Currently worth $23 billion1, Australia’s eCommerce market is expected to grow by more than 37 per cent over the next three years to be worth almost US$40 billion by 20222. In a bid to capitalise on the consumer appetite for online spending, Australian businesses are investing in key sales events like Click Frenzy to ultimately drive business growth. Other businesses need to ask themselves, ‘Should we be doing the same?’, writes Colin Barnard, Commercial Director at Criteo, ANZ.
In the lead up to tomorrow’s Click Frenzy ‘Mayhem’ on Tuesday, 21st May, Criteo has analysed traffic and sales data from 56 million online shopping transactions across 151 Australian retailers that reveals businesses can grow their online sales by up to 45 per cent.
This massive influx shows the importance for businesses to plan their sales and marketing strategies around key calendar dates like Click Frenzy. If you’re new to this space, no matter the size of your business, here’s where you can start:
Timing is everything
Don’t leave your advertising to the last minute. Make sure you have a solid plan in place to start promoting your deals one to two weeks before Click Frenzy to help build awareness among your target audience, and then heavily increase your advertising on and around Click Frenzy to generate cut-through and a healthy sales stream.
Our data shows that conversion rates increased between 10 and 15 per cent during the week of the event, and customers were more likely to purchase either the day before or the day after Click Frenzy. For example, the conversion rates in the fashion and home categories peaked the day following Click Frenzy (e.g. home increased by 45 per cent), which may indicate later deals or a longer decision-making process.
This is where serving online ads to customers at the right moment comes in. For instance, AdTech companies can help businesses of all sizes to enhance the customer experience by serving appealing content that inspires shoppers with the right deal at the right time, while maintaining an authentic brand tone and achieving complex marketing goals (i.e. differentiating your product with thousands of other brands partaking in Click Frenzy). Data, machine learning and AI are key to creating this highly personal experience for the consumer, therefore boosting sales revenue.
It’s all well and good to know when to reach the right customer, but what makes for appealing content? Customers are seeking a genuine value-add from the content they consciously choose to engage with – they expect these interactions to become part of their everyday life in a more meaningful way.
For businesses, this means understanding their motivations, preferences and unique behaviours, and developing hyper-relevant and hyper-interactive content at the moments that matter most to consumers. This needs to become a must-have for all marketing strategies to drive overall revenue.
In recent years, we’ve seen a turning point in the level of mobile shopping in Australia as opposed to desktop shopping…and Click Frenzy is no different. According to Click Frenzy, there’s been a significant shift in mobile usage, with 56 per cent of shoppers using their mobiles to visit the site in 2018 (compared to 55 per cent in 2017 and 43 per cent in 2016). This is opposed to 33 per cent using a desktop and 11 per cent using a tablet.
This trend is expected to grow at tomorrow’s Click Frenzy ‘Mayhem’, so it’s vital that local businesses are aware of the increasing importance of optimising their advertising campaigns for mobile and supporting this with an easy-to-use web page or app.
While every business will win to a certain extent at Click Frenzy this year, when analysing the traffic and sales of Click Frenzy 2018, the fashion, health & beauty and home shopping categories are set to benefit most. In 2018, fashion sales increased by 73 per cent, health & beauty sales by 62 per cent (with sales increasing by 105 per cent the day before) and home by 21 per cent.
So, will you be involved in the next Click Frenzy?