BLACK FRIDAY £££$$$£££ ☛ WEB VERSION: Click Here
Leveraging Black Friday to build loyalty
By Jamie Fisher, chief commercial officer, Supercard Worldwide
Black Friday sales have become a boon for online and in-store retailers, with many seeing the date as the start of the ‘Golden Quarter’ for sales - a period which encompasses the three- month run into Christmas and the New Year.
H
istorically, the sale was seen as an opportunity to drive additional sales
around a frenzied approach based on low margins, hoping that the volumes alone would satisfy the bottom line. But does this approach actually create real relationships with customers, and is it making the most of the opportunity for retailers in the long-term?
Results from a One-Poll survey in 2018 revealed that forty-three per cent of shoppers said they often or always returned items after regretting purchases made in short-term sales windows. Twenty-nine per cent admitted to feeling like they had to make a quick decision to take advantage of temporary price drops, leading to sixteen per cent to highlight how they felt enticed into impulse purchases, which ultimately led to “buyer’s remorse.” These statistics aren’t great reading for brands wanting to build healthy relationships with their customers. Instead, they fuel the notion that the approach to Black Friday needs a shift in thinking.
The retailer’s approach to Black Friday needs to pivot, from one of ‘making a quick quid’ to one of ‘how many times can I bring this
34
customer back.’ There’s a reason why the adage is so old – it is easier to keep a customer than to acquire a new one! To extract the most benefit in an already crowded and noisy marketplace, retailers need repeat sales to thrive, and this is only attained by developing sustained relationships with customers.
Competition during the sales period is high, and it can be difficult for smaller brands to compete, lest they risk obliterating their profit margin. Smart retailers should use Black Friday as an opportunity to offer discounts in conjunction with other strategies to further their customer lifetime value (LTV). The simple strategy of offering added-value allows retailers to drive revenue and engender customer loyalty during Black Friday simultaneously. By offering something extra and unexpected to purchases during the sales process, retailers can tap into the Reciprocity Principle of marketing psychology to fuel loyalty and repeat custom.
The Reciprocity Principle centres on the notion that if a brand does something positive for the customer, the customer is more likely to return the favour, thus exponentially
Direct Commerce |
homeofdirectcommerce.com
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62
