20 Nov Black friday
Capitalising on Black Friday
Knowing why your customers acts a certain ways, gives you the opportunity to cater/market to their behaviour. Comment below and tell us which of these tricks are you using this #BlackFriday?
Black Friday success – more than just a discount
I always assumed Black Friday was only a hit due to the insane discounts stores offer on the day. This is in fact not true at all! There are various (mostly psychological) factors playing a role, and pushing customers to spend, spend, spend! Here’s a list of the top 5 reasons (other than price discounts) people go crazy for Black Friday deals.
1. Sleep deprivation: Many sales start as early as 00:01 in the morning, customers either have to wait in line, or set an alarm for the online sale. Limited sleep causes reduced cognitive behaviour which impairs decision making, leading to more impulse buys.
2. Reward of the bargain: “Any time people shop and they find a great deal, there’s that psychological joy of pleasure,” says consumer scientist James Mourey. Customers tend to regard price reduction as a reward – they gain something for doing nothing. This activates the brain’s reward centre.
3. Playing hard to get: The economic scarcity principle says that “the more restricted an opportunity is, the more desirable it becomes”. We see this principle in dating and we see it during Black Friday. Retailers create scarcity by using words such “limited”, “first 100” , “quick” etc. This make consumers desire the product more, even though on a logical level they know they should be able to get that item at a comparable price in the near future.
4. Social Proof: As pack animals, humans believe that “if other people are doing something, we use that as evidence that it must be good.” By asking customers to RSVP for an event online, or getting them to que in front of your store, you are creating proof that your sale is better and more “worth it” than the next sale. If everyone is out bargain hunting on Black Friday, it implies that you should also be doing so.
5. The build-up: Retailers leak information regarding their Black Friday sales long before consumers even begin to think about their Black Friday shopping. Why? To build anticipation! By slowly releasing information retailers create excitement, anticipation and ultimately consumers want these items more by the time it comes on sale.
Which of these methods did you use during your Black Friday campaign? Did I miss any other important strategies? Let me know in the comment section!