Deep discounts are the reason Black Friday shopping is worth the effort, but when the promotions aren’t clear, customers are left wondering why they should even bother.
Many brands fell short on their digital discount messaging this year, according to Melissa Minkow, global director of retail strategy and insights at CI&T, a technology consulting firm. When the sale advertised at the top of a homepage gets bogged down by product page details, the experience quickly turns from exciting to confusing.
A lot of retailers had banner ads pronouncing a flat discount across their site, but then individual products would feature different numbers, according to Minkow. This makes it unclear whether customers could expect additional savings, or if certain products were exempt from the main promotion.
It’s possible that some brands hid the full impact of their discounts due to rising prices. Average discounts rates peaked at 28% in the U.S. and 27% globally on Black Friday, flat compared to last year, according to Salesforce data. Average selling prices were 7% higher than on Black Friday last year.
However, even if retailers are up against rising prices, there are better ways to win over holiday customers than trying to fake bigger savings, according to Minkow. Confusing Black Friday discounts sacrifice convenience and can ruin an otherwise great experience.
“Our data shows that time and time again, the No. 1 thing consumers want out of a retail experience is to be able to find what they're looking for right away and at the best price,” Minkow told CX Dive. “So if you're making them jump through hoops for either or both of those things, it's not good.”
Make discounts easy, not confusing
It can be tempting to offer customers multiple discounts to make the final percentage look higher.
However, doing so makes the shopping experience more confusing, according to Minkow. There are better ways to make discounts and the associated experience more attractive to cash-conscious consumers.
One strategy is to make it easy for customers to find heavily discounted items while making each individual promotion clear.
Anthropologie’s banner highlighted its maximum discount of 50%, and when customers clicked through it took them to a page featuring items on sale, according to Minkow. Importantly, each item included information on its exact discount and when that discount would be applied.
“That is crucial,” Minkow said. “I really didn't see any other retailers clearly explain at what point in the path to purchase the discount was coming off. I think that that is a really great best practice.”
Price filters are a great addition to shopping experiences in general, according to Minow. Being able to sort by a specific discount or price point ensures that customers are getting a deal they appreciate while simplifying their overall shopping journey.
Fight low expectations with better CX
This Black Friday was a time of low expectations, but that made it a good time to present value in other ways, according to Kassi Socha, senior director analyst at Gartner.
A pre-holiday Gartner survey found that two in five consumers went into Black Friday expecting fewer discounts than last year, according to Socha. In fact, retailers offered discounts, but price pressure meant they didn’t feel as good.
When discounts aren’t thrilling, a great experience can still help retailers stand out from the competition, according to Socha.
“Above and beyond the discount that they're giving to a consumer on a specific product, retailers need to help the consumer realize that their experience is more convenient, that it will get to them faster, and that they have the right inventory,” Socha told CX Dive.
A great returns policy is also part of a good shopping experience. Customers often make purchases early during the holiday season as they hunt for deals, but don’t actually gift the item until late December.
A flexible policy, with an extended returns window and a combination of in-store and online options for giving the product back, can help customers buy with confidence, according to Socha. The earlier the retailer informs customers about these details, the better the experience.
