October 16, 2018
If we’ve learned anything from Black Friday and Cyber Monday’s past, it’s that retailers need to be proactive to counter the holiday shopping dominance of eCommerce giants like Amazon.
Bread helps retailers offer pay-over-time solutions as a way to build stronger consumer connections, power sales, and improve brand loyalty. Our data has revealed that there are real opportunities for all retailers. Our sales volume data has shown how a proactive approach to mobile and alternative payment options will help any brand take on the big boys of Commerce this holiday season.
1. Concentrate on Mobile
According to a recent survey, the year-over-year sales growth in 2017 from mobile browsers was 36 percent. Where there’s mobile, there’s opportunity—yet few retailers are taking advantage of its conversion potential. There’s no better way to test the strength of your mobile offering than during Black Friday and Cyber Monday (BFCM). We saw that over 50 percent of pre-qualifications for Bread financing were conducted through mobile devices on Black Friday alone. This shows that retailers can make simple adjustments to engage a growing mobile audience, and drive more sales.
Improve the mobile shopping experience by making sure the speed, UX, and availability of payment options are as clear and seamless as on desktop. At Bread, we know it’s crucial to combine mobile-centric deals or financing offers with strong UX to encourage checkout.
2. Timing is Everything on Black Friday and Cyber Monday
One of the primary ways to convert shoppers is having a keen understanding of when they want to purchase. Interestingly, our data found that higher shopper purchase activity occurred between 10 pm and 11 pm EST on Black Friday with another spike from 9 pm to 11 pm EST on Cyber Monday. These numbers prove there’s a prime chance to promote your deals later in the day for patient Black Friday and Cyber Monday shoppers.
3. Offer Consumers Flexible Payment Options and Longer Terms
Bread’s data showed that over BFCM, nearly 90 percent of shoppers who opted for financing chose longer terms to make payments. In fact, term lengths rose by an average of 15-20 percent during BCFM, according to our data.
Additionally, Bread’s average AOV on Black Friday was nearly 15 percent higher than the average AOV in all of October 2017, while we saw an average AOV on Cyber Monday that was close to 20 percent higher than the average AOV in that same timeframe.
So this data shows that while shoppers want to buy more over BFCM, there is a higher potential for conversions by giving them more purchasing power, with the ability to pay with longer terms.
4. Offer 0% Financing to Boost Sales Without Discounts
Another way for retailers to increase sales is through zero percent financing promotions. Our most recent data has found that brands who offered zero percent APR financing experienced increases in sales
One of Bread’s retailers offered a promotional zero percent offer over BFCM and enjoyed an 8x increase in the amount of average daily loan applicants. They also experienced a 10 percent increase in the number of applicants who pre-qualified and completed checkout. Combined with an active social media marketing campaign to promote the offer, the retailer saw 10x higher average daily checkouts. It’s a clear proposition—adding 0% APR promotions drives eCommerce traffic, customer engagement and conversions, all while improving customer loyalty.
So don’t be a reactive spectator this holiday, and don’t compare and despair about those eCommerce giants. Reward your customers with timely, targeted deals, a better mobile experience, and flexible financing solutions.