3 takeaways from Black Friday Cyber Monday 2023
David Cross |
With inflation climbing, it was an open question whether shoppers would turn out for Black Friday Cyber Monday this year. Ordergroove data shows that not only did consumers rise to the occasion but that subscriptions were especially well-positioned to meet price-conscious consumers’ demand for more value.
To help merchants set themselves up for success during the holiday season and 2024, Ordergroove compiled the most essential takeaways from the four-day sales event.
1. Consumers are spending more on subscriptions
Subscription sales were up 63% compared to last year’s BFCM and 171% over 2021’s shopping event. What’s more, average order value (AOV) jumped 20%.
The massive growth in subscription sales emphasizes that consumers are willing to spend money but are price-conscious and hunting for deals. This sentiment aligns perfectly with subscriptions and recurring bundle orders because shoppers receive more value than one-off purchases.
Multiple factors likely impacted AOV growth, including price increases due to inflation and merchants’ increased focus on driving higher customer lifetime value through upsells, bundling, and “subscribe more, save more” strategies.
2. Black Friday is the champion
This year, Black Friday subscription deals outperformed Cyber Monday subscription promotions.
Black Friday subscription orders increased 76% YoY compared to Cyber Monday’s 25% growth. Also, the largest number of subscription orders occurred on Black Friday, with 30% of total subscriptions created on the day compared to 27% on Cyber Monday.
3. Consumers love their pets on repeat
Shoppers love their pets, and it showed this BFCM. Subscriber acquisition for pet-based brands was up 35% YoY, while the number of new subscriptions purchased increased 47% YoY.
The amount consumers spent on their pets also grew. AOV for pet-based brands lept 74%, helping contribute to an impressive 123% boost in total subscription revenue compared to BFCM 2022.
The best-performing pet merchants took advantage of the increased traffic to their site by following subscription best practices, namely making subscription promotions their best offers. For instance, one prominent pet merchant offered 50% off a subscriber’s initial order when they typically offer 30% off. Promoting the subscription offer across Product Detail Pages and homepage helped this pet merchant drive meaningful subscriber acquisition.
The key learning from pet merchants’ success during BFCM is that brands shouldn’t be afraid to increase their subscription incentives. Brands that do can offset the promotion’s impact on margin by securing customers who will make repeat purchases without incurring additional acquisition costs, driving higher LTV:CAC.
Fight inflation woes with subscriptions
While price hikes and inflation are on consumers’ minds, subscriptions are better positioned than ever. Subscriptions offer shoppers increased value and convenience at a time when every dollar matters to them. Equally, subscriptions empower merchants to cumulative deep, ongoing relationships with their most loyal customers beyond the promotional season. Use Ordergroove’s BFCM insights to drive more acquisition and AOV during the holidays and beyond.