A generation ago, the mall was an inevitable stop on the holiday shopping journey. Now, many consumers finish their shopping without ever listening to the drone of Christmas music, seeing giant sale signs, or fighting for their place in line. Cyber Monday is on track to become the new Black Friday, and the longstanding Friday shopping tradition may soon be a relic of the past. The right eCommerce pricing strategies are increasingly important for online sales, particularly in the days after Thanksgiving.
In 2015, consumers spent $3 billion on Cyber Monday. That’s in addition to the $2.74 billion they spent online three days earlier, on Black Friday. If you’re not working on eCommerce pricing strategies for this commercial bonanza, you’re abusing your business and depriving your bank account. Here’s what we know about where Cyber Monday has been, and where it’s headed.
A New Shopping Weekend?
Retailers used to put their big ticket items up for sale in the early hours of Black Friday. While long lines and door busters still garner excitement, more and more retailers are adopting a different approach. Rather than slashing prices on Black Friday, many retailers have opted to extend sales from Black Friday through Cyber Monday, nurturing a four-day shopping spree that puts them in the green.
Consider treating these four days as one big sales event to get the most out of the post-Thanksgiving rush. Or do what some retailers do, and steadily build to Cyber Monday with increasing sales and promotions over the weekend.
Cyber Monday Trends
Consumers are busier than ever. Few want to wait in lines and fight over last-minute sales. So retailers that offer substantive discounts on Cyber Monday can save their customers’ sanity as they pad their own bottom line.
Consider these data points from Cyber Monday 2016:
- Cyber Monday sales are increasing rapidly, with consumers spending $2.29 billion in 2013 and more than $3 billion in 2015.
- 5% of consumers drive 35% of Cyber Monday spending, suggesting that targeting the right market is key.
- Just 9% of consumers are finished shopping by the time Black Friday ends.
- Nearly as many consumers shopped online on Black Friday as on Cyber Monday. Black Friday online spending increased more than Cyber Monday spending, by 21.6%.
The Right eCommerce Pricing Strategies
So what can you do to capitalize on the emerging popularity of Cyber Monday? The following eCommerce pricing strategies can turn next Cyber Monday into your best yet:
One of the many reasons Cyber Monday is so popular is that it gives consumers something to get excited about. Your customers likely plan and budget for their purchases, steadily building excitement for the holiday season. Use this fact to your advantage. Build interest in your sale by posting on social media, notifying customers through email, and perhaps building with promotions in the week leading up to Cyber Monday.
Your customers can’t shop a sale they don’t know about, and similarly they can’t get excited about something of which they are unaware. Use every communication channel you have to transform Cyber Monday into an exciting holiday event.
Offer Custom Pricing
Customizing sales based on previous customer behavior can draw consumers in and encourage them to spend more. Today’s consumers demand a customized experience. Try sending offers based on previous purchases or wish lists, or providing a customized giveaway.
Add a Coupon Code
Coupon codes are an easy way to personalize the buying experience. Old-school retail might be going the way of the dodo, but customers still love coupons. Coupons can feel like a reward, making a deal more attractive. Send your customers a promo code via email or on social media. Expand the reach of Cyber Monday by offering a gift card to customers who shop that day, or offering a secret Cyber Monday coupon code for customers who buy in the week prior to the big day.
Make Sure Your Site is Ready
Your sales offer little benefit if customers can’t easily use your site. Be sure you’re ready for Cyber Monday by:
- Optimizing your site to ensure it won’t crash if you get lots of traffic.
- Ensuring you have clear product descriptions, excellent photos, and accessible product information.
- Testing coupon and promo codes to ensure they work.
- Clearly noting any and all sales.
- Linking to related products.
Offer Something for Nothing
People love getting something for free. So compelling is the urge to get something for nothing, that many consumers will spend money they planned not to if they get a free gift. Try giving something away for free if consumers hit a certain price point. To maximize the effectiveness of this strategy, the giveaway needs to be something customers actually want, and ideally something that complements their purchase. Giftable items are also popular, so consider giving away a gift card, gift basket, or a service add-on to get the most out of Cyber Monday.[tac_ga url=”http://info.intelligencenode.com/a-comprehensive-guide-to-competitive-online-retail-pricing-strategies” category=”Ebook Download” action=”Click” label=”Pricing Guide” target=”_blank”]