• Next’s profits ease pressure on retailer to join Black Friday sales

        • Retailer, Next, has revealed a 1.3 per cent sales increase to counter its previous weak quarter. There is now much less pressure on the retailer to join the Black Friday sales next month, which it has avoided in previous years with Next’s CEO Lord Wolfson referring to the day as ‘pointless’.

          Black Friday is seen by many retailers as a way to shift stock, get out of the red and acquire new customers. But if discounting strategies over the holiday season aren’t approached correctly, they can simply create more trouble for retailers later on in the year.

          According to relationship marketing platform, Optimove, customers who first purchase during the holiday season are 19 per cent less likely to return to buy from the brand than any other time of year, making the period a bad time for customer acquisition. But existing clients make 30 per cent more transactions than new customers over this period, and are worth engaging with more.

          Pini Yakuel, CEO of Optimove said, “Black Friday is increasingly seen as a burden for retailers, a way to keep up with the competition rather than an actual retail opportunity – especially by more traditional companies like Next.

          “Certainly, heavy discounting on Black Friday is not that effective for customer acquisition. But, if approached correctly, Black Friday can be a great opportunity for retailers to work on increasing revenue from their existing customers. In fact, about 71 per cent of customers on Black Friday will be existing customers, and these clients make 30 per cent higher transactions over the Christmas period than new shoppers.

          “From this perspective, the holiday season needs a different strategy. Retailers need to think about how discounting impacts acquisition.

          "Whilst minor discounts of 5-30 per cent do encourage shoppers to return for a second purchase, anything over 30 per cent is more likely to encourage ‘cherry pickers’ – customers who will buy products at a highly discounted price, but are unlikely to return to buy anything at full price, and therefore don’t hold a lifetime value to the brand.

          “The large amounts of data that retailers hold on their existing customers is key to marketing in a way that increases value from existing customers. By using this data to target existing shoppers, personalising and targeting discounts, offers and promotions, retailers can make the holiday work for them by upselling to their existing customers rather than selling at a loss to others who won’t return.

          “It is better to use Black Friday and promotions around the holiday season as a way to keep your existing customers coming back, and making sure they aren’t drawn away by other competitors.”

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • 2/3 European businesses to increase IT spend in 2021

          2/3 European businesses to increase IT spend in 2021

          Tuesday 11th May 2021 by clareb
          Dynabook Europe has revealed the results of its new research report, ‘The Hybrid Shift: Managing an increasingly remote workforce’, which shows that 65 per cent of European IT decision-makers have access to increased IT budgets this year ...Read More...
          Totality Services marks World Password Day with top tips

          Totality Services marks World Password Day with top tips

          Thursday 6th May 2021 by clareb
          Since 2013, the first Thursday of May each year marks World Password Day, promoting better password habits to stay safe online. With so many people working at home due to the ongoing pandemic, often without the IT support and protection provided...Read More...
          How remote working has changed issues faced by women in the workplace

          How remote working has changed issues faced by women in the workplace

          Wednesday 28th Apr 2021 by clareb
          Research from Yoppie has found that while remote working has improved pressures around appearance and PMS for women within the workplace, issues of fair representation and equal pay remain prevalent.  When surveyed by Yoppie...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue