How did consumers really feel about Black Friday and Cyber Monday?

The recent numbers released regarding Black Friday and Cyber Monday highlight the significance of the official start of the holiday shopping season. Millions of consumers hit retail stores and websites to purchase products and items they plan to give out to loved ones in the coming weeks. However, there were also a large amount of Americans who decided not to participate in the rush. Recent research has revealed what consumers were discussing on social media in terms of Black Friday and Cyber Monday, and how they felt about the shopping days.

Mix of impatience and excitement

Chain Store Age reports that a study by SAP analyzed the mentions of Black Friday and Cyber Monday throughout various social media channels to determine what Americans were really thinking of the two events. The results were interesting, as they contained a mix of consumers who actually shopped on the days and those that decided to avoid them altogether.

According to the research, when it came to Black Friday, there were equal sentiments of impatience/tiredness and excitement pertaining to the official start of the holiday shopping season. Other emotions expressed included eagerness, fear and anger. For Cyber Monday, consumers' feelings were a bit more optimistic, but the ecommerce day only received 30 percent of total social media mentions compared to Black Friday's 70 percent. Americans were mostly excited about Cyber Monday, with some happiness, concern and boredom thrown into the mix.

As for where shoppers were planning to head to purchase products on these days, SAP's study found that for Black Friday, big-box stores were at the top of the list. This was followed by electronics retailers and department stores. Cyber Monday, of course, was a huge day for online merchants, but electronics and apparel stores also ranked high among shoppers.

How big were Black Friday and Cyber Monday?

Many of these sentiments and behaviors toward Black Friday and Cyber Monday were exhibited throughout the weekend. Research from the National Retail Federation revealed that on Black Friday, more than 89 million consumers flooded retail stores and websites to take advantage of the discounts and deals being offered. Cyber Monday turned out to be the biggest shopping day in history, as approximately $1.46 billion was spent throughout the day, according to a study by comScore.

Consumer spending down, but confidence is up

The levels of consumer spending fluctuate frequently throughout the year, as does their confidence. Retailers are able to look at this data to determine what to expect for their operations in the coming months. Recent research has revealed that while spending took a dip, confidence levels have reached a four-year high.

Bloomberg reports that according to the latest data from the U.S. Commerce Department, consumer purchases fell by 0.2 percent for the month of October, which economists believe was largely impacted by Hurricane Sandy. The decrease came after a 0.8 percent gain in spending for September. The drop is also being attributed to the uncertainty caused by the looming fiscal cliff, as Washington lawmakers continue their talks, the news source states.

On the other hand, American consumers are increasingly optimistic about both the nation's economy and their own financial conditions. According to the Conference Board, the level of confidence nationwide rose to its highest levels in four years during November, coming to 73.7. This is a slight increase from October's figure of 73.1. Businessweek reports. Economists state that this positive number means that spending will increase, further boosting recovery.

What can retailers expect in 2013 and beyond?

Although retailers are extremely busy with the holiday season, many are keeping their minds on the coming new year. Once the holiday rush is over, merchants will be focusing on 2013 and what it holds for their operations. There are sure to be changes to a variety of aspects in the coming year, including technology, security, retail management software and marketing. However, retailers will just have to wait and see happens in their future, as there is no certain way to know what the new year will bring.

Internet retail sales to be boosted even more

Consumers are increasingly going online and especially throughout the holiday shopping season, to stock up on items they want themselves or plan to give to others. This purchasing behavior is expected to rise even more in 2013, according to Ben Smith, CEO of Wanderful Media. Writing for Independent Retailer, Smith states that this boost in ecommerce will be due in large part to online retailers offering more perks, such as free shipping and same-day delivery, which will drive shoppers to their sites.

However, Smith's predictions don't apply just to ecommerce retailing. He writes that larger retail stores will begin including brand-specific barcodes on their products as way to prevent showrooming, which is when customers use their smartphones and tablets to purchase items online while they are at brick-and-mortar locations. To keep revenue coming directly into their coffers, these businesses will create barcodes that cannot be scanned by consumers' devices.

Looking beyond 2013

It's difficult to predict what will happen for retailers in the future, and it's even harder to develop expectations for the years to come. Internet Retailing cites a study by Spring UK which revealed some ideas that companies have about potential for the retail industry. One idea is that stores will no longer be manned by people, but instead by robots and other forms of technology. Another aspect is that customers will no longer be forced to go to stores or have their purchased items shipped to their homes, as they will be able to print products on their own through 3D printers and devices. These elements are of course anticipated to be at least 20 years in the future, but it's fun to create predictions about where retailers could be headed.

Gift cards, electronics top holiday gift lists

As consumers head to retail stores and websites to stock up on holiday gifts for loved ones, they have several items on their lists they are looking to grab. Recent research has revealed that customers are buying a significant amount of gift cards and electronics this season.

Gift cards are a popular gift for the holidays, as it allows the recipients to pick out whatever items they like, eliminating the hassle gift givers face of choosing the right thing. The National Retail Federation (NRF) cited research from BIGinsight which found that 81 percent of consumers will purchase at least one gift card this season, putting an average of $156.86 on each product. This represents a total of $28.79 billion that will be spent on gift cards, the study revealed.  

"Savvy shoppers know they can purchase a much appreciated gift card with ease either in store, online or through their mobile device, and give their loved ones the option to buy something they really want or need," stated NRF CEO Matthew Shay.

Time Magazine states that another group of hot items that will be bought and given out as gifts this holiday season include electronics, such as game consoles, tablets and ereaders. 

Current and future outlooks for US retailers

With the recent economic recession out of the way, retailers are starting to feel confident about the direction of their operations, both currently and in the near future. The holiday season is expected to be strong, as American consumers are also becoming more confident. Companies are investing more in additional purchasing channels, and hiring is also climbing. However, there are still lingering concerns over what will happen in the coming months, and retailers are remaining cautious.

How do retailers really feel?

Recent research by the CIT Group aimed to gain a better understanding of the current outlooks of the nation's retailers. Titled "Taking Stock in Tough Times: U.S. Retail Sector Outlook," the study revealed that to boost their operations, merchants are focusing on growing their products, services and revenues. Forty-five percent of the businesses surveyed stated they are expanding their product selection, and 42 percent are starting to offer customer loyalty programs to drive retention.

Investments in social media and mobile marketing are on the rise. More than half of retailers said they are very active or active on social networks. Forty-three percent are engaged in mobile marketing initiatives, with 63 percent of those respondents currently operating mobile applications.

On the other hand, there are still concerns about the economy, as 61 percent said they expect the recent financial crisis to come to a complete end at some time in 2013 instead of sooner. Forty percent think full recovery will take until 2014.

"Beyond the holiday season, while the election is settled, uncertainty about tax rates, anxiety with regard to the 'fiscal cliff' and an uncertain regulatory climate are prompting a more cautious approach to 2013," states Burt Feinberg, group head of CIT Commercial and Industrial. "It seems that the sting of the Great Recession still affects the psychology of retail executives and growth initiatives are more focused on maximizing business through technology versus major expansion."

Retailers looking to ecommerce future

Perhaps one of the biggest resources that retailers will be paying attention to is ecommerce, as more consumers are going online to buy items. Forbes reports that $224.4 billion will be spent online by the end of 2012, representing a 15.4 percent increase from 2011. With these significant figures, merchants will be putting more focus on growing their businesses through internet purchases.

Retailers can look to Zappos for excellent service strategies

When providing products and services, retailers know they must also offer exceptional service if they want to boost their consumer retention and loyalty. For large businesses, these excellent customer experiences start with service agents and call centers. Companies need to ensure they are monitoring employees' performance and recognizing their hard work if they want to see overall service methods improve. One company recently highlighted the initiatives it has been using to boost its proactive customer service efforts.

Zappos is getting it right in service

Zappos, a clothing and shoe internet retailer, has been receiving praise for its customer service strategies. To get better insight on these methods, Software Advice interviewed Zappos customer loyalty operations manager Derek Carder to find out exactly what his company is doing to excel at consumer service. Carder first explained that Zappos focuses on creating "wow" moments for its shoppers, and also works to develop emotional connections.

Next, Carder stated, the company measures four different key performance indicators (KPIs) when it comes to monitoring the efforts of staff members within customer service departments. The first KPI Carder looks at is how long agents spend on the phone with consumers. But instead of pushing for faster call times, Zappos encourages employees to take their time when interacting with customers.

The next KPI is idle chats, or whether or not agents have left live chat windows open after customers have disconnected. By leaving these chats open, agents are often attempting to avoid responding to the next consumer inquiry. By pinpointing idle chats, Zappos is able to find employees that are unproductive. Carder stated that the third KPI is looking for the important "wow" moments and rewarding staff members who provided them. If employees do not meet a certain number of points within a specified time frame, they are required to attend more training.

The fourth KPI Zappos monitors is attendance. Agents who have an excessive amount of sick absences or late arrivals are given points. Employees who have no points within a given period are awarded paid hours off and other rewards, Carder explained.

Focusing on emotional customer relationships

Perhaps the success of Zappos' customer service strategies lies in the company's focus on establishing and maintaining effective emotional connections with its customers. Software Advice writes that the KPIs encourage this behavior among employees. Instead of telling agents to rush through calls and chats, the business asks its employees to focus more on listening to the needs of shoppers and then doing whatever is required to get their issues resolved, however long it takes.

Luxury retailers could soon see boosts in sales

Throughout the economic recession, luxury brands did not see the sales amounts they had hoped for, as consumers cut back on a variety of purchases, especially high-end products. However, conditions are improving, and recent research has found that American shoppers are planning to buy from luxury retailers in the coming months.

According to a survey by Accenture, approximately half of consumers plan to buy luxury items within the next six months. Fifty-three percent of respondents will be purchasing specialty food or drinks, while 48 percent plan to buy luxury brand clothing. Forty-three percent will be purchasing personal care products from luxury retailers, the report states. In addition, consumers will be visiting both luxury brick-and-mortar locations to buy the items they want. These findings highlight the fact that shoppers are becoming more confident in their own financial conditions and therefore are feeling comfortable about splurging on luxury products.

While New York City has long been regarded as the most sought after location for luxury stores, it seems as though Hong Kong has taken the top spot for these retailers. Bloomberg reports that the Asian city is now the most expensive when it comes to renting luxury brand storefronts in high-end neighborhoods. Fifth Avenue in New York City was bumped down to the second spot, while Paris' Avenue des Champs-Elysees came in third.

Consumers and retailers preparing for big holiday season

In the coming weeks, American consumers will rush to retail brick-and-mortar locations as well as ecommerce sites to buy items and gifts for the holiday season. While it is expected there will be large amounts of shoppers each day, there are some days that will see more significant increases in purchases and activity. This includes Black Friday and a variety of other times that customers will flood retail stores and channels. Businesses are already preparing for the influx of anticipated shoppers by hiring more seasonal employees as well as updating their websites with added security features and easier browsing.

Busiest shopping days

According to a recently released report from ShopperTrak, there are several days over the next few weeks in which retailers will experience more activity in their stores. Retailing Today states that l Black Friday, the day after Thanksgiving which falls this year on November 23, takes its usual top spot. Super Saturday, the Saturday before Christmas and this year on December 22, comes in second place, due to the fact that many shoppers will be buying their last minute items. Other days on the list include Saturday, December 15, Saturday, November 24, and Thursday, December 20. This year's holiday season is longer than normal, as there are 32 days between Black Friday and Christmas Day, the source reports.

"This unusually long season presents retailers with opportunities and challenges," said ShopperTrak founder Bill Martin. "They'll have a golden opportunity to convert more browsers into buyers, but they'll have to prepare to manage increased operating costs. Retailers will need to optimize staffing, scheduling, marketing and advertising with the calendar and individual store trends in mind."

Preparation already underway

Retailers throughout the country are doing exactly that, as they are already preparing for the large amount of consumers they are expecting to flood both their stores and websites this holiday season. But for those merchants who have yet to get a jumpstart on their winter sales efforts, NBC News offers some suggestions for businesses. Speeding up websites can have significant impacts, as customers are more likely to not purchase items and services from companies that have slow or poor sites.

Another method that retailers can use is training employees on delivering a consistent and efficient shopping experience throughout the season, as this will ensure that all staff members are equipped with the necessary knowledge. This will also result in increased customer satisfaction, states the source.

Retailers can use customer complaints to meet expectations

Besides managing employees, inventory and other daily store operations, retailers also are tasked with meeting the wants and needs of their customers. Sometimes, this can be a simple process, as most consumers will let businesses know what they expect and what they are looking for. On the other hand, it can be difficult if complaints have no basis and are out of the control of merchants. Whatever the reason, there are ways that retailers can take shopper criticisms and use them to improve operational methods.

Most common customer complaints

While retailers have seen their share of complaints, there are still the ones that are the most common among shoppers. A report from NSW Fair Trading pinpointed some of the troubles that consumers face most when purchasing from both brick-and-mortar retailers and ecommerce merchants, according to Inside Retailing. Returning items was the number one complaint among patrons in 2011 and 2012, as some were not aware of the terms and conditions or lack thereof that businesses have regarding refunds and exchanges.

The use of discount vouchers and coupons were another top difficulty that customers dealt with and brought to the attention of retailers. Some consumers were having problems with using expired deals, and others complained that some merchants did not honor the discounts they were offering.

The source reports that when it comes to the various retail sectors, consumer appliances saw the highest amount of complaints, the research revealed. Furniture, bedding, clothing and jewelry also ranked high on the list.

What customers expect

Many complaints stem from consumer expectations not being met. In a separate article, Inside Retailing states that retailers should strive to meet these needs and wants, as it is the most effective way to keep shoppers satisfied and turn them into loyal customers. Despite the source of trouble or criticism, merchants should assess what they are currently offering and determine whether changes need to be made.

One complaint that businesses may hear is that they do not offer any or enough mobile options for their patrons. This can be easily fixed by adopting mobile solutions such as applications and optimized websites for smartphones and tablets to give consumers what they are looking for in a mobile experience.

Consumers still rely on brick-and-mortar retailers

Despite the damage and trauma left behind by Hurricane Sandy, one lesson that was learned leading up to and throughout the massive storm is the fact that consumers still heavily rely on brick-and-mortar retail stores, especially in emergency or disaster situations.

NBC News reports that residents on the East Coast rushed to retail stores in preparation for the hurricane to stock up on necessary supplies such as food, batteries and clothing. While online retailers provide convenience for shoppers, brick-and-mortar stores give customers the quick access they are looking for, whether it be for storm supplies or just a quick purchase. Many retailers have been struggling to compete with their ecommerce counterparts, but this one aspect is something physical storefronts can offer.

"Everyone's saying that brick-and-mortar retailing is dead," retail industry analyst Brian Sozzi told the source. "All you need to do is go to Amazon right now and type in 'hurricane preparation' and nothing comes up."

According to Retail Customer Experience, these brick-and-mortar retailers can sometimes be viewed as heroes in times of crisis, as consumers are eager to buy items needed for emergencies or in unexpected situations.