ECOMMERCE BENCHMARK REPORT Q2 ECOMMERCE BENCHMARK REPORT Q2 2016
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1 ECOMMERCE BENCHMARK REPORT Q2 ECOMMERCE BENCHMARK REPORT Q2 2016
2 97% INCREASE IN CONVERSION RATE BETWEEN THE FIRST AND SECOND SITE VISIT. REPORT HIGHLIGHTS 97% OF MOBILE REVENUE IS DRIVEN BY APPLE USERS In this edition of our Benchmark Report, we are highlighting the most important datapoints and trends we use to prepare our customers for growth. The key insights you ll find in this report include: 3X MORE SPENT BY RETURNING CUSTOMERS THAN ONE TIME SHOPPERS 1.9 AVERAGE NUMBER OF DEVICES USED FOR SHOPPING 2
3 4 DISCOVERY 7 BRONTO SOFTWARE FEATURE: ECOMMERCE BENCHMARK REPORT Q2 TABLE OF CONTENTS MULTI-DEVICE COMMERCE CONVERSION BY DEVICE CONVERSION BY CHANNEL YOTPO FEATURE: VALUE OF RETURNING CUSTOMERS METHODOLOGY CONTACT DEMAC
4 DISCOVERY ORGANIC SEARCH REMAINS THE BIGGEST SOURCE OF INBOUND TRAFFIC. Good SEO hygiene continues to generate 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 7% 10% 11% 39% organic search direct other paid search referral social 14% 17% 4
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. SESSIONS FROM NEW VISITORS, BY DEVICE TYPE 42% mobile 44% tablet 53% desktop 5
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 12% 3% 3% 13% facebook pinterest instagram reddit twitter other 68% 6
7 DISCOVERY PARTNER FEATURE CHANGE IN SHOPPING PATTERNS IN LAST 12 MONTHS brought to you by Bronto 100% 80% 79% 60% 64% 60% 57% 57% 40% 26% 27% 32% 32% 29% 30% 41% 20% 0% 12% 9% 11% 11% 11% 4% wearable smartphone tablet laptop desktop physical store more frequently less frequently no difference SOURCE: THE INFLUENCE OF MULTI-DEVICE OWNERSHIP ON ECOMMERCE: US EDITION, BRONTO SOFTWARE CONSUMERS USE 1.9 DEVICES FOR SHOPPING AND 1.8 FOR PURCHASING. 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 7
8 DISCOVERY PARTNER FEATURE USE OF DEVICES FOR PURCHASE, BY AGE brought to you by Bronto 100% 75% 75% 77% 71% 58% 55% 54% 55% 53% 62% 65% 63% 58% 50% 39% 43% 44% 31% 29% 39% 42% 25% 0% 19% 20% 16% 9% 8% 63% 49% 38% 25% 5% laptop desktop smartphone tablet wearable 7% 12% 8% 4% 0% 0% SOURCE: THE INFLUENCE OF MULTI-DEVICE OWNERSHIP ON ECOMMERCE: US EDITION, BRONTO SOFTWARE 65% OF CONSUMERS AGED 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 marketing provider to the Internet Retailer Top 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 8
9 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. 45 DISTRIBUTION OF CONVERSION RATE BY DEVICE TYPE COUNT % 1-2% 3-4% 4-5% 5-6% 6-7% 7-8% 9
10 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 % SESSION NUMBER % 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% ECOMMERCE CONVERSION RATE 10
11 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 mobile AVERAGE SESSION LENGTH tablet m45s mobile 3m41s tablet 4m04s desktop desktop
12 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 SESSIONS BY DEVICE CATEGORY % OF REVENUE BY DEVICE CATEGORY 14% 13% 12% 41% 44% 23% 43% 45% 65% 12
13 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 $ AVERAGE ORDER VALUE ($) $ $ $ $ $120 $1.54 $122 $1.04 $109 $ AVERAGE REVENUE PER SESSION ($) 0.2 $0.00 desktop tablet mobile 0 average order value average revenue per session 13
14 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 in mobile commerce, and promises retailers increasingly better conversion on mobile. % OF SHOPPERS BY MOBILE DEVICE % REVENUE BY MOBILE DEVICE 19% 3% 40% 22% 59% 57% iphone ipad other iphone ipad other 14
15 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 $80.00 $60.00 $55 $52 $40.00 $35 $20.00 $0.00 pinterest facebook intagram twitter reddit 15
16 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. $160 AVERAGE ORDER VALUE BY ACQUISITION CHANNEL AVERAGE ORDER VALUE $140 $120 $100 $80 $60 $127 $127 $135 $129 $121 $118 $121 $118 $100 $109 $107 $102 $103 $100 $99 $96 $40 $20 $0 direct paid search other organic search referral social display ACQUISITION CHANNEL q q
17 CONVERSION PARTNER FEATURE AVERAGE STAR RATING VS. NUMBER OF ORDERS brought to you by Yotpo NUMBER OF ORDERS (LAST 30 DAYS) Stars 4 Stars 3 Stars 2 Stars 1 Star SOURCE: 2015 YOTPO GLOBAL USER DATABASE, OVER 150,000 ONLINE BUSINESSES average star rating per product 96% OF PRODUCTS PURCHASED HAVE AN AVERAGE RATING OF 4+ STARS. 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 17
18 RETENTION PARTNER FEATURE VALUE OF RETURNING CUSTOMERS brought to you by Yotpo 15% 33% OF ALL SHOPPERS ARE RETURNING SHOPPERS OF OVERALL $ SPENT 3X MORE SPENT THAN ONE-TIME SHOPPERS SOURCE: 2015 YOTPO GLOBAL USER DATABASE, OVER 150,000 ONLINE BUSINESSES 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 18
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 Q 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 5% 5% 9% 7% 11% 43% clothing, accessories furniture, furnishings miscellaneous sports, hobby, book, music health, personal care electronics, appliances food, beverage building, gardening, supplies general merchandise 26% 74% 16% canada united states SOURCE: Q ECOMMERCE BENCHMARK REPORT US CENSUS BUREAU, NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM [ 19
20 METHODOLOGY A FEW WORDS ON OUR PROCESS FOR BUILDING THIS REPORT. ECOMMERCE BENCHMARK REPORT Q2 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 that it is free from error. 20
21 GET IN TOUCH DEMAC MEDIA IS A COMMERCE AGENCY THAT HELPS YOU BUILD, MANAGE AND SCALE YOUR RETAIL BUSINESS. ECOMMERCE BENCHMARK REPORT Q2 DEMAC RESOURCES Next Demac Benchmark Report: October 2016 Demac Blog WHAT S NEXT? Shop.org, Sept 26-28, Dallas Monthly ecommerce Meetup, Toronto OUR WORK We proudly work with more than 80 category leading retailers. View Our Work CONTACT US hello@demacmedia.com
22 ECOMMERCE BENCHMARK REPORT Q2 MONTREAL 4529 Rue Clark #300 Montreal, QC H2T 2T4 TORONTO 211 Yonge Street, 6th Floor Toronto, ON M5B 1M4 MIAMI Coming Soon Toll Free:
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