![]() Once ascertained, a customer’s shopping preference will impact everything from ads served to product discounts.īig data will still drive pricing, product recommendations, and other key components for Black Friday 2020. Some customers will not mind stores, but others will want to shop online as a precaution. Retailers must offer individual customers the method of shopping that seems safest for them, all in a seamless fashion. But for retailers to break through this year, they must harness massive volumes of customer histories and behaviors in novel ways to showcase not just deals, but also specific sales dates. They will build new personalized shopping experiences that drive customers all the way from awareness to purchase in a way that makes customers feel physically safe.Ĭustomers are accustomed to Black Friday being a single nationwide shopping day. Retailers that win Black Friday 2020 will reinvent the way they use big data. And variating COVID restrictions will interject even more complexity into an already complicated process.īut the answer is more big data, not less. Optimal pricing will be harder to pinpoint. Purchasing trends will be more difficult to track, on micro and macro levels. That means stocking issues will be even more pronounced. Most large retailers plan to stretch Black Friday discounts across a three month period. However, Black Friday 2020 is scrambling these traditional big data methods. And personalized shopping experiences are usually created by synthesizing customer preferences, history, and demography. Many retailers estimate Black Friday stocking requirements by building predictive models based on vast troves of historical data from prior years.īlack Friday discounts and pricing are often modeled by combining macroeconomic factors, purchase behavior, product reach, and profit margins. However, the specific parameters of Black Friday have a unique impact on the way retailers use big data. With the rapid growth of sales and behavioral data, retailers now have more insights into their customers than ever before. Why Big Data is More Important Than Big Crowds in 2020īig data is a key weapon for retailers, and not just during Black Friday. In terms of promotion, retailers must amplify their own sales independently, as opposed to banking on the universal recognition of Black Friday.Īt the same time, stocking, pricing, and other logistical decisions will become even more complicated across in-store and online channels. However, the new plans also pose many challenges. This “stretching” of Black Friday allows for safer in-person shopping, more online sales opportunities, and a wider timeframe for converting customers. Best Buy has also listed discounts since October, and plans to hold four separate sales leading up to Black Friday. Target will offer a number of week-long sales throughout November, instead of a single shopping day. Walmart has offered discounts since October, along with three nationwide sales in November, all culminating in Black Friday itself. In order to reach comparable revenues, many retailers have decided to spread out Black Friday discount incentives over weeks or even months.Ĭonsider some examples from major retailers. Retailers are not treating Black Friday as a single day.ĭue to COVID, retailers cannot achieve the same single-day sales volumes of years past. In 2020, each major retailer is approaching Black Friday differently. This year, retailers will win Black Friday by saying goodbye to big crowds, and hello to big data.īlack Friday in 2020: What’s the Game Plan? That’s why retailers are reimagining Black Friday in 2020. In a year of reduced earnings, retailers do not want to surrender the billions of dollars on the line. However, a diminished Black Friday is not an option for retailers. The event will not have massive crowds this year due to the virus. This consumer-driven event has marked the beginning of the holiday gift season for decades.ĬOVID-19 has reshaped many parts of our lives, and Black Friday is no exception. The Friday after Thanksgiving, hordes of early-rising shoppers across the US gather at Walmart, Target, and other big box stores in the hopes of scoring significantly discounted items. Black Friday is another uniquely American ritual.
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