Summing Up The Promotional Mayhem

From recorded interviews to pictures to blog posts to more than half the last episode of The BeanCast, I think I've thoroughly covered the US holiday retail phenomenon of Black Friday and Cyber Monday. But I'm going to at least attempt to sum up the insights I've had over the last week and bring some clarity to all the madness. So here goes...

Black Friday is Still Appealing

Despite the questioning and regardless of whether the name is still true about getting retailers into the black, the promotional names of Black Friday and Cyber Monday still hold great value. Consumers flock to shop on those days and that can't be dismissed.

Age of Browsing is (Mostly) Gone

The real problem with most BF promotions is the reliance on old tactics. The loss-leader strategy, while still effective at drawing crowds, does not necessarily ensure browsing bodies on your site or in your store. Consumers are more likely to have a plan now and know exactly what they want from you before they arrive. This tells us that emphasizing the consideration phase of the promotion may now be as important if not more important than relying on POS and add-on purchases.

Shopping is Experiential Branding

We've always known that shopping is a communal activity. Even when we shop online, we feel compelled to share our deals and purchases with others like war stories. And with reticent consumers and falling sales we need to derive more value from this simple truth and build it into our promotions. The more we can enhance the experience of the promotion, the more likely people will be to come back later and feel affection for the brand. In other words, diverting some sales promotion money to coffee and donuts for people in line can be equally valuable to the success of the promotion in the long run.

Consumers Desire Community

There's a reason that online sites like Amazon do well all year long and it's not just the fact that they have everything. There's a community surrounding Amazon in the form of user reviews and feedback, as well as responsive customer service. They have essentially recreated the communal experience of shopping in an online realm. Whether you're online only or dealing with brick and mortar, take this lesson to heart: The more connected people feel to others who like your store brand, the more likely they are to come back.

We Can't Fight Consumer Ingenuity

There's no use keeping circulars secret and forcing consumers to walk a serpentine of potential add-on purchases to get to the deals they want. Consumers have too many tools to thwart these efforts now. So it behooves a retailer to actively become a source of this information. Providing store maps and helping consumers plan their trip, while going against traditional strategies, now serves to enhance the perceived value of your brand. You can't fight it, so make it work for you.

Deals Are Not Enough

50% and 75% off discounting is very enticing, but gets lost in a sea of similar sounding deals. Even a low-price guarantee is still pennies that are weighed against the dollars of experience and ease-of-purchase. Retail needs to be creative and do the unexpected to maintain mindshare these days. From enhancing the line experience (I could have used a magician or stand-up comic walking the line) to unusual promotions (Lego Rock Band anyone) the unexpected will be remembered and appreciated, deriving more value to your operation over time.

And that's all from me. I'd love to hear what retail insights you've gotten from the start of this year's holiday buying season. The comment box awaits you.