The Latest from 360pi

Cyber Monday Is Here to Stay: 4 Strategies Major Retailers Used to Win

Cyber Monday sets a new online record with $3.45 billion in sales despite reported decline in consumer interest — but how?

Addendum: Since first publishing this post, we have sampled from a larger pool of products ideally more representative of the larger dynamic pricing activities within the Electronics category. This sample shows significantly more price dynamism over the Thanksgiving weekend. To read the full details, please see our latest infographic.


According to Adobe Digital Insights, Cyber Monday closed off Thanksgiving’s holiday shopping frenzy by breaking online records, yielding $3.45 billion in single-day sales. As the chart below indicates, Cyber Monday’s online sales grew 12.1% since last year and beat out Black Friday’s online sales by $110 million!

2015 2016
Thanksgiving $1.73B $1.93B
Black Friday $2.72B $3.34B
Cyber Monday $2.28B $3.45B

This may come as a surprise to some, as JDA’s 2016 Consumer Survey reported a significant decline in consumer interest in Black Friday and Cyber Monday as a result of year round discounting by retailers and new ecommerce events such as Amazon’s Prime Day and Alibaba’s Single’s Day. With the blurring of key shopping dates, here are three strategies major retailers used to win shoppers over this Cyber Monday, as observed by 360pi.

1. Promotional Strategies: Out with Black Friday, In with Cyber Monday Deals

This year, shoppers witnessed some interesting promotional plays by retailers in advance of Thanksgiving weekend. Many retailers like Amazon, Walmart, and Best Buy announced Black Friday and Cyber Monday deals that spanned beyond the key shopping dates. For example, Target unveiled their 10 Days of Deals promotion, with new deals beginning Saturday, November 19 through Monday, November 28, including Cyber Monday deals offered the Sunday before.

In addition, Amazon extended their Cyber Monday from a day to a week, launching over 75,000 new deals for online shoppers.

2. Dynamic Pricing

When looking at how price dynamic major retailers were, Amazon, Walmart, and Best Buy were found to change prices more on Cyber Monday than on Black Friday, emphasizing the fact that Cyber Monday has become the largest shopping day of the year. In fact, Best Buy barely changed prices on Black Friday, but adjusted about 14% of products sampled on Cyber Monday. Similarly, Amazon’s price change percentage jumped from 20% on Black Friday to 22% on Cyber Monday, and Walmart increased the number of products they changed prices on from 8% of the sampled set on Black Friday to 12% on Cyber Monday.

360pi-Cyber-Monday-Chart

3. Online vs. In-store: The Convenience Factor

If we look at the history of Cyber Monday, convenience has always been a factor in its success. In 2005, many consumers only had access to high-speed internet at work and would use it to begin their holiday shopping the first day they were back in the office, after the long Thanksgiving weekend.¹ Today, with the rise of mobile devices, tablets, and home wi-fi, the ease of shopping online and searching for the best deals is effortless.

4. Free Shipping

Free shipping has also played a factor in online shopping’s success. It’s such a high priority for online shoppers that 80% claimed that they spent more than intended in order to meet a free shipping threshold during Black Friday and Cyber Monday of last year.

Will Cyber Monday beat out Black Friday in 2017?

As online and mobile sales become more prevalent on Black Friday, how will retailers differentiate Cyber Monday deals? Will app exclusives be added to retail strategies? Will the continued greying of the holiday bleed into Halloween? One thing is for sure — Black Friday and Cyber Monday will continue to be the biggest shopping days of the year and retailers need to revamp their strategies if they want to be successful.

360pi’s fourth annual award-winning Holiday Insights Series delivers exclusive weekly holiday product and pricing trends across several major retailers, including Amazon, Walmart and Target. Sign up for the Holiday Insights Series to receive 360pi’s special Black Friday and Cyber Monday analyses, a must-have for every retailer and brand manufacturer this holiday.

___________________

¹ http://www.forbes.com/sites/deborahweinswig/2016/11/17/cyber-monday-set-to-dominate-holiday-sales/#60d27e3a85d2

About the Author
360pi delivers next generation commerce analytics to retail and brand innovators helping them make sense of retail and shopper big data to realize a winning product-price position across channels and create a consistent shopper experience. 360pi’s customer base accounts for over $US300 billion in annual product sales and includes Ace Hardware, Build.com, Overstock.com, and Walgreens, along with several Fortune 500 consumer products companies. Ultimately, 360pi customers use the company’s product and pricing intelligence to make smarter decisions faster, driving increased revenues and margins across all channels.