- Mobile sales up from average 0.4% at start of 2010 to 3.3% in Q2 2011/12
- Checkout abandonment rates declined from average of 37% at start of 2010 to 32% in Q2 2011/12
- Basket abandonment rates are almost double that of checkout abandonment
The Quarterly Benchmarking Index is an additional reporting tool that is open to all participants in the IMRG Capgemini e-Retail Sales Index. The Quarterly Index tracks over 40 key performance indicators across 7 categories, leading to unique insights into the performance of the UK e-retail sector.
The Quarterly Index has been launched based upon six quarters of data and throughout that period, the average sales via mobile leapt up from 0.4% at the beginning of 2010 to 3.3% in Q2 2011/2012 (see note on quarters below), as confidence in the channel grows and mobile sites become more sophisticated. The highest percentage of sales through mobile for participating retailers was just under 7%. The percentage of visits via mobile is also increasing, from an average of 1.4% in Q1 2010/11 to 7% in the latest quarter. The rate of mobile visits is as high as 12% for some retailers.
In a sign that retailer sites are becoming more engaging for consumers, both checkout and basket abandonment rates have dropped over the last six quarters, from 37% to 32% and 63% to 59% respectively.
David J Smith, Chief Marketing & Communications Officer at IMRG, 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 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.”
Chris Webster, head of retail consulting and technology at Capgemini, says: “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 eRetailers, 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.”
Only a brief overview of the findings from the Quarterly Benchmarking Index are made available to non-participants. Participants in this initiative receive the full report with all of the key performance indicators outlined in the ‘About the IMRG Capgemini Quarter Benchmarking Index’ section below.
About the IMRG Capgemini Quarter Benchmarking Index
The Index tracks over 40 key performance indicators across 7 categories, leading to unique insights into the performance of the UK e-retail sector. The categories/KPIs are:
- Website Performance: visitor bounce rate; basket abandonment rate; checkout abandonment rate
- Customer Acquisition & Retention: active customer retention rate; percentage of new customers
- Commercial: average selling price per item; average order value
- Channel: percentage of sales via mobile; percentage of visits via mobile; percentage of click & collect sales
- Marketing: PPC ROI ; affiliate ROI; online marketing ROI; revenue split by marketing method – paid, affiliate, email, natural, direct, social, display & other; visits split by marketing method – paid, affiliate, email, natural, direct, social, display & other; orders split by marketing method – paid, affiliate, email, natural, direct, social, display & other
- Order Fulfilment: percentage of total orders cancelled due to fraud; percentage of units returned; no. of items / products per order
- Geographical Split: percentage of sales within the UK; percentage of sales within the EU 27 (excluding the UK); percentage of sales rest of the world (excluding the UK and EU27)
Around 20 retailers are currently participating in the IMRG Capgemini Quarterly Benchmarking Index: 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.
The quarters run as follows:
- Quarter 1 – February to April
- Quarter 2 – May to July
- Quarter 3 – August to October
- Quarter 4 – November to January