Black Friday Beats Cyber Monday for Online Retail
While Black Friday is still the most lucrative shopping day for retailers, Cyber Monday – a relatively new marketing peak – is not far behind.Posted in Customer Retention, E-Commerce on 7 December 2016 by:
Cyber Shopping Over Thanksgiving Weekend
The past few days were another chaotic period for shoppers all over the world, particularly in America, with Europe following closely. Whether on mobile, web or on line at their favorite retail stores, consumers flocked in droves to take advantage of price cuts and discounts.
Thanksgiving Weekend sales are on the rise year over year. But which day is strongest for retailers? We followed the transactions of 30M+ unique consumers in North America and Europe to gauge consumer tendencies on Black Friday vs. Cyber Monday. The research spanned dozens of brands in a variety of direct-to-consumer industries, including fashion, gadgets, gifts, pharmaceutical and lingerie.
Black Friday vs. Cyber Monday
Our research found that while Black Friday is still the most lucrative shopping day for retailers, Cyber Monday – a relatively new marketing peak – is not far behind. In terms of number of unique shoppers, Black Friday saw a 3.1X increase compared to a 2.8X increase on Cyber Monday (all figures compared to an average day throughout the year). Total revenues saw a more dramatic increase on Black Friday – 4.2X, compared to 3.2X on Cyber Monday. Average order value also panned out better for Black Friday, with a rise of 23%, compared to only 14% on Cyber Monday.
It is notable that on both days, new customers made up less than a third of customers. This is a significant finding, as traditional thought attributes the substantial financial uplift of these days to the acquisition of new customers. However, according to our research, 71% of customers on Black Friday and 74% of customers on Cyber Monday were repeat customers, taking their business to brands they’ve already shopped with in the past.
Retaining Black Friday and Cyber Monday Customers
Research conducted by Optimove on consumer behavior after the 2015 holiday season revealed that during the holidays, repeat customers are more valuable than new ones. Transactions from repeat customers were 30% higher than transactions from new customers. In addition, during the following year, repeat customers’ retention rates were higher than those of new customers: the number of repeat shoppers who made at least one more purchase with the brand was 160% higher than that of new customers.
It is worth investing in the retention of new Black Friday and Cyber Monday customers now, in order to turn them into loyal customers who will strengthen your brand further when the next holidays come around.