Black Friday, a celebration of the disloyal customer
Posted on November 28, 2013 in Articles
Black Friday is the “Super Bowl” of retail. Retailers go crazy on mega-deals and customers respond with equal insanity. Both parties hope to score big on this particular day… Michael Amar, co-founder & CEO, Ifeelgoods Walmart summed it up quite well: Black Friday is the “Super Bowl” of retail. Retailers go crazy on mega-deals and customers respond with equal insanity. The first ones bombard prospective customers with loud ads for their promotions. The second ones line up for hours before storming the shelves hunting for bargains. Both parties hope to score big on this particular day. But it turns out that there are losers on both ends of these deals. Black Friday is a celebration of the disloyal customer. All the efforts put into building a brand and a customer relationship vanish, while consumers agree to play the crazy game of finding the best deal with the certainty to miss the items one really wants eventually.No wonder people feel Black Friday has become a creepy, disgusting shopping event. One that casts an indeed dark shadow on the whole concept of promotion. To sweeten the deals – quite literally – and stand out of the crowd, more and more retailers and brands have now gone to design “bundles”. Adding this little extra bit of attention that might make a difference in the eye of the customer. It’s as simple as a guaranteed delivery before Christmas for a TV screen, a gift card to go with the iPhone or iPad you may snatch for a bargain, a one year subscription to go with a video game console. Why do these add-ons matter? A monetary discount is forgotten as soon as the customer passed the register. But the experience that is offered along with the purchase will last. It’s obvious for a video game subscription that goes with a console. But even gifts of smaller value do the trick: while one may promptly forget that a given brand offered him or her a $2 rebate, this customer will be reminded of who got him a free access to Angry Birds every time he or she plays. As a matter of fact, we believe that this is how you build loyalty. It pays off to offer immediately a low cost reward with a highly perceived value instead of a traditional discount. This generates a sense of instant gratification while building the platform for a more solid customer relationship. Virtual goods are the perfect fit for this: ebook chapters, iTunes downloads, Xbox subscriptions… can all be tailored to the right context. A digital promotions platform, Ifeelgoods allows marketers to do this all year long. If Black Friday is the Super Bowl, we are the Playoffs. And we can help you score.