New tracking initiative suggests average percentage of sales over mobile jump from 0.4% to 3.3% within 18 months
New tracking initiative suggests average percentage of sales over mobile jump from 0.4% to 3.3% within 18 months
The results of a new tracking initiative launched by e-commerce trade body IMRG have revealed mobile sales shot up from an average of 0.4% of all e-commerce sales at start of 2010 to 3.3% in the second quarter of 2011/12.
The figures have been compiled in its new Quarterly Benchmarking Index, provided as an additional reporting tool to all participants in the IMRG Capgemini e-Retail Sales Index. This Index tracks over 40 key performance indicators (KPIs) across seven categories, leading to unique insights into the performance of the UK e-retail sector.
Rapid development for mobile channel
The Quarterly Index has been launched based upon six quarters of data and throughout that period, from its first quarter from February to April of 2010 up to the end of July 2011 as the second quarter of this year, the highest percentage of sales through mobile for participating retailers was just under 7%.
The percentage of visits via mobile also increased, from an average of 1.4% in Q1 2010/11 to 7% in the latest quarter. The rate of mobile visits was as high as 12% for some retailers.
In a sign that retailer sites were becoming more engaging for consumers, both checkout and basket abandonment rates also dropped over the last six quarters, from 37% to 32% and 63% to 59% respectively.
David J Smith, IMRG chief marketing and communications officer, commented: “Mobile has been discussed for a while now as an important channel for retailers to engage through, and with some retailers having up to 12% of their traffic coming through that channel, its popularity among consumers is clear. The Quarterly Index provides invaluable data for retailers that can greatly assist with spend decisions, for example revealing the best periods in the year for ROI [return on investment] and how your bounce rates compare with your competitors. This Index is open to retailers of all sizes and sectors and can perform an important role in helping to shape marketing strategies.”
Highlighting missed sales opportunities
Chris Webster, head of retail consulting and technology at Capgemini, added: “This Quarterly Index provides us with a unique set of data from online retailers. It allows us to monitor specific aspects of a business and discover emerging trends in consumer interaction, which ultimately provides retailers with the right intelligence to evolve their business accordingly.
“The report has revealed that the average basket abandonment rate for UK e-retailers is currently 59%. If we consider this in a physical sense, we can see how alarmingly high this figure is – if three fifths of shoppers, having chosen and queued, walked away from the till, shop keepers would clearly act. Likewise online businesses need to be similarly concerned and follow the example of the major e-retailers, such as Amazon. Clarity of pricing and delivery charges is essential, so there are no surprises at the checkout, and one click ordering is a very effective way to streamline the process through the checkout.”
The index categories/KPIs include visitor bounce and checkout abandonment rates, active customer retention rate and percentage of new customers, percentage of visits via mobile and ‘click & collect’ sales, and online and affiliate ROI, as well as order fulfilment and geographical sales splits.
IMRG added that around 20 retailers are currently participating in the IMRG Capgemini Quarterly Benchmarking Index, including Bank, Blacks, Boden, Clarks, Co-operative Travel, Crocus, Debenhams, Freeman Grattan Holdings, Home & Cook, JD Sports, John Lewis, Joules, Lyco, M and M Direct, Marks & Spencer, Matalan, Milletts, New Look, Schuh, Scott, Shop Direct & Size.
