By Published On: February 8, 2012

by Victoria Hoshal

Despite the recessionary outlook, online retail sales for the Holiday season exceeded 2010 levels by 15% and reach historic levels. Consumers spent $35.3 billion online, according to market research organization ComScore.

Email and online channel growth was highlighted by a YOY 9% increase to the top 500 retail sites during Peak Week alone (Thanksgiving Day, Black Friday and Cyber Monday). Other specific increases in email-generated revenue and digital marketing include the following, as cited by Experian Marketing Services:

  • Average order values increased by 4.4%
  • Email volume rose by 19%
  • Unique open rates remained positive for most verticals
  • 26% of subject lines featured and offer
  • Dollars off offers were most popular, vs. the percent off strategy used in 2010

Driving the sales was a welcome increase in consumer confidence, which rose to 64.5% in December 2011. This was a 10 point increase from November of 2010 (Conference Board).

 

As we reviewed the results, strategies and tactics employed by online retailers in 2011, several trends emerged:

  • The last minute shopper has more options than ever before, as E-gift cards and certificates sales boomed. Most major retailers offered e-gift cards and e-gift certificates that can be purchased online and delivered digitally via email or cell phone. See our list of resources at the close of this article for a list of retailers and their terms.
  • Mobile gift cards can be stored on consumers’ cellphones or smartphones and redeemed in-store at checkout (see resources to click to complete article).
  • Another morph is the “Virtual” gift card distributed via Facebook. For example, Amazon.com gift card notification can be other posted to a friend’s wall or sent to their Facebook message box, as designated by the giver.
  • Gift cards as an overall category (all channels) accounted for 18% of all purchases, a 3.4% increase from 2010.

Retailers are becoming savvier each year in integrating online and bricks and mortar purchasing to maximize sales. A tactic that is becoming more prevalent is “Ship-to-Store.” This option allows customers to buy online and pick up their purchases at a local store, at their convenience. Benefits to customers are savings in shipping time and shipping charges.

The good news continued past Christmas, when consumers continued to spend:  $7.1 billion in sales on December 26th. This represents a 25.% increase over 2010. Of special note is that 11.3% of these sales came from mobile devices, compared to 4.3% in 2010.

Resources quoted and utilized in this article include:
2011 U.S. Christmas Holiday Retail Data, Statistics, Results, Numbers Roundup www.retailindustryabout.com
Peak Week Sees Email and Online Channel Growth www.experian.com/blogs
2011 Holiday Season Email Snapshot www.experian.com/blogs
Retail Stores Selling Virtual Gift Cards Through Facebook Social Media www.retailindustry.about.com
Mobile Gifts Cards – Complete List of Largest US Retailers With Mobile Gift Cards www.retailindustry.about.com
Best Online Last Minute Gift Shopping Options – E-Gift Cards and Certificates www.retailindustry.about.com
Fast and Free Shipping Option From Online Retailers with Ship-to-Store Options www.retailindustry.about.com

About the Author: Megan Devine

Megan Devine
Megan taps into her left-brain logic and right brain creativity—steering the business, bantering with her team, and strategizing on client work. She says it’s her dream job and we believe her. Using her passion and knack for understanding complex connections in business and marketing, she collaborates to create love between brands and customers. She possesses expertise and experience that only comes from persevering in the ever-changing marketing agency world. Megan co-founded d.trio marketing group, now cat&tonic, in January of 2000 and took sole ownership in 2019. Her vision, support, and sheer stubbornness got us through 9/11, the great recession, and a pandemic. She has judged the International ECHO Awards since 2005, has consulted for several organizations, and serves on several boards. Educated at Carleton College, she learned the importance of critical thinking for success. At home she learned the value of a good story.
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