eCommerce Benchmark Report - Q4 2015

ECOMMERCEBENCHMARK REPORT

Q4 2015

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TABLE OFCONTENTS

A Q U I C K W O R D

D I S C O V E R Y

C O N V E R S I O N B Y D E V I C E

C O N V E R S I O N B Y C H A N N E L

M E T H O D O L O G Y

C O N T A C T D E M A C

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DEMAC MEDIA IS ACOMMERCE AGENCY

For the past 4 years, Demac Media has published a quarterly benchmark report to help retailers put their numbers in the context of their peers, and prepare for the quarter ahead.

In this edition of our Benchmark Report, we are highlighting the most important datapoints and trends we use to prepare our customers for growth.

More information on the methodology used in reporting the findings herein can be found at the end of this report.

Watch this space as we include more of our own data, and insights from our partners, for future editions.

WE HELP MERCHANTS DESIGN, CREATE & GROW STRONG

ECOMMERCE BUSINESSES.

OBJECTIVES

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STRATEGY DESIGN DEVELOPMENT

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“The holiday season in North America is marked in every retailer’s calendar as the most important time of the year. In fact, the term “Black Friday” was originally used to mark the date when a retailer’s financial statements finally showed profitability - 11 months into the year!

At Demac, we spend a significant part of our year preparing our retailers for this all-important season; from ensuring servers are ready to meet traffic demands to the timing of promotional material sent to new and existing customers. Growing from the strength we built in Q4, we are entering 2016 galvanized with the optimism of our retail customers and technology partners.

An opportunity trend to continue tracking is the rise of mobile commerce. In this report, we see evidence of its growth and how it is affecting the traditional path to purchase. It also drives us to meet the growing expectations of shoppers for a more consistent, personalized, and convenient shopping experience.

Economic conditions and evolving consumer preferences will continue to challenge us in the year ahead, but we are focused on another banner year in digital commerce.

A QUICKWORD

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M A R L O N R O D R I G U E S

D I R E C T O R , M A R K E T I N G

D E M A C M E D I A

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DISCOVERY

ORGANIC SEARCH IS STILL KING IN RETAIL DISCOVERY.

A strong showing in Organic Search is hard-earned over time through good SEO hygiene, and bolstered with regular SEM practices. It is also instructive to see the increasing value of social media in this report. “Social Commerce” is happening now - how is your business benefitting from it?

% OF SESSIONS BY TRAFFIC SOURCE

31%

23%

17%

8%

6%

5%

10%

○ organic search○ social○ direct○ paid search○ email○ referral○ other

S O U R C E : Q 4 2 0 1 5 E C O M M E R C E B E N C H M A R K R E P O R T

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DISCOVERY

ABOUT HALF OF SESSIONS ON EVERY DEVICE IS FROM NEW VISITORS.

We know that Returning Customers are the most lucrative for retailers, but New Visitors offer the opportunity to grow your business. Here, your User Experience matters to quickly engage people who are unfamiliar with your site, and encourages them to return to shop with you again.

48%�

tablet desktop

58%�

SESSIONS FROM NEW VISITORS, BY DEVICE TYPE

47%�

mobile


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CONVERSION

CONVERSION RATES VARY DRAMATICALLY BETWEEN DEVICE TYPES AND RETAILERS.Conversion rates are ever-present on the minds of retailers, but they are not a singular measure of the health of your business. The key to using this metric is to benchmark your own and work to progressively improve it while driving new traffic to your site and increasing order value.


DISTRIBUTION OF CONVERSION RATE BY DEVICE TYPE

0

5

10

15

20

25

30

35

40

45

0-1% 1-2% 3-4% 4-5% 5-6% 6-7% 7-8% 8-9% 9-10% 10-11% 11-12% 12-13% 13-14% 14-15%

○ mobile ○ tablet ○ desktop

CO

UN

T

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CONVERSION

FOR NOW, MORE PAGEVIEWS PER VISIT STILL CORRELATES WITH MORE COMMERCE ENABLED.

Time spent on desktop and tablet are identical, but more pageviews consumed per visit on desktop. This points to more control on desktop, larger surface area, potentially more distractions compared to either mobile or tablet. Expect the transaction volume and type on these devices to render pageviews and time spent metrics obsolete in the near future.

AVERAGE NUMBER OF PAGEVIEWS PER SESSION

AVERAGE SESSION LENGTH


6.64

6.25

5.66

0 5 5.2 5.4 5.6 5.8 6 6.2 6.4 6.6 6.8

desktop

tablet

mobile


3mins

mobile

4m12s

tablet

4m12s

desktop

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CONVERSION

DISPROPORTIONATE AMOUNT OF REVENUE EARNED ON DESKTOP.

Key to a successful multi-device strategy is to understand the difference in customer expectations for each platform. Here, we see that mobile is used heavily for research but consumers still prefer to complete online transactions on desktop computers.

% OF REVENUE BY DEVICE CATEGORY


% OF SESSIONS BY DEVICE CATEGORY

52%

37%

11%

○ mobile○ tablet○ desktop


68%

19%

13%

○ mobile○ tablet○ desktop

10

CONVERSION

DESKTOP STILL RULES AS THE MOST EFFICIENT DEVICE FOR HARVESTING ONLINE REVENUE.

Mobile lags far behind desktop and tablet in total transactions online, but shoppers are already spending a meaningful amount of money per transaction on their mobile devices.


AVERAGE REVENUE PER SESSION AND AVERAGE ORDER VALUE, BY DEVICE CATEGORY

$134.51

$124.78

$121.55

$1.64

$0.99

$0.33

0

0.2

0.4

0.6

0.8

1

1.2

1.4

1.6

1.8

$0

$120

$125

$130

$135

$140

desktop tablet mobile

average order value average revenue per session

AV

ERA

GE

OR

DE

R V

ALU

E ($

) A

VER

AG

E RE

VE

NU

E PER

SESSION

($)

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CONVERSION

APPLE STILL DOMINATES MOBILE COMMERCE, AND IPHONE RETAINS ITS FLAGSHIP POSITION.

Every mobile device maker and platform is trying to get into mobile commerce, but it will be a long time before anyone is able to contest Apple’s lead.

% OF SHOPPERS BY MOBILE DEVICE

○ iphone○ ipad○ other

47%

19%

34%


○ iphone ○ ipad ○ other

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CONVERSION

DIRECT TRAFFIC DRIVES THE HIGHEST ORDER VALUE AMONGALL ACQUISITION CHANNELS.

Direct Traffic is premised on strong brand awareness and returning shoppers. Many retailers use their loyalty programs to improve their relationship with existing customers, and in numbers, this is why.


AVERAGE ORDER VALUE BY ACQUISITION CHANNEL

$157

$132 $120 $118 $117

$109 $107 $104

$-

$20

$40

$60

$80

$100

$120

$140

$160

$180

direct organic search social other email display paid search referral

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METHODOLOGY

THE RETAILERS IN THIS STUDY REPRESENT A BROAD SET OFRETAIL SUB-VERTICALS.The retailers in this study reached shoppers in over 200 countries during the reporting period, including 1 from the West African nation of Guinea-Bissau!

DEMAC CUSTOMERS INCLUDED IN THIS REPORT, BY US CENSUS

HOME COUNTRY OF RETAILER INCLUDED IN THIS REPORT

clothing, accessories furniture, furnishings miscellaneous sports, hobby, book, music health, personal care electronics, appliances food, beverage building, gardening, supplies general merchandise

47%

15%

11%

9%

6%

4%

4%

S O U R C E : Q 4 2 0 1 5 E C O M M E R C E B E N C H M A R K R E P O R TU S C E N S U S B U R E A U , N O R T H A M E R I C A N I N D U S T R Y C L A S S I F I C A T I O N

S Y S T E M [ H T T P : / / W W W . C E N S U S . G O V / E O S / W W W / N A I C S / ]


○ canada ○ united states

84%

16%

○ canada○ us

○ canada ○ us

By publishing commerce data with higher granularity than the US Census, Demac wants to equip 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 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.

A FEW WORDS ON OUR PROCESS FOR BUILDING THIS REPORT.

METHODOLOGY

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GET IN TOUCH

• Next Demac Benchmark Report: April 2016• Demac Blog

• Dx3 Canada 2016, March 2-3, Toronto• Bronto Summit, March 14-16, Miami• Shopify Unite, March 22-23, SF• Oro Momentum, April 10, Las Vegas• Magento Imagine, April 11-13, Las Vegas• Monthly eComm, Meetup, Toronto

DEMAC MEDIA IS A COMMERCE AGENCY THAT BRINGS TOGETHER THE BEST OF STRATEGY, INDUSTRY INSIGHTS AND REAL-WORLD IMPLEMENTATION EXPERIENCE TO GROW YOUR RETAIL BUSINESS.

DEMAC RESOURCES

WHAT’S NEXT?

[email protected]

CONTACT US

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MONTREAL

4529 Rue Clark #300

Montreal, QC H2T 2T4

TORONTO

211 Yonge Street, 6th Floor

Toronto, ON M5B 1M4

MIAMI

Coming Soon

Toll Free: 888-860-0364 | [email protected]

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Retail

eCommerce Benchmark Report - Q4 2015