RetailMeNot: Early promotions spur Cyber Week spending
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Both Black Friday and Cyber Monday broke sales records this year, and early promotions could be a key contributor to this success.
Out of more than 400 major retailers that offered promotions via RetailMeNot, 70% started promoting Black Friday deals before Thanksgiving, the savings destination reported in the “RetailMeNot Promotions Index.” The study, which was conducted between Nov. 24 and Nov. 28, is based on responses from 1,500 Americans aged 18 and over.
In aggregate, percentage-off deals, including coupons, promotional codes and sales, were 26.3%, a 1.8% larger savings than consumers experienced in 2015 from Thanksgiving through Cyber Monday (25.81%). The gen-eral trend was to market omnichannel promotions early, and have them last through Cyber Monday, according to Marissa Tarleton, chief market-ing officer, North America for RetailMeNot.
"There is a new Thanksgiving to Cyber Monday retail strategy: it's pow-ered by promotions, and omnichannel and promotions are on the market longer,” she said. "Retailers sought to capture market share early, with a focus on driving e-commerce sales on Thanksgiving and Black Friday, which have traditionally been big days for in-store. We also saw retailers get creative with offering stackable discounts."
For Black Friday specifically, retailers ran Black Friday-related promotions for a 10-day period. Among RetailMeNot's top 100 promotions on Black Friday, there was a 43% year-over-year increase in retailers issuing omnichannel offers. Based on over 100,000 in-store and online deals experienced by RetailMeNot shoppers, the discount of percentage-off promotions averaged 34% on Thanksgiving and Black Friday, data showed.
The average per-purchase savings reported by RetailMeNot consumers on Black Friday increased by 11% year-over-year to $24.50, and 77% of traffic activity on RetailMeNot came through a mobile channel on Black Friday. Specifically, designer clothing, clothing and personal services categories showed the biggest increases in Black Friday percentage-off deals, and the newest categories to top the list, the study revealed.
Meanwhile, Cyber Monday saw a 33% increase in omnichannel offers, and these received the highest engagement from RetailMeNot consumers. Out of Cyber Monday’s more than 100,000 in-store and online deals experienced by RetailMeNot shoppers, percentage-off promotions averaged 27%. However, average per-purchase savings reported by RetailMeNot consumers on Cyber Monday decreased by 14% to $18.06 on a per-purchase basis, data showed.
Sixty-one percent (61%) of traffic activity on RetailMeNot came through a mobile channel on Cyber Monday, and food and entertainment, personal services and home and garden categories saw the biggest increases in Cyber Monday percentage-off deals — and they are also new list leaders.
"Promotions are driving the success of the season, and retailers used the holiday weekend to promote new categories that we haven't typically seen during this time," said Tarleton.