Should anyone still need convincing that delivering a unified shopping experience is a priority, the latest data from the MarketLive Performance Index proves it — and reveals the leaders of the pack in cross-touchpoint effectiveness: brick and mortar retailers.
It may seem surprising to spotlight retailers for online performance, given that the category’s conversion rate lags other categories overall, and abandonment is among the highest in the Index. But retailers have managed to do something no other sector in the Index has: they’ve accumulated steady gains in conversion and revenue across both mobile devices and desktop and laptop browsers — signaling that they seem to be navigating the rough seas of cross-touchpoint commerce more successfully than other merchants.
Happily, every sector is realizing significant gains when it comes to smartphone shopping. But, as we discussed in our coverage of the previous volume of the Index, the tables have now completely turned when it comes to performance by screen; whereas just a year ago, lagging smartphone performance was responsible for tempering overall Index results, now it’s desktop and laptop sessions that are failing to pull their weight. And because the vast majority of shoppers who transact online opt to do so on the big screen, overall Index performance is suffering.
One reason retailers are bucking the trend may be that they’ve contended with at least two consumer audiences since the earliest days of eCommerce: those looking to buy online, and those researching online prior to visiting physical stores. Retailers were also among the first to feel mobile’s influence, as on-the-go shoppers demanded access to store information from their devices and began using early “showrooming” tools such as RetailMeNot to check prices while in stores.
(Catalogers, too, have potentially served online and offline audiences simultaneously, but in reality most cross-touchpoint catalog traffic has been one-way, with printed catalog browsers turning to their computers to place orders efficiently rather than online searchers discovering the brand through the Web site before ordering offline.)
While the challenges and opportunities for retailers are in some aspects unique, it can be instructive for merchants to study leading brick-and-mortar merchants in their own product category. And while it’s foolhardy to play “keep up with the Joneses,” such analysis can reveal fresh approaches to audience engagement and new features and functionality that may be worth consideration. Among the best practices leading retailers in the Index demonstrate:
They work hard to engage visitors past the “one and out.” In addition to maintaining growth in revenue and conversion, retailers are holding the line on the bounce rate, the percentage of visits ending after a single page. The overall bounce rate for retailers grew just 5.3% year over year, to 31.5% — significantly lower than the 19.8% growth in the bounce rate for the index overall, to a high of over 40%.
To achieve that engagement, retail merchants are developing content that informs purchase decisions and encourages participation from brand followers, with a focus on visual elements such as video and hashtag campaigns for user-submitted photos.
MarketLive merchant Beauty Brands puts the focus on individual brands sold online and in stores with rich content. From a “brands” button in the global navigation, shoppers can access extensive brand stories, how-to videos, and shade-matching charts, along with individual products sorted by sub-category. An inspiration page displays user-submitted photos from Instagram and other social sites.
They encourage, rather than discourage, cross-touchpoint usage. Successful brick-and-mortar retailers devote significant space on their eCommerce sites to describing the in-store experience and encouraging store visits, and provide the tools to enable a smooth transition. In going beyond a listing of store hours and locations, these merchants develop continuity across channels and distinguish their brands from mass merchants by promoting a unique shopping experience.
MarketLive merchant Design Within Reach encourages visits to its “design studios” in a set of dual home page promotions. The store locator page includes a photo gallery and an enticing description that promises “you’ll never see a ‘do not touch’ sign.” A second promotion specifically spotlights the brand’s design consulting services – emphasizing the high level of in-house expertise that stands behind the brand. Shoppers can make appointments online using a simple-to-navigate interface. Further along the path to purchase, shoppers can save the contents of their shopping cart for quick retrieval later on another screen or in the store.
They cater to return as well as new visitors on smartphones. With the recent hand-wringing about “Mobilegeddon”, the skyrocketing costs for mobile paid search, and the hype about mobile “buy” buttons in search and social media, it seems that merchants are focusing mobile efforts predominantly on acquisition. But they would do well to take a page from leading retailers who are focusing just as intently on supporting existing customers — whether through mobile tools for loyalty club members, mobile apps for those familiar with the brand, or personalized paths to purchase that take into account prior browsing and buying behavior. Such efforts to engage returning customers have the potential to pay off handsomely, as returning customers currently comprise 40% of the eCommerce customer base, but account for 61% of total online revenues.
MarketLive merchant Cost Plus World Market fully supports its Explorers Club loyalty program via smartphone, with the capability to sign up and check rewards status via the mobile site. In-store shoppers are reminded to avail themselves of discounts using their mobile devices, thereby encouraging usage.
Download the latest Performance Index report for further data, including results by sector and product category, and read the official press release for more details. What retailer innovations have you adapted, if any? What retail brands are you watching?