U.S. Retail Report 2014 IBM DIGITAL ANALYTICS BENCHMARK
2 Summary Heading back to work, consumers clicked their way to the best deals on which remained the busiest online shopping day of the holiday season. Online sales grew 8.5 percent compared to 2013, with mobile sales up 27.6 percent year-over-year. New York City also continued its run as the top U.S. city for online shopping, retaining the top spot on both Black Friday and. saw strong growth on Thanksgiving and Black Friday, culminating with a record five-day Cyber Week period for online shopping. From Thanksgiving through, overall online sales increased 12.6 percent, with mobile sales up 27.2 percent compared to the same period in 2013. ios devices continued to lead in mobile shopping with traffic more than twice, and sales nearly four times, that of Android devices during Cyber Week. is delivered to clients through the IBM Smarter Commerce initiative, which combines innovation from $3.5 billion invested to develop the industry s leading customer engagement platform with expertise working with 8,000 global brands and 35,000 commerce engagements. Here are the results as of 12:00 am PST this morning: 2014 Compared to 2013: Online Sales Grow: The Monday after Thanksgiving remained the busiest day for online shopping over the five day period. online sales grew by 8.5 percent over 2013. Average order value was $124.21, down 3.5 percent year-over-year. Becomes Mobile Monday: mobile traffic accounted for 41.2 percent of all online traffic, up 30.1 percent over 2013. Mobile sales were also strong, reaching 22 percent of total online sales, an increase of 27.6 percent year-over-year. New York City Takes Top Spot for Cyber Sales: New York City again claimed the top spot for sales, followed by Washington, D.C.; Atlanta, GA; Los Angeles, CA; and Chicago, IL. On average, New York City shoppers spent $112.44 per order on. Smartphones Browse, Tablets Buy: As the new digital shopping companion for many consumers, smartphones drove 28.5 percent of all online traffic, more than double that of tablets, which accounted for 12.5 percent of all traffic. Yet, when it comes to mobile sales, tablets continue to win the shopping war driving 12.9 percent of online sales compared to 9.1 percent for smartphones, a difference of 41.5 percent. Tablet users also averaged $121.49 per order compared to $99.61 for smartphone users, a difference of 22 percent. ios vs. Android: ios once again led the way in mobile shopping this holiday season, outpacing Android across three key metrics on :
3 o Average Order Value: ios users averaged $114.79 per order compared to $96.84 for Android users, a difference 18.5 percent. o Online Traffic: ios traffic accounted for 28.7 percent of total online traffic, more than double that of Android, which drove 12.2 percent of all online traffic. o Online Sales: ios sales accounted for 17.4 percent of total online sales, more than four times that of Android, which drove 4.4 percent of all online sales. Retailers Use Email to Deliver Follow-Up Deals*: Transactional messages, or emails that are automatically triggered by a consumer's action like a purchase receipt or cart abandonment, increased 48 percent year-over-year. The median number of emails sent to consumers from retailers on was two, remaining the same in 2014 compared to 2013. Open and click through rates on were 12.8 percent and 2.2 percent, respectively. More than 46 percent of emails were opened on mobile devices or tablets, versus 52 percent on desktops. The Desktop is Not Dead: As shoppers returned to work on, desktop PCs accounted for 58.6 percent of all online traffic and 78 percent of all online sales. Consumers also spent more while shopping on their PCs with an average order value of $128.24 compared to $110.72 for mobile shoppers, a difference of 15.8 percent. Social Influence Facebook vs. Pinterest: As marketers continue to rely on social channels to drive brand loyalty and sales, IBM analyzed trends across two leading sites, Facebook and Pinterest. Pinterest referrals drove an average of $97.78 per order compared to $123.44 for Facebook, a difference of 26.2 percent. The also reported real-time trends across four of the hottest retail categories this holiday season: 1. Department Stores: online sales grew by 17.9 percent over 2013, with mobile percentage of sales up 21.3 percent. Average order value was $146.07, a decrease of 9.7 percent year-over-year. 2. Health and Beauty: online sales grew by 3.8 percent over 2013, with mobile percentage of sales up 27.5 percent. Average order value was $57.94, a decrease of 3.8 percent year-over-year. 3. Home Goods: online sales grew by 27.5 percent over 2013, with mobile percentage of sales up 13.2 percent. Average order value was $247.56, an increase of 10.9 percent year-over-year. 4. Apparel: online sales grew by 3.4 percent over 2013, with mobile percentage of sales up 28.9 percent. Average order value was $100.67, a decrease of 2.1 percent year-over-year. * Denotes Silverpop-specific data not included in the report. Silverpop, an IBM Company, is a cloud-based digital marketing provider that offers email marketing and lead management solutions.
4 2014 Compared to Black Friday 2014: Still Largest for Online Sales: online sales were 30.5 percent higher than Black Friday in 2014. However, Black Friday shoppers spent an average of $129.37 per order, compared to $124.11 per order on, a difference of 4.2 percent. Black Friday Shoppers More Mobile: Mobile traffic and sales decreased between Black Friday and as consumers headed back to the office. mobile sales were down 21.2 percent, and mobile traffic down 17 percent, compared to Black Friday.
5 U.S. Retail 2013 2014 Sales Versus: Black Friday 2014 8.45% 30.46% Transaction Metrics Items per Order Average Order Value 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 Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Conversion Rate Desktop: Average Order Value Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Average Order Value Black Friday 2014 2014 vs. 2013 2014 4.08 0.49% 3.97 $124.21-3.54% $129.37 5.15% 3.62% 3.95% 4.14% 2.48% 3.15% 15.05% 6.74% 13.23% 31.62% -2.98% 27.57% 68.38% 1.44% 72.43% 8:28-5.40% 8:26 30.84% 4.26% 31.37% 49.35% 2.24% 47.65% 8.40 0.00% 8.37 2.43 2.53% 2.41 77.99% -5.74% 72.06% 58.62% -14.20% 50.14% 27.85% 3.26% 27.98% 6.98% 10.62% 5.80% $128.24-0.84% $135.33 21.99% 27.63% 27.91% 41.21% 30.08% 49.63% 35.06% 1.48% 34.78% 3.25% 4.84% 2.65% $110.72-6.19% $116.02 vs. Black Friday 2014 2.77% -3.99% 30.38% 31.43% 13.76% 14.69% -5.59% 0.40% -1.69% 3.57% 0.36% 0.83% 8.23% 16.91% -0.46% 20.34% -5.24% -21.21% -16.97% 0.81% 22.64% -4.57%
6 2014 U.S. Retail, 24-hr Real-time Sales 2012 2013 2014 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) online sales grew by8.5% over 2013 and continues to be the biggest online shopping day of the year. Online Sales 2014 U.S. Retail, 24-hr Real-time Sales Thanksgiving 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) continues to outpace Thanksgiving and Black Friday in online sales, rising in the morning and remaining steady throughout business hours, then picking up in the evening.
7 U.S. Retail, Performance by Device/Platform % of Traffic 28.50% 12.45% Smartphone Tablet Desktop 58.62% % of Sales 9.08% 12.85% 77.99% Conversion Rate 2.16% 5.72% 6.98% Bounce Rate 36.67% 30.94% 27.85% Average Page Views 7.00 8.62 9.14 Average Order Value $99.61 $121.49 $128.24 Desktop leads in online shopping followed by tablets and smartphones, however, as mobile use continues to rise, desktop use decreases. U.S. Retail, Performance by Mobile OS IBM Digital Android ios % of Online Site Traffic 12.18% 28.68% % of Online Sales 4.37% 17.39% Conversion Rate 2.50% 3.56% Bounce Rate 36.42% 34.53% Average Page Views 7.86 7.30 Average Order Value $96.84 $114.79 ios leads Android in online shopping on many metrics, however, Android has slightly higher average page views per session.
8 Apparel Sales 3.41% Transaction Metrics Items per Order Average Order Value 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 Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Conversion Rate Desktop: Average Order Value Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Average Order Value Black Friday vs. 2014 2014 vs. 2013 2014 Black Friday 2014 3.38-2.03% 3.89-13.11% $100.67-2.10% $114.96-12.43% 4.69% -8.75% 3.98% 17.84% 4.18% -13.81% 3.33% 25.53% 14.90% -3.43% 13.81% 7.89% 21.62% -6.97% 21.00% 2.95% 78.38% 2.11% 79.00% -0.78% 8:07-23.06% 8:16-1.81% 30.36% 9.41% 29.91% 1.50% 46.43% 1.40% 45.24% 2.63% 8.56-9.13% 8.57-0.12% 3.14-1.88% 3.05 2.95% 72.51% -7.81% 66.20% 9.53% 54.59% -19.02% 49.47% 10.35% 27.32% 3.96% 27.49% -0.62% 6.23% 1.14% 5.36% 16.23% $102.07 0.40% $111.61-8.55% 27.45% 28.87% 33.76% -18.69% 45.19% 38.66% 50.23% -10.03% 34.00% 10.50% 32.28% 5.33% 3.22% -11.05% 2.94% 9.52% $92.54-5.89% $108.77-14.92%
9 Department Stores Sales 17.92% Transaction Metrics Items per Order Average Order Value 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 Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Conversion Rate Desktop: Average Order Value Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Average Order Value Black Friday vs. 2014 2014 vs. 2013 2014 Black Friday 2014 3.25 2.20% 3.74-13.10% $146.07-9.74% $143.16 2.03% 5.05% 3.48% 4.07% 24.08% 3.91% 3.17% 3.30% 18.48% 16.41% 0.86% 14.98% 9.55% 30.51% 3.95% 26.90% 13.42% 69.49% -1.64% 73.10% -4.94% 10:09 0.33% 9:58 1.84% 26.32% 10.87% 27.12% -2.95% 52.50% -0.30% 50.02% 4.96% 9.66-3.11% 9.52 1.47% 2.78-3.47% 2.70 2.96% 75.21% -5.44% 69.79% 7.77% 56.79% -13.86% 48.07% 18.14% 24.09% 15.65% 23.34% 3.21% 6.86% 11.54% 6.07% 13.01% $146.66-7.15% $142.01 3.27% 24.78% 21.29% 30.19% -17.92% 43.08% 26.45% 51.76% -16.77% 29.23% -0.20% 30.61% -4.51% 3.08% 5.84% 2.47% 24.70% $142.39-14.54% $141.86 0.37%
10 Health and Beauty Sales 3.75% Transaction Metrics Items per Order Average Order Value 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 Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Conversion Rate Desktop: Average Order Value Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Average Order Value Black Friday vs. 2014 2014 vs. 2013 2014 Black Friday 2014 8.26 9.84% 7.44 11.02% $57.94-3.79% $72.78-20.39% 8.45% -4.52% 5.23% 61.57% 8.07% -1.82% 4.87% 65.71% 25.79% -0.27% 17.71% 45.62% 32.71% -4.38% 29.47% 10.99% 67.29% 2.28% 70.53% -4.59% 8:14-12.57% 7:02 17.06% 31.16% 9.26% 30.78% 1.23% 49.94% 0.06% 48.11% 3.80% 10.17 1.80% 9.42 7.96% 2.21 22.10% 1.83 20.77% 70.43% -8.26% 61.52% 14.48% 48.34% -21.32% 38.71% 24.88% 25.17% 10.01% 23.97% 5.01% 12.33% 9.02% 8.50% 45.06% $54.91-4.19% $63.78-13.91% 29.54% 27.49% 38.43% -23.13% 51.41% 33.32% 61.00% -15.72% 36.77% 1.63% 35.08% 4.82% 5.35% -3.25% 3.50% 52.86% $53.26-8.89% $70.71-24.68%
11 Home Sales 27.52% Transaction Metrics Items per Order Average Order Value 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 Desktop Metrics Desktop: % of Sales Desktop: % of Site Traffic Desktop: Bounce Rate Desktop: Conversion Rate Desktop: Average Order Value Mobile Metrics Mobile: % of Sales Mobile: % of Site Traffic Mobile: Bounce Rate Mobile: Conversion Rate Mobile: Average Order Value Black Friday 2014 2014 vs. 2013 2014 vs. Black Friday 2014 3.93 4.80% 4.59-14.38% $247.56 10.94% $238.46 3.82% 4.76% 22.68% 3.19% 49.22% 3.71% 3.92% 2.52% 47.22% 12.74% 20.99% 10.45% 21.91% 37.28% 1.30% 30.45% 22.43% 62.72% -0.76% 69.55% -9.82% 7:08-19.40% 6:58 2.39% 32.60% 13.87% 31.83% 2.42% 54.48% 11.16% 53.49% 1.85% 8.40-1.87% 8.35 0.60% 2.57 16.82% 2.59-0.77% 79.63% -4.12% 73.77% 7.94% 62.57% -13.45% 56.08% 11.57% 28.84% 16.67% 29.46% -2.10% 6.00% 34.83% 4.13% 45.28% $253.06 12.89% $244.24 3.61% 20.36% 13.17% 26.21% -22.32% 37.36% 35.36% 43.86% -14.82% 38.86% 0.18% 34.86% 11.47% 2.93% 7.33% 2.18% 34.40% $223.44 5.50% $214.13 4.35%
12 Transaction Summary Metrics 1. Items Per Order The average number of items purchased per order 2. Average Order Value The average value of a submitted order 3. Conversion Rate The percentage of sessions that resulted in an order 4. New Visitor Conversion Rate Out of all new visitor sessions, the percentage that completed an order 5. Shopping Cart Session Percentage The percentage of sessions in which visitors placed at least one item in their shopping carts 6. Shopping Cart Conversion Rate The percentage of shopping carts that resulted in an order 7. Shopping Cart Abandonment Rate The percentage of shopping carts that are abandoned without completing the 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. Browsing Session Percentage The percentage of sessions in which visitors viewed at least one product page 4. Page Views Per Session The average number of pages viewed in a single session 5. Product Views Per Session The average number of products viewed in a single session Desktop and Mobile Summary Metrics 1. Percentage of Sales Out of all online sales, the percentage that was from desktop (or) from mobile devices 2. Percentage of Site Traffic Out of all sessions, the percentage that was from desktop (or) from mobile devices 3. Bounce Rate The percentage of sessions from desktop (or) from mobile devices in which visitors only viewed one page before leaving the site 4. Conversion Rate The percentage of sessions from desktop (or) from mobile devices that resulted in an order 5. Average Order Value The average value of orders submitted by desktop (or) by mobile devices
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 a comprehensive set of key performance indicators, showing how a site performs compared to its industry vertical and subvertical peers and competitors. Key performance indicators span traffic, engagement, channels, sales and conversion metrics including mobile, social and more. About IBM ExperienceOne IBM ExperienceOne helps organizations attract, delight and maximize the lifetime value of customers by enriching the ways they engage with each of them. IBM ExperienceOne provides solutions and expertise to help marketing, merchandising, sales and customer service leaders achieve specific business goals. 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 IBM ExperienceOne customer engagement solutions, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/software/marketing solutions/experienceone For more information on, visit ibm.com/benchmark Follow IBM ExperienceOne Twitter: IBMExpOne
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