The History of Cyber Monday
Sure, Thanksgiving is a holiday we’ve all feasted our eyes on for the better part of November, but the real treat for most of us have been all the online holiday shopping – and savings. So, as we scoured the internet for the best deals on Cyber Monday, what is now the biggest e-commerce shopping day of the year, it piqued our interest as to how this holiday even originated.
Since the 1980s, shopping around the Thanksgiving holiday has become as much of a tradition as the food being served. But around the early 2000s, the National Retail Federation (NRF) began to notice a recurring trend for a few years in a row around online shopping revenue and traffic every Monday following Thanksgiving. They believed consumers were making purchases at work once they were back in the office for a few reasons:
To see if there were any “leftover” (pun intended) Black Friday deals they could take advantage of
Internet connections were faster at their place of work back then
Their children wouldn’t be privy to the gifts purchased for them
And thanks to Ellen Davis, senior vice president of research and strategic initiatives for the NRF (through its commercial portal, Shop.org), the name was coined in 2005 after issuing a press release debuting “Cyber Monday” and their expectations of increased sales on that particular day. The New York Times reported on this new nomenclature, and the notion that it would be the biggest online shopping day of the holiday season, and soon enough it spread like wildfire.
Funny enough, that didn’t quite happen. For reasons still unbeknownst to everyone, that honor fell to December 12, 2005 instead. However, in the years following, digital transformation grew in the retail industry and Cyber Monday did eventually live up to its claim, now making it a valid reason for continual innovation.
According to prooV, an online platform for enterprises to test, evaluate, and adopt new technology, there are many factors aiding in the success of Cyber Monday. Advancements in technology, the convenience of online shopping, and the surplus of big box online retailers (like Amazon) have all had a helping hand in making profits skyrocket on this particular day:
“Today, Artificial Intelligence and machine learning tools are being used to predict demand and provide personalized retail experiences. The ability to collect and sort through mass amounts of data means that retailers are able to predict customer behavior and price items to sell, while still collecting a healthy profit. It also means that recommendation engines can offer suggestions for additional items based on consumer demographics and past shopping habits. These suggestions can even be saved and strategically served up on Cyber Monday when shoppers are especially motivated to buy, and more likely to make impulse purchases.”
It’s no secret technology has fundamentally changed the way we shop as of late, and it’s clear both brick-and-mortar retailers and e-commerce stores alike will continue to adapt, innovate, and take full advantage of any new tools that will aid in their profitability. As for the future? We certainly don’t have a crystal ball to predict what innovations may await us (like in the wellness industry), but we can expect refined customer targeting, decreased operational costs, and more unique shopping experiences from retailers.
Did you take advantage of any Cyber Monday deals? Let us know in the comments below!