December 6, 2013 Leave a Comment
The initial results are in from the Thanksgiving and Black Friday weekend, and merchants have reason to rejoice. Data from the MarketLive Performance Index, which reports aggregate data from leading specialty merchants, shows year over year sales gains of more than 50% on both Thanksgiving Day and Black Friday, with Saturday and Sunday each earning revenue growth of more than 40%.
The increased sales were driven by double-digit growth in visits throughout the weekend that peaked with a 44% jump in traffic on Black Friday. Improvements in the add-to-cart rate, conversion rate and abandonment rate indicated that merchants have fine-tuned offerings to present relevant products and offers that spur shoppers to become buyers.
These results are especially heartening after indications that the weekend brought lean results industry-wide. The National Retail Federation estimated that overall sales in stores and online totaled $57.4 billion — a 1.7% drop compared with the organization’s 2012 estimate of $59.1 billion for the same weekend. Online, the news was brighter, with measurement firm comScore reporting revenue gains of 21% for Thanksgiving and 5% for Black Friday, when online sales topped $1 billion for the day.
The even stronger results from the MarketLIve Index suggest that small- to mid-sized merchants are winning buyers without necessarily resorting to the deep-discounting strategies adopted by leading mass merchants whose combined revenues make up the lion’s share of the industry results. By presenting shoppers with comprehensive product and lifestyle content, building a community of like-minded enthusiasts, showcasing superior customer service and encouraging repeat sales and long-term loyalty, merchants are successfully competing with Amazon and other top online destinations, even during this ultra-competitive season.
To continue outperforming the industry for the remainder of the season, merchants should:
Encourage repeat engagement. Many merchants we surveyed over the peak buying weekend had launched extended initiatives spotlighting one product or deal per day. Such campaigns not only entice shoppers to continually return to the site and potentially make additional purchases as new offers are revealed, but they also provide buzz-worthy fodder for sharing via social media. MarketLive merchant World Market launched its “24 Days of Deals” over the weekend, with a daily discount presented via an Advent-calendar type layout on the eCommerce site.
Entice social followers into deeper interaction. Social media can be an effective tool for driving new visitors to brand sites, and during this peak season, savvy merchants are capitalizing on the buzz on social outposts to encourage further engagement from followers. Among the tactics in play:
Sweepstakes that allow shoppers to enter daily or earn extra entries when they share products or offers with friends
User-generated content submissions that express the brand’s identity
Direct purchasing via Facebook — especially for gift cards
Email signup via Facebook
MarketLive merchant dELiA*s offers Facebook followers the opportunity to sign up to receive email updates without leaving the social network environment. Followers can even register using their profile information, further smoothing the signup process. By promising that subscribers will “always be the first” to learn about new products and promotions, dELiA*s appeals to social followers accustomed to receiving constant updates and being instantly in-the-know. By subscribing to email alerts, followers will receive word of brand offerings even if they happen to miss an individual post or Tweet.
Stay tuned to the blog for further holiday results throughout the season. Meantime, how was your Black Friday weekend, and what tactics are seeing the most success for your brand?