November 10, 2019

Always Discounting During The Cyber Monday Window

The past two days required a study of Thanksgiving - Cyber Monday activity.

Today, let's look at the share of volume going to items selling below their historical average price point, by year, for the brand we've been studying.

2014:
  • Nov = 25%.
  • Cyb = 33%.
  • Dec = 28%.
2015:
  • Nov = 17%.
  • Cyb = 31%.
  • Dec = 20%.
2016:
  • Nov = 22%.
  • Cyb = 35%.
  • Dec = 20%.
2017:
  • Nov = 22%.
  • Cyb = 27%.
  • Dec = 17%.
2018:
  • Nov = 27%.
  • Cyb = 34%.
  • Dec = 24%.
That's a consistent story, isn't it? This brand is always trying to get customers to buy during the Thanksgiving - Cyber Monday window by marking down items.

Study your Gross Margin metrics and determine if what you are doing is effective? Who cares if you gain market share during a six-day window if the market share gained results in damage to your Gross Margins?

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.

Marrying Acquisition Investment With Long-Term Value

Your annual repurchase rate dictates everything about your investment strategy, doesn't it? When you retain 20% of last year's ...