EXPERT VIEW: Ben Stirling, MD of Webloyalty comments on the Black Friday sales
Webloyalty’s market-leading reward platforms deliver customer value through a breadth of relevant rewards and shopping benefits while generating secondary revenue for businesses.
“Due to suppressed incomes and economic uncertainty, Black Friday is highly anticipated this year. Consumers are waiting to make those last minute big ticket purchases and it’s an opportunity for retailers to drive sales and acquire and retain new customers in the lead-up to the peak Christmas trading season. Discounting is a well utilised sales tactic in driving purchases.
When used effectively, discounting can significantly increase sales from specific customer segments, leading to an uptick in overall transactions. However, as discount days such as Black Friday and Cyber Monday give consumers the option to make high-value purchases available from many different retailers, they do not inspire customer loyalty.
This is in part due to the lack of personalisation and unique, high quality customer experience. Additionally, given the majority of Black Friday shopping this year will be online, retailers need to consider new ways to cut through the noise and make sure they stand out.
“Our Digital Choice behavioural economics report shows that offering a general deal to all consumers is not as effective as a brand offering something on an exclusive basis to its regular customers. This makes them feel valued and builds long-term loyalty to a brand. It’s important that retailers also offer consumers a pleasurable, personalised shopping experience, which is particularly important given the challenges in today’s climate.
Our report shows how brands can alter messaging, web design and the checkout process to improve the conversion journey. With this in mind, retailers should consider what their strategy for discount days looks like so they can maintain loyalty beyond Black Friday.”
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