It’s the busiest time of year for both retailers and customers. From Click Frenzy to Christmas, this is the time for retailers to drop prices and customers to ramp up their spending. With so many sales events, why do shoppers go mad for the likes of Click Frenzy? And is it time for retailers to take advantage of these huge events?
There have been new trends identified during Click Frenzy and Black Friday in a new study from Criteo. Taken from an analysis of over 32 million Aussie online desktops, smartphone, tablets and apps from last year, the study can provide some insight into what retailers can expect from this year’s sales event.
Click Frenzy and Black Friday: The Numbers
In 2018, online sales saw an increase of 144 per cent during Click Frenzy, and online traffic increased by 59 per cent. Click Frenzy, which takes place on November 12th, often creates a huge jump for retailers in terms of traffic and sales – conversion rates surged during the event by 53 per cent in 2018. It’s not just the single day of the event that can boost the conversion rates for retailers; the day following Click Frenzy, they were still high sitting at 62 per cent.
“During the Click Frenzy and Black Friday weekend, we see above-average share of mobile sales, reaching a peak of 50 per cent during Black Friday,” the report found. “Additionally, mobile share of sales reached a peak of 58 per cent near Christmas itself, when shoppers may be away from their desktops.”
According to the Power Retail Spotlight Series: Sales Events, these types of retail sales are a popular point of the year for customers, with 82 per cent of online shoppers having participated in at least one sales event in the last 12-months.
“Retail turnover from online sales continues to increase at a high rate and this can be attributed to the rise in popularity of events such as Click Frenzy and Cyber Monday, combined with the fact that buying online is a convenient option for many shoppers,” said Lindsay Carroll, Deputy CEO of the National Retail Association.
The categories that performed the best included Sporting Goods, which saw an increase of 290 per cent, Fashion (194 per cent) and Health & Beauty (106 per cent). According to the report, on the first night of Click Frenzy, both mobile and desktop sales surged significantly with an increase of 329 per cent in mobile sales and 283 per cent in desktop sales.
On a similar note, sales events like Black Friday also have an exclusive increase in traffic and revenue for retailers, both in-store and online. In a study based on 19 million retail shopping transactions across mobile, desktop, apps and tablets from 177 major retailers, it found that there was an increase in online sales by 210 per cent. On the Sunday of the Black Friday weekend, online traffic also saw an increase of 90 per cent and a significant spike in sales by 129 per cent and traffic by 54 per cent.
Should Retailers Get Involved?
Australian retailers have embraced the idea of sales events like Click Frenzy and Black Friday. Throughout the Christmas period, sales tend to rise and there is an increase in traffic, both in-store and online. “Australians are getting savvier with how they shop and are starting to purchase seasonal items that they might usually buy in-store. For example, in the second week of December, we saw a marked increase in online purchasing of specialty food and liquor – resulting in a growth of 41 per cent year-on-year,” explained Ben Franzi, the General Manager of Parcel & Express Services at Australia Post. “Importantly, this signals to retailers they need to consider timing their sales earlier to grab a slice of the Black Friday and Cyber Monday pie.”
Retailers who haven’t embraced the idea of taking part in an online sales event should consider getting in now before it’s too late. “Christmas is an important time of the year for retail and many smaller operators rely on strong sales in the festive season to sustain their business throughout quieter parts of the year. A poor Christmas period for retail will have a knock-on effect to other parts of the economy, so we encourage shoppers to indulge in some retail therapy between now and the end of the year,” explained Dominique Lamb, CEO of the National Retail Association.
Click Frenzy’s Go Wild sale takes place on November 12th and will run for 29 hours. Shoppers can browse through thousands of deals and once they’re ready to make a purchase they will be linked through to the relevant retailer to complete their purchases. Find out more about the event here.
Disclosure: Click Frenzy Pty Ltd is owned by Global Marketplace, the parent company of Power Retail.
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