Black Friday has grow to be a world procuring phenomenon, characterised by an annual spending spree by customers on the fourth Friday of November, with some retailers extending to Cyber Monday, and others even working month-long particular offers. While bodily brick-and-mortar and e-commerce shops are thought-about ‘front-end’ for customers, there’s a frenzy of back-end actions that must happen in order to satisfy the surge in client demand precisely, timeously and effectively. For South African companies to really benefit from the procuring frenzy and make successful of the occasion, they want to make sure that their whole provide chain is geared to deal with the seasonal spike. Business course of outsourcing (BPO) will be the reply.
A BPO mannequin is accessible to companies massive and small. It is a cheap and scalable technique of guaranteeing the needed behind-the-scenes service and productiveness to make sure an expertise that meets buyer expectations whereas growing loyalty and holding companies in the black.
From the US to SA
Taking place the day after Thanksgiving in the USA, Black Friday was conceptualised to offer companies the probability to maneuver “out of the red” and “into the black” – to show a revenue. Many different international locations adopted America’s instance, launching their very own Black Friday gross sales. According to a GeoPoll survey, a whopping 76% of South Africans reported collaborating in Black Friday procuring in 2019, which jumped from 64% the yr earlier than. 2019 additionally noticed numerous SA retailers selling not simply Black Friday, however every week or perhaps a full month of “Black November” specials.
In 2020, the pandemic interrupted each side of life as we knew it, and Black Friday spending was, accordingly, very lowkey. However, in 2021, Black Friday gross sales confirmed promising indicators of restoration. Despite a lockdown nonetheless being in impact, there was a 120% increase in spend on electronics, with banking large FNB reporting that its cardholders spent a whopping R2.5 billion on the day, and cost gateway PayFast reporting a 34% enhance in transactions.
South African actuality
Practically talking, Black Friday is the begin of the year-end festive shopping for, as many customers begin looking for vacation presents in November. As a lot as companies wish to leap on the Black Friday/Cyber Monday bandwagon, a high quality balancing act must be achieved. While it could be nice to promote out in November, it’s necessary for companies to have inventory that may carry them by the Christmas rush and Back to School durations. No use promoting out at discounted costs in November and never having the ability to flip a revenue for the remainder of the yr.
Underprepared and overwhelmed
Many South African companies that select to take part in the Black Friday/Cyber Monday interval underestimate the large shift in shopping for behaviour that takes place. It requires an enormous enhance in productiveness and efficiency, which entails further assets to deal with the additional load. All of which is an enormous ask for the administration workforce of any business, who then has to prepared an extra staffing complement and prepare them as much as the required normal. Needing extra hands-on deck then places further pressure on different points of the business – from HR to finance. Every division or business perform of the organisation is impacted.
Think rigorously and be reasonable
The determination to partake in Black Friday/Cyber Monday is just not one which ought to be taken evenly. Businesses must ask themselves “What’s the worst that can happen?” after which take these eventualities severely. The worst that may occur is that employees can’t address assembly the further demand. From there, it’s all a ripple impact. If prospects expertise any delay in their orders, there may be the danger of reputational hurt. An enhance in stress and stress for workers results in a rise in absenteeism, which additional negatively impacts operations. It’s additionally necessary for companies to be reasonable in what they’ll count on from their very own employees, and what’s achievable given their very own infrastructure. For instance, in a warehouse with solely 20 affirmation tables (the bodily area the place orders go to be checked earlier than they’re despatched out to prospects) it’s only bodily potential to substantiate 20 orders at any given time, which might result in a backlog in duties, which then impacts the the rest of the productiveness chain after which compounds as tomorrow’s drawback.
Outsourcing for achievement
This is the place a BPO associate could make the distinction between a business being in the black or plummeting into the purple. Wherever the business requires further assets, a BPO supplier has entry to a large pool of absolutely skilled staff throughout the whole worth chain, that may step in and increase any given business course of in the commerce area. These will be allotted and deployed into the business as wanted, and since they’re paid on a per-unit foundation, their productiveness is assured for the interval that they’re required. There isn’t any productiveness misplaced in coaching, neither is there any further pressure on every other business perform, as the BPO supplier handles payroll, human assets, industrial relations and all points of employment regarding the staff required to satisfy fluctuating buyer calls for.
It’s not nearly growing headcount to deal with the additional load. It’s about having correctly skilled assets accessible to spice up productiveness and meet buyer calls for. This contributes to a constant buyer expertise that fosters model credibility and buyer loyalty. BPO assists in enhancing efficiencies and effectiveness by lowering and eliminating waste, lowering operational prices and (most significantly) growing income. For this to occur, companies should select their associate rigorously – solely a compliant, results-driven BPO associate whose focus is on boosting productiveness and streamlining operations may give retail and ecommerce companies the flexibility and efficiency they should come out tops this Black Friday.
Tennille Bell, normal supervisor: gross sales at Programmed Process Outsourcing (PPO).
