Salesforce shares surprising Black Friday trends and insights
Salesforce has released its latest digital commerce data based on the spending data of 1.5 billion shoppers during the Black Friday period.
The company reported that the total online sales growth (how much was spent) was -1%, but total online order volume (how many more orders were placed) was found to have increased by 3% from 2021.
The average discount rate during Black Friday was 24%, up from 23% in 2021. The average order value was NZD $146, down 2.9% for the same time period last year.
Average units per transaction were 3.5, down 3% for the same time period last year. 76% of consumers used a mobile to shop during Black Friday, with the proportion of mobile traffic growing by 7%.
There was also a significant rise in payments processed by ApplePay, with the research reporting a 134% increase during Cyber Week.
All other payment types were reported to have negative growth, including credit cards (-11%), finance (buy now pay later/instalment options at checkout) (-20%), gift cards (-5%) and Paypal (-20%).
Last year, Salesforce data revealed a USD $62 billion taking in the U.S. for 2021 Cyber Week digital sales.
Global online sales hit an all-time high of $275 billion, up 2% compared to 2020.
According to the research, digital patterns established during the pandemic were still a force during the holiday season, with strong early November growth driven by consumers who were not deterred by higher prices, lower discounts, and decreased product inventory.
Cyber Week (November 23-29) itself saw muted growth as a result of these early-season shoppers working ahead of the traditional shopping peak.
It also found that pre-Cyber Monday digital sales were up 18% despite higher prices, smaller discounts, and fewer products, which came as a result of the pandemic.
"With inflation and supply chain issues top of mind for shoppers this year, we're seeing an increased focus on early holiday shopping," said Rob Garf, VP and GM of Retail, Salesforce at the time.
"While many retailers have pulled back on discounting due to limited product availability, they'll need to embrace a variety of tactics — from loyalty programs to order fulfillment options to a reconsidered stance on discounting — to win over these early shoppers."
When looking to the future, Salesforce says in its 2022 planning guide for retailers that tighter margins mean retailers need to innovate to stay competitive during the 2022 holiday shopping season.
They say that this can encompass everything from dialling up the volume on digital to transforming the role of the physical store. They also say that future-looking retailers are putting customers at the heart of every decision they make.
