Black Friday: Knowing Your Audience’s Buying Habits

Black Friday, once considered just an American tradition, has slowly crept into the UK retail market and is now a pivotal moment in the financial calendar for many businesses. Therefore, it’s essential that marketers begin strategising their season campaigns well in advance.

Each year, online retailers hope to benefit from a surge in website traffic and conversions, while consumers hunt for irresistible deals and bargains.

As a marketer, crafting the perfect Black Friday digital campaign has become increasingly complex due to the ever-evolving tech landscape and emerging trends.

It's no longer enough to simply know who your audience is and where they 'hang out' online. We now need further insights into their shopping preferences, media consumption habits, and what impacts their purchasing decisions. 

By understanding these differences, eCommerce businesses can create and optimise effective campaigns by:

• Tailoring marketing strategies to create high engagement with their specific target demographics. 
• Reducing inventory costs by stocking products that resonate most with their target audience. 
• Understanding generational price sensitivities and determining the ideal discount rates.
• Optimising shopping experiences and timings of Black Friday sales events for maximum impact.

Throughout this blog, we'll explore the different characteristics of each generation, highlighting how as a business, you can seamlessly integrate their preferences into your Black Friday marketing campaigns.

Understanding Your Audience

• Defining the characteristics of different generations (e.g., Baby Boomers, Gen X, Millennials, Gen Z)
• Unpacking the impact of generational differences when it comes to shopping habits 

Before customising your Black Friday campaign, it’s important to understand the unique characteristics of each generation and where the transition between each takes place.

• Baby Boomers: Born between 1946 and 1964
• Generation X: Born between 1965 and 1980
• Millennials: Born between 1981 and 1996
• Generation Z: Born between 1997 and 2012

Each generation grew up in a particular moment that has shaped their priorities, values and even preferences. In return, this has impacted their purchasing behaviours and decisions. 

These differences in attitude change how marketers need to tailor campaigns to each generation. Take Baby Boomers, for instance; they typically prioritise quality over price, valuing durability and longevity.

When targeting Baby Boomers, an online retailer might opt for less aggressive discounts on their premium range, preserving the perceived quality, and avoid steep reductions on economy or lower-quality products.

Generational Shopping Habits

Baby Boomers

• How they approach Black Friday shopping
• Preferred shopping channels and platforms
• Factors influencing their purchasing decisions

Baby Boomers, the most seasoned generation with substantial purchasing power, are one of the most affluent generations, holding 36% of the UK's wealth and are responsible for more than half of consumer spending. Over 50s, including the Baby Boomer generation, are forking out more than half a trillion dollars each year, according to a study by Epsilon. 

According to a report by SAP, their top three criteria for making purchasing decisions revolve around traditional metrics like quality, features, performance, and price. Factors such as celebrity endorsements and aesthetics carry less weight in their choices.

Due to the areas that influence this generation, they tend to be diligent planners and researchers, often taking their time to research deals, ensuring the best value for money. While price has its place, Boomers tend to be driven more by value and are more likely to pay more for a durable product with longevity.

While Black Friday marks the start of the seasonal shopping period in the UK, according to Statista, only 44% of Baby Boomers were making their gift purchases during Black Friday.

Although Baby Boomers have made strides in their online shopping habits since the onset of COVID-19, their media consumption still leans towards traditional platforms like television and print.

To create an effective Black Friday marketing campaign for the Baby Boomer generation, weighing up quality vs. price is essential. Offering substantial discounts on budget products may not pique their interest; instead, consider providing a modest discount on premium product lines.

When it comes to impulse purchases, 58% of Baby Boomers like to take advantage of sales and deals, according to a GWI study on consumer trends. In comparison, 37% have FOMO (fear of missing out) when it comes to limited-time offers - but not at the expense of quality.

Advertising in traditional ways using TV and print combined with seamless user experience from ad to point of sale is imperative for converting Baby Boomers into customers.

A significant point, however, is that only 15% of online images contain images of this generation, and only 5% show them using technology, which usually involves a younger person teaching them how to use a device, a recent AARP study found.

If you're targeting Baby Boomers, plan to represent your market with imagery that reflects them. This might mean creating custom visuals rather than relying on stock imagery. This personalised approach can foster a stronger connection and better engagement with this demographic.

Generation X

• Their unique approach to Black Friday deals
•  Role of technology in their shopping habits
•  Key factors that motivate their purchases

Consisting of many individuals over 50s, Generation X wields similar purchasing power to their predecessors, with some of the highest volumes of disposable income in the UK.

Growing up during the dawn of personal computers and the Internet with the introduction of the Commodore PET in 1977 and the greatest-selling single computer of all time, the Commodore 64, Gen Xers are considered to be the leaders of the tech-savvy generations, meaning that shopping online is comfortable and, according to a HubSpot report, 58% say that search is how they discover new products most often.

With 68% of Generation X reporting they won't be shopping in-store for Black Friday, eCommerce retailers can benefit from marketing to this generation online. An opportunity to get your product in front of Gen X comes from social as 86% are users of social networks using it to aid their buying decisions and catch up with friends and family. 

For Generation X, consistency in posting to establish authority and delivering valuable insights on products and maximising their value is a crucial strategy. Building trust and confidence is paramount. In the lead-up to Black Friday, showcasing authentic customer reviews on social media can bolster their confidence in your brand.

Unlike the younger generations, Gen X is less likely to be put off by being targeted through ads directly, preferring to see ads on social media. However, it's important that these ads maintain an authentic and unobtrusive tone to further cultivate trust and enhance their overall shopping experience.

Following suit of the Baby Boomers, Generation X still values price and quality as top factors for purchasing, according to a study from SAP. Creating heavy discounts on budget lines in the Black Friday sales is less likely to convert this generation. Like Baby Boomers, lower percentage point discounts on premium ranges are more likely to entice a purchase. 

Equally, Generation X are researchers. They like to compare prices, look for the best deals well before Black Friday and, most importantly, read reviews. 78% of this generation are less likely to buy a product without reviews.

Collating reviews on key products before Black Friday is essential in getting this generation spending. Be wary that 45% of Gen Xers always go beyond the basics to read the actual content of reviews. 

Star ratings alone are not enough.

When done correctly, offering reviews is likely to be a good return on investment for Generation X, as 58% are less likely to return a product if they've read ratings and reviews prior to purchase.

As a strategic and forward-planning generation, Generation X have similar impulse buying motivations to Baby Boomers. According to the GWD Consumer Trends 2023 report, Gen Xers impulse buys to take advantage of sales (52%) and to avoid missing out on limited-time offers (43%).

So, while giving this generation the opportunity to plan their purchases and give them as much information as possible, this Black Friday, there is still room for impulsive purchases for good deals and to treat or reward themselves (44%). 

Getting a good deal on their Christmas gift shopping is also on the agenda for Generation X. 70% of this generation will be making a large share of their gift purchases, so using product lines targeted at the younger generations will also have this.

Millennials

42 - 27 year olds 

Millennials are the generation gradually surpassing Baby Boomers in the workforce, marking a significant demographic shift.

72% of Millennial women are employed, opening up a larger audience for eCommerce retailers to market their Black Friday deals. According to the Brookings Institute, 64% of Millenials would rather make £40,000 a year at a job they love than £100,000 a year at a job they think is boring. 

They’re notorious for caring more about social issues than economics, proven by the number of Millenials buying houses, getting married and having children later in life. They’re the most talked about generation on social media and became a cultural phenomenon due to their distinct perspectives on various aspects, including social norms and values.

They’re the first generation to prefer online experiences over in-person interactions, with a reported 67% favouring online shopping and 53% preferring to seek out details online rather than talking to store staff. An intuitive eCommerce store will help convert Millennials into customers this Black Friday.

Interestingly, Millennials' dislike for physical locations goes deeper into interactions. 61% of Millennials find chatting easier via digital communication channels such as text, online chat or messaging applications. Having a live chat function and other online messaging channels open is a great way to help ease a Millennial visitor through your website during Black Friday. However, be sure you can resource such features well, as 96% of customers would leave if you deliver a bad customer experience.

While we've spoken about some of the more obvious elements of a Black Friday marketing campaign, we've come up with a plot twist. 93% of Millennials report listening to the radio for around 11 hours per week. 

Surprisingly, Millennials listen to the radio more than their two preceding generations. Podcasts are becoming just as popular as the next Netflix or Disney+ series. 

Crafting an attention-grabbing radio ad or sponsoring a podcast beloved by your target audience presents an excellent opportunity to ensure your brand reaches the right people and stands out amidst the competition. Maybe video didn’t kill the radio star after all!

When we said that Millennials are unlike the generations before them, we really meant it.

They're the generation full of impulse buyers and, according to a report by RBH, prefer to pay subscription fees over outright ownership of products. If you're looking to target this generation through the Black Friday sale period, offering alternative ownership methods such as monthly subscriptions is a surefire way to get Millennials converting.

On the topic of ownership, more than 3 in 4 Millennials would rather spend money on an experience or event than buying a ‘thing’, with 55% spending more on events and live experiences than ever before. eCommerce retailers need to think beyond products for this demographic, finding new ways to market their products to create experiences over ‘stuff’. 

It’s also a fantastic opportunity for leisure and tourism organisations to tap into the Black Friday sales hype by encouraging Millennials with experiences they’d be crazy to miss out on, especially considering 41% of Millennials make an impulse purchase online every 2-3 weeks.

When it comes to payment preferences, PYMNTS research shows that 67% of millennials have an affinity for digital wallets. 

To create a seamless online shopping experience, eCommerce businesses must consider adding ApplePay and GooglePay to their checkouts this Black Friday. 34% of Millennials claimed easy or quick online checkout processes were a common reason for impulsive purchasing. 

Gen Z

26 - 11 year olds
 
The newest kids on the purchasing power block, Generation Z, may seem very similar to Millennials at first glance. Some nuances are quite important to marketers targeting this generation. 

They’re the first generation to have grown up entirely in a technology-driven world and are also the first to have never experienced a world without the Internet. Technology is practically second nature to them.

It comes as no surprise that 46% prefer online shopping over in-store, according to ClearPay’s Gen Z report.

Their attention time span is significantly reduced compared with their Millennial counterparts, with Gen Z’s recorded at 6 seconds vs. Millennials’ 12 seconds. Scientists have suggested that Goldfish have longer attention spans than Gen Z. This means they need shorter bursts of information quickly.  

This also means they're less tolerant of glitches and bugs than previous generations. Marketers need to ensure that during the Black Friday sales, a website can handle peaks in traffic and that its user experience is intuitive and easy to use. These changes ensure Gen Z's are converting rather than abandoning their baskets.

Budget and time-dependent it’s also a fantastic time to consider some conversion rate optimisation to get your key website pages working for your audience and their attention spans.

Taking their social values further than Millennials, 63% of Generation Z have been put off by traditional marketing and prefer brands with a ‘greener image’. 

These younger shoppers are twice as likely to purchase from brands that advertise sustainable purchasing incentives, such as charitable donations or offsetting climate impact. 

While this is a great everyday marketing practice for this demographic, 9 out of 10 Generation Zers hope to donate to a charitable or sustainable cause when shopping in the Black Friday sales. 

eCommerce marketers should think about ways to entice this generation to purchase this Black Friday through green incentives such as charity donations and climate offsetting, which feel authentic and relevant to your brand. 

Gen Z is driven by influencers, with LTK’s report finding that 75% of Gen Z purchase online from creator recommendations, 21% higher than the general population. 

Leveraging influencers for a Black Friday marketing campaign is an obvious choice, and when executed effectively, it can yield substantial rewards and deliver a high return on investment (ROI). It's worth noting that influencers don't necessarily require extravagant budgets. Many of these younger shoppers connect deeply with micro-influencers (those with 10,000 to 100,000 followers) who align with their specific interests and styles.

Using these carefully selected influencers during Black Friday could help reduce returns, as nearly half of Gen Z reported they’re less likely to return an item after seeing a creator describe it in their video content. Top categories for influencer marketing include beauty and personal care, fashion, electronics, cleaning suppliers and gaming.

Adobe’s report into the UK’s content consumption habits found that Generation Z spend 10,6 hours per week consuming content across their devices, favouring their smartphone. According to ClearPay’s report, 88% use at least one social media platform multiple times per day and 64% use at least three platforms per day.

Convenience and instant gratification are becoming the norm, especially for the younger generation. 45% of Gen Z consider convenience an important factor in their online retail experience. Fast and efficient delivery should be offered during Black Friday alongside easy returns and excellent customer service.

Comment from CTI team (Performance Marketing)

As a marketing lead that is responsible for crafting effective digital marketing strategies for numerous online businesses, I can’t stress enough the importance of understanding your audience, especially when it comes to the success of all campaigns - not just Black Friday . 

By delving into the preferences of each generation and crafting our strategies accordingly, we've consistently witnessed significant increases in conversions for our clients. This insight is like a secret weapon during Black Friday. For instance, tailoring our campaigns to suit Generation X's tech-savvy nature or Generation Z's tech-native mindset has delivered remarkable results.

Just remember, it's not a one-size-fits-all approach. It's about creating campaigns that resonate with the unique characteristics of each generation - allowing you to nurture customer relationships throughout the year and not just during seasonal holidays.

Considering Generational Differences During Black Friday Campaigns

As Black Friday continues to gain momentum and become a staple seasonal event in the UK retail space, marketers face the challenge of adapting their marketing campaigns to evolving consumer behaviours. 

This seasonal retail event is no longer solely about offering discounts. It’s about understanding the nuances of each generation and how to offer what’s most important to them at a key time in the financial year. 

As Black Friday looms around the corner, it's essential that retailers and eCommerce businesses take into account these generational preferences when crafting their marketing campaigns. Customising strategies to align with the distinctive traits of each generation can lead to increased sales during the Black Friday rush and nurture long-term customer loyalty.

The key to success lies in understanding your target audience's diverse and evolving needs, regardless of their generational affiliation.

Preparing for Black Friday? Check out our other blogs on how to make this Black Friday your most successful yet:

• The Ultimate Retailer's Checklist for Black Friday
• Elevating Your Black Friday Strategy: Experiences over Products