[June 21, 2017] |
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Qubit Releases Data on More Than Two Billion User Journeys to Help Brands Take on the Ecommerce Giants
Qubit,
the leader in marketing personalization technology, has released the
results of an unprecedented analysis of more than two billion user
journeys and 120 million purchases to determine the potential revenue
uplift that ecommerce businesses can expect from specific optimization
techniques.
The report reveals that ecommerce businesses could add as much as six
percent1 to their revenues, representing tens of billions
of dollars globally, by focusing on the most effective optimization and
personalization techniques.
The report sheds light on the effect for online revenue when businesses
engage in high performing website optimization and personalization
strategies such as scarcity, urgency, or social proof messaging.
These types of techniques perform functions like displaying current
stock levels for products being viewed, or alerting shoppers when a sale
is ending soon. The report also highlights areas where ecommerce
businesses may be allocating resources to lower performing strategies.
"Now is the moment for transparency in our industry," says Graham
Cooke, founder and CEO of Qubit. "Ecommerce leaders have to get
personalization right when they're trying to compete against the likes
of Amazon, and yet it's so hard to know what really works. We want every
marketer to know precisely what tactics will help them beat the
800-pound ecommerce gorilla, and I invite other vendors in our industry
to do the same."
The top techniques measured in the report were:
Rank
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Measured technique
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Definition
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Mean uplift (RPV)
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1
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Scarcity
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Highlighting items that are low in stock.
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2.9%
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2
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Social proof
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Leveraging the behavior of other users to provide information about
currently trending and popular products.
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2.3%
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3
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Urgency
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Using a time limit to promote urgency to complete an action before a
deadline.
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1.5%
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A number of common, less effective techniques measured in the report:
Rank
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Measured technique
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Definition
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Mean uplift (RPV)
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7
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Page redesign
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Significant changes to the design of a page, usually involving
multiple elements changing on a page.
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0.2%
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16
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Button changes
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Any change that involves a button.
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-0.2%
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19
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Navigation changes
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Techniques focused on altering the navigation bar or link structure.
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-0.2%
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The data shows that programmatic and personalization experiences that
tap into customer, product, or business data are providing anywhere from two
to 14 times more incremental revenue per visitor (RPV)2
versus traditional optimization efforts, which focus mainly on cosmetic
changes such as colors and location of buttons. Conversely, experiences
like popups or buttons that take a user back to the top of the page, can
even have a negative impact.
The study also finds that businesses that engage in targeted
personalization based on user behaviors and preferences can expect a three
times better result than untargeted marketing tactics. The complete
report can
be found here.
The Effectiveness Fog
A survey of nearly 250 marketers3 shows that more than a
quarter (26 percent) of brands spend over $51,000 on website testing and
optimization tactics, and of those, nearly one in ten (8 percent) spend
more than $100,000 annually. Yet many of these basic tactics are
highlighted in the report data as having limited effectiveness.
The survey also highlighted transparency concerns similar to those seen
in the advertising industry, with 72 percent of respondents agreeing
that tech vendors could be more transparent about the effectiveness and
measurement of their solutions.
"At Arcadia we have always been focused on making sure our digital
marketing investments drive true, incremental value to the business.
Personalization is helping us build relationships with our customers
that translate into increased engagement, loyalty and revenue," said Simon
Pritchard, group digital director at Arcadia. "All of the Arcadia
brands - Burton, Dorothy Perkins, Evans, Miss Selfridge, Topman,
Topshop, and Wallis - are working with Qubit and seeing great returns by
investing in a platform that delivers personalization at scale. This
report backs up our trust in Qubit and I'm delighted to see that they
are the first to take a stand, releasing the results of this study to
call for greater transparency and rigor in the market."
Consumers Demand Personalization
Qubit's research also reveals the highly competitive online environment
brands face, with almost three quarters (73 percent) of online consumers4
spending most of their money on between just one to five websites.
Consumer sentiment also appears to support the report's findings,
showing that customers value data-driven personalization. Half of the
respondents (50 percent) said they enjoyed receiving product
recommendations that fit their interests or preferences, while almost
half (49 percent) said they were willing to share their preferences with
a business in order to receive a better shopping experience.
A majority of respondents (81 percent) said it was either 'very
important' or 'somewhat important' that a website provided targeted
promotions based on their own preferences.
"We've performed the most comprehensive study of marketing
personalization in the industry," said Will Browne, data scientist
and product manager at Qubit. "What is particularly exciting is the
size of the cumulative effect we see for our top performing clients;
with some personalization strategies having up to a 6 percent impact on
ecommerce revenue."
"There are clearly longstanding issues around transparency in marketing,
which will only be solved by advertisers and providers rigorously and
openly assessing whether the services that marketers are paying for are
actually delivering results" said Sam Tomlinson, partner at PwC.
"My team worked with the Qubit data science team to subject their
methodology - i.e. their data capture, calculations and reporting - to
our rigorous independent assurance procedures. The report by Qubit
provides a detailed analysis of today's marketing toolkit and, given the
scale and depth of data analysed, is a first of its kind that I have
seen . "
-ENDS-
Notes to editors
About This Study
Qubit categorized and analyzed more than 2 billion user journeys and 120
million purchases, from a repository of 12.5 billion, to determine the
type of uplift ecommerce businesses can expect from multiple
optimization techniques. The full set of data and methodology from this
study can
be found here. To read the full PwC independent assurance opinion click
here.
About Qubit.
Qubit is the leader in delivering highly persuasive personalization at
scale. Award-winning brands in ecommerce, travel and gaming work with
Qubit to transform the way they understand and influence their
customers. Companies like Ubisoft, CafePress, Topshop, Shiseido,
Ladbrokes and Emirates are using the Qubit personalization platform to
increase revenue, build loyalty and significantly improve their
marketing efficiency. Every week Qubit is used to personalize
approximately $600 million in online sales. Headquartered in London, the
company has offices across Europe and the U.S. For more information,
please visit: www.qubit.com
About PwC
At PwC, our purpose is to build trust in society and solve important
problems. We're a network of firms in 157 countries with more than
223,000 people who are committed to delivering quality in assurance,
advisory and tax services. Find out more and tell us what matters to you
by visiting us at www.pwc.com.
PwC refers to the PwC network and/or one or more of its member firms,
each of which is a separate legal entity. Please see www.pwc.com/structure
for further details.
References
1 The cumulative effect on revenue per visitor (RPV) observed
by Qubit's top customers using the most effective optimization and
personalization techniques. 2 Revenue per visitor (RPV)
is defined as the expected revenue from a single visitor. 3
Survey of 243 U.S. and U.K. marketers conducted online by Research
Now Group, Inc. on behalf of Qubit between May 25-31, 2017 4
Survey of 1,197 consumers in the U.S. and U.K. conducted online by Toluna
Quick Surveys on behalf of Qubit on May 25, 2017
View source version on businesswire.com: http://www.businesswire.com/news/home/20170621005088/en/
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