What do you think about on Black Friday? The retail event does have a tendency to conjure up images of stressed out shoppers on the rampage for a bargain, however using consumer data on ratings given at the point of sale in a number of fashion and electronics outlets, we’ve uncovered a brighter side to Black Friday (and other busy sales events): customers’ perceptions of your product range actually rise.
This is a surprising result to say the least. Perceptions of value were expected to rise (and indeed, did) as prices are cut during sales, but doesn’t it seem counter-intuitive to think that during busy sales events when stock doesn’t get refilled as quickly, shelves don’t get re-stacked, and people are fighting in the aisles to get that one last television with a 70 percent discount, customers end their journey feeling better about the product range than on an ordinary, quiet day?
One major speculation is that the result centres around instore creative. The big increase in displays showcasing products and promotions, plus the additional signposting and clarity around prices and discounts, may well be having a distinctly positive impact on customer perceptions.
One retailer took a lesson from the insights they uncovered in their customer data and found that simply by refreshing their promotional displays and increasing signage, they managed to raise their customers’ perceptions of the product range without changing a single thing in that product range – and they saw a 12 percent rise in average transaction value as a result.
What does this mean for the retailer and Black Friday 2017?
According to Retail Wire, the retail race to the bottom in terms of price and bargains may be starting to kill off Black Friday. And according to our data, it may be unnecessary. It might sound obvious, but perhaps don’t worry about slashing your prices too heavily and instead invest some time and effort into dazzling displays. Highlight the promotions you do have so they’re clear and attractive. Entice customers in to your store and use some of those traditional marketing skills to ensure their customer experience is a pleasant one, unlike the hurried and harried experiences of previous Black Fridays.
And then do it all again in December…