Let’s start with a little bit of history...
The term “Black Friday” was first used by Philadelphia police in the 1950s and 1960s to describe the chaotic day after Thanksgiving when massive crowds of shoppers and tourists flooded the city before the Army-Navy football game. The influx led to gridlocked traffic, crowded sidewalks, and a rise in shoplifting and accidents, making it a challenging day for law enforcement. At the same time, retailers began seeing a surge in sales, turning losses into profits as the holiday shopping season kicked off.
Recognising the potential, retailers soon embraced Black Friday as a way to drive early holiday spending, boost profits, and attract new customers. However, over time, the event evolved into a frenzy of extended discounting, further fuelled by the introduction of Cyber Monday. What began as a strategic sales opportunity quickly became a race to the bottom, with both retailers and consumers becoming hooked on the "discount drug."
Black Friday now accounts for up to 20% of a retailer’s annual sales, making it impossible to ignore. Yet, the heavy focus on discounts has nurtured a discount-driven consumer base, overshadowing brand loyalty. Customers have grown sceptical of the constant promotions, experiencing Black Friday fatigue but still expecting a deal.
The surge in discount-driven sales data—some retailers report a 400% increase in sign-ups during Black Friday—creates further challenges. High expectations for deep discounts strain margins, making it difficult to maintain higher-priced sales in subsequent years. Additionally, third-party payment platforms like Apple and Google increasingly control customer data, complicating efforts to build solid CRM programs that foster genuine loyalty.
To regain control, retailers must shift their approach to Black Friday from a passive acceptance of discount culture to a proactive strategy focused on acquisition, loyalty, and engagement. Retailers must engage and ask the right questions at the start. Rather than simply offering discounts, retailers should engage customers through a value exchange, collecting insights into their interests and behaviours. Understanding what customers like to do—whether it’s playing sports, hiking, or socialising—provides actionable data that goes beyond basic demographics.
Consumers are already accustomed to sharing information for better experiences, as seen with personalised platforms like Spotify and TikTok. Retailers must capitalise on this by delivering targeted, relevant content that meets customer needs rather than sending generic, impersonal messages.
The solution lies in a robust CRM plan that leverages Black Friday as an entry point for long-term engagement. By offering personalised experiences and meaningful connections, retailers can shift from discount dependency and reinvigorate brand loyalty, ensuring that Black Friday remains a valuable part of their strategy.
We’re currently helping retailers gear up for this, so if you want a chat or know how we could help, follow the link below to get in touch. We’re less than 50 days away from Black Friday and counting; there is still time...