How Small Businesses are Rethinking Black Friday

Rethinking Black Friday

How small business retailers can succeed in an untraditional holiday season

A brave, new holiday season is upon us. As consumers and businesses continue to adapt to a new normal, there’s still plenty of uncertainty. COVID-19 cases are spiking across the country. A federal stimulus package is in limbo. And the results of our presidential election and key down-ballot races may not be finalized for months. But there is good news. According to Visa’s Back to Business Study, 86% of Americans are planning to get their shop on over the course of the next few weeks, with approximately 62% planning to spend about the same amount as they did last holiday season.

Thanks to the pandemic, this season will be something different and less predictable than we’ve ever experienced. Many major retailers are choosing not to operate on Thanksgiving Day, but they will be open on Black Friday (November 27) to kick off a week of deals and discounts. However, no one expects there to be the doorbuster, mad-dash events from years past. A majority of consumers are planning to do a portion or all of their shopping online to avoid the crowds. Some experts actually believe that Black Friday has been an online event for years. And these same experts believe there’s been a consistent blurring between Black Friday and Cyber Monday—making the entire weekend one big bargain opportunity for consumers. Traditionally, retailers begin their Black Friday deals a week or so before the big day, but this year they started appearing in late October. And they plan to offer deals well into December. This is all part of a strategy to extend the shopping season and counter the financial losses brought on by the economic downturn of the past two quarters. Another interesting bit of data is that Cyber Monday has surpassed Black Friday in importance for all generations. 

Small businesses can use this information to structure how and when they want to target consumers. According to a Google survey, 66% of shoppers say they plan to shop more at small businesses. One specific day that you should prioritize is Small Business Saturday® (November 28), a tradition American Express began in 2010 to help local businesses struggling to recover from the Great Recession of 2008-2009. As a first step, add your business to AmEx’s Shop Small map for free and join their national directory of participating businesses. The event has strong brand awareness, and last year, Americans spent nearly $20 billion in support of it. It’s an opportunity to gain exposure and drive your holiday sales that you shouldn’t miss.

Embrace a digital-first strategy

To compete, you need to meet customers where they are, which for many of them nowadays is online. So you need to make sure your digital game is strong. Doing so will allow you to cater to your local clientele and create sales opportunities nationally or even globally.

Build your e-commerce infrastructure: Having a basic website and a Facebook page definitely helps to create an online presence, but these tools alone can only build your brand and drive customers to a physical location. Setting up a specialized e-commerce platform (your own online store) will allow you to do business over the internet. There are many easy-to-use options that offer a range of features to suit your needs—everything from marketing and inventory management to business analytics and point-of-sale integration (to a bricks and mortar store). Another option is to sell your products through online marketplaces like Amazon, eBay and Etsy. 

Since the pandemic began, customers have gotten used to having contactless shopping experiences. That’ll be the expectation for online holiday shopping, so look for an e-comm option with the functionality to arrange for curbside pick-up and local delivery. Also consider using technology that can nudge customers wavering at the shopping cart check-out to complete their transaction. PayPal has just released a buy-now, pay-later product called Pay in 4. Consumers can opt to pay for a purchase in four, interest-free payments over a six-week period. With many Americans feeling uncertain about the pandemic economy, this could be an incentive for them to buy. 

Create shoppable moments: For the people who won’t be browsing stores in person, you can use the magic of technology to create retail theater. You can hold virtual shopping events using live video (think Facebook Live, Instagram or Zoom). Facebook and Instagram make it possible to buy and sell during an event. Plus, a newcomer to the livestream marketplace, Spin Live, allows you to partner with their team of influencers to help promote and sell your products.

You can offer an exclusive virtual concierge service, where a customer can schedule a livestream appointment with an in-store associate. A great way to replicate the excitement of a Black Friday doorbuster is to tease and delight your online audience with “digital drops.” Much like how Apple revs up so much anticipation for the release of its latest iPhone that people camp out in front of the store for days, you can do this with your merchandise. Promote exclusive or high-demand items that are in limited supply and only available on the drop date.

Look out for shipping costs and delays: With the demand for shipping expected to be off the charts this season, there is the potential for shipping delays. You should warn customers about this in advance and encourage them not to wait until the last minute to place orders. Also, be prepared to see increases in peak season surcharges because of the huge demand.

In-store shopping, pandemic style

A recent Deloitte survey found that “nearly 51% of shoppers feel anxious about shopping in-store during the holiday season” And earlier this fall, the Centers for Disease Control and Prevention added shopping in crowded stores just before, on or after Thanksgiving to its list of higher-risk activities. If you’re a bricks and mortar business planning to be open, there are things you need to do to create a safe shopping environment and things you should consider to help your business stand out and compete. Odds are you’re already doing a lot of it.

Be discoverable: Potential customers need to know you exist and where they can find you. There are easy and free digital solutions that can make this happen. Sign up for a free Google My Business account. You can set up a business profile and have a presence on Google Search and Maps. The service offers other freebies, such as a professional website and customizable marketing materials. Another option is a free business page on Nextdoor. You can target specific neighborhoods with holiday deals, interact with neighbors and other local businesses and you can receive endorsements from Nextdoor members. These can be invaluable, considering 88% of members shop at a local retailer once a week or more.

If you’re using a website, be sure that all of your information is updated, including any changes in hours of operation. You should also note the specific COVID-19 safety protocols you have in place. This lets people know what to expect, and it shows that you’re a business that cares about the safety and wellness of its customers.

Reconfigure your layout: To help customers practice good social distancing (6 feet) while they shop, you may need to make adjustments to your interior space. Designating one-way aisles and spreading out display racks can create space between shoppers. Also, is it possible to find extra space by repurposing parts of the store that aren’t as busy? A tried-and-true retailer tactic is to place the best gifts deep within the store, forcing buyers to browse other merchandise as they make their way to their target items. But this holiday season, consider putting those items you know will be hot sellers close to the entrance, so people can quickly get what they need and make room for others.

Another way to minimize bottlenecks is by equipping sales staff with mobile check-out devices to ring up buyers on the sales floor, rather than having them line up at a main cash register area. If possible, ensure that all of your check-out stations can process contactless transactions via mobile phones (Apple Pay, Google Pay). And finally, if the weather permits, open up doors or windows to bring fresh air into the store.

Crowd control: These days, it’s not just the fire marshal who doesn’t want too many people in the building at one time. While a jam-packed shop is a beautiful sight to see, you may need to stagger the flow of customers to avoid crowding. To compensate for not being able to operate at full occupancy, consider extending your hours of operation—giving customers a broader timeframe for shopping. You could also schedule private shopping appointments. These could be marketed as exclusive events for loyal customers and their guests. Some small business retailers are experimenting with QR code window shopping to sell to customers outside of their storefronts. Passersby will see physical products displayed in windows. Scanning an item’s QR code, using a mobile phone app, will bring up a QR code page where a customer can select their size, purchase the item and have it shipped or locally delivered to them. It’s a cool way to have a good old-fashioned retail experience, courtesy of some modern technology. 

If limited space inside is problematic, consider taking your business outside. You can have daily sidewalk sales or create a pop-up shop outside of your storefront or outside of a mall. Both options can help you get noticed and draw foot traffic. With many customers interested in purchasing local, but apprehensive about doing it in person, you should offer the convenience of BOPIS (buy online, pick up in store) and curbside pick-up. Not only will you be providing excellent customer service, but you’ll also reduce your shipping costs.

Make shopping an event:  Consider how you can personalize an in-store shopping experience for customers. If you’re a clothing store, could you put on a socially-distanced fashion show? Could you bring in special guests, like writers, musicians, chefs or athletes? Could you draw in people with a raffle, free samples or BOGO deals? Events can happen throughout the holiday season to keep your business in the spotlight. But definitely consider something unique for Small Business Saturday.

This year’s holiday season is certainly going to be interesting. Definitely unpredictable, definitely stressful. But with good planning, plenty of patience, lots of strong coffee and hand sanitizer, your business can persevere. So put on your mask and your game face. It’s go time!