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CyberMonday and Weekend Data: Year of Promotions and 150% Marketing Cost Increase

DynamicAction Retail Index: CyberMonday 2016 + Full CyberWeekend Recap

Methodology: DynamicAction, an advanced analytics solution built exclusively for retail, analyzed more than $4 Billion (£3.2 Billion) in consumer transactions that occurred online in 2015 and 2016. The study specifically benchmarks retail performance on CyberMonday and from Thanksgiving Day to CyberMonday 2016 versus that time period in 2015.

KEY FINDINGS

  1. This holiday season could be called the “Year of Promotions,” as retailers fought harder than ever for shoppers’ attention and aimed to provide the endorphin rush of getting a good deal that the consumer now expects. Orders using a promotion were up 49% on CyberMonday 2016 versus 2015 and up an average 37% for CyberWeekend (since Thanksgiving Day).
  2. Although they struggled through November and into CyberWeekend with new customer acquisition, their promotional efforts and increased marketing spending finally paid off with a 12% increase of new customer orders on CyberMonday 2016 versus last year.
  3. Marketing costs continue to be staggering as compared with 2015, showing a 150% increase in cost on CyberMonday 2016 versus 2015.
  4. Retailers have tightened up inventories where it counts this year. They are holding slightly less inventory (down 3% YoY) are doing a better job of holding the stock that shoppers are actually looking for. This 6% increase in the inventory held that shoppers are actually viewing provides a better customer experience and sets them up for a more profitable first quarter with less excess inventory that isn’t desired by the customer.

Key metrics from CyberMonday and CyberWeekend: 

MARKDOWNS/PROMOTIONS

Orders using a promotion (special offer like buy one get one or 20% off… usually applied at checkout automatically or by the shopper entering a promotional code)

Up 49% on CyberMonday 2016 versus CyberMonday 2015. Up an average 37% since Thanksgiving Day versus that time period in 2015.

Orders using a markdown (price cut… usually applied to the actual product page when a price is reduced)

Down 2% on CyberMonday 2016 versus CyberMonday 2015. Up an average 10% since Thanksgiving Day versus that time period in 2015. 

INVENTORY AVAILABILITY

% of products in stock (where retailers ended up after CyberMonday sales)

Holding 87% of products in stock coming out of CyberMonday. Down 3% versus CyberMonday 2015 and down an average 3% since Thanksgiving Day versus that time period in 2015.

Products in stock that customers are seeking (availability by views – good measure of operational efficiency)

Up 6% on CyberMonday 2016 versus CyberMonday 2015. Up an average 5% since Thanksgiving Day versus that time period in 2016.

CUSTOMER ACQUISITION/CONVERSION

New customer orders (acquisition)

Up 12% on CyberMonday 2016 versus CyberMonday 2015. This is a shift in the right direction, as new customer acquisition has been down throughout the weekend, an average 5% since Thanksgiving Day versus that time period in 2015. It has also been down an average 9% for the entire month of November versus 2015.   

1st-to-2nd-time purchases (conversion)

Up 3% versus CyberMonday 2015 and up an average 5% since Thanksgiving Day versus that time period in 2015.

FINANCIAL

Units per Transaction

Up 11% on CyberMonday 2016, versus CyberMonday 2015. Up an average 4% since Thanksgiving Day versus that time period last year.

Marketing Cost

Up 150% on CyberMonday 2016 versus CyberMonday 2015. Up an average 101% YoY since Thanksgiving Day.

SHIPPING

Orders using express shipping

Down slightly on CyberMonday 2016. 4% down versus CyberMonday 2015. This shows a shift in behavior on CyberMonday, as the average orders using express shipping have been up 10% since Thanksgiving Day versus 2015. 

Free shipping

Global

North American retailers have not shifted their Free Shipping strategy. Free shipping was flat throughout the weekend, as compared with 2015.

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