December 12, 2024

The 24/7 Black Friday: Managing the extended shopping season

The evolution of 24/7 Black Friday specials from a single-day shopping event to a month-long retail phenomenon reflects changing consumer behaviours and strategic adaptations by retailers and logistics companies. This transformation is particularly evident in South Africa where the trend has gained momentum, prompting significant shifts in how businesses approach this critical sales period.

The positive outlook for Black Friday 2024 indicates the tide is turning for South African retailers after a long period of economic and retail stagnation. Among the factors that have helped improve the economic outlook include vastly reduced loadshedding, the introduction of the two-pot retirement system, an interest rate cut and lower inflation.

Black Friday has increasingly become a prolonged retail spike, often starting as early as October and extending through December. This shift allows retailers to engage consumers over a 10-week period rather than just focusing on one day. As consumer anticipation builds, brands are encouraged to maintain ongoing engagement through various promotional strategies including teaser campaigns and early-access deals.

The average consumerā€™s experience has become more intricate, characterised by extensive online research and comparison shopping. Consumers now begin their Black Friday preparations months in advance, making it crucial for retailers to adapt their marketing strategies accordingly. Brands now need to engage with customers throughout this entire period to effectively influence their purchasing decisions.

According to the Algorithm Agency, the Black Friday period can be dissected into three distinct phases:

  • The build-up phase, which starts in early October, when consumers begin their Black Friday research, being open to suggestions and not yet committed to specific products or brands.
  • The rush phase, during which consumer behaviour becomes more focused and deliberate, and where retailers highlight specific products, offer competitive pricing and provide clear comparisons to similar products.
  • And the aftermath phase, where consumers shift focus toward the holiday season and retailers promote extended deals, gift guides and hassle-free return policies, all to attract shoppers

The above trend seems to be reflected in the increased number of shipments courier companies are handling over this period.

ā€œWe anticipate a marked increase in volumes this year, thanks to the growing prominence of e-commerce in South Africa,ā€ comments Craig Pitchers, CEO of The Courier Guy. ā€œWhile volumes on Black Friday itself are still generally very large, weā€™re now starting to see a sustained spike in shipments throughout November right up until Christmas as businesses run specials for longer periods.ā€

Retailers that spread out promotions over the month generally see better engagement from customers and are able to track the return of investment related to these promotions. However, this approach does require careful management to maintain decent profit margins.

As the demand for delivery services surges along with high volumes during this extended shopping period, courier companies like The Courier Guy adopt several strategies to ensure consistent service quality.

Planning begins two to three months in advance of the Black Friday season. The process starts with the operational teams analysing historical data to forecast growth trends. When it comes to route optimisation, they strategically split routes to ensure their drivers can efficiently manage the increased volume.

ā€œOur clients are some of the largest e-commerce players in South Africa and we collaborate closely with them to gather projected numbers, which allows us to plan accordingly. Additionally, we apply a growth percentage to ensure we’re fully prepared to manage the expected volumes. Our approach is to over-plan rather than risk being underprepared,ā€ shares Pitchers.

From a customer point of view, The Courier Guy has some of the best customer relationship management systems in place to ensure the high volume of queries generated during the busy Black Friday season are handled timeously and professionally. All customers are kept informed regarding the status of their shipment through WhatsApp communication, while the chat function on its website is available 24/7.

The Courier Guy also makes use of Zendesk, which ensures all comments on the respective platforms are answered promptly and any issues resolved timeously.

ā€œIn 2023, we couriered millions of parcels and well over 20 000 tonnes of goods were shipped during November alone,ā€ clarifies Pitchers.

Speaking about the current trends in the courier market, he notes: ā€œRetailers are driven to make deliveries and returns for their customers as convenient, easy and as hassle-free as possible especially during busy periods. Our smart parcel lockers offer this, and the growth of them has been nothing short of amazing. Many of our clients are now embracing the benefits they offer ā€“ like 24/7 collection and returns and extremely affordable, nationwide delivery in just one to four work days.ā€

The Courier Guy prioritises maintaining high service standards, keeping both retailers and customers satisfied during this exceptionally busy time. This commitment to quality helps build long-term customer loyalty and trust.

For many couriers, same-day or next-day delivery are seen as special services, which often command a very high price. The Courier Guy has, for many years, offered these as ā€˜regularā€™ options, allowing customers to meet and even surpass their own clientsā€™ expectations for what constitutes quick, reliable delivery ā€“ a great asset in the age of instant gratification.

As the landscape continues to evolve, maintaining a balance between meeting consumer expectations and preserving profitability will be crucial for both retailers and logistics providers in South Africa’s dynamic e-commerce environment. The importance for retailers of being able to secure a reliable courier service that can handle high volumes and offer good service could be the difference between a deal done or lost this Black Friday season.

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