, -35% if <€80, -50% if <€150
• Tiered discount based on units
  On ads: Up to 50% off
  Website: -20% if 1, -35% if 3, -50% if 5+    
• BOGO
  Buy One Get One FREE
  
• 3x2
  FREE Product When You Buy 2 Units
  
• Gift With Purchase
  “Up to 40% off + Free Gift”  

It’s better if the gift is tangible, but logistically it can be tricky.

Depending on the industry, a digital resource could be useful, but it has to make sense and have a high perceived value.

Examples
Fashion Brand (Boots)
Tangible gift: Boot Care & Comfort Mini Kit
Digital gift: 30-Day Boot Outfit Builder

Jewelry Brand
Tangible gift: Care Pack (pouch and rag)
Digital gift: Jewelry Layering & Care Mini-Course

Supplement Brand (Melatonin)
Tangible gift: Sleep Mass
Digital gift: 21-Day Deep Sleep Program

• Last offer: “Build Your Own Bundle”
  I’m seeing this in a few Youtube videos already

Using apps like ‘Easy Bundle Builder’

What about the AOV?

Possibly the most important metric.

It’s not crazy difficult to have a high conversion rate on Black Friday.

But it’s difficult to have high AOV.

It’s key for scaling because it will allow you to pay a higher Cost per Purchase.

Actions:

1. Free Shipping at AOV +20%
   Signal that in the cart section
   
2. Build Bundles
   “Winter Set”
   “Black Friday Pack”
   “Family Pack”
   “Weekend Capsule”
   “Sleep Reset Stack”
   “Recovery Duo”
   
3. Post Purchase Upsells
   Care kit, travel size, laces, samples
   Gift cards (not easy to manage!)
   
4. Suggested upsells in the Product Page
   In the product page, avoid that people just buy 1 product.
   “Bundle up and save extra!”
   “Complete the look”
   “Frequently bought together”