The MarketLive Performance Index                         TMQ3 2011 Update: Anticipating the holiday rush                  ...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
The MarketLive Performance IndexTM Vol. 16                                                      Q3 2011 Update: Anticipati...
For more information: www.marketlive.comHEADQUARTERS:MarketLive, Inc. • 617 B 2nd StreetPetaluma, California 94952Main: 1-...
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Marketlive perf-index-v16

  1. 1. The MarketLive Performance Index TMQ3 2011 Update: Anticipating the holiday rush U VOL METhe MarketLive Performance IndexTM - Volume 16>> www.marketlive.com 16
  2. 2. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush The MarketLive Performance IndexTM - Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush The MarketLive Performance IndexTM represents the pulse of e-retailing. In it, aggregate data from a robust range of merchants is tied to actionable tactics to drive eCommerce success. Using previously undervalued performance metrics, the MarketLive Performance Index provides a holistic view of consumer behavior. Ken Burke Chairman, Founder, & Chief Evangelist, MarketLive, Inc. Jaye Sullivan Senior eCommerce Strategist, MarketLive, Inc. Catherine Thorpe Research Specialist, MarketLive, Inc. For more information about this report, contact MarketLive, Inc. www.marketlive.com 877-341-5729The MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 2
  3. 3. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday RushAs the crucial holiday season approaches, merchants are once again Still, these statistics are reason for merchants to take heart:poised for solid gains in online sales. Forecasters are predicting a there are ways to engage shoppers beyond simply instituting deep13.5% increase in online sales – slightly less robust than 2010, but discounts. The key is to communicate the value of the brand and thestill potentially a bright spot amidst what may be an otherwise-tepid products on offer, during every phase of the holiday season. Tacticsseason. i to try:Third-quarter data from the MarketLive Performance Index indicates Early season: encourage immediate purchasesmerchants are in a strong position to take advantage of holidayopportunities. From July 1 to September 30, Index merchants saw Counteract shoppers’ instincts to hold out for better bargains withsolid gains in visitors and revenue, with conversion also inching irresistible promotions early in the season. These offers needn’tupward by 5.24%, to 4.66%. slash prices, but can focus on the convenience of beating the holiday rush and the security of knowing sought-after items will be in stock. MarketLive Performance Index: Year Over Year Comparison Metric Q3 2010 Q3 2011 % difference • Promote pre-season bargains. Target’s home page promotion Visits 15.95% similarly mentions holidays explicitly with the tag line “Cyber Revenue 18.14% Monday deals before November” — promising shoppers they’ll Conversion rate 4.43% 4.66% 5.24% find discounts now that are as enticing as what will be offered Cart abandonment rate 61.41% 61.48% 0.12% later in the season, when much-hyped shopping days such as “1-and-out” rate 31.82% 36.57% 14.91% Black Friday (the Friday after Thanksgiving) and Cyber Monday Engagement rate 9.66% 10.48% 8.47% Source: The MarketLive Performance Index Vol. 16. YOY figure compares performance (the Monday after Thanksgiving) drive frenzied sales spikes. for sites included in the Index in both 2010 and 2011.The data also highlights a potential challenge for merchants –engaging shoppers beyond the first page of the site. Like in thesecond quarter, the year-over-year data for the third quartershows a marked increase in the “1-and-out” rate, which measuresthe percentage of visits ending after just one page. In the thirdquarter, the “1-and-out” rate increased by nearly 15%, suggestingthat increased traffic is also bringing more visitors whose aren’timmediately connecting with products or offers that meet theirneeds. The incentive to engage those “1-and-out” visitors is high • Play up scarcity. Merchants should prominently promote– merchants have the opportunity to see even larger gains in new arrivals, holiday-specific products and popular gifts —engagement, conversion and sales if they succeed. and, especially in the early going, message the convenience of purchasing now rather than scrambling to find items later. For example, retailer Toys “R” Us has already published its 2011As the peak holiday season begins, the potential rewards are great. Hot Toy List of popular gifts; product pages emphasize scarcityWith continuing economic uncertainty fueling a conservative by limiting the number of items purchased per customer andoutlook, shoppers nonetheless report they plan to maintain holiday encourage immediate purchase with a free shipping discount.spending at levels on a par with last year. According to new datafrom the MarketLive/e-Tailing Group Holiday Shopping Survey,ii fully87% of consumers plan to shop online at least as much as they didlast year, if not more. And a majority of shoppers – 56% – reportthey’ll spend the same amount as they did last year, with 7% sayingthey’ll spend more.Of course, there will be plenty of bargain hunters roaming the Webfor deals, with 37% of shoppers reporting they intend to spend lessthis year. And regardless of their budgets, consumers will use theWeb to hunt for deals, with 61% of shoppers saying they intend toresearch products online before making offline purchases, accordingto the survey.The MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 3
  4. 4. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday RushPeak buying: spotlight “white glove” customer • Message those timelines. Position messaging about deliveryservice (think shipping) cutoff dates prominently across all your brand properties. The more detailed the information, the better — and don’t forgetShoppers’ relentless focus on the bottom line can be an opportunity to pair it with instant access to customer service through allfor merchants to emphasize the value of stellar customer service. available channels — including phone, live chat, email, andMake customer service information especially prominent — not only Twitter. During the 2010 holiday season, home furnishingson your eCommerce site, but also on social outposts and your mobile manufacturer Cuddledown featured a countdown clock onsite. After all, what’s the use of scoring the lowest possible price for its homepage to drive home the importance of purchasinga product if it doesn’t end up arriving in time, or if confusion over a immediately, and offered a detailed map showing delivery cutoffreturn or exchange policy mars the purchase experience? zones across the country. Shoppers could quickly scan the map, locate their delivery zone and get a precise cutoff date for theirFirst and foremost, put a special emphasis on shipping. From a area.marketing standpoint, shipping discounts are the top promotionsonline buyers seek during the holidays — so featuring themprominently is a winning strategy to boost sales. And from a servicestandpoint, clear communication over delivery options and timelineshelps shoppers complete purchases in time and within their budgets. • Promote the service advantage of site-to-store purchasing. To encourage shoppers to buy online rather than simply heading to the store without completing purchases first, stress the convenience of site-to-store pickup — Sears does in its “5 Minutes or $5” promotion. Customers presenting an email purchase confirmation in the store will receive their items within five minutes, or else they’ll get a $5 coupon.The MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 4
  5. 5. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday RushLast-minute frenzy: cater to shoppers on the go Conclusion: Strategies for holiday successAs shipping deadlines pass, put the focus on connecting shoppers The 2011 holiday season promises to be strong for eCommercewith products in bricks-and-mortar stores, as available. With mobile merchants. Those who reap the greatest rewards will find innovativedevices and social networks playing a central role, it’s crucial to ways to communicate value – through early purchase incentives, amessage in-store events and specials beyond the eCommerce site. spotlight on service and a seamless cross-touchpoint experience toTo reach shoppers on the go: ease the last-minute holiday frenzy. • Don’t neglect social-to-store possibilities. Use your For more holiday strategies, be sure to register for MarketLive’s 2011 Facebook page and Twitter feed to keep shoppers apprised Consumer Shopping Survey and Holiday Strategies Webinar October of the latest in-store holiday happenings. Train social media 26, presented in conjunction with the e-Tailing Group. And visit our customer service staff to localize responses and help connect blog, marketlive-blog.com, for ongoing holiday updates throughout shoppers with in-store as well as online options for resolving the season. their questions. And integrate a “locations” application into your page, as Crate and Barrel has done – making it easy for social i Internet Retailer, “A Subdued Holiday Forecast,” Sept. 22, 2011, shoppers to find stores without leaving the social environment. http://www.internetretailer.com/2011/09/22/subdued-holiday-forecast ii MarketLive and the e-Tailing Group, “2011 Holiday Buying,” preliminary study results. For full survey data, sign up for the Oct. 26 Webinar, http://tinyurl.com/42abem8. • Tie your mobile store locator to in-store events. Holiday shoppers on the go should be able to find not only store hours and turn-by-turn directions, but also upcoming in-store events. And store locators aren’t just for brick-and-mortar retailers. Brand manufacturers can get in on the act by pointing shoppers to partner retailers who stock the brand’s products and participate in local or regional promotions. Beauty manufacturer Clinique displays which stores are featuring a “Bonus Time” with free sample giveaways and other goodies along with promotion dates.The MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 5
  6. 6. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush MarketLive Performance Index Overall (Average All Sites) - Q3 2011 a. Comparison Data Quarter Over Quarter Metric Q2 2011 Q3 2011 % Difference Overall Conversion Rate 5.04% 4.55% -9.72% Overall Cart Abandonment Rate 59.54% 61.48% 3.26% "1-and-out" - % of all visits 33.81% 35.97% 6.39% Engagement Rate (Visits to Carts) 10.97% 10.42% -5.01% Year Over Year Metric Q3 2010 Q3 2011 % Difference Overall Conversion Rate 4.02% 4.55% 13.18% Overall Cart Abandonment Rate 62.25% 61.48% -1.24% "1-and-out" - % of all visits 32.86% 35.97% 9.46% Engagement Rate (Visits to Carts) 9.15% 10.42% 13.88% b. Detailed Data Conversion Average Overall Conversion Rate 4.55% Abandonment Average Overall Cart Abandonment Rate 61.48% Checkout Abandonment Rate 18.01% Revenue Average Average Order Size $147.28 Revenue Per Visit $5.26 Engagement Average Engagement Rate (Visits to Carts) 10.42% "1-and-out" - % of all visits * 35.97% Home page "1-and-out" - % of all visits 7.49% Pages Per Visit 11.43 % of Sites with Reviews 62% Average Customer Acquisition Traffic All Search Engines 35.69% Bookmarked/Typed 30.01% Social Networks 2.88% Other 31.42%The MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 6
  7. 7. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush MarketLive Performance Index Catalogers - Q3 2011 a. Comparison Data Quarter Over Quarter Metric Q2 2011 Q3 2011 % Difference Overall Conversion Rate 6.62% 5.91% -10.73% Overall Cart Abandonment Rate 52.40% 55.29% 5.52% "1-and-out" - % of all visits 34.08% 34.24% 0.47% Engagement Rate (Visits to Carts) 12.64% 12.16% -3.80% Year Over Year Metric Q3 2010 Q3 2011 % Difference Overall Conversion Rate 5.43% 5.91% 8.84% Overall Cart Abandonment Rate 56.03% 55.29% -1.32% "1-and-out" - % of all visits 32.54% 34.24% 5.22% Engagement Rate (Visits to Carts) 10.87% 12.16% 11.87% b. Detailed Data Conversion Average Overall Conversion Rate 5.91% Abandonment Average Overall Cart Abandonment Rate 55.29% Checkout Abandonment Rate 9.44% Revenue Average Average Order Size $170.54 Revenue Per Visit $7.12 Engagement Average Engagement Rate (Visits to Carts) 12.16% "1-and-out" - % of all visits * 34.24% Home page "1-and-out" - % of all visits 6.98% Pages Per Visit 12.93 % of Sites with Reviews 68% Average Customer Acquisition Traffic All Search Engines 30.59% Bookmarked/Typed 31.77% Social Networks 2.71% Other 34.92%The MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 7
  8. 8. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush MarketLive Performance Index Brick-and-Mortar Retailers - Q3 2011 a. Comparison Data Quarter Over Quarter Metric Q2 2011 Q3 2011 % Difference Overall Conversion Rate 1.91% 1.65% -13.61% Overall Cart Abandonment Rate 74.21% 74.30% 0.12% "1-and-out" - % of all visits 30.91% 34.61% 11.97% Engagement Rate (Visits to Carts) 6.24% 5.52% -11.54% Year Over Year Metric Q3 2010 Q2 2011 % Difference Overall Conversion Rate 1.42% 1.65% 16.20% Overall Cart Abandonment Rate 74.51% 74.30% -0.28% "1-and-out" - % of all visits 29.30% 34.61% 18.12% Engagement Rate (Visits to Carts) 5.03% 5.52% 9.74% b. Detailed Data Conversion Average Overall Conversion Rate 1.65% Abandonment Average Overall Cart Abandonment Rate 74.30% Checkout Abandonment Rate 26.54% Revenue Average Average Order Size $139.78 Revenue Per Visit $1.78 Engagement Average Engagement Rate (Visits to Carts) 5.52% "1-and-out" - % of all visits * 34.61% Home page "1-and-out" - % of all visits 8.26% Pages Per Visit 10.79 % of Sites with Reviews 43% Average Customer Acquisition Traffic All Search Engines 50.17% Bookmarked/Typed 29.51% Social Networks 1.27% Other 19.07% * “1-and-out” measures the number of single-page visits to the siteThe MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 8
  9. 9. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush MarketLive Performance Index Brand Manufacturers - Q3 2011 a. Comparison Data Quarter Over Quarter Metric Q2 2011 Q3 2011 % Difference Overall Conversion Rate 2.77% 2.58% -6.86% Overall Cart Abandonment Rate 69.33% 70.74% 2.03% "1-and-out" - % of all visits 38.77% 43.52% 12.25% Engagement Rate (Visits to Carts) 9.99% 9.12% -8.71% Year Over Year Metric Q3 2010 Q3 2011 % Difference Overall Conversion Rate 2.90% 2.58% -11.03% Overall Cart Abandonment Rate 66.36% 70.74% 6.60% "1-and-out" - % of all visits 36.86% 43.52% 18.07% Engagement Rate (Visits to Carts) 8.71% 9.12% 4.71% b. Detailed Data Conversion Average Overall Conversion Rate 2.58% Abandonment Average Overall Cart Abandonment Rate 70.74% Checkout Abandonment Rate 38.86% Revenue Average Average Order Size $71.67 Revenue Per Visit $2.08 Engagement Average Engagement Rate (Visits to Carts) 9.12% "1-and-out" - % of all visits * 43.52% Home page "1-and-out" - % of all visits 8.57% Pages Per Visit 6.69 % of Sites with Reviews 57% Average Customer Acquisition Traffic All Search Engines 39.41% Bookmarked/Typed 24.23% Social Networks 1.39% Other 34.97% * “1-and-out” measures the number of single-page visits to the siteThe MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 9
  10. 10. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush MarketLive Performance Index Apparel, Footwear, Accesssories - Q3 2011 a. Comparison Data Quarter Over Quarter Metric Q2 2011 Q3 2011 % Difference Overall Conversion Rate 5.90% 4.99% -15.42% Overall Cart Abandonment Rate 57.71% 60.61% 5.03% "1-and-out" - % of all visits 28.91% 30.59% 5.81% Engagement Rate (Visits to Carts) 12.86% 11.86% -7.78% Year Over Year Metric Q3 2010 Q3 2011 % Difference Overall Conversion Rate 4.76% 4.99% 4.83% Overall Cart Abandonment Rate 60.14% 60.61% 0.78% "1-and-out" - % of all visits 27.14% 30.59% 12.71% Engagement Rate (Visits to Carts) 11.09% 11.86% 6.94% b. Detailed Data Conversion Average Overall Conversion Rate 4.99% Abandonment Average Overall Cart Abandonment Rate 60.61% Checkout Abandonment Rate 12.44% Revenue Average Average Order Size $213.48 Revenue Per Visit $7.71 Engagement Average Engagement Rate (Visits to Carts) 11.86% "1-and-out" - % of all visits * 30.59% Home page "1-and-out" - % of all visits 6.73% Pages Per Visit 13.05 % of Sites with Reviews 50% Average Customer Acquisition Traffic All Search Engines 26.41% Bookmarked/Typed 36.73% Social Networks 2.18% Other 34.68% * “1-and-out” measures the number of single-page visits to the siteThe MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 10
  11. 11. The MarketLive Performance IndexTM Vol. 16 Q3 2011 Update: Anticipating the Holiday Rush MarketLive Performance Index Housewares & Furniture - Q3 2011 a. Comparison Data Quarter Over Quarter Metric Q2 2011 Q3 2011 % Difference Overall Conversion Rate 7.92% 7.32% -7.58% Overall Cart Abandonment Rate 54.00% 55.53% 2.83% "1-and-out" - % of all visits 36.80% 37.54% 2.01% Engagement Rate (Visits to Carts) 13.54% 12.98% -4.14% Year Over Year Metric Q3 2010 Q3 2011 % Difference Overall Conversion Rate 6.13% 7.32% 19.41% Overall Cart Abandonment Rate 57.01% 55.53% -2.60% "1-and-out" - % of all visits 31.12% 37.54% 20.63% Engagement Rate (Visits to Carts) 10.95% 12.98% 18.54% b. Detailed Data Conversion Average Overall Conversion Rate 7.32% Abandonment Average Overall Cart Abandonment Rate 55.53% Checkout Abandonment Rate 12.55% Revenue Average Average Order Size $150.02 Revenue Per Visit $6.70 Engagement Average Engagement Rate (Visits to Carts) 12.98% "1-and-out" - % of all visits * 37.54% Home page "1-and-out" - % of all visits 7.26% Pages Per Visit 12.87 % of Sites with Reviews 75% Average Customer Acquisition Traffic All Search Engines 48.03% Bookmarked/Typed 28.09% Social Networks 0.25% Other 28.64% * “1-and-out” measures the number of single-page visits to the siteThe MarketLive Performance IndexTM Vol. 16 —Q3 2011 Update: Anticipating the Holiday Rush © MarketLive, Inc. 2011 11
  12. 12. For more information: www.marketlive.comHEADQUARTERS:MarketLive, Inc. • 617 B 2nd StreetPetaluma, California 94952Main: 1-877-341-5729 • E-mail: info@marketlive.com

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