Holiday results update: spending continues apace

Like most merchants, we’re tracking holiday performance closely, and so far, the data continues to show strong growth. As the season heads into its frenzied final weeks, merchants in the MarketLive Performance Index have earned double-digit revenue gains for this week and the season as a whole.

Year-over-year weekly results show revenue up 18.9%,while visits soared by almost 26%. Conversion and engagement slipped by less a percentage point, while average order size increased nominally. Cart abandonment crept upwards by 2.2% as shoppers intensify gift-buying research, leaving behind items in the cart as they hop from site to site.

Combined results for first two weeks of the holiday season show even stronger gains. Total revenue is up almost 38% compared with 2011, driving by an increase in conversion rates of 4.8% and engagement rates of 4.5%.

As the final week begins before on-time delivery options begin to narrow, merchants are pulling out all the stops to offer shoppers an array of gifting options. As we reported earlier, it’s not just the mega-merchants offering bargain-basement prices who are seeing gains; brands that communicate value are winning big with promotions of unique products and stellar service as well as attractive pricing.

When merchants do offer discounts, they should make the most of them by communicating them consistently along the path to purchase — not just at checkout. This tactic not only motivates shoppers to buy, but it takes the guesswork out of price calculations as they add items to the cart.

eBags offers a “Happy Hour” promotion of 30% off and free shipping over a threshold to email subscribers. The offer expires at 11 p.m., roughly 14 hours after it was sent — giving shoppers ample incentive to shop and purchase immediately, tapping into the “daily deal” mentality, and helping eBags avoid the sinkhole of offering constant and ever-deeper discounts.

Once email recipients click on the promotion, the deal is reinforced throughout the eCommerce site with a global banner which dynamically displays the offer (as opposed to non-subscribers, who see a lower discount offer).

On the product page, the price has been dynamically calculated to include the discount, which is called out in the text above the “Add to Cart” button. The item qualifies for the free shipping discount, which is also flagged prominently.

Finally, in the shopping cart, the discount is again displayed and the “final price” is highlighted.

How are you making the most of holiday discounts?