A leading UK technology company that securely validates and redeems digital promotions in real-time has warned retailers that Black Friday could lead to a red Saturday.
Following the recent release of Mintel’s Christmas Shopping Habits 2015 report, Eagle Eye Solutions’ founder Steve Rothwell has warned that a dependence on Black Friday can actually be very damaging for a retailer and that rather than increase brand loyalty it does the very opposite.
Rothwell said: “Consumers are only interested in unearthing the best offers and lowest prices. With so many retailers slashing their prices, consumers shop around for the best deals and loyalty is not even on their radar.
“Retailers looking for an effective loyalty strategy must provide relevant and timely offers throughout the year. Relationships are secured over a sustained period, not in one day. By engaging with consumers over a longer period of time retailers can collect a wealth of data about their spending habits in order to better inform marketing campaigns and business strategy to ultimately drive loyalty and profitability.”
Although much of the media coverage around Black Friday focuses on record sales, Rothwell argues these figures do not tell the whole story. “Although Black Friday boosted November’s sales in 2014 by £400m,” said Mr Rothwell, ‘overall it damaged Christmas gift spending and took sales away from full priced sales over the Christmas period.’
As a result in the surge of online orders Black Friday can place significant strain on a retailer’s infrastructure and according to Rothwell inadvertently push consumers into the hands of competitors.
Rothwell adds: “Consumers expect the same level of service throughout the year. Convenience is everything to them and they won’t take kindly to delays in receiving their items/gifts. Retailers that fail to provide a seamless and consistent experience run this the risk of alienating their customers.”