5 Top Takeaways From Bread’s Black Friday Cyber Monday Research Report
Bread conducted detailed research on all of our transactions between November 28th and December 2nd, and the results gave us some surprising insights into the future of shopping and ecommerce.
In 2020, consumers will be looking for better buying experiences and more streamlined ways to pay, especially on the ecommerce front. The brands that are delivering this are seeing greater success during the holiday season and year-round.
This year, shoppers spent 14 percent more over the Black Friday and Cyber Monday holiday sales period than they did in 2018, with total weekend sales topping out at $68.6 billion. And, for the first time ever, Black Friday has topped Cyber Monday in online sales. Black Friday used to be the biggest day in brick-and-mortar shopping, with Cyber Monday providing an alternative day for ecommerce sales. But as online and mobile shopping becomes our primary path to purchase—with 41% of shoppers starting their shopping journeys online—the distinctions between the two days have diminished.
According to Bread’s research, on average shoppers say they intend to spend $1,007 on their holiday gifts. Of that total holiday spend, shoppers said they intended to finance $456. Shoppers are increasingly looking for more convenient ways to buy and pay over the busiest shopping days of the season. Forward-thinking brands know that this is the time to spot the trends that will impact your business for the year to come. Take a deep dive into Bread’s own holiday shopping data to see how customers’ behavior is changing, how they are engaging with financing over the holiday shopping season, and what that means for retail at large.
1. Financing Increases Average Order Value by Nearly 3x During Black Friday
Bread found that AOV on financed orders was 2.90x greater than that of non-financed orders on Cyber Monday and Black Friday. At Bread, we’ve seen again and again that the earlier customers learn about their purchasing power and financing options, the larger their orders will be. You can see how BFCM affects financed AOV throughout the shopping weekend in our full report.
2. More than 3 out of 4 Shoppers Apply for Financing Before Checkout
78% of Black Friday shoppers and 76% of Cyber Monday shoppers applied for financing prior to reaching the checkout page, meaning shoppers are thinking about their purchasing power and how much they can pay over time well before purchase. For retailers, this means that the earlier consumers engage with financing, the more likely they are to take advantage of their credit limit and add more items to their cart.
3. Shoppers Wait Until the Last Moment to Buy on Cyber Monday
Customers shopping for Cyber Monday deals online are looking for the best ones right up until they almost expire. Bread’s behavioral data found that the majority of Cyber Monday shopping is between 8:00 and 10:00 PM. They have the luxury to browse online instead of rushing to a store, so they can compare their options in their own free time in the evening. Retailers should look to offer their best Cyber Monday deals at these peak hours in the evening to maximize revenue.
4. More Than Half of Shoppers Prequalify for Financing on Mobile
Customers continue to shop across even more devices and touchpoints—so optimizing the ecommerce experience across devices is critical. Thanksgiving shopping days are a great time to see this change in buying behavior in aggregate. Bread found that 56% of shoppers prequalified on mobile during Black Friday, and has also seen an increase in mobile checkouts year-on-year. This, combined with the other findings in our report, clearly show that consumers are participating in omnichannel commerce at a greater rate than ever before.
5. Gen X Drives Cyber Monday Sales
We took a granular look into the demographic behavior of Black Friday and Cyber Monday, and found that Millennials and Generation X drive the shopping on these two days. Gen X in particular contributed 41% of the revenue on Cyber Monday—they’re defining digital sales on one of the biggest online sales days of the year. Give them the payment flexibility and financial transparency they demand.
But these are just a sample of the insights we learned during Black Friday and Cyber Monday 2019. Curious about Millennial shopping behavior, and how they’re evolving as a buying force during the holidays and beyond? Looking to find out when shoppers buy the most over this holiday period, and how that’s evolved? Want to find out how our new offering SplitPay performed over Black Friday and Cyber Monday? Then download our full report and get our complete collection of data and insights.
Bread has seen that alternative financing can help retailers reach customers who are looking to avoid credit card debt and are open to a better payment experience. It also raises average order value while enabling a better omnichannel experience. By giving consumers the freedom they need to make longer-term, lower-cost repayments, financing is an effective tool during Black Friday, Cyber Monday, and beyond.