Salesforce (NYSE: CRM), the leading AI CRM provider, has unveiled its 2024 Cyber Week results, spanning from November 26 to December 2. The report highlights a record-breaking $314.9 billion in global online sales, with U.S. consumers contributing $76 billion to this total. The event shows the immense power of Cyber Week, underscoring shoppers’ anticipation and their eagerness to seize significant deals.
Caila Schwartz, Director of Consumer Insights at Salesforce, remarked, “Shoppers were waiting all of 2024 for the right moment to buy the goods they wanted, and they clearly made the most of this Cyber Week.” She further explained that consumers showed strong year-over-year (YoY) order growth, signaling that even moderate discounts were enough to drive purchases. Retailers who leveraged AI and agents in their strategies saw even greater success, experiencing more personalized promotions, recommendations, and support, which led to higher revenues.
The insights from Salesforce’s 2024 Cyber Week report include significant growth in both online sales and order volumes, a positive sign for the retail sector. After a slower period earlier in the year, the Cyber Week sales surge acted as a much-needed release valve for consumer spending. The first four weeks of the holiday season saw an 8% growth in both the U.S. and globally, with Cyber Week sales reaching $76 billion in the U.S. (a 7% increase YoY) and $314.9 billion globally (up 6% YoY).
Key highlights from the report include:
- Black Friday Dominates the Week: Global online sales on Black Friday reached $74.4 billion (up 5% YoY), with $17.5 billion from the U.S. (a 7% increase YoY), making it the strongest shopping day of the week.
- Cyber Monday Still Strong: Cyber Monday brought in $49.7 billion globally (up 2% YoY), with $12.8 billion from the U.S. (a 3% increase YoY). While the growth was moderate compared to Black Friday, it remained a key player in the Cyber Week sales performance.
- AI and Agents Drive $60 Billion in Sales: AI technologies, including agents, played a crucial role in influencing $60 billion in global online sales. These innovations helped retailers deliver personalized recommendations, targeted offers, and enhanced customer service experiences, contributing to overall sales growth. Retailers using AI-powered services saw a 2% higher conversion rate compared to those that didn’t utilize this technology. Furthermore, the use of AI and agents increased by 18% compared to the previous week, emphasizing the growing trend toward personalization and efficiency.
- Discount Strategies and Results: The report observed a mixed approach to discounts. Despite the competitive pressure from Chinese marketplaces like Temu, Shein, and AliExpress, Western retailers did not offer drastic discounts. The global average discount rate was 26%, and the U.S. rate was 28%, both slightly down from the previous year. Categories like makeup (40%), general apparel (34%), and skincare (33%) saw the highest discount rates, while mobile electronics and home appliances saw more modest markdowns.
- Mobile Shopping Continues to Surge: Mobile commerce has seen substantial growth, with over 80% of e-commerce traffic originating from mobile devices during Cyber Week. Mobile orders accounted for 70% of total global and U.S. sales, up from 67% in 2023. In total, mobile contributed $220 billion globally and $53.3 billion in the U.S. Additionally, mobile wallet usage rose by 16% worldwide during this period.
- Social Commerce’s Rising Influence: Social media platforms like TikTok Shop and Instagram played a significant role in driving sales, with 19% of Cyber Week sales coming from social commerce strategies. Retailers who embraced social commerce saw a direct impact on their overall performance during the event.
Salesforce’s platform proved instrumental in supporting digital retailers globally, ensuring they could scale operations and deliver tailored shopping experiences during Cyber Week. Salesforce’s Commerce Cloud helped process nearly 50 million orders with nearly flawless uptime, while Marketing Cloud facilitated the sending of over 56.5 billion marketing messages, a 5% YoY increase. Service Cloud handled over 3.8 billion customer service cases, showcasing its importance in managing high volumes of consumer inquiries.
The impact of AI was also clear, as Salesforce powered nearly 60 billion product recommendations, marking a 21% YoY increase in AI-driven suggestions. Additionally, AI-powered chatbots grew by over 32% YoY during the week, further highlighting the pivotal role of AI in enhancing shopping experiences.
Overall, the 2024 Cyber Week demonstrated the continued evolution of online shopping, with mobile, AI, and social commerce becoming increasingly vital. Salesforce’s insights underscore how these technologies are reshaping the retail landscape and driving growth for businesses that leverage them effectively.
