Black Friday sales have reportedly fallen by 16.7% compared to last year. Whilst all non-essential shops were closed in England, the lockdowns have pushed even the most reluctant to embrace online shopping, so what might account for such a significant drop?
Whilst online retailers are constantly upping their game, there are still a number of significant psychological differences between online and in-store shopping that may account for some of this shortfall.
Attention is more focused online
There tends to be less competing for consumers’ attention online. The absence of in-store displays, shoppers, store assistants and other environmental factors, allows consumers to focus their attention more effectively. The ability to search for specific items online also reduces exposure to unrelated items that might catch the eye whilst scanning for them in a store. Indeed, with the whole internet world at your fingertips, it’s a prerequisite that your online shopping trip starts with some sense of a target in mind. The combination of reduced exposure to ‘non-target’ products and the more focused mindset reduces the likelihood of making an unplanned purchase.
Misattribution of excitement is higher in-store
The ‘buzz’ of in-store Black Friday shopping – the crowds, displays, music, anticipation during the journey, shopping with a friend, etc. – can all create a sense of excitement that’s becomes misattributed to the products encountered during the shop. This makes us feel better about an item than if we saw it at the same discount but at a different time when these elements weren’t present. Online retailers are working with a more limited set of tools for driving Black Friday sale excitement (and arguably, many aren’t using the ones they have as effectively as they could).
Social proof is reduced online
As social beings, we look to other people’s behaviour to guide our own. So seeing other shoppers caught up in the rush of Black Friday encourages us to do the same. Whilst some retailers try to replicate this effect online, for example, by highlighting how many people are looking at an item or how many have been sold recently, this information probably isn’t as powerful as observing other people’s behaviour first-hand where, for example, you can see that it’s someone like you, or who you admire, making a particular purchase.
Saliency has probably been lower this year
With all non-essential stores closed in England, the usually prominent in-store Black Friday displays weren’t present this year. Even in parts of the UK where shops were open, people are generally spending more time at home due to Covid restrictions so were less likely to be exposed to this advertising. Media images of large crowds and people fighting over bargain items, were also absent this year for obvious reasons. As a result, the saliency of Black Friday has probably been reduced.
Discounts are less exciting
As Covid continues to disrupt the retail industry, many companies have fallen into administration and announced mass closing down sales. This surge in discounting is likely to change the frame against which consumers reference what constitutes a ‘good’ deal. If consumers become accustomed to widespread discounts, the same Black Friday reductions are likely to feel less attractive than they did previously.
Some people are really struggling financially
Although there’s a lot that could be attributed to psychological drivers of shopper behaviour, the more fundamental economic factors will also have played their part. Latest figures show 1.62 million people are currently unemployed in the UK, and with that figure forecasted to rise to 2.6 million by mid-2021, it’s important not to overlook the economic impact on consumer behaviour.
Understanding the psychology driving consumer behaviour is the first step to creating the changes that can drive up sales. Shift has been helping companies do this for over 15 years.
Follow us on LinkedIn: