2021 was unique and complicated. But so was 2020. And 2022 will have its own challenges unlike its predecessors.
For retailers, Black Friday and Cyber Monday (BFCM) provided a backdrop for highlighting the differences between the retail landscape of today versus this time a year ago. Let’s dive into some of the major trends we witnessed during these all-important days and how retailers can use these learnings for 2022 planning.
The Shifting Holiday Landscape
According to Adobe Analytics, 2021 Cyber Monday spending decreased 1.4% from 2020, and Black Friday sales this year dipped 1.3% year-over-year. With lockdowns ending and more customers benefiting from disposable income, retailers expected greater success. There is a bright side, however. Despite lower sales on the specific BFCM days, overall sales for Q4 are up. The same report from Adobe Analytics showcased an 11.9% increase in YOY sales from Nov. 1, 2021, through Cyber Monday.
The takeaway? Retailers have more time to impress holiday shoppers and more time to test promotions, messaging and prices. And now, retailers must identify what worked within these same strategies and determine the best ways to retain holiday shoppers.
Keep reading to discover three ways retailers can utilize gicom solutions to learn from the Q4 2021 findings and achieve the highest profits for 2022.
1. Make Room for Creative Promotions
With the holiday season extending beyond the period between Black Friday and Cyber Monday, the noise of discounts can be overwhelming for prospective shoppers. Therefore, retailers should experiment with flash sale days at other times of the year, as these might get more attention from consumers. Taking a strategic approach to promotions, rather than trying to match the competition on the top-discount days can lead to more success.
With this strategy in mind, promotion planning should begin early in the agreement lifecycle. The negotiation phase gives retailers the opportunity to see how flexible their potential partner is with the budget. Will there be ways to implement discounts without drastically impacting margins? Successful collaboration between partners will be imperative to the promotional strategy and optimizing this process with an automated system will increase the speed to agreement.
2. Incorporate Dynamic Pricing with Price Architecture
Consumers and CPG brands are bracing themselves for rising prices as inflation grows worldwide. Achieving the best price for both the retailer and the customer as costs fluctuate takes practice and a firm grasp on market and enterprise data. But finding the right price also relies on collaboration between retailers and their partners.
Nearly every retailer is currently in negotiations to defend and prevent price increases from their partner and transparent pricing software is an essential part of these conversations. gicom helps retailers define their pricing strategy and demonstrate potential for improvement in any existing or upcoming agreements. With the proper reporting tools, retailers and their partners can manage pricing KPIs and highlight opportunities for growth that benefit both parties.
3. Closely Manage Partners for Collaboration
Even with the best forecasting technology the industry has to offer, 2022 won’t look the way we expect it to. The best way to protect profits during changing customer trends is to be agile, and agility requires collaboration within partnerships.
An automated agreement lifecycle management process will improve communication between partners and remove inefficient activities like manual approvals, data exchanges, agreement and contract reviews, and more. The automated system allows retailers to implement new strategies based on changing customer preferences without wasting time, so they can capitalize on opportunities before competitors.
Want to learn more about optimizing promotions, pricing and collaboration?
Reach out to gicom today to learn how to optimize promotions, pricing and transparency in 2022 – to witness demonstrations of our world-class solutions!