Successful retailers see holiday events like Black Friday as important.
The most successful retailers approach Black Friday, Cyber Monday and other holiday promotions a little differently than their peers.
Eighty-four of survey respondents feel that consumers can get deals anytime they want (48% strongly agree, 36% somewhat agree), six in 10 (58%) strongly believe that holiday events are still a powerful source of revenue, according to a study conducted for Coveo by RSR Research. The study, “Black Friday to Cyber Week Evolution: What Are the Winning Strategies, Now?,” polled 92 retailers, most with revenues above $250 million,
This belief in the value of holiday events rises to 76% when looking solely at the above-average performers within the same group and drops down to 24% when surveying the underperforming segment.
In general, high-performing retailers have differing goals for holiday promotions than their peers, with 60% wanting to increase average transaction values as compared to 35% for lower performing retailers. Six in10 top-performing respondents sell-through inventory before products reach end-of-cycle (60%).
Meanwhile, 62% of lower performing respondents are focused on getting rid of surplus merchandise, compared to 48% of top performing respondents listed this as a holiday promotion strategy.
Nine in 10 respondents overall say that hyper-personalized offers are already happening. In addition, 90% think that hyper-personalization will end industry-wide special sales events as we know them within the next three years.
Seven in 10 respondents overall say they will spend less on mass market promotions but expect to achieve greater sales through personalized offers over the next two years.
More than 50% of high-performing respondents say that easy returns, price or product availability, and social proof badging are important. A
Fifty-five percent of high performers say they expect to shift more than 41% of their sales value toward online shopping and fulfillment during Black Friday. For comparison, only 32% of underperformers report doing the same.
Nearly two-thirds of high performers, as opposed to 35% of average/underperformers, are extending the return period during the holiday season. More than six in 10 (62%) top performing respondents are changing online search categories to make discoverability easier for shoppers such as “gifts for dads,” compared to only 41% of underperformers. And two-thirds of top performing respondents are using search engines to boost products right on the product listing pages.
More than half (52%) of all respondents say they will have implemented generative AI in their contact center. Similarly, 52% will have implemented some automated capabilities in anticipation of increased call center volume this holiday season. Furthermore, 32% of all respondents say they are experimenting with GenAI capabilities now, possibly for implementation in the short-term.
“It’s clear from our research that industry-wide events are here for the foreseeable future – but no longer as mass marketing, ‘one-size-fits-all’ events. Gone are the days when you get people in the door with a sale on one item. It’s now all about personalized offers and deals,” said Brian Kilcourse, managing partner at RSR Research. “The research highlighted that over-performing retailers are aware of this strategy and using it to their benefit.”