eCommerce Benchmark Report - Q2 2016

ECOMMERCEBENCHMARK REPORT

Q2 2016

EC

OM

ME

RC

E B

EN

CH

MA

RK

RE

PO

RT

Q

2 2

01

6@

DE

MA

CM

ED

IA

2

97% OF MOBILE REVENUE IS DRIVEN BY APPLE USERS

2 AVERAGE NUMBEROF DEVICES USED FOR SHOPPING AND BROWSING

3X MORE SPENT BYRETURNING CUSTOMERSTHAN ONE TIME SHOPPERS

97% INCREASE IN CONVERSION BETWEEN THE FIRST AND SECOND SITE VISIT.

REPORTHIGHLIGHTS

S O U R C E : Q 2 2 0 1 6 E C O M M E R C E B E N C H M A R K R E P O R T

TABLE OFCONTENTS

D I S C O V E R Y

C O N V E R S I O N B Y D E V I C E

C O N V E R S I O N B Y C H A N N E L

Y O T P O F E A T U R E :

V A L U E O F R E T U R N I N G C U S T O M E R S

B R O N T O S O F T W A R E F E A T U R E :

M U L T I - D E V I C E C O M M E R C E

M E T H O D O L O G Y

C O N T A C T D E M A C

4

7

13

15

17

20

21

EC

OM

ME

RC

E B

EN

CH

MA

RK

RE

PO

RT

Q

2 2

01

6@

DE

MA

CM

ED

IA

4

DISCOVERY

ORGANIC SEARCH REMAINS THE BIGGEST SOURCE OF INBOUND TRAFFIC.

Good SEO hygiene generates higher organic traffic. Search engines like Google have become an invaluable tool for shoppers doing research on their intended purchases, and should never be overlooked.

% OF SESSIONS BY TRAFFIC SOURCE

39%

17%

14%

11%

10%

7%

organic search direct other paid search email referral social


5

DISCOVERY

ALMOST HALF OF ALL SHOPPERS ARE NEW VISITORS, REGARDLESS OF DEVICE TYPE.

Almost half of all sessions are from new visitors, regardless of device. Captivate these new visitors with an excellent first impression - they have the potential to become high-converting return customers.

44%

tablet desktop

53%

SESSIONS FROM NEW VISITORS, BY DEVICE TYPE

42%

mobile


6

DISCOVERY

FACEBOOK, PINTEREST, AND INSTAGRAM DRIVE 93% OF ALL SOCIAL NETWORK TRAFFIC.

Social networks are vying to be the starting point for retail purchase discovery, and there are some clear leaders. Focus your energy on the top 3 for volume, but pay attention to the networks that your shoppers originate from in particular.

% OF SESSIONS BY SOCIAL PLATFORM

68%

13%

12%

3% 3%

facebook pinterest instagram reddit twitter other


7

CONVERSION

CONVERSION RATE GOES UP 97% BETWEEN FIRST AND SECOND SITE VISIT.

It is rare that a shopper buys on their first visit to your site; most shoppers are still in discovery and research mode. In fact, conversion jumps by 97% just between a customer’s first and second visit! See more on this in our Yotpo feature.

CONVERSION RATE BY SESSION 1 & 2


1.16%

0.59%

0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40%

2

1

SESS

ION

CO

UN

T

ECOMMERCE CONVERSION RATE

8

CONVERSION

DEVICE TYPE HEAVILY INFLUENCES ECOMMERCE CONVERSION RATE.

The varied conversion rate between device types highlights the gap between research and purchase intent. Retailers must understand what their shoppers expect from each touchpoint, and design their digital and offline shopping experiences appropriately.


DISTRIBUTION OF CONVERSION RATE BY DEVICE TYPE

mobile tablet desktop

CO

UN

T

0

5

10

15

20

25

30

35

40

45

0-1% 1-2% 3-4% 4-5% 5-6% 6-7% 7-8%

9

CONVERSION

CONSUMERS ON DESKTOP VIEW MORE PAGES AND SPEND MORE TIME ON RETAILER SITES.

However, in all cases, the shopper’s visit is under 4 minutes - a relatively short period of time to find the products they want and consume all the support material he or she expects in order to make a purchase decision. User Experience matters in delivering all of this information economically.

AVERAGE NUMBER OF PAGEVIEWS PER SESSION

AVERAGE SESSION LENGTH


6.61

6.11

4.87

4 4.5 5 5.5 6 6.5 7

desktop

tablet

mobile

0

7

6

4.5

0 4.5 5 5.5 6 6.5 7

desktop

tablet

mobile

�

�

�


2m45s

mobile

3m41s

tablet

4m04s

desktop

10

CONVERSION

MOBILE BEATS DESKTOP IN RETAIL WEBSITE TRAFFIC.

Before shoppers buy, they have to arrive, and our stats show mobile shoppers arriving in a meaningful way. On a quarterly basis mobile is ahead on revenue and sessions. It’s important for retailers to note that revenue will follow sessions, and these mobile “window shoppers” will eventually spend. The mobile commerce deluge is coming.

% OF REVENUE BY DEVICE CATEGORY


% OF SESSIONS BY DEVICE CATEGORY


41%

45%

14%

44%

43%

13%


65%

23%

12%


11

CONVERSION

MOBILE DEVICES STILL USED FOR RESEARCH, BUT REAL REVENUE COMING.

The future is here - it just isn’t widely distributed as yet. Alibaba’s 2015 Singles Day sale saw 68% of the $14.3 billion single-day revenue come from mobile devices. That’s $10B in revenue on mobile in a single day!


AVERAGE ORDER VALUE AND AVERAGE REVENUE PER SESSION, BY DEVICE CATEGORY

AV

ERA

GE

OR

DER

VA

LUE

($)

AV

ERA

GE R

EV

ENU

E PER

SESSION

($)

$120

$122

$109

$1.54

$1.04

$0.55

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

$0.00

$105.00

$110.00

$115.00

$120.00

$125.00

desktop tablet mobile

average order value average revenue per session

12

CONVERSION

APPLE USERS DRIVE 97% OF MOBILE REVENUE.

Apple products are dominating the mobile landscape. Apple Pay’s rollout globally over the last year only continues to cement Apple’s authority, and promises retailers increasingly better conversion on mobile.

% OF SHOPPERS BY MOBILE DEVICE

○ iphone○ ipad○ other

59%22%

19%


○ iphone ○ ipad ○ other

REVENUE BY MOBILE DEVICE

○ iphone○ ipad○ other

57%

40%

3%


○ iphone ○ ipad ○ other

13

CONVERSION

PINTEREST’S AVERAGE ORDER VALUE HIGHER THAN SOCIAL GIANT FACEBOOK.

Despite driving nearly 70% of all social referrals, customers from Facebook order less on average. Pinterest’s commerce push in the second quarter with the launch of “buyable pins” have proven profitable. Invest in the network where your target customers are able and willing to shop seamlessly.


AVERAGE ORDER VALUE BY SOCIAL PLATFORM

$112

$103

$55 $52

$35

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

pinterest facebook intagram twitter reddit

14

CONVERSION

DIRECT AND SEARCH ARE BIGGEST CHANNELS OF DISCOVERY AND MOST LUCRATIVE AOV.

Without reservation, direct and search must be part of your distribution and conversion plan. All demographics use these channels to access your site, and average order value is consistently high, regardless of season.

AVERAGE ORDER VALUE BY ACQUISITION CHANNEL

$127 $135

$118

$129

$100 $107

$103 $96

$127$121 $121 $118

$109$102 $100 $99

$0

$20

$40

$60

$80

$100

$120

$140

$160

direct paid search other organic search referral email social display

AV

ERA

GE

OR

DER

VA

LUE

ACQUISITION CHANNEL


○ q1 2016 ○ q2 2016

15

After Yotpo analyzed 1 million reviews for 8.6 million purchases across verticals and stores, they found that products with high ratings get more reviews and are bought more often! People trust what others have to say, so much so that there were 126% more orders for products with average of 5 stars than 4 stars. To make your store a 5-star experience, encourage feedback in the form of reviews. Not only will ratings go up, but so will conversion and retention!

Want to learn more about Yotpo? Visit us at yotpo.com

AVERAGE STAR RATING VS. NUMBER OF ORDERSbrought to you by Yotpo

96% OF PRODUCTS PURCHASED HAVE AN

AVERAGE RATING OF 4+ STARS.

CONVERSION

0

200000

400000

600000

800000

1000000

1200000

5 Stars 4 Stars 3 Stars 2 Stars 1 Star

NU

MB

ER

OF

OR

DE

RS

(LA

ST 3

0 D

AY

S)

average star rating per product

S O U R C E : 2 0 1 5 Y O T P O G L O B A L U S E R D A T A B A S E , O V E R 1 5 0 , 0 0 0 O N L I N E B U S I N E S S E S

P A R T N E R F E A T U R E

16

RETENTION

RETURNING CUSTOMERS SPEND

3 TIMES MORE THAN ONE-TIME SHOPPERS.

On average only 15% of shoppers are repeat customers, and yet these same customers account for a third of total sales for retailers online. Customer loyalty is valuable, and user-generated content - like encouraging customer reviews, photos, Q&A and star ratings - is a proven strategy to lift your marketing efforts and keep shoppers coming back.

Yotpo is a reviews and marketing solution that helps businesses get more reviews and use them to boost traffic, retain customers and increase sales. More than 150,000 businesses worldwide use Yotpo’s many amazing features.

Want to learn more about Yotpo? Visit us at yotpo.com

S O U R C E : 2 0 1 5 Y O T P O G L O B A L U S E R D A T A B A S E , O V E R 1 5 0 , 0 0 0 O N L I N E B U S I N E S S E S

15% 33%OF ALL SHOPPERS ARE RETURNING SHOPPERS

OF OVERALL $ SPENT

3XMORE SPENT THAN

ONE-TIME SHOPPERS

VALUE OF RETURNING CUSTOMERSbrought to you by Yotpo


17

While US adults have an average of 2.9 devices, they don’t use all of them to shop. Nor do they browse and shop from just one device. Three quarters of the laptop and desktop owners use those devices for shopping and about half of the smartphone and tablet owners use them for shopping. No device has a significant proportion of their users whose shopping has declined.

Want to learn more about Bronto? Visit us at bronto.com

CHANGE IN SHOPPING PATTERNS IN LAST 12 MONTHSbrought to you by Bronto

CONSUMERS USE1.9 DEVICES FORSHOPPING AND

1.8 FOR PURCHASING.

DISCOVERY

79%

64%60%

57% 57%

29%

4%9% 11% 11% 11%

30%

12%

26% 27%32% 32%

41%

0%

20%

40%

60%

80%

100%

wearable smartphone tablet laptop desktop physical store

more frequently less frequently no difference

S O U R C E : T H E I N F L U E N C E O F M U L T I - D E V I C E O W N E R S H I P O N E C O M M E R C E : U S E D I T I O N , B R O N T O S O F T W A R E


18

DISCOVERY

65% OF CONSUMERS AGED 18-24 USE A SMARTPHONE TO

PURCHASE.

Millennials remain the key demographic for mobile commerce adoption, whereas of the total US population only 38% of consumers use a smartphone to purchase online. Retailers need to create browsing and purchasing experiences appropriate to their target audiences. Understand and optimize your online store to fit the expectations of your shoppers.

Bronto is the #1 email marketing provider to the Internet Retailer Top 1000. With an advanced marketing automation engine and solutions for shopping cart abandonment, post-purchase campaigns and powerful e-commerce integrations, Bronto is the premier commerce marketing automation provider.

Want to learn more about Bronto? Visit us at bronto.com

USE OF DEVICES FOR PURCHASE BY AGEbrought to you by Bronto

75%

39%

65%

29%

7%

77%

43%

63%

39%

12%

71%

44%

58%

42%

8%

58%55%

31%

20%

4%

55% 53%

19%16%

0%

54%

62%

9% 8%

0%0%

25%

50%

75%

100%

63% 49% 38% 25% 5%laptop desktop smartphone tablet wearable

○ 18-24 ○ 25-34 ○ 35-44 ○ 45-54 ○ 55-64 ○ 65+

S O U R C E : T H E I N F L U E N C E O F M U L T I - D E V I C E O W N E R S H I P O N E C O M M E R C E : U S E D I T I O N , B R O N T O S O F T W A R E


19

METHODOLOGY

THE RETAILERS IN THIS STUDY REPRESENT A BROAD SET OF RETAIL SUB-VERTICALS.

The retailers in this study reach shoppers globally. In fact, the top four countries reporting the highest average order values during Q2 2016 are some of the most remote: Tunisia, Iceland, Poland, and Rwanda.

DEMAC CUSTOMERS INCLUDED IN THIS REPORT, BY NAICS DEFINITIONS

HOME COUNTRY OF RETAILER INCLUDED IN THIS REPORT

○ clothing, accessories○ furniture, furnishings○ miscellaneous○ sports, hobby, book, music○ health, personal care○ electronics, appliances○ food, beverage○ building, gardening, supplies○ general merchandise

43%

16%

11%

9%

7%

5%

5%

S O U R C E : Q 2 2 0 1 6 E C O M M E R C E B E N C H M A R K R E P O R TU S C E N S U S B U R E A U , N O R T H A M E R I C A N I N D U S T R Y C L A S S I F I C A T I O N

S Y S T E M [ H T T P : / / W W W . C E N S U S . G O V / E O S / W W W / N A I C S / ]


○ canada ○ united states

○ canada○ us

○ canada ○ us

74%

26%

By publishing commerce data with higher granularity than the US Census, Demac equips retailers with practical benchmarks and actionable insights to grow their business. All data is provided in aggregate to separate signal from noise and to protect the proprietary information of each participating retailer. All data was extracted from Google Analytics, and all labels are standard definitions of the Google Analytics Platform. If you would like to learn more about this report, or have any suggestions, please reach out to us. Our contact details are on the next page.

NOTE: Demac publishes this data as a guide and, despite our best efforts, does not guarantee thatit is free from error.

A FEW WORDS ON OUR PROCESS FOR BUILDING THIS REPORT.

METHODOLOGY

20

EC

OM

ME

RC

E B

EN

CH

MA

RK

RE

PO

RT

Q

2 2

01

6@

DE

MA

CM

ED

IA

GET IN TOUCH

• Next Demac Benchmark Report: October 2016• Demac Blog

• Shop.org, Sept 26-28, Dallas• Monthly eCommerce Meetup, Toronto

DEMAC MEDIA IS A COMMERCE AGENCY THAT HELPS YOU BUILD, MANAGE AND SCALE YOUR RETAIL BUSINESS.

DEMAC RESOURCES

WHAT’S NEXT?

We proudly work with more than 80 category leading retailers.View Our Work

OUR WORK

•

[email protected]

CONTACT US

21

EC

OM

ME

RC

E B

EN

CH

MA

RK

RE

PO

RT

Q

2 2

01

6@

DE

MA

CM

ED

IA

MONTREAL

4529 Rue Clark #300

Montreal, QC H2T 2T4

TORONTO

211 Yonge Street, 6th Floor

Toronto, ON M5B 1M4

MIAMI

Coming Soon

Toll Free: 888-860-0364 | [email protected]

EC

OM

ME

RC

E B

EN

CH

MA

RK

RE

PO

RT

Q

2 2

01

6@

DE

MA

CM

ED

IA

eCommerce Benchmark Report - Q2 2016

Retail

Transcript of eCommerce Benchmark Report - Q2 2016