How Businesses Can Prepare for Black Friday
Canadian retailers are embracing the traditionally American consumption event. In this blog, I explore how it began and what retailers can do to prepare.
In the United States, Black Friday is celebrated the day after Thanksgiving. That being said, the concept of having a day of door-crasher discounts and for consumers to get a head-start on Holiday shopping is hard to resist for Canadians.
How did this all begin?
There are multiple stories floating around, but the name “Black Friday” originally referred to the US gold market crash in 1869.
Fast-forward to the late 1980s and the name took on a different definition. At the time, accounting was done by hand. Companies would record losses in red and profits in black. Retailers decided to make the day after Thanksgiving the day that they aim to make as much revenue as they can and go from red to black.
What about Canada?
In 2007, when the US dollar was on par with the Canadian dollar, many Canadians crossed the border to partake in the price-savings. This negatively impacted Canadian retailers and served as a wake-up call. Since then, Canadian businesses started to offer their own Black Friday deals and with an increase in online shopping, cyber-Monday specials also came to Canada.
That being said, because of how much larger the American population is, American retailers benefit from far more economies of scale and lower prices. Canadian retailers must find ways to compete with neighbor retailers south of the border.
What businesses need to know?
Having a better understanding of consumer behaviors during the Black Friday craze certainly helps.
Here are some useful findings that retailers should know:
According to a study, Black Friday shoppers viewed this day as a “consumption ritual” and planned for it. By analyzing different advertisements they mapped out their strategy to ensure they got the items they wanted.
- Implications for businesses: If your consumers are planning, so should you. Plan the content and discounts you want to publish early on and let your customers know!
Furthermore, shoppers are motivated by the discounts and compare the event to a scavenger hunt. Success is achieved if they have bought all or most items from their list.
- Implications for businesses: “gamify” the experience. Make it fun for your customers and help them with their “hunt”.
Another study suggests that, due to the convenience of online shopping, more are likely to shop on cyber-Monday. That being said, in-store shoppers and online shoppers have different perceptions of convenience.
- Implications for businesses: Ensure your online advertising is appealing to your target. The visuals should speak to consumers in a natural way. In addition, the targeting settings should constantly be evaluated and optimized to ensure that only the best performing ads are running.
- Implications for businesses: Regarding convenience, ensure that the online and in-store experience you give shoppers is the best one possible. Consumers are eager to spend their money on your product or service. For a positive online experience, ensure your content redirects to the right page and consumers don’t have to search for long to get the information they need. For a positive in-store experience, ensure product information is labeled correctly and prepare your staff by training them on how to handle tense situations.
With more channels to shop, consumers have more options to choose from.
- Implications for businesses: offer the same promotions online and in-store for maximum effect (but ensure you can supply the demand). Alternatively, you can explore different promotion techniques where those who buy on Black Friday can gain a certain benefit if they also shop on Cyber Monday.
If you need help getting ready for the Holiday rush, let us know!
Evan is the co-founder and Head of Strategy for Playground, a Montreal-based design- and data-driven agency.
Have a project in mind? I’d be glad to listen over a cup of coffee!
Originally published at medium.com on October 30, 2018.
