By Bronwen Lambert, Business Development Manager at SpaceandPeople
Black Friday is a retail tradition dating back as far as the 60’s, with the name coined around the sales and shopping frenzy which occurred the Friday after Thanksgiving. By the 1980’s, the term became popular with shoppers and retailers alike as they started to capitalise on the new commercial event. The retail phenomenon continued to grow amongst retailers in the US, and eventually reached the UK in 2010 – but is it still working for Brits in 2024?
Is Black Friday still important to consumers/retailers?
The shift towards online shopping had a transformative impact on Black Friday as a concept, lowering the barrier to entry for retailers and increasing ways to participate. While positive for many smaller businesses, it is also now easier to get lost in the noise of countless deals, schemes and advertisements. Additionally, in 2022, Which? found that only 2% of Black Friday deals truly represented the best price for products – this combined with how easy it is to compare prices online, has resulted in consumers being savvier than ever before.
With inflation down and spending on non-essential products on the rise however, there is some optimism for 2024. The big question: should brands be putting their bets on Black Friday?
Black Friday is without a doubt an effective way to get people through the door. Discounts and deals are a tried and tested way of driving an immediate increase in sales. While we are on the route to recovery, the cost of living is still lingering in people minds, so consumers continue to be more aware of spending in the run up to Christmas. However, Black Friday presents an opportunity for consumers to indulge at a lower cost, making it seem like a brilliant opportunity for both retailers and shoppers.
The commercial event does, however, have some fundamental issues to consider. With retailers struggling to cut through the noise of Black Friday, many are starting discounts earlier and earlier, moving towards a ‘Black November’ concept rather than a single day of discounts. By broadening the sales period, consumers can feel overwhelmed with choice and unsure of when the best moment is to take advantage of the deals. In addition, it has diluted the excitement of the discounts by removing any sense of urgency to take advantage of Black Friday sales. This runs the risk of ‘sales fatigue’ and may lead to consumers not engaging at all.
Are Black Friday and discounts good for brand loyalty?
Discounts are a fantastic way to get customers through the door, but in our experience, this does not lead to any significant increase in brand loyalty and is only likely to encourage one-off purchases. To figure out why, it is important to consider what is now driving consumers in complex environment. While they seek ‘value’, the meaning of the word has changed for many. Most now associate ‘value’ with a return of investment, meaning they want more from their purchases rather than just spending less overall.
Consumers also generally want to feel as though they’ve been considered, and their unique needs met. According to the 2024 Consumer Insights Report, 49% of British consumers are more likely to make a purchase when offers are personalised to their behaviours and needs.
By its very nature however, Black Friday and blanket deals across a full range of products, can appear impersonal. With these issues in mind, a strategy to consider would be to offer added value during Black Friday via personalised deals and codes based on what has been purchased historically. Rewarding those shoppers who engage with Black Friday deals with further rewards and offers, which are redeemable in the first quarter of the following year, will also encourage return visits. Increasing the number of return visits is incredibly important for a customer’s connection to a brand and encourages greater brand loyalty.
There are brands already using this strategy with impressive results, stepping up their game when it comes to offering a personalised experience and fostering a connection with their customers. The techniques used range from hyper-customised offers based on purchase history and free samples to birthday discounts and in-store complimentary services and consultations.
What do retailers need to do to capture consumer attention and spend amongst many others?
To counteract the ‘sales fatigue’ consumers will experience during the Black Friday period, retailers must consider what really drives consumer attention and more importantly, brand loyalty – ensuring the brand benefits from more than just a one-off purchase. This is easier said than done, however, given the sheer amount of noise and competition for awareness.
In the frenzied race for awareness in the run up to Black Friday, brands can’t rely on traditional marketing or online and social advertising to break through the noise of competitors in isolation. It is important to capture attention in unexpected places, via an integrated, omnichannel approach incorporating new channels.
Our suggestion to boost and reach more consumers directly is with engaging in-person, experiential activity. This can be through on-mall pop-up shops, which feature specific product ranges and can also offer a personalisation element to the purchase, to immersive activations on mall space, which truly bring the brand and its values to life and create memorable experiences. These allow the brand to connect with the customer face-to-face whilst providing a personal, customised experience. It also opens the possibility of in-person sampling to showcase the quality and value of their product. By incorporating offers and discounts available exclusively to those who attend an in-person pop-up, a brand can drive the excitement of that exclusive feeling and create an opportunity for that all-important second visit – crucial for longer term brand loyalty and further boosting online and in-line unit sales.
