As Black Friday approaches each year, UK businesses face a critical decision: should they participate in the frenzy of discounts and promotions, or is it wiser to sit this one out? 

Black Friday began life in the US, however it swiftly crossed the Atlantic and took the UK by storm. With its potential for increased sales and brand exposure, it’s tempting for many businesses to jump on the bandwagon. 

However, the decision isn’t as straightforward as it seems. In this article, we’ll explore the pros and cons of participating in Black Friday, helping you determine whether it’s worth your time and resources.

{{ecommerce-guide}}

What is the appeal of Black Friday for businesses?

One of the biggest advantages of Black Friday for businesses is the opportunity to boost sales dramatically. During this period, consumers are more inclined to spend, searching for deals on everything from electronics to fashion. 

According to recent research, a whopping 87% of people take part in shopping during Black Friday and Cyber Monday events. Those people spent an estimated £13.3 billion spent by UK consumers during the Black Friday period in 2023. 

Add in the fact that it can be a great tool for attracting new customers and it’s clear to see why so many UK businesses participate in Black Friday. But is that all Black Friday is good for?

How Black Friday can help build customer loyalty

On top of attracting new customers and driving record sales, doing Black Friday is an opportunity to build customer loyalty too. But how you might be asking? By offering exclusive deals and engaging experiences can turn one-time shoppers into repeat customers. 

For instance, businesses can leverage email marketing, social media, and loyalty programs to encourage customers to return after the event. By providing exceptional service and quality products, you can transform Black Friday shoppers into loyal brand advocates who will promote your business through word of mouth.

The risks and challenges: Why Black Friday isn't for every business

Despite the clear benefits, there are several risks and challenges associated with Black Friday that businesses must consider. One of the most significant is the pressure to offer deep discounts, which can erode profit margins. Many businesses feel compelled to participate, leading to aggressive pricing strategies that may not be sustainable in the long run. If not carefully managed, the push for sales during Black Friday can result in financial strain, particularly for smaller businesses.

Additionally, the competition is fierce. Many retailers, both online and brick-and-mortar, participate in Black Friday, leading to a crowded marketplace. Standing out among the competition requires strategic marketing and promotion efforts, which can be resource-intensive. Businesses must invest in advertising, inventory management, and staffing to handle the influx of customers, which can strain already limited resources.

Timing and preparation

Another crucial factor to consider is the timing of Black Friday. The event occurs at the end of November, right before the crucial Christmas shopping season. For many businesses, this means that preparations must be made in advance to ensure a successful campaign. This includes planning marketing strategies, securing inventory, and training staff to manage increased demand. Failure to plan effectively can lead to missed opportunities and disappointed customers.

Moreover, the shift toward online shopping complicates matters further. Many consumers now prefer to shop from the comfort of their homes, prompting businesses to invest in their online presence. Ensuring your website can handle increased traffic, providing seamless payment options, and delivering products promptly are all critical components of a successful Black Friday campaign.

Alternative strategies to consider

If the risks of participating in Black Friday seem daunting, there are alternative strategies to consider. Some businesses opt for a more measured approach, choosing to offer promotions that align with their brand values and financial goals. For instance, consider focusing on product bundles or unique offerings instead of deep discounts. This can attract customers without compromising your margins.

Additionally, businesses can take advantage of the period by offering exclusive products or experiences that resonate with consumers. Creating a sense of urgency through limited-time offers or exclusive memberships can drive sales without entering the race for the lowest price.

The verdict on Black Friday

So, is it worth doing Black Friday as a UK business? The answer largely depends on your business model, resources, and long-term goals. While the potential for increased sales and brand visibility is undeniable, the risks associated with deep discounts and fierce competition cannot be overlooked. By carefully weighing the pros and cons, developing a clear strategy, and considering alternative approaches, businesses can make an informed decision that aligns with their vision and objectives.

In the end, whether you choose to participate in Black Friday or not, the key is to stay true to your brand and engage with your customers in a way that fosters loyalty and lasting relationships. As the retail landscape continues to evolve, adapting your approach to Black Friday can lead to opportunities that extend far beyond a single shopping day.

Supporting your Ecommerce journey

As you weigh the benefits and challenges of participating in Black Friday, having the right support system in place is essential. This is where Crunch comes in with our dedicated ecommerce accounting service. 

We understand the unique hurdles you face, from managing fluctuating cash flow during peak sales periods to ensuring compliance with tax regulations. That’s why we’ve paired easy-to-use accounting software with expert accredited accountants. That means you can focus on what matters most—growing your business—while we Crunch the numbers. 

Book a free consultation

‍