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This week we’ve got some really juicy stats from Tesco, John Lewis’ Bear and Hare, Facebook and other more prosaic but useful numbers on mobile and retail.
Get stuck in and please send through any interesting titbits that may be worthy of inclusion next week.
For more internet marketing statistics, check out Econsultancy's Internet Statistics Compendium.
Tesco online: the numbers
Yesterday I heard a great talk from Niall Walsh of Tesco Group, who gave some great stats from Tesco’s online grocery store.
- Tesco online is in 11 markets, and is the market leader in six of those.
- The group employs 500,000 staff.
- The group provides for 75m shopping trips per week.
- Last year the grocery operation made £72bn in sales.
- The product range is over 20,000 items.
Multichannel customers are 2.2 times more valuable to Tesco than those that shop only in store. This is because online gets a greater share of an individual’s shop, with that customer then ‘topping up’ their weekly shop in store.
Only 25% of online shoppers make it from their first online shop to their third. That’s a big opportunity with the 75% that drop off. Once a customer has shopped three times online, they are generally very loyal to that particular online grocery.
In Poland, one of Tesco’s adverts, themed around Euro 2012, on Youtube was shot for a fraction of the price of TV and brought in 1m views. The city of Warsaw where the stores are only has a population of 2-3m.
Here’s another one of their ads on Youtube that’s has nearly 600,000 views since May 2013. Luckily you don’t need Polish to enjoy the ad.
Facebook Advertising and paid search return
Kenshoo has released new research findings in the white paper, “Added Value: Facebook Advertising Boosts Paid Search Performance.”
Kenshoo analysed recent paid search results for a leading retailer with more than 2,500 stores in the United States. Certain segments of the target audience were exposed to both paid search and Facebook advertising (“Search + FB”) while others were exposed to paid search alone (“Search Only”).
Notable findings from the study include:
- The data show that the Search + FB audience segments generated 30 percent more return on ad spend than the Search Only group during the period of analysis.
- Based on campaign analysis, Search + FB showed a 24% higher average order value which means that consumers who were exposed to social advertising were higher-value customers for this retailer.
- The Search + FB group generated a 7% higher click through rate than the Search Only group.
- The Search + FB group generated a 4.5% lower paid search cost per acquisition.
Bear and hare shares
Crimson Hexagon has used ForSight to breakdown and understand social media conversations around John Lewis’s bear and hare advert, part of John Lewis’s £7 million Christmas campaign spend.
The animated tale generated a total of 63,857 posts from the beginning of November to the 21st.
Social media shows how TV Christmas adverts are still an incredibly powerful way to engage with users:
- 69% of social media conversations about John Lewis’s bear and hare advert are positive, of which:
- 7% eagerly anticipate the festive season.
- 4% of those posting label it as a must see event.
- 6% of social media users discussing the advert comment on the music, namely how much they like Lilly Allen’s rendition of Keane’s ‘Somewhere only we go’.
- 30% of users say the ad is cute, evokes emotions or makes them cry.
- 6% of the conversations discuss it as the best Christmas advert of 2013.
- 5% of conversations are negative
- Less than 1% of users express a dislike for the music
- 2% of social media conversations talking about the ad argue it’s not as good as the other festive commercials
Content marketing by tactic
A great post here from Nick Carr including a breakdown of what content brands are producing.
Cart abandonment higher in the week
Q3 data from remarketing technology vendor cloud.IQ reveals online retailers on average experience cart abandonment at a 25% higher rate during the week than at the weekend. Wednesday’s saw the highest rate of abandoned carts.
Cart abandonment is a problem for any business selling online with 75% of consumers admitting they regularly abandon purchases at the checkout stage.
With abandonment rates at their lowest just before the weekend, cloud.IQ posits this is a good time to target your customers with cart recovery emails, although, of course, best practice will vary from business to business.
Mobile traffic to retailers increasing quicker
The percentage of traffic to UK retail websites coming from mobile devices is up by over 60%, year on year, in October 2013, according to the IBM Digital Analytics Benchmark.
Sales from mobile devices have increased by 80%.
IBM believes the increase in traffic and sales from mobile sites will continue to grow at the current rates.
Chris Withers, head of Smarter Commerce for retail, Europe, IBM says:
The big trends driving mobile - which include the increase in adoption of tablets and smartphones, plus the optimisation of retailer digital sites for mobile devices - will continue to be strong in 2014, and retailers need to assess the split between investment in their .com platform and their mobile offerings.
Comparing October 2012 to October 2013 in the UK, the IBM report found:
- October YoY online retail sales increased by 8.7%.
- Average Order Value is up by 3.8% YoY at £97.35.
- Mobile % of site traffic is up by over 60% YoY, Mobile % of sales is up over 80% YoY
- Smartphones drive more traffic than tablets (22.32% vs. 20.41%) but tablets drive nearly twice as many purchases as smartphones (20.19% vs. 11.3%).
- Looking at only mobile traffic, smartphones drive 52%, tablets drive 48%.
- Tablet users spend more average time on site compared to smartphone users (6:00 vs 4:19)
- Mobile traffic by device: iPad 17.18%; iPhone 13.41%
- Samsung accounts for 66% of all Android traffic (another way to look at it - Samsung accounts for or 7.12% of all online traffic).
Shared video online
The top ten of the year can be seen here.
With 4.24m shares, Dove’s real beauty ad tops the list. However, here’s my favourite from Cornetto, with 2.9m shares.
Clothing and personalisation
Lyris’ EIU study has produced lots of data. Including the following on the relationship between clothing retailers and their customers.
66% of consumers say that many personalised messages from clothing retailers are annoying because “attempts at personalisation are superficial.”
71% of consumers said they receive so many messages that use of their name no longer makes a difference. However, when they receive a message that includes details of previous transactions or other personal details, 25% say they take it more seriously.
75% of consumers seek information about pricing/promotions through branded digital channels over third party sites.
Banking, entertainment, media
The same study takes a look at various industry sectors. Here’s just a smattering.
- As banks try to regain trust, customer retention is now cited as the top marketing goal (42%), a significant jump from 23% five years ago (and much higher than the all industry average of 28%).
- 6% of consumers prefer to engage with banking brands using mobile apps, which is double the all-industry average.
- Online channels are seen as the most important, yet surprisingly executives are investing very little in mobile (66% invest only 1-10% of their marketing budgets).
- Marketing executives in entertainment have increased their focus on retaining customers and investing more in deep analysis of consumer data (from 20% five years ago to 27% today).
- Subsequently, marketers are also presenting more individualised offers (cited by 46% of executives, up from 26% five years ago).
- Disseminating messages across multiple touch points is most important marketing strategy for marketers in this sector (38% today, compared to 21% five years ago).
Order management systems desired
A new Forrester report produced with OrderDynamics has revealed optimisation of cross-channel fulfilment processes such as pickup in-store, ship-to-store and ship-from-store are being prioritised over other omnichannel tactics like single view of the customer and cross-channel loyalty programmes.
In-store pickup options provide retailers with greater in-store traffic and new opportunities for more cross-selling.
Retailers’ seemed warm to order management systems as part of their strategy, though only 49% of retailers currently use one.
- 85% of retailers stated a retail order management system would play an important role in the execution of their Omni-Channel strategy.
- 75% of the retailers surveyed believe an order management system will reduce inventory costs and improve fulfilment efficiencies.
- 63% of retailers are considering SaaS-based order management systems to support their rapidly evolving Omni-Channel initiatives.
And that's your lot. Come back next week or visit out Internet Statistics Compendium.