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Ecommerce Quarterly

EQ4 2013:

Holiday Roundup
a publication from
EQ4 2013
Executive Summary .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  . ...
EQ4 2013
Executive Summary
A Record-Breaking Season of Firsts

And by looking at the retail landscape, it’s clear that thi...
EQ4 2013

In 2012, only one in five online purchases were made on a mobile device

EQ4 2013 also includes guest commentari...
EQ4 2013
About the EQ
As ecommerce companies look for ways to increase customer engagement

The EQ also includes Takeaways...
EQ4 2013
Ecommerce Holiday Highlights
The November to December time period is fiscal make-or-break time for

But as it has...
EQ4 2013

Average Order Value by Device
(Holiday Shopping Kickoff Period*)

While the five-day period in between Thanksgiv...
EQ4 2013
Conversion Rate by Device
(Holiday Shopping Kickoff Period*)
Overall

Takeaways
•	 Send smarter and relevant emai...
EQ4 2013
Mobile Takeover

MOBILE
COMMERCE

102%

Website Traffic by Device

One out of every three visits to leading ecomm...
EQ4 2013

Although smartphones are due their fair share of credit when it comes to

Furthermore, tablet’s massive year ove...
EQ4 2013
Average Order Value by Device
(November & December)
Traditional

$164.13

2013
2012

$133.45

22.98%

Year Over Y...
EQ4 2013
Focus on the Metrics that Matter
Peter Fader, Professor of Marketing at the

Which is why it intrigued me that du...
EQ4 2013
Holiday Is Getting Social
While it may not have the critical significance of mobile, social media is

On the oppo...
EQ4 2013
Your Personal Ecommerce Quarterly
Jeanne Jennings is Vice President of Global

Reports like this one give you a f...
EQ4 2013

Developing internal benchmarks isn’t difficult, but it does take time—time

at Average Order Value by State, fou...
EQ4 2013

Average Order Value

$85

Average Order Value

$160

$80

$140

$75
$70

$120

$65

$100

$60

$80

$55
$50

$60...
EQ4 2013

70%

As a result, I prefer to chart AOVs and other internal benchmarks as a

Average Order Value
Percent to Indu...
EQ4 2013
Benchmark Reports

SMARTPHONE

TABLET

OVERALL

Website Visits by Device

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 ...
EQ4 2013

Conversion Rates

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

U.S.

2.85%

2.54%

2.67%

2.42%

3.06%

Internat...
EQ4 2013

SMARTPHONE

TABLET

OVERALL

Conversion Rates by Device

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Traditiona...
EQ4 2013
Add-to-Cart Rate by Referrer

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Email

11.37%

10.33%

10.09%

9.19%

...
EQ4 2013

SMARTPHONE

TABLET

OVERALL

Average Order Value by Device

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Traditi...
EQ4 2013

Browser Market Share

Q4 2012

Q1 2013

Q2 2013

Q3 2013

Q4 2013

Internet Explorer

36.68%

33.41%

31.64%

30...
EQ4 2013
Conversion Rates by State

Q4 2013

Conversion Rates by State

Q4 2013

Armed Forces - Europe

4.58%

South Dakot...
EQ4 2013
Average Order Value by State

Q4 2013

Average Order Value by State

Q4 2013

Armed Forces - America

$248.83

Lo...
EQ4 2013
Methodology
The EQ analyzes a random sample of over seven billion online shopping
experiences using “same store” ...
EQ4 2013
About Monetate
The Monetate Acceleration Cloud lets marketers understand their

Monetate generates billions of do...
Expert Optimization Resources
Valuable case studies, eBooks, white papers, webinars & infographics
monetate.com/resources
...
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Ecommerce Quarterly (EQ4 2013): Holiday Roundup

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The holiday 2013 ecommerce shopping season was full of record-breaking performances and significant growth in mobile.

Our latest edition of Ecommerce Quarterly examines the stories behind the numbers, and delves into what was trend-driven and statistically significant during holiday 2013—and what was a result of an anomalous season. Plus, you’ll get insight into what you should do over the course of this year to get ready for holiday 2014.

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Transcript of "Ecommerce Quarterly (EQ4 2013): Holiday Roundup"

  1. 1. 4 Ecommerce Quarterly EQ4 2013: Holiday Roundup a publication from
  2. 2. EQ4 2013 Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 About the EQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Ecommerce Holiday Highlights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Mobile Takeover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Focus on the Metrics that Matter . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Holiday is Getting Social . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Your Personal EQ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Benchmark Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Methodology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 About Monetate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
  3. 3. EQ4 2013 Executive Summary A Record-Breaking Season of Firsts And by looking at the retail landscape, it’s clear that this massive online Holiday 2013 was unlike any other holiday season in recent memory. A take was crucial for overall holiday success. retail perfect storm combined a later-than-usual Thanksgiving (resulting The US Department of Commerce states that 2013 online sales grew in a truncated shopping period of 26 days compared to 32 in 2012), frigid 12% over 2012 1, while overall retail growth in the US was up a less- weather that kept shoppers indoors and out of the malls, and the once-in-a- than-anticipated 4.1%. According to the National Retail Federation, the lifetime event of the first night of Hanukkah coinciding with Thanksgiving. November to December shopping season generally accounts for 20 to To combat this unprecedented combination of events, retailers compensated by starting Black Friday deals on Thanksgiving Day (or even earlier in the week), offering usual Cyber Monday deals on the weekend, and extending the online deals well beyond Monday, in essence creating a 40% of retailers’ annual sales 2 (with the weekend after Thanksgiving alone making up 10 to 15% of those sales). In line with previous years, this past two-month season accounts for 27% of total annual sales for the average US retailer. Cyber Week. All in all, it made for a season full of big wins and key learnings So considering the breadth of the brick-and-mortar vs. online sales to help navigate holiday 2014. disparity, ecommerce truly proved to be the saving grace in what was an The November to December retail period showed huge, record-breaking numbers. Cyber Monday was the most lucrative online shopping day in history, with an impressive $2 billion tally. And it was joined with nine other billion-dollar-plus ecommerce days. otherwise not-quite-stellar holiday season. So what was the main driver of this ecommerce explosion? In one word: Mobile. a monetate publication | 2
  4. 4. EQ4 2013 In 2012, only one in five online purchases were made on a mobile device EQ4 2013 also includes guest commentaries by renowned Wharton (phone and tablet). This year, that number jumped to one in three, growing professor Peter Fader, who discusses the importance of focusing on the approximately 50% in one year. Mobile has effectively changed the holiday metrics that are truly relevant, and by internationally recognized ecommerce landscape for good, and those who fail to embrace a mobile email marketing expert Jeanne Jennings, who explains how to most mindset will undoubtedly find their future holiday coffers filled with coal effectively use this EQ’s metrics and benchmarks and tailor them for your instead of cash. And with mobile comes social, which also had a role, albeit own business. not as large, in shaping the holiday 2013 retail climate. EQ4 2013 delves into what all of these facts and figures really mean: what’s trend-driven and statistically significant, what’s a result of this anomalous season, and what online retailers need to do over the course of this next year to prepare for holiday 2014. Cyber Monday was the most lucrative online shopping day in history, with an impressive $2 billion tally. a monetate publication | 3
  5. 5. EQ4 2013 About the EQ As ecommerce companies look for ways to increase customer engagement The EQ also includes Takeaways, ideas and best practices used by leading and sales in a highly competitive online environment, they’re faced with ecommerce websites, based on insights gained from the more than challenges centered on massive amounts of data. This big data conundrum seven billion online shopping sessions that contribute to the analysis and goes beyond the collection and storage of information about customers benchmark reports found in every release. and prospects. Using a combination of historical and real-time data allows ecommerce marketers to glean meaningful insights that result in more relevant shopping experiences that drive loyal customers who share their experiences with others. Ecommerce businesses that tackle big data head-on focus their attention on different customer segments that continue to be explored in every release of the Ecommerce Quarterly (EQ): • Predefined: New versus returning; referring traffic sources; technographics; geography. • Custom or Proprietary: Demographics; proximity to location. • On-Site Behavior: Shopping cart activity; brand or category affinity. • Behaviors Across the Web: Browsing and purchase patterns demonstrated on third-party websites. a monetate publication | 4
  6. 6. EQ4 2013 Ecommerce Holiday Highlights The November to December time period is fiscal make-or-break time for But as it has for four years running, Black Friday took a backseat to Cyber online retailers, and the 2013 holiday season certainly did not disappoint. Monday, its powerhouse online sibling. Cyber Monday has become a Overall, there was a 33.3% increase in the number of purchases made on leading retailers’ websites between Thanksgiving Day and Cyber Monday, and a $166.24 average order value (AOV) in that same period, which resulted in a 13.96% increase in AOV from last year. BLACK FRIDAY TOTAL REVENUE 68% Online spending on Black Friday soared to record highs as an everincreasing amount of customers chose to shop online rather than brave long lines (and the elements). Year over year, total revenue on Black Friday increased by 68% and conversion rates jumped from 3.53% to 4.51% for a 28% increase. Overall, website traffic jumped over 10%. Overall Average Order Values (November & December) Average Order Value by Device (Holiday Shopping Kickoff Period*) barometer for the holiday season’s overall success. And with massive amounts of dollars being spent, huge AOVs, and impressive conversion $165.22 2013 rates, this year was no exception. Overall $144.21 2012 Cyber Monday 2013 was the highest grossing online shopping day in 14.57% history at over $2 billion, and Cyber Monday itself continues to be the top Year Over Year Increase online sales day of the year. It held the year’s highest average conversion $167.31 2013 rate at 4.92%, which is a 20% conversion rate jump from 2012’s spike at Traditional 4.1%. And the year-over-year conversion rate jump is more pronounced on $144.60 2012 Cyber Monday than during the two-month holiday period, which increased just 6.83% (from 2.78% to 2.97%). Tablet $162.80 2013 2012 15.71% Year Over Year Increase $142.64 Overall Conversion Rates (November & December) 14.13% Year Over Year Increase 2013 2012 $161.09 $133.08 2013 Smartphone 21% 2013 2012 2012 2.97% $133.60 2.78% $136.61 6.83% 2.20% Year Over Year Increase Year Over Year Increase Year Over Year Decrease *(11/23/2013 – 12/02/2013) a monetate publication | 5
  7. 7. EQ4 2013 Average Order Value by Device (Holiday Shopping Kickoff Period*) While the five-day period in between Thanksgiving and Cyber Monday used to be the most crucial timeframe for the holiday shopping season, that period has now extended and evolved into Cyber Week, with deals extending well beyond Monday. For the five days beyond Cyber Monday, 2013 saw a year-over-year increase in purchases of 22.74%, ecommerce Overall 2013 2012 $165.22 $144.21 conversion rates of 19.46%, AOV of 21.41%, total revenue of 46.84%, 14.57% and revenue per session of 44.43%. Revenue from shoppers on tablets Year Over Year Increase had the largest revenue increase at 152.68%, followed by smartphones at 108.58% and desktops and laptops at 33.54%. Traditional $167.31 2013 2012 $144.60 Overall, however, shoppers converted better across all channels and 15.71% devices throughout the entire holiday season, not just Black Friday and Year Over Year Increase Cyber Monday. The increase in conversion rates show that people were shopping with the intent to buy, not just browse. Tablet Overall Average Order Values (November & December) CYBER WEEK STAND-OUT STATS 2013 REVENUE PER SESSION 2012 44% CONVERSION RATE 19% 2012 $162.80 $142.64 14.13% Year Over Year Increase $161.09 AVERAGE ORDER $133.08 VALUE 21% 21% 2013 Smartphone 2013 2012 $133.60 $136.61 2.20% Year Over Year Increase Year Over Year Decrease *(11/23/2013 – 12/02/2013) a monetate publication | 6
  8. 8. EQ4 2013 Conversion Rate by Device (Holiday Shopping Kickoff Period*) Overall Takeaways • Send smarter and relevant emails promoting your holiday sales. Use realtime mechanisms like countdown clocks to create a sense of urgency, and open-time emails to geo-target shoppers with holiday offers specific to their location. Make sure you have continuity of experience between email and website, providing a consistent feel. 3.50% 2013 2.96% 2012 18.12% Year Over Year Increase Traditional 4.00% 2013 3.21% 2012 24.29% Year Over Year Increase Tablet 3.16% 2013 2.68% 2012 17.75% Year Over Year Increase Smartphone 2013 2012 1.18% • Use the lessons learned from the anomalies of this past season to prepare for holiday 2014. The crucial time period between Thanksgiving and Christmas will still be truncated, resulting in only two more days than this year. Think about starting your holiday sales well before the traditional Black Friday start of the season. And with the compressed holiday season making it all but mandatory for consumers to shop online over the weekend, it’s critical to bridge the gap between the consumer’s in-store and online shopping experiences through personalization and real-time marketing efforts. • Whether it be related to weather or unexpected demand, some leading retailers had trouble delivering purchases by a promised date. Retailers can begin differentiating themselves in this area by adding clarity to the shopping process. Let your customers know throughout the browsing and checkout process what items—and how many—are in stock, when those items will ship, and when they can expect to receive them. 0.93% 26.70% Year Over Year Increase *(11/23/2013 – 12/02/2013) a monetate publication | 7
  9. 9. EQ4 2013 Mobile Takeover MOBILE COMMERCE 102% Website Traffic by Device One out of every three visits to leading ecommerce websites now comes from either a tablet or smartphone—up from one out of five just last year— 12.21% and, overall, mobile ecommerce orders grew 102% year-over-year and accounted for 4.22% of holiday ecommerce orders. In particular, mobile traffic was responsible for almost 40% of Black Friday online traffic. On Black Friday, traffic stemming from tablets jumped a whopping 89.46% Q4 2013 14.58% 73.21% from last year (compared to a 66.09% increase for smartphones and a 5.80% decrease for traditional). The numbers are similarly impressive on Cyber Monday, where tablet traffic saw an uptick of 73.09%, while Traditional smartphones increased a solid 53.19% and traditional took a 9.77% Tablet nosedive from 2012. CHRISTMAS DAY TABLET TRAFFIC 47% 38.6% respectively from 2012, which could be the result of a slew of shiny 9.55% new toys under the tree, or consumers receiving gift cards and using them to start shopping the sales from the comfort of their couches. Smartphone 8.83% Christmas Day tablet and smartphone traffic were also up 46.9% and Q4 2012 a monetate publication | 8 81.62%
  10. 10. EQ4 2013 Although smartphones are due their fair share of credit when it comes to Furthermore, tablet’s massive year over year spike of 53% of market traffic, it’s clear that, when it comes to AOV, the true mobile superstar of share also shows how rapidly the tablet is becoming the device of choice the holidays is the tablet. for shoppers. Smartphones, too, have seen a big percentage jump year During the November/December shopping season, AOV for tablets was $153.44, compared to smartphones’ $129.42. AOV for traditional hovered over year in market share, but, relatively, their overall percentages are still quite low. at $164.13, which shows that tablets are comparable to desktops and If the upward trend continues and tablets continually become a more laptops in that shoppers will buy on them, whereas consumers are more integral part of the consumers’ shopping experience, tablets may very likely to use smartphones to browse or as entertainment. Year over year, well overtake laptops and desktops as the shopping vehicle of choice AOV for tablets continued its growth trajectory at a healthy 17.27%, while come holiday 2014. smartphones were relatively stagnant at .5%. a monetate publication | 9
  11. 11. EQ4 2013 Average Order Value by Device (November & December) Traditional $164.13 2013 2012 $133.45 22.98% Year Over Year Increase Tablet 2013 2012 $153.44 $130.84 17.27% Year Over Year Increase Smartphone 2013 2012 $129.42 $128.75 Takeaways • Tablets represented a huge revenue driver this holiday season, just as previous years’ performance data predicted. Marketers who were unprepared to provide customers with a winning tablet experience this past season should take this lesson to heart when looking to the year ahead. • Mobile optimization has to be a crucial part of your holiday strategy. Make sure that all messages render properly across all screens and devices. Use responsive or fluid design to increase mobile openings and engagement. Ensure that shoppers are having good user experiences, which, in turn, build brand affinity and revenue-building loyalty. • Growth rates from the weekends leading up to Christmas—which have traditionally been light—have jumped to almost four times what’s being seen in the work week. This could be attributed to the fact that people are shopping more from their tablets at home on the weekends rather than from their office desktops during the week. .50% Year Over Year Increase a monetate publication | 10
  12. 12. EQ4 2013 Focus on the Metrics that Matter Peter Fader, Professor of Marketing at the Which is why it intrigued me that during the holidays, news outlets were Wharton School of the University of Pennsylvania focusing on the fact that despite Android’s dominance over iOS in terms and academic Co-Director of the Wharton of sheer number of devices, the Apple products delivered more Christmas Customer Analytics Initiative, an academic sales than its better-selling competitor (16.29% better, with iOS averaging research center focused on the development and $150.87 compared to Android’s $129.73). So yes, maybe we’re selling application of customer analytic methods. more Android phones, but if consumers are doing less on it, than its net I find it frustrating that we’re always just saying; “How much more did contribution to the economy or the app environment is less. we sell of one phone than the other?” At the surface it’s like, ok, we’re We know that we’re using the phone as a platform for other kinds of things, comparing two operating systems. But while those numbers might be so we should judge it on that broader basis. When we look at all the other completely accurate—and I’m not arguing with their validity—they’re things that the people who are using iOS did, it’s clear that it’s much more getting only part of the picture. profitable and attractive than Android. And this knowledge gives us a new What interests me is that instead of looking at which of these two devices sold more, we’re starting to focus on what’s really relevant: which of the window to actually understand holiday sales more generally, and how to prepare for holiday seasons ahead. two was a portal to lots of other commerce that maybe have very little to do with the device itself. a monetate publication | 11
  13. 13. EQ4 2013 Holiday Is Getting Social While it may not have the critical significance of mobile, social media is On the opposite end, Pinterest has emerged as this season’s social superstar, becoming increasingly crucial for ecommerce success. with its conversion rate jumping 29.8% in just one year. Its more than 70 Looking solely at the numbers, social impact appears somewhat contradictory with regards to holiday ecommerce. Traffic originating from social sites increased 13.9% from 2012 to 2013, but there’s been a 15% drop in social conversion rate (from .87% in 2012 to .74% in 2013). million users looked increasingly toward the pin-centric site for holiday promotions and deals, and according to a recent survey by the Harvard Business Review, a full 21% of Pinners have bought an item after pinning, repinning it, or liking it 3. But at closer examination, it’s clear that the disconnect is a result of Takeaway Facebook’s declining traffic. Facebook’s conversion rate has plummeted by 26.27% in the past year. Around 75% of what’s considered social traffic is derived from Zuckerberg’s behemoth, so while it may appear that social is declining, the numbers are actually getting skewed by Facebook’s market domination. • Social users can be incredibly fickle. What’s the hottest social platform one year can be passé the next. It’s not uncommon for social networks to skew the metrics and hide the more interesting and actionable figures. It’s important to look closely at the data to identify areas of opportunities to engage users where they’re most active (i.e., Pinterest vs. Facebook) and to understand the true trends taking place. a monetate publication | 12 PINTEREST CONVERSION RATE 30%
  14. 14. EQ4 2013 Your Personal Ecommerce Quarterly Jeanne Jennings is Vice President of Global Reports like this one give you a framework—you can see how smart Strategic Services for Alchemy Worx, a leading analytical minds are looking at, parsing and manipulating data to gain email marketing agency, and an internationally insight into online marketing performance. A large part of the value lies recognized expert in the field of email marketing. not so much in the end result, but in the formulas used to get there. These formulas give you the groundwork you need to develop your own internal Here, Jeanne walks you through how to build your own personal EQ. benchmarks and allow you to gauge your current and future performance against your own past performance, as well as against industry trends. I’m a huge fan of metrics and benchmarks—in fact, I collect them. But industry benchmarks are a somewhat controversial concept in the online marketing world. Even in the Methodology section of this report it’s said, “These averages are published only to support the analysis...and are not intended to be benchmarks for any ecommerce business.” So why publish average metrics if you don’t suggest they be used as industry benchmarks? And what benefit can you get from this report full of data if you don’t use the numbers as benchmarks for your own results? Pull your own data, develop and chart your internal benchmarks and then compare your performance trends to the industry trends provided here. Then you’ve got the analysis you need to identify key variances, investigate them and make qualitative changes to improve your ecommerce marketing programs. - Jeanne Jennings, Vice President of Global Strategic Services, Alchemy Worx a monetate publication | 13
  15. 15. EQ4 2013 Developing internal benchmarks isn’t difficult, but it does take time—time at Average Order Value by State, found on page 25. (If you’re divvying up that many marketers don’t feel they have. It also takes some thought your marketing spend by state, this would be an important metric for you. to get it right. Here’s a quick start guide to help build your own internal If not, it likely wouldn’t be. So, take or leave this as an internal benchmark benchmarks: depending on your current situation. For this simple exercise, let’s leave it.) 1. Determine which of the metrics or formulas presented here are Next, use your own data to calculate your internal AOV benchmarks. If most relevant to your business and which aren’t so relevant. you can get historic data to calculate past performance, by all means do. 2. Use your own data to calculate quarterly performance using the Here’s an example: formulas you’ve identified as speaking to your business goals. Your Email Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Revenue $129,875 $168,976 $197,653 $178,543 $197,654 3. Plot these internal benchmarks over time to Number of Orders 2,567 2,611 2,450 2,435 $69.27 $65.83 $75.70 $72.87 $81.17 Your Search 4. Compare the trends you see in your internal 1,875 Average Order Value identify peaks, valleys and trends. Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 $99,865 Revenue $105,670 $115,600 2,875 1,876 1,992 1,986 $55.31 $55.22 $56.33 $58.03 $50.28 Your Social understand what qualitative factors are causing $158,765 2,146 Average Order Value 5. Analyze the elements impacting your program to $120,080 Number of Orders benchmarks to trends in industry averages. Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 $234,789 Revenue $135,678 $165,432 $176,431 2,250 2,556 2,875 3,267 3,554 Average Order Value Let’s walk through a simple exercise, using the information found in this $126,700 Number of Orders your performance to improve—or decline. $56.31 $53.08 $57.54 $54.00 $66.06 Q4 2013 I’m a fan of any metric that includes revenue, so let’s start by looking at Q4 2012 Q1 2013 Q2 2013 Q3 2013 $115.19 $108.13 $117.36 $112.01 $123.92 Monetate Search AOV EQ4 2013, to get you started. Monetate Data Monetate Email AOV $127.83 $138.43 $144.82 $151.96 $150.83 Monetate Social AOV $90.27 $90.51 $94.18 $93.49 $110.82 Average Order Value by Traffic Source, found on page 22. Now let’s look a monetate publication | 14
  16. 16. EQ4 2013 Average Order Value $85 Average Order Value $160 $80 $140 $75 $70 $120 $65 $100 $60 $80 $55 $50 $60 $45 Q4 2012 Q1 2013 Your Email AOV Q2 2013 Your Search AOV Q3 2013 Q4 2013 Q4 2012 Your Social AOV Q1 2013 Monetate Email AOV Q2 2013 Q3 2013 Monetate Search AOV Q4 2013 Monetate Social AOV Once you have the numbers, use a line chart, like the one above, to visually Here is where we come back around to the value of industry average show performance over time. You might also chart this year over year, with performance. One way to look at your internal performance compared to a different line for each calendar or fiscal year. industry performance is to chart it all together on the same graph, as above. So what does this chart tell you? You can see your own absolute performance What I don’t like about this is that it’s too easy to just say “we’re below the and you can see your own trends. But is email really the rockstar that it industry average,” throw up your hands and walk away. Here’s the thing: appears to be? And were search and social truly on par with each other until it’s not about the absolute data value of the industry average—it’s about this last quarter when there was a huge divergence? Yes and no. the trend over time. a monetate publication | 15
  17. 17. EQ4 2013 70% As a result, I prefer to chart AOVs and other internal benchmarks as a Average Order Value Percent to Industry Benchmark percentage of the industry averages (see left). I think this makes for a cleaner chart (three lines instead of six, in this case) and it removes the “absolute dollar value” bias to allow for a clearer focus on trends. 65% 60% So how are our AOVs doing compared to the industry averages? Looking 55% at the chart above we can clearly see that email is doing well—it’s trending 50% upwards, improving more than the industry average is. 45% Search and social, which seemed on par, are actually doing very differently 40% with respect to what the rest of the industry is seeing. Social has tracked 35% the industry average fairly closely at a consistent 60% of performance. But Q4 2012 Q1 2013 Your Email AOV % to Industry Benchmark Q2 2013 Q3 2013 Your Search AOV % to Industry Benchmark search is another story—it has been losing ground compared to what the Q4 2013 Your Social AOV % to Industry Benchmark industry as a whole is seeing. Once you’ve analyzed your performance compared to industry trends, it’s time to dive deeper and look for the reasons behind the numbers. Set aside Take the AOV metric we’ve been working with, for example. The absolute some time to develop your own personal Ecommerce Quarterly report for value of an average order varies widely. Ecommerce companies selling your organization. Pull your own data, develop and chart your internal high-ticket items will almost always have a higher AOV than those selling benchmarks and then compare your performance trends to the industry low-ticket items, even if they are in the same industry. Although the dollar trends provided here. Then you’ve got the analysis you need to identify key values may be widely different, the trends in AOV should be the same no variances, investigate them and make qualitative changes to improve your matter the absolute dollar value. ecommerce marketing programs. a monetate publication | 16
  18. 18. EQ4 2013 Benchmark Reports SMARTPHONE TABLET OVERALL Website Visits by Device Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Traditional 81.62% 79.82% 78.79% 76.13% 73.21% Tablet 9.55% 11.20% 11.96% 13.21% 14.58% Smartphone 8.83% 8.98% 9.25% 10.67% 12.21% iPad 91.11% 90.55% 90.50% 88.93% 87.52% Kindle Fire 2.70% 1.93% 1.54% 1.43% 1.96% Android 6.19% 7.52% 7.96% 9.65% 10.53% iPhone 60.75% 62.65% 62.26% 60.75% 59.59% Android 38.33% 36.28% 36.51% 37.92% 39.05% Windows 0.92% 1.07% 1.24% 1.33% 1.36% Website Visits by Traffic Source Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Email 4.38% 3.76% 3.21% 2.82% 2.72% Search 29.81% 28.99% 29.86% 30.16% 32.61% Social 1.01% 1.04% 1.09% 1.12% 1.14% a monetate publication | 17
  19. 19. EQ4 2013 Conversion Rates Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 U.S. 2.85% 2.54% 2.67% 2.42% 3.06% International 1.65% 1.40% 1.21% 1.14% 1.17% Conversion Rates Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 New 2.18% 1.78% 1.78% 1.64% 2.11% Returning 3.30% 3.02% 3.16% 2.92% 3.54% Add-to-Cart Rates Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 U.S. 10.10% 9.20% 8.94% 7.25% 8.84% International 7.36% 6.22% 5.70% 5.09% 5.90% Add-to-Cart Rates Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 New 7.62% 6.74% 6.25% 5.16% 6.35% Returning 12.26% 10.98% 10.85% 9.02% 10.77% a monetate publication | 18
  20. 20. EQ4 2013 SMARTPHONE TABLET OVERALL Conversion Rates by Device Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Traditional 2.91% 2.58% 2.64% 2.47% 3.11% Tablet 2.43% 2.14% 2.28% 2.01% 2.59% Smartphone 0.86% 0.85% 0.88% 0.76% 1.01% iPad 2.49% 2.19% 2.35% 2.09% 2.72% Kindle Fire 1.51% 1.34% 1.40% 1.15% 0.82% Android 1.89% 1.69% 1.71% 1.44% 1.82% iPhone 0.90% 0.85% 0.91% 0.81% 1.09% Android 0.81% 0.85% 0.82% 0.69% 0.90% Windows 0.72% 0.76% 0.72% 0.59% 0.70% Conversion Rates by Traffic Source Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Email 2.14% 1.79% 1.79% 1.69% 2.28% Search 0.87% 0.68% 0.60% 0.54% 0.74% Social 3.31% 3.03% 3.07% 2.90% 3.84% a monetate publication | 19
  21. 21. EQ4 2013 Add-to-Cart Rate by Referrer Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Email 11.37% 10.33% 10.09% 9.19% 11.25% Search 7.47% 6.38% 6.20% 5.18% 6.53% Social 3.64% 3.08% 2.61% 1.98% 2.85% Average Page Views by Referrer Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Email 9.34 9.22 8.61 8.52 8.87 Search 9.05 8.62 8.25 7.91 8.04 Social 5.34 5.22 4.63 4.38 4.53 a monetate publication | 20
  22. 22. EQ4 2013 SMARTPHONE TABLET OVERALL Average Order Value by Device Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Traditional $144.36 $147.29 $151.46 $163.28 $165.85 Tablet $132.57 $133.12 $135.02 $149.57 $152.70 Smartphone $125.34 $110.47 $113.66 $109.29 $129.20 iPad $134.29 $135.54 $137.59 $153.15 $155.36 Android $98.78 $91.94 $94.47 $93.83 $109.80 Kindle Fire $111.46 $104.17 $101.89 $109.14 $123.44 iPhone $132.31 $113.79 $111.58 $111.00 $125.98 Android $113.61 $105.16 $118.20 $106.71 $135.75 Windows $106.76 $96.83 $91.66 $89.83 $106.15 Average Order Value by Traffic Source Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Email $127.83 $138.43 $144.82 $151.96 $150.83 Search $90.27 $90.51 $94.18 $93.49 $110.82 Social $115.19 $108.13 $117.36 $112.01 $123.93 a monetate publication | 21
  23. 23. EQ4 2013 Browser Market Share Q4 2012 Q1 2013 Q2 2013 Q3 2013 Q4 2013 Internet Explorer 36.68% 33.41% 31.64% 30.49% 25.08% Chrome 18.93% 21.13% 22.71% 23.03% 23.62% Mobile Chrome 0.36% 0.60% 0.91% 1.49% 2.16% Firefox 15.00% 14.69% 14.35% 13.45% 12.85% Mobile Safari 13.85% 15.46% 16.19% 17.72% 19.50% Safari 14.63% 14.29% 13.82% 13.49% 13.33% Kindle Fire 0.26% 0.22% 0.18% 0.19% 0.29% Opera 0.12% 0.01% 0.01% 0.01% 0.01% Other 0.16% 0.20% 0.19% 0.11% 3.16% a monetate publication | 22
  24. 24. EQ4 2013 Conversion Rates by State Q4 2013 Conversion Rates by State Q4 2013 Armed Forces - Europe 4.58% South Dakota 3.17% Pennsylvania 4.14% Nebraska 3.14% Wyoming 4.06% New Mexico 3.14% Armed Forces - Pacific 4.00% Oklahoma 3.13% West Virginia 3.90% Arizona 3.12% Armed Forces - America 3.88% Idaho 3.12% Delaware 3.74% Illinois 3.11% Connecticut 3.60% Iowa 3.10% Vermont 3.56% Tennessee 3.10% New Jersey 3.51% Kansas 3.06% Kentucky 3.50% South Carolina 3.05% Montana 3.46% North Carolina 3.05% New Hampshire 3.46% Utah 3.05% North Dakota 3.45% Massachusetts 3.04% Maryland 3.44% Alabama 3.04% Indiana 3.40% Arkansas 3.03% Colorado 3.39% Nevada 3.01% Alaska 3.37% Georgia 2.97% Wisconsin 3.36% Oregon 2.96% New York 3.34% California 2.86% Ohio 3.34% Florida 2.78% Rhode Island 3.32% Virginia 2.76% Maine 3.30% Texas 2.67% Mississippi 3.26% Hawaii 2.64% Michigan 3.24% Missouri 2.57% District of Columbia 3.24% Minnesota 2.38% Louisiana 3.22% Washington 2.23% a monetate publication | 23
  25. 25. EQ4 2013 Average Order Value by State Q4 2013 Average Order Value by State Q4 2013 Armed Forces - America $248.83 Louisiana $144.01 Armed Forces - Europe $189.96 Virginia $143.50 Armed Forces - Pacific $176.62 Arkansas $143.01 Colorado $175.31 New Hampshire $142.12 Texas $172.39 Arizona $141.09 District of Columbia $166.90 Iowa $140.96 Hawaii $166.55 Kansas $140.65 New York $162.21 Wisconsin $140.63 Alaska $159.44 Georgia $140.40 Illinois $158.28 Missouri $140.38 North Dakota $158.12 Nebraska $139.85 California $157.94 Rhode Island $138.77 Florida $156.40 Montana $137.80 New Jersey $153.55 Michigan $137.64 Oklahoma $153.06 Idaho $136.48 Nevada $152.28 Alabama $135.23 Utah $151.04 Mississippi $133.88 New Mexico $150.66 Indiana $133.83 Massachusetts $150.62 Tennessee $133.73 Connecticut $150.50 North Carolina $133.66 Delaware $149.02 Ohio $133.47 Minnesota $147.82 Vermont $132.35 South Dakota $147.21 Kentucky $131.29 Wyoming $146.34 South Carolina $130.71 Washington $146.21 Maine $124.93 Oregon $146.00 West Virginia $123.78 Maryland $144.16 Pennsylvania $120.97 a monetate publication | 24
  26. 26. EQ4 2013 Methodology The EQ analyzes a random sample of over seven billion online shopping experiences using “same store” data across each calendar quarter. Averages throughout the EQ are calculated across the entire sample. Key performance indicators, such as average order value and conversion rate, will vary by industry/market type. These averages are published only to support the analysis in each release of the EQ, and are not intended to be benchmarks for any ecommerce business. For all media inquiries, questions, and feedback regarding the information in this report, or to obtain copies of previous releases of the EQ, contact: Matt Helmke Director of Marketing Strategy (215) 987-4441 mhelmke@monetate.com References 1. Census Facts for Features: The 2013 Holiday Season, US Department of Commerce (January 2013) 2. Cautious Consumers Trim Holiday Gift Giving Budgets, National Retail Federation (October 2013) 3. How Pinterest Puts People in Stores, Harvard Business Review (August 2013) a monetate publication | 25
  27. 27. EQ4 2013 About Monetate The Monetate Acceleration Cloud lets marketers understand their Monetate generates billions of dollars of new revenue for businesses, customers’ situations, behaviors, and preferences, and act on those insights helping them grow 39% faster than the industry average. Brands such as with in-the-moment, relevant experiences, targeted to the right customer Best Buy, National Geographic, and Celebrity Cruises rely on Monetate to at the right time. The Monetate Acceleration Cloud runs above traditional put the customer first, creating stronger relationships that drive sustained infrastructure and is accessed through one seamless user interface. competitive advantage. a monetate publication | 26
  28. 28. Expert Optimization Resources Valuable case studies, eBooks, white papers, webinars & infographics monetate.com/resources Request a Demo Call 877-MONETATE (US) | +44 207 099 2101 (EMEA) | 484-323-6313 (everywhere else) demo.monetate.com US Sales & Service Call 877-MONETATE (US) monetate.com monetate.com/facebook monetate.com/twitter EMEA Sales & Service +44 207 099 2101 monetate.com/linkedin ©2014 Monetate Inc. All Rights Reserved
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