Just as every journey needs a map, every eCommerce business needs a data-driven strategy. December, in particular, is a treasure trove of insights that can help retailers shape their narrative for the coming year.
The close of 2022 bore witness to staggering figures: Shoppers dropped an unprecedented $211.7 billion from November 1 to December 31, marking a 3.5% surge from the previous year. To make sense of these figures, sales metrics stand out as crucial navigational tools.
By harnessing the insights from this lucrative month, retailers can identify best-selling products and categories, understand consumer behavior, evaluate their marketing campaigns, and set realistic goals for the future. You can analyze this data to uncover hidden gems that’ll drive significant growth and success in the coming year.
Keep reading to learn how to launch a data-driven expedition through your December metrics.
The eCommerce industry is flooded with data. From browsing habits to buying patterns, each click tells a story.
Navigating the bustling December eCommerce landscape requires a deep understanding of critical sales metrics to illuminate unique holiday shopping behaviors. Here are some sales KPIs to track this December.
Gross sales volume offers an overarching view of your sales success, and for December, this figure is crucial. By comparing the gross sales volume of December with other months, you can gauge the holiday season’s impact on your bottom line.
Beyond the headline figure though, it’s worth examining sales volume trends across December. For instance, were there certain days or weeks when sales significantly deviated from the average?
AOV reveals the median spend for each customer. A higher AOV in December could point to consumers splurging on festive deals or buying gifts in bulk. While a higher AOV is generally positive, it’s essential to discern why shoppers spend more. Are they purchasing more items, or are the products themselves pricier?
How much did it cost to get a customer through the door (or onto your site)? Marketing spend is often higher during the holidays. However, you need to determine if this increased spending leads to proportionate gains in customer acquisition.
The holiday season often attracts a flurry of new customers. CLV helps predict if these shoppers will return so your business can strategize retention tactics.
For customers acquired in December, how do their interactions in January and beyond compare to buyers obtained in other months?
An often overlooked metric, the cart abandonment rate can highlight potential friction points in the purchase process. By examining this rate, you can pinpoint resistance or hesitation in the customer journey, from product selection to final checkout. Then, you can take necessary measures to streamline and enhance the buying process.
A slew of enticing promotions, sales, and exclusive offers punctuate December. Beginning with the Black Friday frenzy and culminating in New Year’s Eve specials, these unique promotions play a colossal role in influencing sales metrics. Plus, December is synonymous with the rush of last-minute shoppers, which offers a lucrative opportunity for businesses when accurately identified.
That’s why it’s imperative to dissect the impact of each promotion — you not only measure their immediate success but also glean insights you can harness for future campaigns.
Transitioning into the new year, a significant facet that retailers grapple with is the surge in returns and exchanges. January has often earned a moniker as the “return month.” Businesses can mitigate potential challenges and reinforce customer trust by anticipating this trend and proactively orchestrating their logistics, customer service strategies, and inventory management.
December is a unique month due to its festive season and end-of-year shopping sprees. When comparing its sales metrics to other months, it’s critical to differentiate between seasonal effects and actual business trends.
For instance, a sales boost in December might be due to holiday shopping rather than a sudden increase in brand popularity or a successful marketing campaign. Conversely, a dip in sales in the following months, like January or February, might be a natural decline after the holiday shopping craze rather than a sign of a problem.
Recognizing seasonal fluctuations versus genuine growth or decline allows you to make informed decisions. Instead of making hasty changes based on December’s numbers, you can plan and strategize with a broader perspective.
It also enables you to allocate resources effectively throughout the year. You can adjust inventory, plan marketing campaigns, and set customer engagement goals with a clear view of expected monthly variations. This ensures steady performance and a consistent consumer experience year-round.
December’s sales data also plays a crucial role in predicting and shaping the trajectory of the upcoming year. Here’s a deeper look into how these metrics can be pivotal for businesses.
December sales reveal which products were hot sellers and which weren’t. That information is invaluable when deciding on inventory purchases for the coming months.
If a particular product saw a spike in sales, it might be prudent to stock more of it in anticipation of sustained interest. Items with a lukewarm reception, meanwhile, might require a reevaluation of their positioning or even discontinuation.
As a promotion-packed month, December offers businesses a wealth of data on marketing effectiveness. Companies can identify the best marketing tactics by analyzing which campaigns yielded the highest ROI. This could be through email marketing, social media ads, influencer partnerships, or other avenues.
Recognizing these successes allows you to allocate budgets more effectively, doubling down on strategies that work and phasing out less effective campaigns.
The end-of-year shopping spree provides an excellent opportunity to study consumer behaviors. Businesses can learn what their customers value by analyzing purchasing patterns, search queries, and product reviews. These insights then help tailor product development, enhance website user experience, and improve customer service.
December’s revenue figures play a significant role in budgeting for the new year. By understanding the revenue streams of the past month, businesses can set realistic targets and portion budgets to different departments. In turn this influences decisions related to hiring, R&D investments, and expansion plans.
With a clear picture of December’s performance, you can set sales goals for the upcoming year. These targets can be monthly or quarterly so you have a consistent benchmark to measure against. Instead of generic year-on-year growth percentages, goals rooted in December’s data are more grounded, allowing teams to work towards achievable targets.
The month’s sales numbers direct businesses toward informed decisions that are rooted in tangible insights. The ripple effect of these decisions can shape the success narrative for the entire upcoming year.
Leveraging technology can drastically simplify sales metric analysis. Here’s how these metrics can be instrumental in shaping your business trajectory.
You make educated predictions about consumer preferences by zeroing in on products that witnessed significant sales.
For example, if a newly launched product performs exceptionally well, increasing its stock and introducing related items or accessories might be beneficial. On the flip side, you can revisit or improve underperforming products or, if necessary, phase them out.
You can identify the most impactful strategies by evaluating the performance metrics of different campaigns run in December. Was there a specific promotional email that drove significant traffic? Did a collaboration with an influencer lead to higher conversions? Answering questions like these will guide the allocation of marketing resources in future campaigns.
Fine-tune your offerings by assessing product searches, browsing behaviors, and feedback. This deep dive can lead to improved product features, better website navigation, or even refined customer support post-purchase.
The financial performance in December plays a pivotal role in determining budgets for the upcoming year. With clarity on the revenue streams from the holiday season, businesses can make strategic decisions about financial allocations.
This data-driven approach could affect crucial decisions, ranging from R&D investments and team expansion to marketing budgets and infrastructure improvements.
Having a comprehensive view of December’s sales figures allows you to outline tangible and realistic sales goals for the coming year.
Instead of generic growth targets, leveraging December’s insights ensures you set ambitious and achievable milestones. This creates a clear roadmap for sales teams, ensuring everyone is aligned with the company’s vision.
December’s sales metrics are more than a retrospective view of holiday season performance — they’re pivotal tools for future planning and strategy development.
By meticulously analyzing and leveraging these metrics, you can develop a plan that ensures consistent growth and customer satisfaction. Beyond collecting data, this focus is to convert these insights into strategic actions that’ll drive success throughout the upcoming year.