The Secrets Behind Cyber Monday
What is Cyber Monday?
Cyber Monday is a shopping event where products at online retailers are heavily discounted.
Cyber Monday is the Monday after the American holiday of Thanksgiving and the last day of the four-day sales. Americans would typically take the day after Thanksgiving (which falls on a Thursday), as a holiday. This caused retailers to offer discounts on products to entice more people into their stores before the Christmas rush and become known as Black Friday. Following a weekend of splurging, retailers found that online shopping then took an upturn on the following Monday and started to target shoppers with discounts to encourage even more spending
Where did the term come from?
The term was created in 2005 by the Senior Vice President, Ellen Davis at the National Retail Federation who noted that after the holiday and the weekend, people who had seen deals in the shops for Black Friday would then go online to buy purchases at work, where they had a faster internet connection.
“There was no longer as much need to get up at the crack of dawn on Black Friday to snag deals and body-check other shoppers who might be interested in that same six-piece non-stick cookware set. You could shop in your pyjamas from the luxury of your couch. Even better, you could spend the day after Thanksgiving hanging out with your family and then shop online when you got back to your office on Monday” (Fast Company – How Cyber Monday Was Born)
The term was then quoted in Shop.org who had also seen a similar uplift in sales. The rest is history.
When is Cyber Monday?
This year, Cyber Monday is on the 26th of November. But shopping can commence from 12.01am on Sunday night.
How much is typically spent in the UK?
£1.1billion was spent in 2016 and this Cyber Monday Brits are expected to spend around £10k every second.
How are predictions made for what will be on sale?
Researchers typically look back at what products the big retailers like Amazon, Currys, Argos, John Lewis and eBay have discounted in the past.
How can e-retailers make such big discounts?
In the midst of all the shopping frenzy, you do wonder why these now “must have” products can now be sold as such massive discounts? Retailers often discount products for items that have been slow to shift off the warehouse shelves to make way for newer models.
How are the sale prices determined?
Prices are now generated using sophisticated algorithms to determine what price customers will be motivated to buy at.
“It’s the job of a data scientist to identify the data that’s relevant to the task at hand, which in the case of a massive sales event like Black Friday or Cyber Monday would include a combination of macroeconomic indicators, historical purchase behaviour, item popularity, and profit margins. That data is cleaned to remove inaccurate or irrelevant information and fed to the appropriate algorithm, which identifies relationships between different features and returns predictions about the likelihood that a given set of customers would purchase a particular item at a particular price during a short-term sale.” (Digital Commerce, The Science Behind Black Friday and Cyber Monday)
The final discounted price will then need to take into account the overall predicted sales, the sales made at a discount offset by the cost reduction made.
Also by knowing what customers are likely to buy, companies can stock their distribution centres with the most sought-after items in your online wish-lists and save on operational costs.
So, in short, massive amounts of data analysis, interpreted by powerful analytics experts and algorithms will determine how the company can make a profit while offering a pre-determined discount.
Why do we buy so much in this sale?
In the run-up to Black Friday and Cyber Monday, personalised, targetted adverts are being flashed all over potential customer’s social media and browsing searches. Marketers are using emotional language to break through the sales noise to appeal to us.
Timers, clocks and countdowns will make customers feel like they may miss out on the deal of the century if they don’t buy now. But this fear of missing out, plus the added stress and time pressure may prevent us from actually researching the product, seeing its historical price and whether there is a cheaper option elsewhere.
Adverts will also tell customers to reward and treat themselves, highlighting desirability, life-changing features – anything to make it the electronic arm candy you have been missing from your life.
Some of the best deals may come from the places you least expect – but these deals are harder to see through all the shouty Cyber Monday sales.
Refurbished IT provides laptops and computers that are up to 70% of retail price, on models only a few years old. Plus these sales bargains are available all year round, not just on a cold Monday in November.
What to look out for in Cyber Monday deals?
Often the best deals on computers and laptops are actually on older models. And while it may seem a great deal, often a refurbished laptop will still undercut the savings you can make in Cyber Monday deals.
So avoid the hype, take your time and contact us to see how you can make significant savings and get a computer or laptop that is exactly what you need, not what is on offer for one day. Refurb laptops and refurb computers can save you up to 70%. Find out more today – and get in contact with us.
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