Social media has impact on Black Friday for retailers and consumers

For retailers that jumped on the social media bandwagon this year, the impact was salient. How could they not be? With many consumers already engaged with tools such as Twitter and Facebook, the sellers didn't have a choice but to engage them in this manner.

Social media has become another way for shoppers to compare deals and find the bargains that turn them on ... especially in a tough economic environment where making your dollar go further makes a profound difference. The rapid growth in these tools, especially this year, has made them a viable alternative for bargain hunters ahead of the holidays.

Many retailers reached out to their consumers via social media this year. Best Buy (BBY) promoted its $500 laptop deal, and JCPenney (JCP), Target (TGT), Office Depot (ODP) and Kohl's (KSS) experimented with these tools as well. Twitter feeds were endless leading up to the hottest shopping day of the year, as these companies jockeyed for a leading position in the minds of the estimated 134 million Black Friday shoppers (according to the National Retail Federation). Many of the people crowding the stores on Friday were armed with information they picked up through social media outlets and were prepared to take action from the moment they passed through the doors.

Of course, this isn't universal. There are still plenty of shoppers who aren't interested in social media. Hell, some actually still check the newspaper. A study conducted by Deloitte before Thanksgiving found that 40% of consumers were still going to turn to print to get their deal info -- a substantial portion of the shopping population. Some even clipped coupons, a tried-and-true recession tactic for making your cash more productive.

Deloitte also found that 29% were going to look at mailers and flyers, and 27% planned to check websites focused on Black Friday deals. Only 24% were turning to retailers' websites.

Though the focus has been on the perk to the consumer, there is plenty of upside for the retailers using social media tools to access the market -- and it goes far beyond getting in front of potential buyers in another channel. Kasey Lobaugh, a principal in Deloitte's retail practice, focused on the tracking and market intelligence capabilities, saying, "If you send out a URL via Twitter you know how many people clicked on that URL." Other forms of advertising, including print, can be virtually impossible to print, unless there are additional tools in place, such as coupons or special offer codes.

So, social media may still be in its infancy -- especially as a marketing tool -- but the potential has been identified, and retailers are starting to take action. This year was a learning experience. Next year, it won't be an option.

Tags: Black Friday 2009, Deloitte, facebook, inthenews, retail, retail stocks, retailers, social media, twitter