salesforce commerce cloud shopping index 2016

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Shopping Index 2016 Edition 2 This comprehensive report analyzes activity of more than 400 million shoppers worldwide to identify trends and opportunities for retailers to elevate the shopper experience and grow revenue. The Shopping Index measures the pace of digital shopping growth, assigning a numerical value to crucial shopper metrics.

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Page 1: Salesforce Commerce Cloud Shopping Index 2016

Shopping Index 2016 Edition 2

This comprehensive report analyzes activity of more than 400 million shoppers worldwide to identify trends and opportunities for retailers to elevate the shopper experience and grow revenue. The Shopping Index measures the pace of digital shopping growth, assigning a numerical value to crucial shopper metrics.

Page 2: Salesforce Commerce Cloud Shopping Index 2016

Shopping Index

Buying vs. Browsing

Mobile Surges

Discounts & Free Shipping On the Rise

Are Shoppers Ready for Bots?

Social is Happening, Especially on Phones

Rising & Falling

APPENDIX

3

4

5

6

7

8

9

10

Contents

Salesforce Commerce Cloud Shopping Index © 2016 salesforce.com, inc. This document contains archival information which should not be considered current and may no longer be accurate. Approved for unlimited distribution.

This comprehensive report analyzes the activity of more than 400 million shoppers worldwide to identify trends and changes in shopping activity.

The sample set of digital commerce sites included in the report represents more than 800 sites and spans 40 regions. The top five countries – United States, United Kingdom, Germany, France and Canada – represent approximately 60% of the sites.

To qualify for inclusion in the analysis set, a digital commerce site must have transacted throughout the analysis periods, in this case Q2 2016 and Q2 2015, and meet a monthly minimum visit threshold. Additional data hygiene factors are applied to ensure consistent metric calculation.

The Shopping Index is published quarterly. Data footnotes are noted inline throughout the report to provide additional clarity on analysis.

The Shopping Index is not indicative of the operational performance of the Salesforce Commerce Cloud, or its reported financial metrics including GMV growth and comparable customer GMV growth.

Methodology

Page 3: Salesforce Commerce Cloud Shopping Index 2016

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This report identifies trends and changes in year-over-year shopping activity, representing the truest picture of shopping today.

Shopping Index

The analysis reflects a comparison of digital commerce sites transacting in Q2 2016 and Q2 2015.

2016 Edition 2

SHOPPER SPENDThe change in the

number of shopper visits. -1%SHOPPING INDEX

+22%DIGITAL COMMERCE

GROWTH

The combined change in average order value and conversion rates.

SHOPPER ATTRACTION

24%

Growth = (∆ Shopper Attraction) x (∆ Shopper Spend)

Page 4: Salesforce Commerce Cloud Shopping Index 2016

The analysis reflects a comparison of digital commerce sites transacting in Q2 2016 and Q2 2015. Buying intent considers orders, checkout starts, baskets created and site searches.

Buying vs. BrowsingDigital commerce grew 22% in Q2, exceeding industry expectations. Shopping attraction, which measures visits to retail sites, increased 24%, outpacing the overall rate of digital growth. This highlights a fundamental shift that retailers now deal with – shoppers are making more visits, and doing so across multiple devices. We set out to quantify this new reality of omnichannel shopping by measuring which visitors are looking to buy and which visitors are just browsing. We call this new metric Buying Intent and found that 16% of shoppers show real buying intent in digital. Notably, mobile shoppers continue to send real buying signals, with Buying Intent increasing 8% on phones, the highest of any device.

MOBILE TABLET COMPUTER

16%BUYING

INTENT

BROWSERS

Intent is Up 8% on Phones

8%

20% 17%

14%

Page 5: Salesforce Commerce Cloud Shopping Index 2016

5

The analysis reflects a comparison of digital commerce sites transacting in Q2 2016 and Q2 2015. Percentages are rounded and may not always sum to 100%.

Shoppers placed more than double the number of orders on phones than on tablets in Q2. Phones again took order share from computers to narrow the gap. For a detailed look at mobile trends and best practices, read the Mobile Shopping Focus.

Mobile Surges

27%ORDERS

47%TRAFFIC

13%ORDERS

9%TRAFFIC

44%TRAFFIC ORDERS

61%

Page 6: Salesforce Commerce Cloud Shopping Index 2016

More orders are shipping for free as the old ‘ecommerce tax’ becomes a distant memory. Retailers lost some margin ground, as discount rate rose a full percentage point over last year.

Discounts & Free Shipping On the Rise

The analysis reflects a comparison of digital commerce sites transacting in Q2 2016 and Q2 2015. Discount rate is calculated as the discount on merchandise purchased and does not include items previously marked down.

AVERAGE ORDER VALUE

$12967%FREE SHIPPING

13%AVERAGE ORDER

DISCOUNT

Page 7: Salesforce Commerce Cloud Shopping Index 2016

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With all the industry talk about bots, it made sense to review the original shopping bot — the site search bar — to see how shoppers search for apparel. Black and white continue to dominate color searches, while denim proved to be the most popular search attribute.

Are Shoppers Ready for Bots?

The analysis includes digital commerce sites transacting in Q2 2016 and Q1 2015. The analysis was conducted with US apparel sites only.

1. Denim

2. Swim

3. Maxi

4. Crop

5. Leather

Top 5 Attributes INCLUDED IN SEARCHES

Top 5 Categories INCLUDED IN SEARCHES

1. Dress

2. Shoes

3. Shirt

4. Bag

5. Women

Top Shopper Searches

1. White

2. Black

3. Blue

4. Pink

6. Red

Top 5 Colors INCLUDED IN SEARCHES

Page 8: Salesforce Commerce Cloud Shopping Index 2016

Social media is becoming a bigger driver of traffic to retail sites, accounting for 2.7% of all digital traffic — up 55% over last year — and driving 1% of orders. Social drives an even greater share of mobile traffic, at nearly 4%.

Social Is Happening, Especially On Phones

The analysis reflects a comparison of digital commerce sites transacting in Q2 2016 and Q2 2015.

Social Share of Traffic

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

PHONES ONLY ALL DEVICES

Q2 Q3 Q3Q1Q4 Q4 Q2Q2 Q1

Page 9: Salesforce Commerce Cloud Shopping Index 2016

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The analysis reflects a comparison of digital commerce sites transacting in Q2 2016 and Q2 2015.

Discounts edged up one full percentage point, and

more orders shipped for free.

With traffic migrating to phones, overall conversion

rate was off 2%.Buying Intent on computers fell 1%, as more shoppers

turn to phones.

48% of all traffic is from phones.

MOBILE MOMENTUM Traffic to retail sites from

social channels accounts for 2.7% of all traffic, and nearly

4% of mobile traffic.

SOCIAL

Visits soared 24% globally, as digital continues to attract

shoppers.

VISITS

Rising

Falling&

SHOPPING ON COMPUTERS

CONVERSION RATE MARGINS

Page 10: Salesforce Commerce Cloud Shopping Index 2016

APPENDIX

Shopping Index

Global USA UK Germany France Canada

SHOPPING INDEX 22% 18% 21% 16% 24% 43%

SHOPPING ATTRACTION & GROWTH 24% 21% 23% 20% 25% 29%

SHOPPER SPEND GROWTH -1.4% -3.0% -1.2% -3.8% -1.2% 11.2%

Buying Intent

Country Computer Phone Tablet Total

GLOBAL 17% 14% 20% 16%

USA 16% 14% 18% 15%

UK 22% 17% 25% 20%

GERMANY 22% 19% 22% 21%

FRANCE 14% 14% 15% 14%

CANADA 20% 17% 19% 19%

Page 11: Salesforce Commerce Cloud Shopping Index 2016

APPENDIX

Device TrendsTraffic and Order Share by Device

2016 Q2 Traffic Share

Country Computer Tablet Phone

GLOBAL 44% 9% 47%

USA 44% 7% 49%

UK 34% 17% 49%

GERMANY 48% 11% 40%

FRANCE 48% 8% 44%

CANADA 44% 13% 43%

Vertical Computer Tablet Phone

ACTIVE APPAREL 44% 7% 49%

GENERAL APPAREL 45% 10% 46%

LUXURY APPAREL 45% 9% 46%

HEALTH & BEAUTY 45% 6% 48%

HOME 38% 11% 51%

2016 Q2 Order Share

Country Computer Tablet Phone

GLOBAL 61% 13% 27%

USA 65% 9% 25%

UK 45% 21% 33%

GERMANY 64% 13% 23%

FRANCE 70% 9% 21%

CANADA 61% 15% 25%

Vertical Computer Tablet Phone

ACTIVE APPAREL 63% 9% 28%

GENERAL APPAREL 62% 12% 26%

LUXURY APPAREL 60% 12% 28%

HEALTH & BEAUTY 64% 11% 26%

HOME 54% 15% 30%

Page 12: Salesforce Commerce Cloud Shopping Index 2016

APPENDIX

Order Value and Discounts

Country AOV Discount Rate-Merch

Free Shipping Order Share

GLOBAL $129 13% 67%

USA $123 17% 65%

UK £73 7% 69%

GERMANY €149 7% 74%

FRANCE €89 12% 69%

CANADA $136 (CAD) 22% 54%

Vertical AOV Discount Rate-Merch

Free Shipping Order Share

ACTIVE APPAREL $114 15% 69%

GENERAL APPAREL $123 17% 66%

LUXURY APPAREL $319 9% 87%

HEALTH & BEAUTY $87 17% 71%

HOME $104 9% 54%

Top 5 Searches Customers MakeUSA Only

Color Category Attribute

1 White Dress Denim

2 Black Shoes Swim

3 Blue Shirt Maxi

4 Pink Bag Crop

5 Red Women Leather

Page 13: Salesforce Commerce Cloud Shopping Index 2016

Social Traffic

APPENDIX

All Devices Phone

2014 Q2 1.3% 1.3%

Q3 1.3% 1.2%

Q4 1.4% 1.9%

2015 Q1 1.5% 2.2%

Q2 1.7% 2.5%

Q3 2.1% 2.8%

Q4 2.4% 3.3%

2016 Q1 2.4% 3.2%

Q2 2.7% 3.9%

4.5%

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

0.5%

0.0%

PHONES ONLY ALL DEVICES

Q2 Q3 Q3Q1Q4 Q4 Q2Q2 Q1

2014 2015 2016

Page 14: Salesforce Commerce Cloud Shopping Index 2016

The Salesforce Commerce Cloud empowers retailers to unify customer experiences across all points of commerce, including web, social, mobile and store. From shopping to fulfillment to customer service, the Commerce Cloud delivers 1-to-1 shopping experiences that consistently delight customers, driving increased engagement, loyalty and conversion. With embedded predictive intelligence and a robust partner ecosystem, the Commerce Cloud delivers customer satisfaction and growth from planning to launch and beyond.

About the Salesforce Commerce Cloud

commercecloud.com

©2016 salesforce.com, inc. All rights reserved. Various trademarks held by their respective owners. This document contains archival information which should not be considered current and may no longer be accurate.

Salesforce Commerce Cloud5 Wall Street Burlington, MA 01803

+1 (781) 425 1400