November 16

Does Social Media Impact Retailers?

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Consumers are starting to dislike Thanksgiving Sales.

More than one consumer is considering skipping the Thanksgiving Sales this year. That’s because, instead of starting at 4am Black Friday several retailers are planning to start their sales at midnight Thanksgiving Day.

As you might imagine, lots of folks are speaking up about this on blogs, Twitter and Facebook. They’re not happy, and they’re using social media to voice their displeasure.

Now, we all have to admit that big sales are somewhat less than social occasions. Sometimes they resemble mass riots or war zones. But Thanksgiving is definitely a social occasion (even if we’re not entirely thrilled with Uncle Fred or Aunt Edna). That’s what has a lot of dedicated Black Friday shoppers saying they’re ready to throw in the shopping bag.

Target, Macy’s Best Buy and Kohl’s are planning to open at midnight Thanksgiving Day. Wal-Mart is planning to start some of their sales at 10pm.

These sales are a big deal. The shop-‘til-you-drop crowd often start lining up 3 or 4 hours before the stores open just to be in a good position when the sale starts. As recently as last year, shoppers could be at Toys “R” Us for the 10pm opening Thanksgiving Day, get to Wal-Mart for a wrist band at 2am (guaranteeing a spot for their 5am sales start), the hit Kohl’s at 3am, Target or Macy’s at 4, and wrap up with Best Buy after stopping off at Wal-Mart.

Now that all these stores are kicking off their sales at the same time, shoppers are going to have to pick and choose which sales to participate in. And that is going to have negative consequences. After all, shoppers who went to 5 stores last year simply can’t make all 5 this year. That means somebody has to lose sales.

And how does this fit in with social media and the impact it has on retailers?

The answer lies in a recent study from Market Tools.

Market Tools recently published the “Social Media and Customer Feedback” survey. They found that 44% of retailers surveyed believe we do not comment or complain about their products and services online. Another 22% don’t even care enough to have found out whether we’re complaining about them.

Based on those results, I was very surprised to read the rest of the survey and find a high percentage of companies responding to customers through Facebook and Twitter. According to the survey, 54% of retailers using Facebook always or often reply to out comments and complaints. That number falls a little to 42% on Twitter.

So on one hand we have 66% of surveyed retailers either not believing we talk about them, or just not caring whether we do. And on the other hand, of those that are paying attention, many are making an effort to respond and interact. So what is social media’s impact on retailers?

While we hear a lot of the cow-pattie gurus touting the praises of social media for business, it’s clear that businesses are quite a bit slower to accept social media as a credible source of information.

Wal-Mart is an excellent example. The New York Times presented them with evidence from Facebook, Twitter and blogs that customers are unhappy with sales starting Thanksgiving Day. Their response was “customers told us they would rather stay up late to shop than get up early.”

There’s no question that “social media” is here to stay. Heck, what we’re calling social media is only a technological progression of all the gossip, rumor-mongering and press that has been around for centuries. So far, very few individuals and companies are using it in a coordinated and effective fashion.

So far, the impact of social media on retailers is minimal. (As an interesting side note – even e-commerce accounts for only 1% of the world’s economy according to the CIA Factbook.)

Rather than pay attention to the squawking that’s going on in social media, retailers are going to pay attention to sales figures for Thanksgiving Day. After all, we know that most of the folks making a lot of noise now are still very likely to be standing in line for sales come Thanksgiving Day.

Actions count far louder than conversations.

So when you’re looking at how to incorporate social media into your marketing mix, take all the hype and hoopla with a grain of salt. While I certainly recommend making the effort to respond to customers who complain – regardless of whether it’s in person or through social media – always give more credence to what people do than what they say.

There is a distinct possibility that retailers are going to lose sales this year. But that loss will have very little to do with social media.

Last year, the sales started in staggered fashion. This allowed people to shop at multiple stores. Now most of the sales are starting at the same time – midnight Thanksgiving Day. So the retailers are going to lose because people simply can’t be in two places at once, and there’s an ingrained perception that a sale is only worthwhile when you get there at the beginning. This is why people line up four hours early for Black Friday sales.

And let’s keep in mind that we’re in a poor economy. Although some may not be able to participate in the sales the way they did before, most who can afford it will participate to an even greater extent. The stupendous bargains of Black Friday are an excellent way to stretch a dollar.

What we would all do well to listen to is the message that customers are displeased with two things:

  1. The change to cherished holiday shopping traditions. Waiting for sales to start is often a very social time.
  2. The inability to fully participate in the social nature of shopping because it now overlaps with Thanksgiving Day.

The retailers likely to come out on top this year are toy stores (because parents shop for their kids before themselves) and the J.C. Penny’s. J.C. Penny is keeping its usual 4 a.m. opening time, so they’re going to stand out from the crowd.

What do you think? Do you care when stores open for Black Friday sales? Should retailers immediately cave in to complaints, or wait to see what people do?


Tags

facebook, j.c. penny, new york times, Social Media, thanksgiving, the conrad hall, toys r us, twitter, wal-mart


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