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24 Q1 2014 update: Strong Revenue Growth and Continued Mobile Increases MARKETLIVE PERFORMANCE INDEXTM | MAY 2014
• Executive Summary
• Overall Performance Highlights
• Key Performance Indicators
• Sector Snapshots
• Spotlight on Devices
• Spotlight on Attribution
• Key Takeaways
• Data Tables
2
Table of Contents
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
3
Executive Summary | Q1 2014
Fast on the heels of strong holiday performance and the conclusion of a successful year, MarketLive merchants started 2014 strong, posting an average Q1 year-on-year revenue increase of 18.7 percent. Traffic grew by almost 14 percent and AOV, at $114, was up almost 4.5%. All verticals turned in a solid performance, but with its 28.7 percent growth, the Brick and Mortar sector set a blazing pace. It should also be noted that this exceptional gain was a result of noteworthy improvements across multiple KPIs. The Apparel, Accessories & Footwear sector also did well, growing by over 18 percent, as did the Beauty & Health vertical, which increased just short of 15 percent.
The quarter wasn’t without its challenges. Average conversion rates dropped by almost three percent, and averaged 2.38 percent across the index. Cart and checkout abandonment continued to inch upward, and the average bounce rate was up by almost 7 percent. These challenges seem linked to the increase in cross channel shopping patterns and the need to provide exceptional experiences across multiple devices. In keeping with this trend, the dramatic growth in mobile shopping continued, mobile revenue was up 47 percent and now represents 6% of total online sales. Up 32 percent, tablet revenue increases remain significant, although the rate of growth has slowed somewhat.
Six Consecutive Quarters DOUBLE DIGIT REVENUE GROWTH
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
4
Overall Performance Highlights | Q1 2014
4:20 Time on Site
7.2 Pages/Visit
26% Home Page Bounce Rate
38% Bounce
Rate
Organic Direct PPC Social Email Other
% Traffic %
Revenue
22%
15%
63% 81%
13%
6%
Smartphone Tablet Desktop
% Traffic % Revenue
29% 18%
19%
10% 24%
24% 22% 19%
21% 20%
12%
Traffic/Revenue Mix Mobile Devices Engagement
2% 1%
-1.3% -5.1%
+12.7% +6.8%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
+3.9% Increase over 2013
Increase over 2013 +1.0% +4.4% Increase
over 2013 +3.2% Increase over 2013 -2.8% Decrease
from 2013
% Conversion
2.38% % Abandoned
Checkout
43.2% % Abandoned
Cart
72.5% Add-to-Cart
Rate
8.4%
Average Order Size
$114.55
TRAFFIC +13.9% increase in traffic over 2013 REVENUE +18.7% increase
in revenue over 2013
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
5
Key Performance Indicators | Revenue Q1 2014
I
ndex
+18.7%
+13.9%
App
arel
+18.2%
+20.9%
B
rand
+10.0%
+13.4%
% Change in Visits
H
ome
+7.0%
+1.5%
B
eaut
y
+14.9%
+12.2%
+28.7%
+18.0%
% Change In Revenue
+4.3%
+3.2%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
B
rick
& M
orta
r
Cata
log
Brick & Mortar Ups the Ante With a 28.7% Lift in Revenue Revenue growth in the Brick & Mortar sector dramatically outpaced still solid performances from the Apparel, Footwear & Accessories and Beauty & Health categories. All sectors were in firm growth territory, and although Catalog revenue only grew a modest 4.3 percent, it was accomplished on a minimal increase in traffic.
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
% Conversion
Sector conversion rates ranged from 1.1% to 3.5%, reflecting YOY variances of -5.4% to +8.2%
Apparel
2.7%
-4.4%
Beauty
-0.8%
2.0%
Home
1.9%
+8.2%
Brand
2.1%
-5.4%
B&M
+7.4%
1.1%
Catalog
-0.4%
3.5%
index average 2.4% | -2.8
6
Key Performance Indicators | % Conversion Q1 2014
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Conversion Rates Falter for Some but Home and Brick & Mortar Excel
The Apparel, Accessories & Footwear and Brand Manufacturer sectors each experienced disappointing average decreases in Q1 2014 conversion rates. Beauty & Health and Catalog faired marginally better, with rates roughly flat to last year. However, the Housewares & Furniture and Brick & Mortar sectors each saw significant YOY gains of 8.2% and 7.4%, respectively.
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
7
Key Performance Indicators | Bounce Rate Q1 2014
Bounce Rate
38% | +6.8% Q1 bounce rates ranged widely -- from 29% to 41%. The YOY change was also mixed, ranging from -6.7% improvement or decrease to +9.1% increase.
Home
37%
-6.7%
B&M
29%
-6.9%
Catalog
35%
+4.1%
Apparel
31%
+7.1%
Beauty
38%
+9.1%
Brand
41%
+2.7%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Brick & Mortar Sets the Bar Low Bounce Rate Gets Even Better The Brick & Mortar and Housewares & Furnishings sectors each produced solid YOY bounce rate improvements. In addition to reducing its average bounce rate by almost 7 percent, B&M also maintained the lowest average bounce rate in the Index. The highest increase in bounce rate (+9.1%) was turned in by Beauty & Health, whose 38% bounce rate was the second highest in the period. Although the Brand Manufacturer rate rose by less than 3% Year on Year, its Q1 rate of 41% was notably the highest in the Index.
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
8
Key Performance Indicators | Add-to-Cart Rate Q1 2014
i
ndex
+1.0%
app
arel
-2.5%
b
eaut
y
-2.6%
h
ome
+15%
b
rand
-5.0%
+5.9%
c
atalo
g
+1.8%
I
ndex
8.4%
A
ppar
el
11.9%
B
eaut
y
7.9%
H
ome
6.9%
B
rand
B
&M
7.3%
C
atalo
g
11.8%
Add-to-Cart Rate
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
6.8%
A Home Run in the Home Sector Add-to-Cart Rate Increases 15 Percent
Housewares and Furnishings retailers experienced an exceptional 15 percent average lift in the sector’s add-to-cart rate. Brick & Mortar merchants also saw a reasonable gain, while Brand Manufacturers and others struggled to keep pace. The Apparel, Accessories and Footwear vertical was still strong in spite of a YOY decline, in part due to better than average mobile and tablet rates.
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
Cart Abandonment
The average cart abandonment rate in Q1 2014 was 73% -- a 3.2% YOY increase
76% 77% 75% 72% 83% 72%
Apparel Beauty Home Brand B&M Catalog
9
Key Performance Indicators | Cart Abandonment Q1 2014
+0.6% -0.3% +2.8% +1.9% -0.6% +1.3%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Cart Abandons Creep Upward Sectors Generally Flat or Slightly Higher on Abandon Rate Cart abandonment continues to challenge ecommerce merchants across sectors and sites. For the most part, abandoned cart rates are flat or rising. Growing mobile usage and cross-device shopping are just two of the more significant factors behind this frustrating metric. As merchants catch up with changing consumer behaviors, expect to see better mobile experiences and stronger omni-channel relationship management.
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
10
Key Performance Indicators | Checkout Abandonment Q1 2014
Abandoned Checkout Rate
Abandoned checkout rates averaged 43% and increased 3.9% over Q1 2013
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Bea
uty
44%
-0.1%
36%
Cat
alog
+0.7%
Bra
nd
38%
-2.8%
% Change YOY
App
arel
42%
+16.4%
B&M
50%
+14.9%
Hom
e
38%
-2.9%
Tough Times for a Few Apparel and Brick & Mortar Face Declines YOY checkout abandonment increased dramatically in the Apparel, Accessories, & Footwear and Brick & Mortar sectors. While there are many potential factors behind this turn, merchants in both categories, especially Apparel, turned in better than average mobile KPIs. However, even sites with good mobile KPIs usually have a ways to go before they stop pulling down overall performance. The downside, at least at present, is the cumulative impact on overall ecommerce results.
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
11
Sector Snapshot | Apparel, Footwear & Accessories Q1 2014
Apparel: Abandonment
Checkout Abandonment Rate
+3.9%
43% Cart
Abandonment Rate
+3.2%
73%
Organic vs. Paid Search Traffic /Revenue Mix Organic
Direct PPC
Social Email Other
35% 11%
27% 9%
17%
32% 15%
25% 10%
18%
Organic Paid
Traffic Revenue 25%
75%
33%
67% 20.1% increase in traffic over 2013 vs. overall index of 13.9%
Apparel: % Change in Revenue-
+18.2% Increase in % Revenue
Apparel All Index
+18.2% +18.7%
Apparel: % Conversion
-4.4% Decrease in % Conversion
Apparel All Index
2.7% 2.4%
vs. 2013: 2.8% vs. 2013: 2.5%
Apparel: Add-to-Cart Rate
-2.5% Decrease in Add-to-Cart Rate
Apparel: Mobile Devices
Smartphone Tablet Desktop
Traffic Revenue
22% 15%
63% 81%
13% 6%
Apparel: Average Order Value
+2.9% Increase in AOV
All Index Apparel
$109.59 $114.55
vs. 2013 $106.51
vs. 2013 $109.78
+2.9%
+4.4%
4:20 Time
per Visit
-1%
Apparel: Engagement
26% Home Page Bounce Rate
+13%
7.2 Pages
per Visit
-5%
38% Site
Bounce Rate
+7%
All Index
2014 8.4% 2013 8.3%
% chg: +0.9%
Apparel
2014 11.9% 2013 12.2%
% chg: -2.5%
2% <1%
Traffic Revenue
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
12
Sector Snapshot | Beauty & Health Q1 2014
Beauty: Abandonment
-0.1%
44%
-0.3%
77%
Organic vs. Paid Search Traffic /Revenue Mix 31%
22%
17% 8%
21%
21% 29%
17% 11%
21% Traffic Revenue
41%
59% 56%
44%
12.2% increase in traffic over 2013 vs. overall index of 13.9%
Beauty: % Change in Revenue
+15.0% Increase in % Revenue
Beauty All Index
+15.0% +18.7%
Beauty: % Conversion
-0.8% Decrease in % Conversion
Beauty All Index
2.0% 2.4%
vs. 2013: 2.0% vs. 2013: 2.5%
Beauty: Add-to-Cart Rate
-2.6% Decrease in Add-to-Cart Rate
Beauty: Mobile Devices
27% 16%
57% 78%
15%
8%
Beauty: Average Order Value
+4.0% Increase in AOV
All Index Beauty
$81.50 $114.55 vs. 2013 $78.41
vs. 2013 $109.78
+4.0%
+4.4%
3:59
-7%
Beauty: Engagement
31%
+24%
6.2
-6%
38%
+9%
All Index
2014 8.4% 2013 8.3%
% chg: +0.9% Beauty
2014 7.9% 2013 8.2%
% chg: -2.6%
1% <1%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Organic Paid
Organic
Direct PPC
Social Email Other
Traffic Revenue
Smartphone Tablet Desktop
Traffic Revenue
Checkout Abandonment Rate
Cart Abandonment Rate
Time per Visit
Home Page Bounce Rate
Pages per Visit
Site Bounce Rate
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
13
Sector Snapshot | Housewares & Furniture Q1 2014
Home: Abandonment
-2.9%
38%
+2.8%
75%
Organic vs. Paid Search Traffic /Revenue Mix 29%
25%
14% 14%
17%
31% 27%
20% 11% 11%
43%
57%
45%
55% 1.5% increase in traffic over 2013 vs. overall index of 13.9%
Home: % Change in Revenue
+7.0% Increase in % Revenue
Home
All Index
+7.0%
+18.7%
Home: % Conversion
+8.2% Increase in % Conversion
Home All Index
1.9% 2.4%
vs. 2013: 1.7% vs. 2013: 2.5%
Home: Add-to-Cart Rate
+15.0% Increase in Add-to-Cart Rate
Home: Mobile Devices
19% 19%
61% 81%
15% 4%
Home: Average Order Value
+3.0% Increase in AOV
All Index Home
$264.80 $114.55
vs. 2013 $257.00
vs. 2013 $109.78
+3.0%
+4.4%
3:50
+12%
Home: Engagement
17%
-12%
6.1
+10%
37%
-7%
All Index
2014 8.4% 2013 8.3%
% chg: +0.9%
Home
2014 6.9% 2013 6.0%
% chg: +15.0%
1% <1%
Traffic Revenue
Organic Paid
Organic
Direct PPC
Social Email Other
Traffic Revenue
Smartphone Tablet Desktop
Traffic Revenue
Checkout Abandonment Rate
Cart Abandonment Rate
Time per Visit
Home Page Bounce Rate
Pages per Visit
Site Bounce Rate
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
14
Sector Snapshot | Brand Manufacturers Q1 2014
Brand: Abandonment
-2.8%
38%
+1.9%
72%
Organic vs. Paid Search Traffic /Revenue Mix 39%
16%
17% 9%
18%
29% 22%
18% 13%
17%
27%
73%
38%
62% 13.4% increase in traffic over 2013 vs. overall index of 13.9%
Brand: % Change in Revenue
+10.0% Increase in % Revenue
Brand
All Index
+10.0% +18.7%
Brand: % Conversion
-5.4% Decrease in % Conversion
Brand All Index
2.1% 2.4%
vs. 2013: 2.2% vs. 2013: 2.5%
Brand: Add-to-Cart Rate
-5.0% Decrease in Add-to-Cart Rate
Brand: Mobile Devices
23% 15%
61% 80%
14% 6%
Brand: Average Order Value
+3.6% Increase in AOV
All Index Brand
$97.26 $114.55
vs. 2013 $93.89
vs. 2013 $109.78
+3.6%
+4.4%
3:40
-3%
Brand: Engagement
31%
+14%
5.4
-1%
41%
+3%
All Index
2014 8.4% 2013 8.3%
% chg: +0.9%
Brand
2014 7.3% 2013 7.7%
% chg: -5.0%
1% <1%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Traffic Revenue
Organic Paid
Traffic Revenue
Organic
Direct PPC
Social Email Other
Smartphone Tablet Desktop
Traffic Revenue
Checkout Abandonment Rate
Cart Abandonment Rate
Time per Visit
Home Page Bounce Rate
Pages per Visit
Site Bounce Rate
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
15
Sector Snapshot | Brick & Mortar Q1 2014
B&M: Abandonment
+14.1%
50%
-0.6%
83%
Organic vs. Paid Search Traffic /Revenue Mix 39%
13%
22% 11% 14%
32% 14%
22%
9% 22%
24%
76%
31%
69% 18.0% increase in traffic over 2013 vs. overall index of 13.9%
B&M: % Change in Revenue
+28.7% Increase in % Revenue
B&M
All Index
+28.7%
B&M: % Conversion
+7.4% Increase in % Conversion
B&M All Index
1.1% 2.4%
vs. 2013: 1.0% vs. 2013: 2.5%
B&M: Add-to-Cart Rate
-6.0% Decrease in Add-to-Cart Rate
B&M: Mobile Devices
30% 16%
54% 78%
14%
9%
B&M: Average Order Value
+3.0% Increase in AOV
All Index B&M
$194.16 $114.55
vs. 2013 $188.52
vs. 2013 $109.78
+3.0%
+4.4%
4:25
+6%
B&M: Engagement
13%
-32%
7.7
-0.4%
30%
-7%
All Index
2014 8.4% 2013 8.3%
% chg:+0.9%
B&M
2014 6.8% 2013 6.4%
% chg:-6.0%
1% <1%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Smartphone Tablet Desktop
Traffic Revenue
Checkout Abandonment Rate
Cart Abandonment Rate
Time per Visit
Home Page Bounce Rate
Pages per Visit
Site Bounce Rate
Traffic Revenue
Organic Paid
Traffic Revenue
Organic
Direct PPC
Social Email Other
+18.7%
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
16
Sector Snapshot | Catalog Q1 2014
Catalog: Abandonment
+0.7%
36%
+1.3%
72%
Organic vs. Paid Search Traffic /Revenue Mix
28% 18%
22%
11% 20%
25% 22%
24% 11%
17%
39%
61%
46%
54% 3.2% increase in traffic over 2013 vs. overall index of 13.9%
Catalog: % Change in Revenue
+4.3% Increase in % Revenue
Catalog
All Index
+4.3%
+18.7%
Catalog: % Conversion
-0.4% Decrease in % Conversion
Catalog All Index
3.5% 2.4%
vs. 2013: 3.5% vs. 2013: 2.5%
Catalog: Add-to-Cart Rate
+1.8% Increase in Add-to-Cart Rate
Catalog: Mobile Devices
19% 16%
65% 84%
12% 4%
Catalog: Average Order Value
+2.6% Increase in AOV
All Index Catalog
$151.90 $114.55
vs. 2013 $148.09
vs. 2013 $109.78
+2.6%
+4.4%
5:08
-0.4%
Catalog: Engagement
22%
+11%
9.0
-0.5%
35%
+4%
All Index
2014 8.4% 2013 8.3%
% chg: +0.9%
Catalog
2014 11.8% 2013 11.6%
% chg: +1.8%
1% <1%
Source: The MarketLive Performance Index: a subset of ML sites active from January 1, 2013 or prior
Smartphone Tablet Desktop
Traffic Revenue
Checkout Abandonment Rate
Cart Abandonment Rate
Time per Visit
Home Page Bounce Rate
Pages per Visit
Site Bounce Rate
Traffic Revenue
Organic Paid
Traffic Revenue
Organic
Direct PPC
Social Email Other
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
17
Spotlight on Devices | Performance Recap
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
First Quarter - 2014
Device Smartphones Tablets Desktops % Total Traffic 22.16% 15.25% 63%
Last Year % Traffic 15.64% 11.00% 73.36%
% Change: Traffic YOY 41.68% 38.63% -14.68%
% Total Revenue 6.17% 12.47% 0.81
Last Year % Revenue 4.20% 9.48% 86.33%
% Change: Revenue YOY 46.91% 31.56% -5.74%
Average Time on Site 0:02:51 0:04:34 0:05:07
Average Pages per Visit 4.7 6.5 7.2
Bounce Rate 49% 40% 29%
Add-To-Cart Rate 4.6% 11.9% 8.9%
Conversion Rate 0.63% 1.82% 2.70%
% Total Orders 7.1% 12.6% 80.2%
AOV $ 93.76 $ 111.47 $ 293.15 Revenue / Visit $ 0.50 $ 1.75 $ 2.98
Abandoned Cart Rate 83% 78% 68%
Abandoned Checkout Rate 65% 46% 37%
18
Spotlight on Devices | Day of the Week Q1 2014
12%
15% 14% 15% 16% 15%
12%
3.00% 2.85% 2.73% 2.75% 2.73% 2.75% 2.77%
Sun Mon Tue Wed Thu Fri Sat
Desktop Traffic & Conversion by Day of Week
Desktop Traffic Desktop Conversion
13%
16% 14% 15% 16%
15%
11%
Sun Mon Tue Wed Thu Fri Sat
Desktop Revenue by Day of Week
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
19
Spotlight on Devices | Day of the Week Q1 2014
15% 13% 12%
15% 16% 15%
13%
Sun Mon Tue Wed Thu Fri Sat
Smartphone Revenue by Day of Week
15% 14% 13%
15% 15% 14% 14%
0.65% 0.59% 0.59% 0.58% 0.61% 0.64% 0.59%
Sun Mon Tue Wed Thu Fri Sat
Smartphone Traffic & Conversion by Day of Week
Mobile Traffic Mobile Conversion
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
20
Spotlight on Devices | Day of the Week Q1 2014
17% 14%
12% 14% 14% 14%
15%
1.94% 1.84% 1.81% 1.82% 1.72% 1.71% 1.82%
Sun Mon Tue Wed Thu Fri Sat
Tablet Traffic & Conversion by Day of Week
Tablet Traffic Tablet Conversion
17% 15%
12% 14% 14% 13%
15%
Sun Mon Tue Wed Thu Fri Sat
Tablet Revenue by Day of Week
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
21
Spotlight on Devices | Time of Day(1)�Q1 2014
(1)Tracking is based on US Pacific Standard/Daylight time regardless of where the data or interaction takes place
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Traffic by Hour by Device
Smartphones Tablet Desktops
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Revenue by Hour by Device
Smartphones Tablets Desktops
`
The “always in use” and growing consumer dependence on SMARTPHONES is reflected in the surprising consistency of traffic delivered from these devices
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Conversion Rate by Hour by Device
Smartphones Tablets Desktops
`
22
Spotlight on Devices | Time of Day(1)
Q1 2014
(1)Tracking is based on US Pacific Standard/Daylight time regardless of where the data or interaction takes place
$-
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
$4.00
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
Revenue/Visit by Hour by Device
Smartphones Tablets Desktops
Although tablets experience a late afternoon into evening spike in traffic and revenue, the conversion rate actually falls off much faster than the visits
DID YOU KNOW? The average person looks at their phone 150 times per day, or an average of once every six and half minutes every waking hour
--YESMAIL
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
Spotlight on Devices | Cart & Checkout Q1 2014
23
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
All Sites Apparel Beauty Home Brand B&M Catalog
Add to Cart Rate by Device and Sector
Smartphone Tablet Desktop
Apparel, Accessories & Footwear, and Catalog had the noteworthy add-to-cart rates across devices. For all sectors, tablet add-to-cart rates were on par or notably exceeded desktop add-to-cart rates
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
Spotlight on Devices | Cart & Checkout�Q1 2014
24
Getting into the cart is just the first step. A look by device within sector confirms that the highest abandonment occurs on smartphones. As mobile and tablet devices continue to proliferate, developing a strategy to support your customer through a mobile cart and checkout process will be critical to success
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
100%
All Sites Apparel Beauty Home Brand B&M Catalog
Abandoned Cart Rate By Device and Sector
Smartphone Tablet Desktop
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
All Sites Apparel Beauty Home Brand B&M Catalog
Abandoned Checkout Rate by Device and Sector
Smartphone Tablet Desktop
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
25
Spotlight on Devices | Smartphone Insights Q1 2014
Email traffic is
2X desktop
Q1 2014 % of smartphone traffic from email is twice that of desktop and 1.7x of tablet
Q1 2014 Email is the third highest traffic source for smartphones—but it’s bouncing at 61%. Desktop email bounces are 41%, tablets are 53%
Q1 2014 Smartphone paid search conversion has tripled in the last year and the email conversion rate has doubled… …while paid search and email tablet conversion has each fallen by almost a third.
DID YOU KNOW? Brands testing responsive email design experienced:
• 63 percent increase in click rates
• 18 percent increase in transaction rates
-EXPERIAN
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
Spotlight on Attribution | Last, First and Assists Q1 2014
26
Single Session Conversion
2 Session Conversion
3 Session Conversion
4 Session Conversion
5 Session Conversion
6+ Session Conversion
45%
20%
11%
6%
4%
13%
% of Visitors by Number of Interactions with Any Tracked Digital Channel Prior to the “Last Click” and Order
Direct Organic PPC Email Referral
48% 23% 11% 5% 7%
Orders by channel using standard “Last Click” attribution by Google Analytics: Q1 2014 MLPI sites
DID YOU KNOW?
When a ratio of assists (within a channel) to last click attributed order, is larger than “1”, the channel is contributing to to acquisition. The higher the number, the more meaningful the channel is to orders
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
Spotlight on Attribution | Last, First and Assists�Q1 2014
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Direct Organic PPC Email Referral Re-allocation of same orders by channel using “First Click” attribution by Google Analytics
39% 29% 13% 8% 7%
Direct
Organic PPC Email Referral
-8.6%
+1.6% +1.3% +2.2% +2.8%
Change in revenue allocation
DID YOU KNOW? Google Analytics includes several attribution methodology options as well as providing the ability to create custom models
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Key Takeaways
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2.
Mobilize. What it takes to attract consumers to your site, overcome browse and buy inertia, deliver share worthy experiences, and stimulate robust purchasing isn’t for the faint of heart. Now, more than ever, shoppers are voting with their feet, or, actually, their fingers, and pushing all of us to think beyond the desktop. According to Experian Marketing Services, 50% of email opens occur on on smartphones and tablets. ComScore reports that as of September 2013, 44% of US retail time was spent on smartphones, 41% on desktops, and 15% on tablets. However, merchant attention to mobile and tablet experiences, opportunities and threats lags far behind consumer expectations. The Q1 2014 MarketLive Performance Index reported that smartphone visits converted at one-third of desktop rates, yet represented almost a quarter of total
visits. Tablet conversion fared much better, but still has a long way to go to catch up in volume and reach. Waiting is no longer an option. Use a practical, roll-up your sleeves approach to tackle urgent priorities, and crawl-walk-run your way to positive change. Or, embrace an all-out, no-holds barred strategic initiative. Either way, the time to start catching up with your customers is now. It’s Prime Time for Real-Time. Real-time marketing and communications that is. The Q1 2014 MarketLive Performance Index reinforces what merchants already know. Our customers are actually finding more ways to connect with us – and disconnect from us -- than ever before. Visits are fragmented across different devices, occur from constantly challenging environments full of distractions, and riddled by a by a parade of interruptions beyond any marketer’s
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Key Takeaways
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control. Of course this makes it harder than ever to capture true attention, finalize even a single order, or earn genuine loyalty. Enter real-time marketing. Is there a better way to demonstrate your understanding of who she is and what she wants, than with timely, relevant offers aligned with her wants, needs and schedule? From on-the-fly email content modifications to on-demand video advice, marketers have countless opportunities to make connections that matter and generate sales that satisfy. Don’t get left behind -- it’s time to develop your own strategy. It’s prime time for real-time. Take the attribution challenge. Online marketers are forever on the hunt for the new product, service, technology or program that will fuel rapid, cost-effective customer acquisition, and attract profitable, high LTV customers. It’s surprising then, to discover how many still haven’t
pulled out all the stops to better understand their customers and marketing initiatives using proven attribution analysis and modeling techniques. Shoppers routinely engage with multiple channels, ads, and touch points on their purchase journey. Some can have a profound impact on the decision to buy what, where and when they do. Traditional last click attribution fails to consider the impact of earlier stage interactions on intent, visits and conversions. This means missed opportunities, ineffective budgeting, poor planning, and under or over supported programs. Unfortunately, it’s not a one size fits all solution, and the topic can inspire impassionate debates about best and worst methods. However, take the time to learn a bit more, and execute some low/no risk analysis and testing, and you just might find that secret sauce after all.
MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
Appendix | Data Tables
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Appendix | All Index Data Tables
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Appendix | Apparel, Footwear & Accessories Data Tables
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Appendix | Beauty & Health Data Tables
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Appendix | Houseware & Furniture Data Tables
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Appendix | Brand Manufacturer Data Tables
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Appendix | Brick & Mortar Data Tables
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Appendix | Catalog Data Tables
38 MarketLive Performance Index Volume 24 | © 2014 MarketLive, Inc.
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