How do you compare? Leveraging insights from IBM’s Retail Benchmark to make the most of your eCommerce performance

How do you compare?
Leveraging insights from
IBM’s Retail Benchmark to make the
most of your eCommerce performance
@jay_henderson
@LeahPaschall
#SmarterCommerce

© 2013 IBM Corporation
Leah Paschall
IBM
Product Marketing Manager, EMM
email: leahl@us.ibm.com
twitter: @LeahPaschall
Jay Henderson
IBM
Strategy Director, Enterprise Marketing Management
email: jay.henderson@us.ibm.com
twitter: @jay_henderson
Speakers
#SmarterCommerce @jay_henderson @LeahPaschall
2

Agenda
• What is the IBM Benchmark?
• Benchmark Insights
– high level trends
– key holiday dates
– mobile (including tablet)
– social
• Recommendations
– optimize for mobile, including tablet
– redirect social focus
– personalize and coordinate customer engagement
– measure (and attribute) success
3

Compare performance against industry peers and
competitors with IBM Retail Benchmark
• Over 1,300 online brands
• Aggregate index
– Compare against industry
– Compare against peers
• Geographic coverage
– US, UK, AU, Euro
• Industry specific
– Retail
– Content
– Financial Services
– Travel
• Segment specific
– Apparel
– Department Stores
– Health and Beauty
– And 12 others. . .
4

Wide range of free holiday benchmark resources available
www.ibm.com/software/marketing-solutions/benchmark-reports/
5

Agenda
– social
• Recommendations
6

online shopping
continues its
steady march
7

Shopping online in
Q1 grew 5x more
than in-store
Online shopping is up….and outpacing stores
8
3.7%
20%
in-store online
Source: IBM Digital Analytics Benchmark, Q1

Marketing promotions, offers, & messages are working….
9
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Marketing Driven Site Traffic Current Period (2013/12)
Prior Period (2011/12)
consistently
driving
~30% of
traffic
Source: IBM Digital Analytics Benchmark

Items per order has increased significantly & average order
value is up too
cross-selling and sales promotions are working….
….but also training consumers to look for the best deals
10
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
ITEMS PER ORDER Current Period (2013/12)
$150
$160
$170
$180
$190
$200
$210
AVERAGE ORDER VALUE
Current Period (2013/12)
10

0%
5%
10%
15%
20%
25%
30%
35%
40%
SHOPPING CART CONVERSION RATE Current Period (2013/12)
shopping cart
conversions
rates flat
Many additional signs that savvy shoppers are
working the conversion funnel
11Source: IBM Digital Analytics Benchmark
direct load
pages
up
average session
length
down
% of sessions
with items carted
flat

50%
60%
70%
80%
90%
100%
CART ABANDONMENT RATE Current Period (2013/12)
…cart
abandonment
flat too, but remains
high
12Source: IBM Digital Analytics Benchmark

new year,
same holiday shoppers….
13

Is Cyber Monday obsolete?
14

Not yet…. 2012
15
biggest online shopping day
30.3% year over year
ever

In 2012…
16
Monday after
Cyber Mon
Green
Monday
Free Shipping Friday
Tues after
Cyber Mon
Last chance
shopping
Pre-Thanksgiving
Promotion
Cyber Monday
promotions launched earlier,
buying started sooner,
peaks were higher,
and deals lasted longer

Online sales growth is fueled by a strong holiday weekend,
across Thanksgiving day, Black Friday and Cyber Monday
Nov
1
Nov
8
Nov
15
Nov
22
Nov
29
US Daily Sales
November 1 - 30
2011 2012
Thanksgiving day sales up: 17.4%
Black Friday sales up: 20.7%
Cyber Monday sales up: 30.3%
17
Cyber Monday

Online sales peaked on Mondays until Christmas Eve, then
rebounded the day after Christmas
Dec
1
Dec
8
Dec
15
Dec
22
Dec
29
US Daily Sales
December 1 - 31
2011 2012
18

online shopping
is upwardly
mobile

Mobile (including tablet) continues to increase dramatically…
21
0%
5%
10%
15%
20%
25%
Mobile: % of Sales Mobile: % of Site Traffic
Mobile % of Sales and Site Traffic
November 1 - December 31
2011
2012
up 50.7%
up 59.8%

over 15%of all online
sales come from
mobile devices1
Sales, traffic, and even email
over 25% of all site
traffic comes
from mobile devices2
22
47% of all emailis
opened on mobile devices
(more than
apps or web)3
Sources:
1 IBM Digital Analytics Benchmark (consistently Nov 2012 – March 2013)
2 IBM Digital Analytics Benchmark (as of March 2013)
3 Email Optimization benchmark

Is mobile really on the move?
…the rise of couch commerce…
23

iPad now consistently leads all devices with more overall traffic
and more growth year over year
4.07%
5.16%
4.30%
6.09%
8.21%
8.82%
Android
iPhone
iPad
US Mobile Traffic by Device
December 2011 vs December 2012
Dec-12
Dec-11
24

0.0%
2.5%
5.0%
7.5%
10.0%
12.5%
15.0%
17.5%
0:05
0:40
1:15
1:50
2:25
3:00
3:35
4:10
4:45
5:20
5:55
6:30
7:05
7:40
8:15
8:50
9:25
10:00
10:35
11:10
11:45
12:20
12:55
13:30
14:05
14:40
15:15
15:50
16:25
17:00
17:35
18:10
18:45
19:20
19:55
20:30
21:05
21:40
22:15
22:50
23:25
0:00
Cyber Monday 2012
Mobile Device: Andriod Sessions % Mobile Device: iPhone Sessions % Mobile Device: iPad Sessions %
Tablets rule the night – Smartphones generated more
traffic during the day, but tablets surge in the evening hours
25

Tablets consistently drive higher conversion
26
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Conversion % by Mobile Device More pronounced
during heavy
shopping periods
Black
Friday, 2012, iPad
conversion rate
was 4.4%
iPhone & Android
conversion rates
were 1.7%

Social is a
tough nut to crack
27

Social…. has yet to make a significant impact on
“same session” traffic or sales
28
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
% sales from social
% traffic from social

Agenda
– social
• Recommendations
29

optimize for mobile

Eliminating text and showcasing images is beneficial for
mobile browsing
31
Gap enables browsing of
images (without text) and
provides recommendations to
support greater time on site
Source: Forrester Research

Richest
experience; links
and images on by
default.
Rich graphics; user
may need to side-
scroll to view full
message.
Shows text part of
HTML as well as URLs
for links and images.
HTML supported, but images-
off under default settings.
BlackberryAndroidiPhone Windows Mobile 6
Rendering can vary wildly across devices
32

mobile is not all
thumbs, fingers too

Tablet optimization could mean a different customer
experience….
34
•separate tablet site
•navigation is simple
•buttons are huge
•support for finger-swipe

Or tablet optimization could mean small tweaks…..
lines spaced appropriately for
a touchscreen
35

Encourage power mobile users to create a shortcut to your
site from the homescreen
36

Mobile development questions still persist
Importance of
apps?
Focus on Apple
devices?
Responsive
design?
Tablet focus?
How?
General Consensus
Most large retailers have them, but most
mobile traffic doesn’t come from apps; ROI
is unclear
All Apple devices are losing share but
shoppers do tend to skew heavier toward
these devices for now
These sites don’t necessarily look great, but
they are functional and deliver bang for the
buck
Most mobile traffic and sales are coming
from tablets, but few companies have tablet
optimized presence. Some are designed
for “tablet first” with features that translate
to desktops
37
Source: Forrester Research

mature your social media
efforts …
38

Redirecting social focus
1. Impact of social is more indirect
2. Leverage the network effect
– Enable and incent sharing via social
– Extends marketing reach and takes advantage of network trust
3. Use social insight to enrich the cross-channel profile
(both aggregate and individual)
4. Worry less (for now) about driving traffic & conversions
39

Awareness  Consideration  Preference  Action Supported  Empowered  Delighted  Fan  Broadcaster
Sales/Marketing
Funnel
Customer
Experience “Second Funnel”
Customer
Turning customers into marketers for your brand….
40

Incenting a rewarding customers to share your message
• Recognition
– Reputation
– Status
– Badges
– Levels
– Icons
• Privilege
– Early/VIP Access
– Moderation Powers
– Stronger Votes
• Money
– Discounts
– Free Shipping
– Prizes
– Points
41

Example campaign: Social promotions
• After you get 3 colleagues to
“click” on the promotional link,
you unlock an offer for yourself.
• Capabilities:
– Generate PURL for customer to
share
– Track clicks to PURL
– “Second wave" of campaign that
is triggered when the click count
>3. The second wave would
send the unlocked redemption
code for the discount.
– Widget to easily display the
status for an individual customer
(that includes social sharing
buttons)
42

Extend today’s campaigns with social
Rating a Product Liking OffersSocial Sharing
in email and web offers
43

Social Facts
Inferred Social Attributes
Sentiment
Interests Expertise
Influence
Mental & Emotional
Profiles
Behavior
Values Personality
Use social insight to enrich the cross-channel profile
(both aggregate and individual)
44

Personalize and coordinate
customer engagement
45

Retarget
browsers &
abandoners
“Lights out”
triggered
campaigns
Aggressively
test and
fine tune
Treat
difference
customers
differently
Personalize marketing messages and offers for maximum
impact
46

IBM calls this
CROSS-CHANNEL MARKETING
Today’s customers demand coordinated, integrated
engagement
47

Measure (and attribute)
success
48

© 2013 IBM Corporation49
Commerce
Engine
Shopping Cart Tag
Data
Instrument the digital properties to collect rich behavioral
information
49

Measure what’s happening…
50
• Web, social, and mobile analytics
• Enterprise Analytics
• Advanced segmentation
• Click & Impression Attribution
• Multichannel analytics
• Customer lifecycle visibility
• Tag Management
• Benchmark against peers

For campaign activities build a cross-channel interaction
history of contacts and responses
51
Offline
Interactions
Web site
activity
Web Ads
Mass media data
Call Center
Email
Social
Ads
Mobile

Use attribution to allocate credit, understand ROI, and drive
future investment
• Leverage interaction history
to allocate and tune attributed
credit over time
• Choose attribution technique
carefully - first touch, last
touch, average, or statistical
modeled.
• New attribution techniques
emerging. Statistical models
and algorithms can allocate
precise credit based on
expected performance of
marketing touches (stimuli)
Average
$10 $10 $10
Time Window
35% Custom
$10.50 $13.50
45%
$6
20%
Time Window
First$30
Time Window
Statistical Model
$5.8
Time Window
$15.3 $8.9
Last $30
Time Window
52

Summary
1. Optimize for mobile, including tablet
2. Redirect social focus
3. Personalize and coordinate customer engagement
4. Measure (and attribute) success
53

www.ibm.com/software/
marketing-solutions/benchmark-reports/
More benchmark analysis & best practices
54

Questions?
Leah Paschall
IBM
Product Marketing Manager, EMM
@LeahPaschall
Jay Henderson
IBM
Strategy Director, EMM
@jay_henderson
www.ibm.com/software/
marketing-solutions/benchmark-reports/
55

© IBM Corporation 2012. All Rights Reserved.
IBM, the IBM logo, ibm.com are trademarks or registered 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 www.ibm.com/legal/copytrade.shtml.
Copyright and Trademarks
56

• Go to summitsmartsite.com from your mobile device or
log on to SmartSite at any Kiosk at the event:
• Select the Survey icon
• Complete the surveys for the sessions you attended
• Submit your feedback
We appreciate your feedback. Please don’t
forget to fill out your evaluation
Thank you for joining us!
57

How do you compare? Leveraging insights from IBM’s Retail Benchmark to make the most of your eCommerce performance

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Destacado

Destacado (14)

Similar a How do you compare? Leveraging insights from IBM’s Retail Benchmark to make the most of your eCommerce performance

Similar a How do you compare? Leveraging insights from IBM’s Retail Benchmark to make the most of your eCommerce performance (20)

Último

Último (20)

How do you compare? Leveraging insights from IBM’s Retail Benchmark to make the most of your eCommerce performance

Notas del editor