With the holiday shopping season entering the home stretch, merchants are on track to achieve solid sales growth. While much media hand-wringing ensued following smaller-than-anticipated increases in revenue on Thanksgiving weekend, results from the MarketLive Performance Index show that once off the starting block, merchants are seeing increased sales growth rates as the season progresses.
For the week that included “Green Monday,” Dec. 8, MarketLive merchants achieved a year-over-year revenue growth rate of 11.5% — especially impressive given that visits grew just 8.6%. With the conversion rate trailing last year’s by more than 5% and abandonment up 6.7%, the revenue growth is likely thanks to merchants holding the line on pricing — and, indeed, average order size for the week was up 4.6% year over year.
Combined totals for the season to date follow the same trend, with revenue up 9.4% on increased visits of 13.5% and average order values averaging 4.1% higher than last year.
The increased average order size is especially impressive given the continuing downward price pressure exerted by the largest online mass merchants. The growth in average order value demonstrates that MarketLive merchants are presenting unique finds, relevant promotions for their target audience and stellar service that trump bargain-basement pricing.
In this light, the potential value of social media becomes clear, as it connects merchants with an audience predisposed to be receptive to their products and offers. Although overall, the percentage of visits and revenue directly attributable to social media remains small, a select group of MarketLive merchants have capitalized on the opportunity social media affords to drive a significant percentage of sales and visits from social networking sites.
For the season to date, the merchants with the 15 highest sales figures attributed to social media achieved average social media revenue gains of 212.31% and average social traffic gains of 210.12% year over year — significantly higher than the Index as a whole, which saw gains of 135.7% for social revenue and 113.1% for social traffic. Some individual sites among the top 15 are seeing more than 20% of their traffic and 10% of their revenues originating from social media.
To maximize social impact in the remaining days of the holiday season — and in the year to come — merchants should:
Display an array of targeted discounts. Merchants can avoid decimating their margins by judiciously targeting discounts to focus on top gift categories, and then promote them socially using imagery that displays the full array of possibilities on offer. MarketLive merchant The Cartoon Network Shop employed this strategy for its extended Cyber Monday sale, offering an array of discounts on top items that were promoted via its Facebook page with a large image showing an assortment of products.
Showcase social recommendations. Social media is a rich source of word-of-mouth recommendations, and merchants should capitalize on them by boosting visibility of endorsements and reviews. Developing last-minute campaigns focusing on top-reviewed products is one way to go, but merchants should also boost visibility within social media itself using the “share”, “retweet” and other like functions. MarketLive merchant Neutrogena actively retweets posts featuring product recommendations. Not all of them are gift-related — such as a post from BeautyBlitz promoting the opportunity to win makeup removal wipes, which “every girl needs … near her bed,” the post points out, especially during the busy holiday social season. Also retweeted by Neutrogena: mentions in major media outlets such as InStyle, whose feature on celebrity gift picks lends authority to the brand.
Watch for our final wrapup of holiday results after the New Year, along with 2015 trendwatching and more.