Why retailers need to think before they slash prices this Black Friday


Why retailers need to think before they slash prices this Black Friday

The shopping event of the year is back again but, with Covid-19 pushing retailers out of stores and online, this Black Friday may be a little different than usual.

Increasingly, retailers are taking more drastic measures to ensure they make a success of Black Friday in the new retail normal. Some high street titans feeling the pinch are foregoing the annual season of crash prices and savings.

Indeed, there are a few trends coming out of the pandemic that retailers should tune into to both win business and support customers at this time.

Increased customer value awareness

It shouldn’t come as a surprise, within the context of lower employment levels and tighter budgets, that customers will put in more time and effort into shopping around for a bargain. More than ever, we are seeing price alone become the primary determining factor in a purchase.

Many customers have less disposable income than a year ago, and brands need to communicate in ways that are sensitive to that. This heightened value awareness is a key trend for retailers to be aware of.

Growing luxury goods market

On the flip side, brands also need to be mindful that some may be coming through this pandemic having saved a significant amount of money. Many will have saved money on travel and going out this year, and as a result may have an eye on luxury goods more so than previously. According to the World Luxury Tracking report (WLT), 70 per cent of luxury goods customers have made no plans to change their purchasing behaviour and this is a trend that will certainly play out as the lucky few who have made savings look for some retail therapy after a difficult year.

Keeping up with customer expectations

Although these trends may feel like deviations to the norm the changes, we are seeing this Black Friday will possibly set the agenda for the following year in retail. Thus, it is crucial that retailers are learning from this Black Friday like no other before. Understanding how the pandemic has shifted customer expectations is key to success and then personalising accordingly.

The increased shift to online as a result of the pandemic has given retailers a fighting chance to meet these varied and changing customer needs. By leveraging customer data from online sales, retailers will be better able to use actionable insights on individuals and deliver bespoke messaging and offers.

When utilised properly and ethically, data collected from the influx of online shoppers will help retailers tailor their offers to each customer, which will foster brand engagement. Despite the diverse needs of customers, it will be this truly personalised approach to marketing that will help retailers stand out this Black Friday.

by Neil Devlin, director of retail, Acxiom

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