Are you ready for the Black Friday boom?

You’ve probably been preparing for the sales season for months now, deciding on product lines, price points and promotions.

But do you have the right finance options in place to supercharge your sales?

Expect an increase in finance applications over Black Friday weekend

The results are in, and we can reveal that retailers across all sectors saw a whopping 34% rise in finance applications over the 2023 Black Friday weekend compared to the weekend before.

Ready for some sector specific stats? During Black Friday weekend, sales increased by…

• 40% across electrical retailers
• 30% across furniture retailers
• 13% across home improvement retailers
• 94% across jewellery retailers
• 40% across leisure retailers

With sales set to soar and finance applications flying, it’s time to prepare for what’s likely to be your busiest weekend of the year.

Don’t underestimate your payment options

Black Friday and Cyber Monday sales drive an incredible amount of footfall and traffic as shoppers seek out the best deals. But are they all poised to pay for their purchases upfront?

Finance allows customers to bag their bargains now and pay for it later. This is ideal for those who want to strike while the iron’s hot instead of waiting to save up. Your customers might also simply prefer the convenience of spreading the cost.

Here are our tips to help you harness the power of finance for Black Friday

1. Promote your payment options from the start of the purchasing journey

Make sure your customers know about the finance options available before they start shopping, so they’re in the best possible position to maximise their budget. For example, in-store retailers should maximise POS marketing materials such as window stickers or hangtags, while online retailers should make sure digital banners are present across the homepage and key product pages.

Your sales team should also be thoroughly briefed ahead of the busy Black Friday weekend, so they’re confident talking the finance options available. Proactively mentioning flexible payment options during sales discussions could be a great upsell strategy, too, as customers are more likely to up their average order value if they know finance is on offer.

For more top tips, check out our insights on promoting in-store retail finance and promoting your payment options online.

2. Help customers get instant gratification with buy now pay later

Buy now pay later is a great option for Black Friday bargain hunters. They can walk away with their purchase now and not pay a penny towards it for up to a year later. Plus, if they settle within the deferral period, they might avoid paying interest costs altogether (though there may be a small settlement fee to pay).

It gives customers the breathing room they need to make a definite decision on their purchase without parting with their hard-earned cash.

Other options, such as interest free or low-APR finance, are also extremely popular with Black Friday shoppers. Being able to spread the cost could be the difference between a customer buying or bailing on a sale.

3. Ensure a smooth and simple application journey

Black Friday can often be about bagging the best deals quickly, so customers don’t want to be held back by clunky finance application forms.

Make sure their journey is as straightforward as possible. For example, a Novuna application takes just a few minutes to complete, customers get an instant decision and they’ll be able to e-sign their agreement so there’s no paperwork to worry about.

4. Avoid the post-sale slump

We crunched the numbers, and we found a 24% dip in finance applications in the weekend following Black Friday sales compared to the weekend before.

Customers have shopped to their heart’s content and may be taking a breather before browsing again. Retailers should see this as a great opportunity to engage recent customers to keep those sales coming!

While it’s tempting to slow things down after your sales events, don’t let customers forget about you. Keep your marketing efforts high and your communications on-point long after Black Friday’s over. Christmas is just around the corner, after all.

Are this year’s Black Friday sales set to be the best yet?

Our research shows that finance applications fell by 0.5% in 2023 compared to the year before with electricals, furniture and jewellery some of the hardest hit sectors – likely as a result of the ongoing cost of living challenges.

Excitement for 2024 sales is building, but will it outperform the last few years?

With the golden quarter well underway, look out for our tips, insights and unique research to help retailers attract and convert more customers. Follow Novuna Consumer Finance on LinkedIn.