It is officially the start of a new year and decade, which means the holiday season has officially come to a close. Retailers can finally take a deep breath knowing that the shopping rush has ended. Although purchases have slowed, the work has not. Now is the time to analyze holiday strategies to see what did and did not work.
While breaking down holiday metrics for Something Digital’s clients, our Digital Strategy team picked up on a few noteworthy trends:
Trend #1: Average Order Value Drove Revenue Growth
In ecommerce, four key performance indicators drive revenue: sessions, conversion rate, average order value, and transactions. During the 2019 holiday season, average order value (AOV) was the key performance indicator that acted as the catalyst for revenue growth. One of Something Digital’s fashion retailer clients saw a 120% increase in revenue over Cyber Week due to a 66% increase in AOV. This massive growth was not by luck, but due to a planned strategy to offer a 50% discount with free shipping. These incentives motivated customers to spend more in the long run.
One of SD’s health and beauty clients planned to use AOV to drive revenue. By offering customers a gift card with orders starting at $50, users opted to spend more to receive the promotion. This strategy resulted in a 56% higher AOV during the holidays compared to their yearly average.
Trend #2: Mobile Grew, but Desktop Still Dominates
For years, the ecommerce community has been trying to find ways to enhance the mobile experience. These strategies seem to be working, as mobile revenue has increased; however, mobile revenue still does not outperform desktop.
During Cyber Week, SD clients saw mobile revenue growth as high as 88%. While some of these growth numbers are staggering, they don’t demonstrate how much desktop still dominates sales. At the surface level, 88% mobile revenue growth is a strong statistic. If we take a deeper look at this client’s device performance, we see that mobile revenue only accounted for 8% of total sales during Cyber Week. High mobile revenue growth but minimal revenue share was a common trend this holiday.
Trend #3: Home & Bedding Hit Home
SD has a variety of different home & bedding clients both in the B2B and B2C verticals. Regardless of industry, this vertical had a superior holiday season. Compared to BigCommerce’s holiday report, SD’s home & bedding clients had a 470% higher AOV than the industry average. Big Commerce also reported that the industry average conversion rate was 4.1%. One of SD’s luxury bedding clients saw a record high conversion rate of 9.67%.
- SD clients saw the largest revenue growth on Cyber Monday.
- Despite mobile revenue share not exceeding desktop, a majority of SD clients saw large mobile AOV and CVR growth compared to desktop.
- Top sales channels included Direct, Organic, Email, and Paid Search.
- Pre-Black Friday & extended Cyber Monday boosted overall sales in November and December.
- Health & Beauty industries saw the highest increases in revenue.
As another holiday shopping season comes to a close, new trends have formed that will shape the foundation of 2020 ecommerce. If you are interested in getting ahead in your 2020 holiday planning & strategic insights, contact us!