Cyber Monday and Black Friday mark the start of the holiday shopping season. Historically, Black Friday was the primary day for both retailers and shoppers but, despite a slight difference in terms of what is on sale, Cyber Monday has grown to be equally important.
During this annual shopping bonanza, as reported by Deloitte, consumers each spend an average of $500, making it one of the year’s most profitable weeks for retailers1. Remarkably, it is still growing, with both Black Friday and Cyber Monday becoming more popular with shoppers year over year.
These sale days are now too important for retailers to ignore, and companies should start planning their marketing and retail strategy months in advance.
Traditionally, Black Friday takes place on the Friday following Thanksgiving. The day after Thanksgiving has been regarded as the official start of the holiday shopping season.
The day reportedly earned the name ‘Black Friday’ because businesses would operate at a loss, or ‘in the red,’ until the day after Thanksgiving, at which point they would turn a profit and be ‘in the black.’ However, this explanation is disputed, as are several other stories of Black Friday origins.
Cyber Monday, meanwhile, occurs on the first Monday after Thanksgiving – and is much more recent. The term was created by Ellen Davis of the National Retail Federation in 2005 and was part of an effort to get increasing numbers of customers to shop online. Since then, it has quickly established itself as the online equivalent of Black Friday.
In recent years, both have become firmly established shopping traditions in the US and around the world.
The main differences between Cyber Monday and Black Friday are that Black Friday is generally aimed at the in-store shopping experience, while Cyber Monday is directed toward the online market.
For retailers, it is worth keeping this distinction in mind to develop discrete marketing strategies. In many ways, Black Friday and Cyber Monday have come to epitomize the online vs. offline shopping debate, marking a contrast in consumer behavior and creating an incentive for retailers to shift their positioning for optimizing sales.
For example, the concept of Cyber Monday is based around ‘lightning deals’: special offers that are only available for hours, or even minutes. This creates a sense of urgency and encourages consumers to make faster buying decisions. By contrast, Black Friday encourages consumers to decide what they want in advance, and they often queue before stores open.
A study on holiday retail sales has found these, in 2023, to be forecast to reach about $957.3 billion in the United States - and Cyber Monday and Black Friday together contribute to a large portion2. However, consumer behavior can vary between the two.
Although in recent years there has been some blurring of the line, with online shopping trends becoming more of a focus on Black Friday, it remains a day mostly associated with family shopping. Many retailers open early, and shopping malls host special events to create a family atmosphere.
Cyber Monday offers a different kind of shopping experience, with consumers using this day to make purchases they were unable to find at the mall or to take advantage of home delivery. Mobile shopping habits have helped Cyber Monday challenge Black Friday’s position as the busiest shopping day of the year.
Understanding the different ways consumers shop on these two days can be critical to integrate into marketing and communication strategies.
Although it seems like an attractive proposition for retailers, not all businesses are positioned to enjoy Cyber Monday benefits – and it can have its drawbacks.
For example, although Cyber Monday can be great to create hype and enthusiasm around a brand, it can also discourage shoppers from making purchases at other times of year. The competition can also be fierce in the run-up to Cyber Monday. On the other hand, it can offer advantages to smaller businesses, which may be more agile and able to respond to fluctuations in demand in their marketing.
Cyber Monday offers an opportunity to shift old stock, freeing up storage space and capital. However, achieving this may require companies to offer significant discounts.
Businesses must also be prepared to deal with the increased demand for products that Cyber Monday creates. For example, websites must be robust enough to deal with the extra traffic, and payment options should be varied enough to satisfy customer preferences.
Black Friday benefits run along the same lines as those for Cyber Monday, although with the added element of customers being physically in-store. For example, having lines outside the door may be a great sign for a business, but companies should ensure they have the staffing and security capabilities to deal with the rush on opening time.
Similarly, seeing customers pour in through the door is encouraging, but businesses should have a strategy in place to keep them coming back throughout the rest of the year. Black Friday is undoubtedly an opportunity for businesses to increase their customer base, but these new customers will often be bargain-hunters and may be harder to reach during normal shopping periods.
Analyzing consumer demographics regarding Black Friday and Cyber Monday reveals significant differences in shopping trends.
Recent statistics on Black Friday and Cyber Monday show that, in 2023, 22% of Gen Xers plan to shop in-store for Black Friday, compared to just 16% of Gen Z and Millennials3. However, only 6% of Baby Boomers say they intend to make the trip, showing that Black Friday tends to be an event aimed at a specific age bracket3.
Adobe reports that the target demographic for Cyber Monday is similar but slightly younger, with consumers aged 33 to 44 most likely to shop on this day4. Both days have a similar target audience, thanks to Gen Xers and older Millennials having more disposable income than Gen Z.
On the other hand, Baby Boomers are less inclined to buy online and are keener to avoid the crowds on Black Friday. They also have different product preferences, being less likely to buy electronic goods and technology products, which together make up a sizable proportion of discounted items.
Cyber Monday marketing ideas include:
Black Friday marketing is different from that for Cyber Monday, with consumers responding differently to in-store discounts and promotions compared to online ones.
Being physically in a store can provoke different reactions and responses, and retailers need to be aware of how to harness these. Marketing ideas include:
The idea of two of the biggest shopping days of the year coming either side of the same weekend can present a potential challenge for small businesses.
If you do participate in both, you need to decide which deals you want to highlight on which day and start putting in the work in advance. There may be a lot of overlap here, especially when using email or social media marketing campaigns.
It is also essential to make sure websites are in top working order, with any glitches ironed out and landing pages leveraged to their full potential. Setting goals in advance can streamline operations.
The marketing and sales boost from both events can have enormous potential. Not only can businesses make sales on the day, but they can also win a whole new set of customers and build brand awareness.
Overall, having the staff and web capability to deal with higher sales levels and the payment processing options to help sales go through smoothly are critical.
This is where PayPal can help. For more information on the preferred payment methods of consumers, check out how businesses can offer financing to customers.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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