Bread’s Holiday Shopping Insights: 5 Lessons for Retailers
Retailers need to be proactive to enjoy the same levels of holiday shopping dominance as e-commerce giants like Amazon. Take some of the projected numbers for the upcoming holiday shopping season:
- E-commerce sales will grow 15.5% to $119.99 billion between Nov. 1 to Dec. 31, according to Internet Retailer.
- Deloitte research estimates a 17-22% increase in e-commerce holiday sales between Nov. 1 and Jan. 31 — totaling between $128 billion to $134 billion.
- The National Retail Federation expects total holiday retail sales in November and December — excluding automobiles, gasoline and restaurants — to increase between 4.3% and 4.8% over 2017, for a total of $717.45 billion to $720.89 billion.
Holiday shopping revenues are expected to be higher than ever, which means retailers need to step up their marketing tactics to gain a greater share of revenues. In our holiday insights report, we share five key takeaways from consumer engagements with Bread financing over the previous Black Friday and Cyber Monday holiday weekend. We believe these findings, coupled with a multi-channel marketing strategy, will help you boost sales during the busiest time of the year.
Below, we’ve summarized a few of our key findings. For more insights, check out our full report.
1. Shoppers Waited Until the Last Minute To Capture Deals
Retailers that want to target customers during peak shopping periods should consider the following datapoints:
- Black Friday shoppers showed peak shopping volume between 10 and 11 p.m. ET.
- Shopping habits on Cyber Monday showed the peak hour was 3 to 4 p.m. ET, with another spike from 9 to 11 p.m. ET.
2. Offer Financing Options Before Checkout
Retailers that offer financing earlier in the shopping experience, not just at checkout, have the potential to see more conversions.
- 73.6% of shoppers applied for financing before checkout on Black Friday.
- 69.0% of shoppers applied for financing before checkout on Cyber Monday.
3. Offering Financing Impacts AOV
Our data shows that there is a clear correlation between offering financing and boosting AOV.
- The average AOV on Black Friday was 14.5% higher than the average AOV in October 2017.
- Cyber Monday’s AOV was 4.0% higher than Black Friday, and 19.1% higher than the average AOV in October 2017.
Our data shows that investing in financing solutions can provide a quicker path to purchase, increase AOV, and boost brand value, giving your shoppers a reason to convert now and become loyal, repeat customers.