What Black Friday and Cyber Monday Reveal About Consumer Behavior

Just one or two decades ago, many families set their alarm clocks—not smartphones—for an early Black Friday morning in order to catch the best post-Thanksgiving sales.

Several years ago, some retailers started encroaching on Black Friday by opening at midnight Friday morning. Then, some stores started opening on Thursday evening. Fortunately, some large retailers and mall owners have dialed back their Thanksgiving hours, but there are still plenty of hours for consumers to rush to the mall or their smaller local retailer.

It’s noteworthy, then, that Adobe, an online sales tracking firm, reports that consumers spent a total of $5.27 billion online between Thanksgiving and Black Friday—marking a 17.7% increase since last year. On Black Friday alone, they spent $3.34 billion, surpassing the $3-billion mark for the first time and clocking 21.6% growth year over year. Cyber Monday also continued to break records, raking in $3.39 billion in total sales and marking an increase of 10.2% over last year’s numbers.

Although purchasing an auto, homeowners or business owners policy is not remotely the same as purchasing a pair of winter boots, consumers expect their shopping experience to be similar across all industries. Just like a consumer researches their desired apparel online—“at what temperature will these boots keep my feet comfortable?”—and visits websites that sell boots at any hour of day or night, they demand a similar experience with their insurance. They want the opportunity to research their interest, surf a robust website and even engage in live chat to find answers to their insurance questions.

This doesn’t mean consumers want to quote and bind on Thanksgiving, but it does mean they should be able to meet, email, text or talk to you when it’s convenient for them. That’s why it’s critical for agencies to offer relevant consumer content on their websites and promote their business on social media.

Too often, the conversation about digital marketing devolves into a debate about what type of consumer an agency is interesting in engaging. Agents tend to believe that more complicated situations—and higher-premium policies—come from relationships and referrals, which is certainly true to some extent. But the new normal is that many consumers feel empowered by the internet and the autonomy it provides. They select the business they want to work with based on a number of factors, and one of those is a strong digital presence.

Numbers don’t lie, and this year’s record online sales point to a constantly evolving consumer. Is your agency doing all it can to stay ahead of the curve?

Dave Evans is a certified financial planner and an IA contributor.