Shoppers Want a Good Deal; More Than Half Still Pay Full Price
As consumer expectations change and digital technologies advance, the holiday shopping season itself is evolving. It’s going beyond its revenue-maximizing frenzy of deep discounts and promotional blitzes to become a strategic proving ground to test innovations, refine customer targeting, and cultivate loyalty in ways that transcend the holiday quarter.
Black Friday isn’t just a sales event; it’s a brand moment. Digital advertising rates soar in November and December, with PYMNTS covering how spending from eCommerce giants is pressuring smaller players, and the margin pressure from offering steep discounts is unavoidable. For many brands, the question isn’t simply how to win holiday dollars but how to leverage the season to gain insights, build relationships, and stand out in an ever-cluttered marketplace.
And crucially for today’s shoppers, discounts by themselves don’t appear to be doing it for them to the extent that they used to. The PYMNTS Intelligence report “Intrigue or Fatigue? Amid Crowded Deals Landscape, Financial Lifestyle Drives Consumers’ Black Friday Interest” found that one-third of consumers said they feel like they are being “bombarded” by sales promotions. Forty-one percent said the increased frequency makes the deals feel less special.
In fact, the report reveals a shifting landscape for Black Friday and deal events in 2024. Despite 38% of consumers noting an increase in sales events compared to last year, the shopping extravaganza retains its allure. However, 41% of shoppers felt these events were less special due to their frequency.
Interestingly, financial circumstances heavily influence consumer behavior: those living paycheck-to-paycheck with difficulties are more likely to leverage sales out of necessity, while financially stable consumers are more selective. Despite potential fatigue, 41% of returning Black Friday shoppers plan to spend more this year, with high-income consumers leading this trend.
But many will pay full price despite the intent of seeking bargains. The report shows that 59% of shoppers are not strongly swayed by deals when choosing merchants, suggesting other factors like loyalty and convenience play significant roles in purchasing decisions.
Read more: Retailers Exercise Data Readiness Muscle to Boost Holiday Spend and Customer Loyalty
Data as a Strategic Weapon
Given economic uncertainties, consumers are more selective and value-conscious. Highlighting cost-effective options and emphasizing the value proposition of products can resonate with shoppers looking to maximize their spending.
One-third of consumers who earn more than $250,000 annually live paycheck to paycheck. A quarter of the paycheck-to-paycheck population has difficulties paying bills, and they carry average credit card balances of $7,000, higher than the sample average of roughly $5,700. When it comes to holiday shopping for the whole family, deals can be an important determinant.
PYMNTS Intelligence “Intrigue” report finds that financially stable consumers, those not living paycheck to paycheck, are more likely to perceive an increase in the frequency of sales events. This could be because they are more engaged with the retail landscape and have the financial flexibility to take advantage of deals, making them more attuned to their occurrence
That’s why, against a backdrop where consumer behavior has shifted towards digital, data has become the linchpin of a more effective holiday strategy.
“What happens is retailers spend more money on search and marketing channels, but they struggle to measure their effectiveness,” Banyan Chief Commercial Officer Mike Minelli told PYMNTS.
Real-time analytics allow brands to monitor the effectiveness of promotions, tweak campaigns on the fly and understand granular patterns of customer behavior. Those insights often inform product development, pricing strategies, and marketing plans well into the next year.
Ultimately, the holiday shopping season may still glitter with discounts and doorbusters, but underneath lies a battleground for brand supremacy — a race where strategy, not just sales, determines the ultimate winner.
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