Cyber Monday Starts Seasonal Surge for Subscriptions
Recurly finds 230 percent jump in sales for subscription-based merchants on Cyber Monday
San Francisco, CA – January 19, 2016 – Recurly, Inc., the enterprise-grade subscription management platform, released findings today from an examination of shopping volumes during the start of the holiday period, including Black Friday and Cyber Monday. On Cyber Monday 2015, subscription-based merchants experienced a 230 percent jump in total payment volume (TPV) as compared to other days during the study period.
Subscriptions are changing the face of retail. A wide variety of products are sold via subscription from box-of-the-month consumer goods – food, fashion, cosmetics, personal care items, toys – to high-end electronics, entertainment and services. With a universe of compelling choices available at the click of a mouse, reliable deliveries and the delight of receiving something new, it is no surprise that more and more consumers are looking into such offerings.
“The popularity of the subscription model is largely due to the fact it benefits both consumers and businesses,” said Dan Burkhart, CEO and co-founder at Recurly. “Merchants reap the benefits of predictable revenue coupled with customer insights, creating opportunities to continually refine pricing, packaging and product offerings. Consumers enjoy the convenience of a relationship with the brands they trust most to deliver innovative products and experiences to them consistently over time.”
Subscription merchants experienced heavy shopping on Cyber Monday with same-store sales increasing by 83 percent on Cyber Monday 2015 compared to the previous year. Looking at the entire four-day period starting with Black Friday and ending on Cyber Monday, same-store sales grew 70 percent from the previous year.
Recurly also measured the effect of sales promotions and found that Cyber Monday saw three times more coupon redemptions than other days during the study period.
The company examined a sample of more than 450 business-to-consumer (B2C) merchants during a study period that covered the two-week period that included Black Friday and Cyber Monday, the traditional start of the holiday shopping season. Specific dates of the study period were Sunday, November 22, 2015 to Saturday, December 5, 2015. In 2015, the date of Black Friday was on November 27 and Cyber Monday was November 30.
Recurly, Inc. delivers agile enterprise-grade subscription management to thousands of SaaS, media, mobile, consumer goods, productivity and publishing businesses worldwide. Businesses like AccuWeather, Sling Media, Groupon, JibJab Media, Asana, Twitch.tv and Zillow depend on Recurly’s ability to cut through the complexity of subscription management, providing rapid time to value and the nimbleness to power continued success. Since its launch in 2010, Recurly has deployed subscription billing for thousands of companies in 32 countries, making it the most trusted pure play provider of subscription management services. Recurly is PCI-DSS Level 1, SAS 70 / SSAE 16 Compliant, and operates in compliance with the data protection practices outlined in the E.U. Safe Harbor agreement. For more information, visit https://recurly.com.