BLACK FRIDAY & CYBER MONDAY OVERVIEW
AI-driven personalization, mobile shopping, email and discounts are hot topics after Cyber Week 2017.
The holiday shopping season so far (November 1 to 27) drove a total of $50 billion in online revenue, a 16.8% increase. Adobe predicts this will be the first-ever holiday season to break $100 billion in online sales.
The National Retail Federation reported that more than 174 million Americans shopped from Thanksgiving through Cyber Monday, which beat the association’s pre-holiday prediction that 164 million consumers would indulge. The biggest spenders, millennials aged 24 to 35, paid out an average of $419.52 per person.
Cyber Monday just became the largest online shopping day in history with $6.59 billion in internet sales. This represents a 16% YOY increase and is more than a billion dollars higher than last year. In comparison, Black Friday and Thanksgiving Day brought in $5.03 billion and $2.87 billion in revenue respectively. E-commerce giant Amazon accounted for a staggering 55% of Black Friday online orders.
The 2017 holiday season had a strong kickoff. E-commerce revenue was up 30% on Thanksgiving Day, 32% on Black Friday and 15% on Cyber Monday.
The combined 26% revenue growth across the first week of the season is nearly double the 15% growth rate in Q3 of this year. There is still massive opportunity for retailers, as consumers will only have 50% of their holiday shopping completed by Sunday, Dec. 3 and 80% completed by Friday, Dec. 15.
According to accounting firm Deloitte, 50% of this year’s holiday shoppers now say they prefer online shopping to brick-and-mortar, with just 36% saying the opposite. Roughly 55% of shoppers tell Deloitte they’ll be shopping online this year, with 44% going to discount stores and 28% going to department stores.
Some interesting stats around ai-driven personalization, mobile shopping, email and discounts:
PERSONALIZATION POWERED BY AI
Retailers are seeing the impressive impact of personalization on the biggest digital days of the season. On Black Friday, while only 6% of shoppers engaged with product recommendations, those shoppers accounted for 32% of all digital revenue.
On Cyber Monday, 5% of shoppers engaged with product recommendations, which accounted for 26% of digital revenue that day. (Salesforce)
MOBILE MAKING HISTORY
For the first year in history, mobile overtakes desktop as the number one way customers buy. Below is data from Shopify, where mobile accounted for 64% of all orders, a 10% increase from last year.
Salesforce says that consumers turned to their mobile devices in record numbers, as phones accounted for 60% of digital traffic to retail sites and 41% of orders from November 21-27 (Cyber Week), up from 53% and 32%, respectively, in 2016.
This year represents a watershed moment for the shift to mobile commerce. This was the first Black Friday where personal computers accounted for less than half (49%) of all orders. Despite this, total Black Friday e-commerce purchases occurring on desktop surpassed $2 billion for the first time ever, according to comScore.
Surprisingly, it’s not big brands that are driving mobile conversions, however. According to Adobe, websites from small retailers that make $10 million or less convert twice as much as bigger retailers that make $100 million or more.
EMAIL CONVERTS BETTER IN 2017
The graph from Shopify below shows Email with a 4.29% conversion rate. The next best converting source is from search at a 3.04% conversion rate.
On Black Friday alone, retailers sent nearly three billion emails, more than 82 million SMS and push notifications and collected 8.8 billion data points, like email sign-ups.
Over the holidays, 48% of the entire U.S. online apparel retail market was discounted by an average of 45% off. This is compared to 44% of the market with an average of 36% off last year.
Luxury brands got in on the discounting game more than ever before. For example, almost a quarter of luxury handbags for sale online have been marked down between 40% and 50% so far, up from 30-40% last year, Edited said. Edited named Fendi, Balenciaga, Tom Ford and Prada as some of top discounted brands.
Interested in learning more about ReSci? Check out some of our clients here!
Or check out more holiday content…
– Data Driven Marketer’s Guide to Maximizing Holiday ROI
– 2017 Holiday Season: 4 Data-Backed Tips for Retail Marketers
– New Research: Black Friday Shoppers Kinda Suck – But You Can Fix It