Cyber Monday crushed it, again.
- Adobe reported that Cyber Monday eCommerce sales grew 16% year-over-year to $2.29 billion.
- Adobe also said that 18.3% of sales came from mobile devices, an increase of 80% year-over-year.
- ComScore reported that Cyber Monday reached $1.73 billion in desktop online spending, up 18% from 2012.
- IBM said Cyber Monday was the biggest online shopping day in history, with a 20.6% increase in online sales.
Wow. And, after consecutive years of double digit growth, we may wonder, how long can this incredible growth go on? Will Cyber Monday one day lose its momentum?
Let's review the history of this day: Cyber Monday got its start in 2005, at a time when accessing the Internet at home was still slow and tedious (the “You’ve got mail!” days). Home Internet speeds weren’t anywhere near as fast as in the office, so, many office workers took advantage of those faster connections after the weekend, and shopped while they worked.
Today, high speed Internet is everywhere, including on our phones and tablets. Merchants are increasingly offering online deals all Cyber Weekend (and the week after Thanksgiving, in some cases). Will this mean the death of Cyber Monday?
We don't think so. There is incredible cultural and social momentum from around the day and the marketing engine that has been built around it. People are broadly familiar with the term, and after a long holiday weekend, many office workers (who are often more affluent and able to click "purchase" more than a few times) are returning to work in a different mindset - perhaps a little more relaxed, a little less guilty about filling a few online shopping carts throughout the day.
Additionally, the Thanksgiving holiday weekend tends to be family-focused, and there are other things competing with online shopping - cooking, playing Settlers of Catan, escaping to a bar with old high school friends, and doing family outings and brick-and-mortar shopping trips.
But I'll offer a prediction: As consumers get more adept at using their mobile devices and tablet computers to shop where ever they are, and retailers try to capture their attention throughout the entire weekend, we'll see less growth on Cyber Monday and more dispersion of spend into Saturday, Sunday, and what we call Cyber Tuesday and the rest of the week. Cyber Monday will still keep the lions share of revenue, but merchants will need to design marketing campaigns that reward consumers for shopping on other days as well.
For Cyber Monday and the Thanksgiving weekend in 2014, consider a 5 or 6 Days-of-Shopping campaign, where broad discounts and rewards are offered on Black Friday and Cyber Monday, and specific, unique, and special rewards are offered on Thanksgiving, Saturday, Sunday, and Cyber Tuesday. Here's a 6 day marketing campaign example:
- Thanksgiving: Early bird gets the work: free unique gift and 20% off for first 1,000 shoppers
- Black Friday: 30% off site wide, plus spend over $150 and get $25 off your Cyber Monday purchase
- Saturday: Referral day: enter your friend/family's email addresses to share the Cyber Monday deal. For every one who makes a purchase you'll get a $5 reward.
- Sunday: Pre-game special: fill your shopping cart on Sunday, and get an additional mystery discount (could be an extra 5-20%) when you buy on Cyber Monday (min $100 order).
- Cyber Monday: 40% off site-wide, plus secret best customer reward: 2 for 1 of following selection of great gifts (effectively 50% off)
- Cyber Tuesday: Stocking stuffer day: 30% off site-wide, plus spend $100 and get $20 worth of free stocking stuffers.
One thing we've seen in our analysis of over $1.5 billion worth of retail transactions is that your repeat buyers and best customers tend to spend more in the beginning of the week, while more of your weekend revenue comes from new shoppers. Check out our annual retention marketing report for some juicy stats.
Congrats, retailers, on another successful Thanksgiving weekend! Onwards through December!