Asos must consider more than just big discounts ahead of Black Friday

Asos’s slump in sales following last year’s Black Friday highlights the cruciality of the shopping event for retailers. But offering bigger discounts alone won’t turn things around, argues Manu Tyagi, Associate Partner for Retail and Consumer Goods at Infosys Consulting.

It’s crucial that promotions are based on the intelligent use of data so that retailers can set the perfect price and accurately predict shopper behaviour, he adds. This means creating personalised offers and incentivising consumers for appropriate purchases, based on careful pricing and consumer segmentation analytics.

Data on past purchase behaviour, what consumers have on their wish lists, and what web pages they have engaged with can be used to create the right strategy to entice customers on the big day. The analysis of this helps them determine stock and availability, decide pricing strategy, drive discounting and voucher code administration, and hone delivery scheduling for their operations.

Asos’s IT issues affecting sales this year highlights the need for retailers to plan carefully in advance, in order to ensure the best customer experience. This can be ensuring appropriate stocking and availability of the right products, and minimising delivery times. It’s also crucial retailers stress test their websites prior to Black Friday to avoid any technical issues when the traffic hits.

Indeed, some retailers are trying to beat the sales and reduce traffic on the actual day by offering price guarantees starting earlier. ‘Why Wait?’ prices are offered to shoppers with a guarantee that if the price drops further on Black Friday, shoppers will be eligible for a refund.

“This is a great way to win over consumers who have experienced technical glitches on Black Friday before, and therefore don’t mind placing orders early, especially if it comes with a price guarantee,” Tyagi concludes.