With the holidays upon us, is it possible for retailers to capitalize on customer loyalty and enhance sales during Black Friday? Before we can answer that question, it’s important to understand the consumers that hit the stores on the holiest shopping day of the year.
A recent article spotted on Integrated Solutions for Retailers broke down the typical Black Friday shoppers into four categories:
- Modern Day Moms, who will do the majority of their shopping in-store, but will also use a mobile device to access coupons. A recent survey revealed that 69 percent of consumers will shop where they can cash in existing loyalty rewards and points, so it seems likely that loyalty programs will get the Modern Day Mom in the door.
- Millennial Generation Shoppers, who are most likely to rely on a mobile device to do their shopping. Since in-store foot traffic from this segment will be low, provide extra online incentives or early “online only” access to Black Friday deals.
- Mobile Tech Embracers, who are most likely to be motivated from Black Friday ads and flyers. The key here is to capitalize on the data you captured throughout the year from loyalty members to ensure relevant products are highlighted front and center on Black Friday ads.
- Single Cyber Males, who will do their shopping exclusively online. Concentrate on the benefits your online shopping experience provides (such as free delivery) to amp up sales.
The primary motivation among each of these Black Friday shopper segments is finding great deals on the holiday season’s best products, which might result in a loss of brand loyalty. Here are some tactics that leading retailers are implementing with great success to keep their loyalty members engaged:
- Mobile: Kohl’s, like many other retailers, promotes smartphone apps for the holiday season. The company is capitalizing on this by updating its iPhone app with a new savings wallet that enables customers to view their available Kohl’s Cash.
- Customer service: Macy’s has plans to hire 83,000 seasonal workers to ensure call centers, distribution centers, and online fulfillment centers are well staffed. Adding more helping hands will positively affect the shopping’ experience in-store and online.
- Convenience: Walmart and Target are pressing convenience to their loyal customer. Loyalty members are given the ability to shop at home with the option for store pick-up or free shipping.
- Budget: Kmart “Shop Your Way” members have access to “No Money Down” layaway and can earn points on layaway purchase. Layaway programs, which may not be popular during the regular calendar year, will be seen as a way to shop smart and save during peak holiday shopping months.
Here’s the bottom line: with a better understanding of consumer behavior, you can formulate a strategy to blend brand loyalty with Black Friday discount hunters.