Monetate Ecommerce Quarterly Report The Cross-Channel Conversation

Transcription

1 Monetate Ecommerce Quarterly Report The Cross-Channel Conversation

2 2015 Table of Contents 3 1 About the EQ 2 The Cross-Channel Conversation 3 Add-to-Cart Rate 4 5 Conversion Rate 7 A Spotlight on The UK 9 Optimizing Channel Performances Across Devices 10 Benchmark Reports 21 About Monetate

3 About the EQ As ecommerce companies look for ways to increase customer engagement and sales in a highly competitive online environment, they re faced with challenges centered on massive amounts of data. This big data conundrum goes beyond the collection and storage of information about customers and prospects. Using a combination of historical and real-time data allows ecommerce marketers to glean meaningful insights that result in more relevant shopping experiences that drive loyal customers who share their experiences with others. Ecommerce businesses that tackle big data head-on focus their attention on different customer segments that continue to be explored in every release of the Ecommerce Quarterly (EQ): Predefined: New versus returning; referring traffic sources; technographics; geography. Custom or Proprietary: Demographics; proximity to location; offline and CRM data. On-Site Behavior: Shopping cart activity; brand or category affinity. Behaviors Across the Web: Browsing and purchase patterns demonstrated on third-party websites. The EQ also includes takeaways, ideas and best practices used by leading ecommerce websites, based on insights gained from the more than seven billion online shopping sessions that contribute to the analysis and benchmark reports found in every release.

4 The Cross-Channel Conversation The Cross-Channel Conversation Affiliates, , search, social we usually find highlights from each of these key ecommerce channels and point them out to you. Channel Performance: Add-to-Cart Rate ADD TO CART Direct 10.62% 10.47% This quarter, though, we re dedicating our entire report to how these channels perform for retailers and how retailers are squeezing the most out of them. The biggest lesson learned is that channel consistency works. Creating continuous experiences that start with a channel - a paid search ad, a transactional , a social media placement - and extending that theme or offer through the website experience has been proven time and time again to deliver better performance: lower bounce rates, higher add to cart rates, and greater conversion. Read on and you ll see the actual actual examples that prove the point. Before we get to that, though, let s level up on how some of the biggest, baddest channels performed this quarter. On the whole, not much was different in Q3 of 2015 than Q3 of Add-to-cart, bounce, and conversion rates all remained relatively steady, with only minor changes in performance. Leave behind the benchmark data, though, and you ll find some incredibly strong performance 10.23% 8.49% Search Social 4.58% Direct 4.80% Channel Performance: Direct 7.54% 7.50% Search 32.38% Social 30.15% 33.59% 28.45% Direct Search 26.67% % Social Search Social Channel Performance: Conversion Rate BUY NOW Channel Performance: Add-to-Cart Rate Direct Search Social ADD TO CART Direct Search Social 1.34% 1.29% 4.58% 4.80% Channel Performance: 10.62% 10.47% 10.23% 8.49% 7.54% 7.50% 32.38% 30.15% 33.59% 28.45% 26.67% 26.68% Channel Performance: Conversion Rate BUY NOW 2.51% 2.38% 2.46% 2.51% 52.14% 52.77% 52.14% 52.77% 3.26% 3.27% 2.51% 2.38% 2.46% 2.51% 3.26% 3.27% 1.34% 1.29% Ecommerce Quarterly Report - Q3 2015

5 Add-to-Cart Rate Add-to-Cart Rate If you were to plot global add-to-cart rates by quarter since Q3 2014, you d have a bit of a choppy sea. Up, down. Up, down. And that s where we are now. The movement hasn t been much a couple percentage points here, then a couple more back in the other direction so it s fairly predictable. There has been one exception, though: . It s long been a strong performer, but with add-to-cart rates climbing from 8.49% in Q to 10.23%. (And, save for a slight quarter-overquarter dip in Q2 2015, it s been up and to the right the whole time.) A total laggard compared to (and, frankly, the rest of the bunch), its add-to-cart rate (4.85% in Q3) is actually closer to some of the stronger conversion rates (3.26% in Q3 for direct-to-site traffic) than it is to add-tocart rates from other channels. In what may be a silver lining, Monetate data from Q3 show that brands are still struggling to get followers to leave their social networks for a visit to their websites: Social referrers accounted for a slight 1.3% of referral traffic in Q3. Add to that a growing share of overall referral traffic, and it s been a pretty good 15-month run for marketing. (More on that later, we promise.) A CLOSER LOOK And then there s social. SMARTPHONE s long been a strong performer, but with addto-cart rates climbing from 8.49% in Q to 10.23%, (save for a slight quarter-overquarter dip in Q2 2015) it s been up and to the right the whole time. 39% DESKTOP 28% TABLET 29% Add-to-Cart Rate Q3 2014: 8.49% Q3 2015: 10.23% 3 Ecommerce Quarterly Report - Q3 2015

6 A CLOSER LOOK In what seems to be a trend now, global bounce rate has regressed year-overyear from 29% to 31%. You might think that such a slide is attributable to the growth in mobile traffic, which as of Q now accounts for 25% of all ecommerce traffic. You d be right. Though mobile bounce rates have actually seen YOY improvements from 41% to 39%, they re still significantly greater than the 28% bounce rate for desktop and 29% bounce rate for tablets. On the channel front, again stole the headlines. While other key metrics (add-to-cart and conversion rates) trended in a positive direction, bounce rates increased 18% YOY. Meanwhile, they held steady for search and social, while direct-to-site visitors left a little more frequently (up 7% YOY). SMARTPHONE DESKTOP TABLET A (In a bit of a silver-lining aside on mobile traffic: Those who aren t bouncing are growing more and more comfortable with the concept of shopping from a smartphone. While still a paltry percentage, conversion rates are up 26% YOY to 1.3%.) 39% 28% 29% Q Q GLOBAL BOUNCE RATE +4% YEAR-OVER-YEAR SOCIAL Those who aren t bouncing Cart Abandon are growing Rate more Cart Abandon Rate and more comfortable with the concept of shopping from a smartphone. While still a paltry percentage, conversion rates are up 26% YOY to 1.3%. 73% 76% SEARCH Cart Abandon Rate 68% 4 Ecommerce Quarterly Report - Q3 2015

7 Conversion Rate A CLOSER LOOK Conversion Rate Though the reputation for social traffic has gotten a bit beat up during this EQ, we will give credit where credit is due. And, perhaps surprisingly, conversion performance is where it really deserves a polite round of applause. SMARTPHONE DESKTOP TABLET Since Q3 2014, conversion Bounce rates for Rate traffic coming Bounce from Rate social networks Bounce has Rate increased 4% to 1.3%. It s a marginal gain, yes, but it s progress. And, then, there s this: when someone adds a product to their cart, they complete that transaction about 27% of the time. In other words, cart abandon rates for social traffic sit around 73%, which outperforms (76%) and sits rather close to search (68%) and direct-to-site traffic (69%). Add-to-Cart Rate Which, if you think about it, tells us something about how brands are treating visitors from social networks when they hit their sites. If you can convince them to get into a browsing mode, they re much like other visitors. It s getting them to that point that can be a challenge. 39% 28% 29% Q3 2014: 8.49% Q3 2015: 10.23% SOCIAL Cart Abandon Rate Cart Abandon Rate SEARCH Cart Abandon Rate DIRECT-TO-SITE Cart Abandon Rate 73% 76% 68% 69% 5 Ecommerce Quarterly Report - Q3 2015

8 Optimizing Conversion Rates A CLOSER LOOK SMARTPHONE DESKTOP TABLET Though Bonobos main goal of the campaign was to get customers booking appointments and visiting the Add-to-Cart guideshop, Rate they ended up with something even nicer: Their conversion rate on the campaign beat the ecommerce industry s Q3 average by 146%. 39% 28% 29% Q3 2014: 8.49% Q3 2015: 10.23% Q When A Closer Look at Optimizing Conversion Rates you re SOCIAL a pure-play ecommerce site, you don t have the SEARCH luxury serving up DIRECT-TO-SITE boosts of confidence to customers who want to see of someone Cart Abandon browsing Rateyour site Cart and Abandon then buying Rate in your Cart store. Abandon So, Rate how something Cart Abandon fits before Ratethey buy. you live by the conversion rate. So, when it opened a new guideshop in New York City, Bonobos ran While several different personalization tactics can help you improve that metric, Bonobos recently found a new one: a retargeting campaign to visitors from the Big Apple letting them know they could book an appointment to get some wardrobe tips. Promoting a new guideshop. 73% 76% 68% Though Bonobos 69% main goal of the campaign was to get customers The men s clothing retailer, which only sells its clothes online, has taken to opening brick-and-mortar locations where customers can try on clothes and place orders for delivery. It s a mix that gives Bonobos the agility of an ecommerce business, while also booking appointments and visiting the guideshop, they ended up with something even nicer: Their conversion rate on the campaign beat the ecommerce industry s Q3 average by 146%. 6 Ecommerce Quarterly Report - Q3 2015

9 A Spotlight on The UK In the UK, it s still a mobile story. And it seems like it will be for awhile. Smartphones now account for 35% of all ecommerce website visits, a figure that s grown in leaps and bounds since Q3 2014, when smartphone visits accounted for just 11% of ecommerce traffic. The drastic shift in consumer behavior has caused a slight dip in overall conversion rate (down year-over-year from 4.2% to 4%) and add-to-cart rate (12% to 10%). Well, for starters, US shoppers are growing more comfortable more quickly with actually making a purchase on a mobile device. UK shoppers still reign superior when it comes to converting on desktops (5.6% in the UK v. 3.7% in the US) and tablets (4.1% in the UK v. 3.4% in the US). In fact, that gap has widened over the last 15 months, most notably on desktop, as UK growth on that device (15% YOY) has far outpaced US growth (2% YOY). Though conversion rate hasn t moved much, the interesting note here is that UK shoppers, who have historically been more likely to pull the trigger on a purchase than their US counterparts, are beginning to look more like US shoppers at least in some regards. How s that happening? UK Spotlight *A Note About Our UK Spotlight Though several UK ecommerce sites are analyzed as part of the EQ, Monetate measures country-based performance by the location of the customer, not the location of the website. That means metrics you see here are generated by UK consumers who may have also shopped on US ecommerce sites. 7 Ecommerce Quarterly Report - Q3 2015

10 A Spotlight on The UK A CLOSER LOOK SMARTPHONE DESKTOP TABLET Targeting two different sets of customers off query string parameters and using two different sets of banner ads at the top Add-to-Cart of its Rate site, Missguided boosted conversion rates for the campaigns by 32% and 37%. 39% 28% 29% Q3 2014: 8.49% Q3 2015: 10.23% Q How One SOCIAL UK Retailer Put a Spike in Conversion SEARCH Rates DIRECT-TO-SITE Cart Abandon Rate Cart Abandon Rate Cart Abandon Rate Cart Abandon Rate While UK retailers saw a slight overall drop in conversion rate, In the first, it used an campaign to give frequent customers Missguided used two similar campaigns to improve its mix of early access to a sale. It was a simple tactic of treating your best returning customers. And both delivered big results. customers a little better than others, and it paid off. Targeting two 73% different sets of customers 76% off query string 68% parameters in Q3 and 2015 using two different in Q3 sets 2015of banner ads at the top of its site, Missguided boosted conversion rates for the campaigns by 32% and 37%. In the second, 69% it discounted dresses by 30% but only until early in the afternoon. 8 Ecommerce Quarterly Report - Q3 2015

11 Matches Made In Ecommerce Heaven: Optimizing Channel Performances Across Devices As you ve probably noticed in reading this EQ, each channel has its strong suits. But one thing we haven t touched on is how each of those channels performs on various devices. We thought we d take a look at that here. We analyzed channel performance across devices, looking at things like bounce rate, add-to-cart rate, conversion rate and AOV to determine which channels on which devices perform the best and where they can be improved. So, without further ado, here are the pairings you should be looking to optimize: www DIRECT-TO-SITE + DESKTOP + TABLET SEARCH + MOBILE What Makes This Combo Rock: 12.3 % Add-to-Cart Rate 4 % Conversion Rate $ AOV What Makes This Combo Rock: 12.8 % Add-to-Cart Rate 2.5 % Conversion Rate $ AOV What Makes This Combo Rock: 9 % Conversion Rate 58 % YOY Traffic Growth What s Holding This Combo Back: Err nothing really. What s Holding This Combo Back: 31.6 % What s Holding This Combo Back: $ AOV Quick Take: It s no surprise that direct-to-site visitors perform so well on desktop (they perform pretty darn well everywhere), but this combo is where those visitors are at their best. Since these visitors are more likely to be return visitors (or affiliate referrals), focus on personalizing their experiences based on the data you already have about them. Quick Take: Bounce rate could be improved here, but the real culprit that s holding the + tablet combo back is a little more basic: traffic. You can t really change that, so focus on driving relevant s and relevant landing page experiences. It ll help your tablet performance (and everything else, too, for that matter). Quick Take: You might take a look at the conversion rate and say, meh. Don t. The search-mobile combination is exploding. Traffic is up 58% year-over-year and key metrics like bounce rate, add-to-cart rate and conversion rate have all seen significant improvements over the same time period. The only downside? A sliding AOV, which dropped from $95.61 in Q to $80.04 in Q Use smart product recommendations to improve that.

12 Benchmarks Benchmark Reports Website Visits: Website Visits by Device Q Q Q Q Q GLOBAL Traditional 66.59% 64.28% 63.86% 62.25% 59.49% Tablet 16.56% 16.74% 16.62% 15.76% 15.25% Smartphone 16.85% 18.97% 19.52% 22.00% 25.26% Traditional 65.92% 63.92% 63.78% 62.44% 60.21% US Tablet 16.18% 16.48% 16.26% 15.31% 14.98% Smartphone 17.91% 19.61% 19.96% 22.25% 24.82% Traditional 57.25% 51.58% 50.63% 47.86% 39.28% GB Tablet 31.11% 29.46% 30.01% 29.58% 25.14% Smartphone 11.64% 18.95% 19.35% 22.56% 35.58% 10 Ecommerce Quarterly Report - Q3 2015

13 Benchmarks Website Visits: Website Visits by Platform Q Q Q Q Q Android 9.08% 10.23% 10.63% 11.15% 12.33% Chrome OS 0.39% 0.47% 0.55% 0.56% 0.55% Linux 1.57% 1.45% 2.04% 1.80% 1.39% Macintosh 13.43% 12.85% 12.38% 12.42% 12.66% Windows 51.17% 49.50% 48.84% 47.39% 44.73% Windows Phone 0.26% 0.28% 0.27% 0.27% 0.28% ios 24.11% 25.23% 25.30% 26.42% 28.06% 11 Ecommerce Quarterly Report - Q3 2015

14 Benchmarks Conversion Rate: Conversion Rates Q Q Q Q Q Global 2.95% 3.51% 2.81% 3.11% 2.95% US 3.05% 3.69% 2.90% 3.22% 3.06% GB 4.16% 4.07% 3.68% 4.26% 4.02% GLOBAL GB Conversion Rates by Device Q Q Q Q Q Traditional 3.45% 4.20% 3.32% 3.71% 3.59% Tablet 2.96% 3.56% 2.94% 3.42% 3.30% Smartphone 1.04% 1.22% 1.12% 1.24% 1.31% Traditional 3.61% 4.46% 3.44% 3.86% 3.71% US Tablet 3.06% 3.72% 3.02% 3.52% 3.38% Smartphone 1.04% 1.24% 1.14% 1.28% 1.32% Traditional 4.89% 5.05% 4.56% 5.49% 5.63% GB Tablet 3.69% 3.94% 3.57% 4.21% 4.14% Smartphone 1.92% 1.63% 1.59% 1.74% 2.18% 12 Ecommerce Quarterly Report - Q3 2015

15 Benchmarks Conversion Rate: Conversion Rates by Platform Q Q Q Q Q Android 1.31% 1.59% 1.47% 1.56% 1.51% Chrome OS 2.70% 3.21% 2.47% 2.80% 2.90% Linux 0.72% 0.82% 0.43% 0.49% 0.63% Macintosh 3.75% 4.74% 3.81% 4.41% 4.10% Windows 3.45% 4.19% 3.34% 3.67% 3.56% Windows Phone 0.82% 0.86% 0.87% 0.96% 0.95% ios 2.24% 2.61% 2.15% 2.39% 2.29% 13 Ecommerce Quarterly Report - Q3 2015

16 Benchmarks Add-to-Cart Rates: Add-to-Cart Rates Q Q Q Q Q Global 9.30% 10.61% 9.22% 9.66% 9.58% US 9.49% 10.97% 9.45% 9.92% 9.92% GB 11.55% 10.63% 10.53% 11.10% 10.00% GLOBAL GB Add-to-Cart Rates Q Q Q Q Q Traditional 10.22% 11.87% 10.11% 10.84% 11.00% Tablet 9.98% 11.48% 10.31% 10.86% 10.40% Smartphone 5.13% 5.84% 5.65% 5.61% 5.87% Traditional 10.56% 12.39% 10.40% 11.16% 11.43% US Tablet 10.17% 11.91% 10.63% 11.14% 10.66% Smartphone 5.04% 5.82% 5.75% 5.74% 5.96% Traditional 12.72% 12.50% 12.57% 13.57% 12.56% GB Tablet 11.28% 10.75% 10.59% 11.55% 10.93% Smartphone 6.66% 5.46% 5.17% 5.36% 6.56% 14 Ecommerce Quarterly Report - Q3 2015

17 Benchmarks Add-to-Cart Rates: Add-to-Cart Rates by Platform Q Q Q Q Q Android 5.58% 6.63% 6.46% 6.27% 6.15% Chrome OS 10.23% 11.46% 10.20% 10.78% 11.39% Linux 4.08% 3.43% 2.58% 8.70% 14.07% Macintosh 11.99% 14.32% 12.43% 13.50% 14.25% Windows 9.94% 11.53% 9.87% 10.24% 10.01% Windows Phone 4.01% 4.59% 4.47% 4.33% 4.21% ios 8.25% 9.22% 8.34% 8.44% 8.19% 15 Ecommerce Quarterly Report - Q3 2015

18 Benchmarks Average Page Views: Average Page Views Q Q Q Q Q Global US GB Average Page Views Q Q Q Q Q GLOBAL Traditional Tablet Smartphone Traditional US Tablet Smartphone Traditional GB Tablet Smartphone Ecommerce Quarterly Report - Q3 2015

19 Benchmarks Average Page Views: Average Page Views Q Q Q Q Q Android Chrome OS Linux Macintosh Windows Windows Phone ios Ecommerce Quarterly Report - Q3 2015

20 Benchmarks Average Order Value: Average Order Value Q Q Q Q Q Global $ $ $ $ $ Average Order Value by Device Q Q Q Q Q GLOBAL Traditional $ $ $ $ $ Tablet $ $ $ $ $ Smartphone $99.62 $97.52 $88.53 $86.33 $85.22 Average Order Value by Platform Q Q Q Q Q Android $90.10 $92.41 $82.59 $78.93 $77.53 Chrome OS $ $ $98.08 $97.74 $96.89 Linux $ $ $ $ $ Macintosh $ $ $ $ $ Windows $ $ $ $ $ Windows Phone $86.42 $85.28 $74.14 $70.35 $73.16 ios $ $ $ $ $ Ecommerce Quarterly Report - Q3 2015

21 Benchmarks Average Order Value by State AOV Average Order Value by State AOV Armed Forces - America $ Armed Forces - Europe $ Alaska $ Alabama $ Armed Forces - Pacific $ Arkansas $ Arizona $ California $ Colorado $ Connecticut $ District of Columbia $ Delaware $ Florida $ Georgia $ Hawaii $ Iowa $ Idaho $ Illinois $ Indiana $ Kansas $ Kentucky $ Louisiana $ Massachusetts $ Maryland $ Maine $ Michigan $ Minnesota $ Missouri $ Mississippi $ Montana $ North Carolina $ North Dakota $ Nebraska $ New Hampshire $ New Jersey $ New Mexico $ Nevada $ New York $ Ohio $ Oklahoma $ Oregon $ Pennsylvania $ Rhode Island $ South Carolina $ South Dakota $ Tennessee $ Texas $ Utah $ Virginia $ Vermont $ Washington $ Wisconsin $ West Virginia $94.55 Wyoming $ Ecommerce Quarterly Report - Q3 2015

22 Benchmarks: Average Order Value Average Order Value: Average Order Value by Category Q Q Q Q Q Direct $ $ $ $ $ $ $ $ $ $ Search $ $ $ $ $ Social $ $ $ $98.95 $97.56 Unknown $83.08 $89.85 $83.54 $89.97 $ AOV by Device Q Q Q Q Q Traditional $ $ $ $ $ US Mobile $ $ $ $ $ Tablet $99.34 $96.82 $87.55 $84.23 $85.22 Traditional $ $ $ $ $ GB Mobile $98.36 $94.37 $88.65 $87.76 $87.92 Tablet $85.47 $95.41 $89.09 $90.55 $ Ecommerce Quarterly Report - Q3 2015

23 Personalize Now TM Monetate Powers Multi-Channel Testing & Personalization for Brands Worldwide Turn data into actions, using what you know about your customer to create personalized experiences linked across channels. The Monetate platform is built for speed. It features an easy-to-use interface that allows marketers to create, test, and deploy customized real-time experiences across web, , and mobile. The POWER to PERSONALIZE is now yours. With Monetate, marketing is transformed from a world of discrete one-size-fits-all campaigns to one of always-on, personalized experiences that optimize the lifetime value of each customer. Founded in 2008, Monetate influences billions of dollars in annual revenue for world-class brands like Macy s, QVC, Office Depot, Patagonia, Sur la Table, and The North Face. During Cyber Week 2014, Monetate influenced a third of all US e-commerce sales. Monetate is the industry leader, with more clients in the IR 500 than any other company.

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