IBM Digital Analytics Benchmark. Cyber Monday Report 2013

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1 Report

2 2 Summary U.S. shoppers made the biggest online shopping day in history with a 20.6 percent increase in online sales. also capped the highest five day online sales period on record from Thanksgiving Day through which grew 16.5 percent over the same period in Retailers and marketers are turning to cloud based, real time analytics from IBM to understand and act on consumer trends in the moment. IBM is uniquely positioned to help marketing, e commerce, merchandising and customer service leaders build deeper customer relationships across every touch in the commerce cycle. released the following trends as of 12:00 a.m. PST: 2013 Compared to 2012: Online Sales Set New Record: online sales grew by 20.6 percent over Average order value was $128.77, down 1 percent yearover year. Top Five Cities for Cyber Sales: New York took the top spot for total online retail sales on. Rounding out the top five were Washington D.C., Los Angeles, Chicago and Atlanta. Mobile Shopping Soars: Mobile traffic grew to 31.7 percent of all online traffic, increasing by 45 percent over Mobile sales were also strong, exceeding 17 percent of total online sales, an increase of 55.4 percent year over year. Smartphones Browse, Tablets Buy: Smartphones drove 19.7 percent of all online traffic compared to tablets at 11.5 percent, making it the browsing device of choice. When it comes to making the sale, tablets drove 11.7 percent of all online sales, more than double that of smartphones, which accounted for 5.5 percent. On average, tablet users spent $ per order compared to smartphone users who spent $ ios vs. Android: On average, ios users spent $ per order, compared to $ per order for Android. ios traffic reached 22.4 percent of all online traffic, compared to 9.1 percent for Android. ios sales reached 14.5 percent of all online sales, compared to 2.6 percent for Android. Retailers Push Promotions to Mobile Shoppers*: On average, retailers sent 77 percent more push notifications during the five day holiday shopping period the alert messages and popup notifications from apps installed on your mobile device when compared to daily averages over the past two months. Average daily retail app installations also grew by 29 percent using the same comparison.

3 3 The Social Influence Facebook vs. Pinterest: On average, holiday shoppers referred from Facebook spent 6 percent more per order than shoppers referred from Pinterest. Facebook average order value was $97.81 versus Pinterest average order value which was $ However, Facebook referrals converted sales at a rate 38 percent higher than Pinterest, perhaps indicating stronger confidence in network recommendations Compared to Black Friday 2013 Outpaces Black Friday: online sales were up 31.5 percent over Black Friday this year, yet consumers spent 5 percent more per order on Black Friday versus. shoppers spent 5 percent less per order with an average order value of $ compared with $ for Black Friday. Mobile Sales and Traffic: Mobile sales and traffic decreased between Black Friday and as shoppers went back to work and school. Cyber Monday mobile sales were down 21 percent, and mobile traffic down 20 percent, from Black Friday. Shopping Cart Conversion Rate: In order to lock in the best deals, shoppers actually purchased the items they added to their online shopping carts at a 12.6 higher rate on than Black Friday. Supporting these overall trends, the also reported realtime trends across four of the hottest retail categories this holiday season: 1. Department Stores: total online sales grew by 70.3 percent over 2012, with mobile sales growing 52 percent year over year. Average order value was $161.83, up 18.7 percent year over year. 2. Health and Beauty: total online sales grew by 65.1 percent over 2012, with mobile sales growing 84 percent year over year. Average order value was $60.22, an increase of 6.8 percent year over year. 3. Home Goods: total online sales grew by 26.5 percent over 2012, with mobile sales growing 40.5 percent year over year. Average order value was $ an increase of 9.2 percent year over year. 4. Apparel: total online sales grew by 22.5 percent over 2012, with mobile sales growing by 58.3 percent year over year. Average order value was $102.83, a decrease of 6.9 percent year over year.

4 4 US Retail Top Major Cities Total Online Retail Sales Thanksgiving Black Friday 1. New York, New York 2. Atlanta, Georgia 3. Chicago, Illinois 4. Los Angeles, California 5. Washington, District Of Columbia 6. Dallas, Texas 7. Newark, New Jersey 8. Houston, Texas 9. Philadelphia, Pennsylvania 10. Phoenix, Arizona 1. New York, New York 2. Atlanta, Georgia 3. Los Angeles, California 4. Washington, District Of Columbia 5. Chicago, Illinois 6. Newark, New Jersey 7. Dallas, Texas 8. Philadelphia, Pennsylvania 9. Houston, Texas 10. Phoenix, Arizona 1. New York, New York 2. Washington, District Of Columbia 3. Los Angeles, California 4. Chicago, Illinois 5. Atlanta, Georgia 6. Newark, New Jersey 7. Philadelphia, Pennsylvania 8. Dallas, Texas 9. Houston, Texas 10. Tampa, Florida Cities represented above consist of the top 100 most populous U.S. cities according to data obtained by the U.S. Census Bureau in Top States Total Online Retail Sales Thanksgiving 1. California 2. New York 3. Texas 4. Florida 5. Illinois 6. Pennsylvania 7. New Jersey 8. Georgia 9. Ohio 10. Michigan Black Friday 1. New York 1. New York 2. California 2. California 3. Texas 3.Texas 4. Florida 4. Florida 5. Georgia 5. Pennsylvania 6. New Jersey 6. New Jersey 7. Pennsylvania 7. Illinois 8. Illinois 8. Georgia 9. Ohio 9. Ohio 10. Michigan 10. Virginia

5 5 US Retail Transaction Metrics Items per Order Average Order Value Conversion Metrics Conversion Rate New Visitor Conversion Rate Shopping Cart Sessions Shopping Cart Conversion Rate Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Session Length 2013 Sales Versus: % Black Friday % Black Friday vs vs. Black Friday % % $ % $ % 4.97% 9.71% 3.87% 28.42% 4.04% 12.53% 3.07% 31.60% 14.10% 9.22% 12.15% 16.05% 32.59% -6.75% 28.94% 12.61% 67.41% 3.63% 71.06% -5.14% 8: % 8: % 29.58% 10.21% 30.50% -3.02% 48.27% 0.54% 47.38% 1.88% % % % % 17.23% 55.37% 21.77% % 31.68% 44.92% 39.70% % 34.55% 6.80% 34.96% -1.17% 3.10% 19.23% 2.47% 25.51% 5: % 5: %

6 6 US Retail hr Realtime Sales Chart :00 AM 2:30 AM 5:00 AM 7:30 AM 10:00 AM 12:30 PM 3:00 PM 5:30 PM 8:00 PM 10:30 PM Time of Day (PST) online sales grew by 20.6% over 2012 as continues to be the biggest online shopping day of the year. Online Sales hr Realtime Sales Chart Black Friday 12:00 AM 2:30 AM 5:00 AM 7:30 AM 10:00 AM 12:30 PM 3:00 PM 5:30 PM 8:00 PM 10:30 PM Time of Day (PST) While Black Friday peaked and steadily declined, ramped up around 8:00 AM PST and remained steady throughout business hours, then picking up in the evening hours.

7 7 US Retail 2013 Performance by Device Type % of Online Site Traffic Smartphone Tablet 19.7% 11.5% % of Online Sales 5.5% 11.7% Conversion Rate 1.8% 5.4% Average Session Length 4:50 7:39 Average Page Views Average Order Value $106.5 $126.3 While smartphones generate more online traffic, shoppers spend more time and money on average on sites, view more pages per session and convert o sales at a higher rate on tablets Mobile % of Traffic and Sales by OS 40% 30% Other OS, 0.43% 20% ios, 22.43% Other OS, 0.11% 10% 0% Android, 9.08% Mobile % of Traffic ios, 14.52% Android, 2.64% Mobile % Sales ios and Android operating systems make up the majority of mobile percent of traffic and sales with ios leading.

8 8 Apparel Transaction Metrics Items per Order Average Order Value Conversion Metrics Conversion Rate New Visitor Conversion Rate Shopping Cart Sessions Shopping Cart Conversion Rate Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Session Length Sales 22.51% Black Friday vs vs. Black Friday % % $ % $ % 5.14% 4.68% 4.15% 23.86% 4.85% 16.87% 3.65% 32.88% 15.43% -1.09% 13.98% 10.37% 23.24% % 19.65% 18.27% 76.76% 11.73% 80.35% -4.47% 10: % 10: % 27.75% 4.13% 27.99% -0.86% 45.79% -3.62% 45.62% 0.37% % % % % 21.30% 58.25% 26.97% % 32.59% 37.51% 39.00% % 30.77% 9.78% 30.79% -0.06% 3.62% 27.46% 2.99% 21.07% 7: % 7: %

9 9 Department Stores Transaction Metrics Items per Order Average Order Value Conversion Metrics Conversion Rate New Visitor Conversion Rate Shopping Cart Sessions Shopping Cart Conversion Rate Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Session Length Sales 70.30% Black Friday vs vs. Black Friday % % $ % $ % 4.88% 10.66% 4.02% 21.39% 3.79% 11.80% 3.41% 11.14% 16.27% 15.88% 14.59% 11.51% 29.35% -6.14% 26.35% 11.39% 70.65% 2.79% 73.65% -4.07% 10: % 10: % 23.74% 12.99% 24.49% -3.06% 52.66% 9.91% 50.86% 3.54% % % % % 20.43% 51.90% 24.01% % 34.07% 57.80% 42.88% % 29.29% 14.68% 30.90% -5.21% 2.91% 14.12% 2.24% 29.91% 6: % 6: %

10 10 Health and Beauty Transaction Metrics Items per Order Average Order Value Conversion Metrics Conversion Rate New Visitor Conversion Rate Shopping Cart Sessions Shopping Cart Conversion Rate Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Session Length Sales 65.09% Black Friday vs vs. Black Friday % % $ % $ % 8.85% 8.19% 5.68% 55.81% 8.22% 18.61% 5.05% 62.77% 25.86% 8.93% 18.54% 39.48% 34.21% -0.64% 30.58% 11.87% 65.79% 0.34% 69.42% -5.23% 9: % 8: % 28.52% 10.54% 33.96% % 49.91% 25.34% 49.94% -0.06% % % % % 23.17% 84.33% 29.16% % 38.56% 52.53% 47.71% % 36.18% 11.22% 40.54% % 5.53% 31.04% 3.73% 48.26% 5: % 4: %

11 11 Home Transaction Metrics Items per Order Average Order Value Conversion Metrics Conversion Rate New Visitor Conversion Rate Shopping Cart Sessions Shopping Cart Conversion Rate Shopping Cart Abandonment Rate Session Traffic Metrics Average Session Length Bounce (One Page) Rate Browsing Sessions Page Views Per Session Product Views Per Session Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Session Length Sales 26.45% Black Friday vs vs. Black Friday % % $ % $ % 3.79% -0.79% 2.78% 36.33% 2.71% 2.26% 1.99% 36.18% 9.61% -4.38% 8.00% 20.13% 39.34% 3.96% 34.67% 13.47% 60.66% -2.41% 65.33% -7.15% 7: % 7: % 30.00% 8.11% 30.27% -0.89% 45.95% -4.87% 44.60% 3.03% % % % % 17.61% 40.54% 19.10% -7.80% 30.54% 34.12% 38.67% % 35.67% 5.13% 33.48% 6.54% 2.62% 11.97% 2.09% 25.36% 4: % 4: %

12 12 Transaction Summary Metrics 1. Items Per Order The average number of items purchased per order 2. Average Order Value The average value of each order Conversion Summary Metrics 1. Conversion Rate The percentage of sessions in which visitors completed an order 2. New Visitor Conversion Rate Out of all new visitor sessions, the percentage that completed an order 3. Shopping Cart Session Percentage The percentage of sessions in which visitors placed at least one item in their shopping carts 4. Shopping Cart Conversion Rate Out of all visitors who placed items in their shopping carts, the percentage that placed an actual order 5. Shopping Cart Abandonment Rate Out of all visitors who placed items in their shopping carts, the percentage that did not place an actual order Session Traffic Summary Metrics 1. Average Session Length The average length of time for a visitor session 2. Bounce (One Page) Rate The percentage of sessions in which visitors only viewed one page before leaving the site 3. Multi Page Session Percentage The percentage of sessions in which visitors viewed more than one page 4. Browsing Session Percentage The percentage of sessions in which visitors viewed at least one product page 5. Page Views Per Session The average number of pages viewed by visitors per session 6. Product Views Per Session The average number of products viewed by visitors per session Mobile Summary Metrics 1. Mobile: Percentage of Sales Out of all online sales, the percentage that was from a mobile device 2. Mobile: Percentage of Site Traffic Out of all sessions, the percentage that was from a mobile device 3. Mobile: Bounce Rate The percentage of sessions from mobile devices in which visitors only viewed one page before leaving the site 4. Mobile: Conversion Rate The percentage of sessions from mobile devices in which visitors completed an order 5. Mobile: Average Session Length The average length of time for a visitor session from a mobile device

13 13 About is part of the cloud based IBM Digital Analytics solution and enables users to accurately measure their online marketing results including e commerce sales against that of their peers. Benchmark is the only real time, self service solution that delivers aggregated and anonymous competitive data for key performance indicators, showing how a site performs compared to its industry vertical and sub vertical peers and competitors. Key performance indicators span traffic, engagement, channels, sales and conversion metrics including mobile, social and more. About IBM Enterprise Marketing Management The IBM Enterprise Marketing Management (EMM) Suite is an end to end, integrated set of capabilities designed exclusively for the needs of marketing organizations. Integrating and streamlining all aspects of marketing, IBM s EMM Suite empowers organizations and individuals to turn their passion for marketing into valuable customer relationships and more profitable, efficient, timely, and measurable business outcomes. Delivered on premises or in the Cloud, the IBM EMM Suite of software solutions gives marketers the tools and insight they need to create individual customer value at every touch. The IBM EMM Suite helps marketers to understand customer wants and needs and leverage that understanding to engage buyers in highly relevant, interactive dialogs across digital, social, and traditional marketing channels. About IBM Smarter Commerce IBM Smarter Commerce puts the customer at the center of your business by viewing the brand experience through your customer s eyes. At the same time, it optimizes within and across all brand touchpoints to create a deeper brand relationship with your customer while improving operational excellence for you. It leverages heightened customer insight and automated execution to enable you to consistently deliver personalized, highly relevant, seamless customer engagement to increase satisfaction, loyalty, and brand advocacy and improve asset utilization to drive profitable growth. For More Information To learn more about, please contact your IBM marketing representative or IBM Business Partner or visit the following website: 01.ibm.com/software/marketing solutions/benchmark/ Source Data The data in this report is delivered by the which tracks millions of transactions and terabytes of data from approximately 800 U.S. retail websites. All data is aggregated and anonymous. *Denotes data from Xtify, an IBM company. Xtify is a leading provider of multi channel mobile messaging solutions. The Xtify platform provides marketers and developers access to enterprise tools to manage complex database or automated event driven campaigns

14 14 Copyright IBM Corporation 2013 IBM Corporation Software Group Route 100 Somers, NY Produced in the United States of America December 2013 IBM, the IBM logo, ibm.com and Smarter Commerce are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the Web at Copyright and trademark information at This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED AS IS WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided.

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