[March 20, 2018] |
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Qubit Releases Study Showing Increasing Impact of Mobile on Ecommerce Revenue with Analysis of 1.2 Billion User Journeys
Qubit,
the leaders in marketing personalization technology, today announced new
research1 at Shoptalk
in Las Vegas, demonstrating the impact that mobile has on digital
revenue. Included in the research is an analysis of 1.2 billion
ecommerce journeys, sampled from the Qubit platform, which found that
the best way to influence mobile is product discovery. Additionally a
survey of more than 4,0002 consumers explains the reasons for
weak mobile performance, despite the channel becoming the number one
place consumers now engage with brands. Product discovery, and not the
intricacy of mobile payment, has become the key challenge that ecommerce
companies can fix in order to unlock revenue on mobile and digital
channels.
"Everyone knows the importance of mobile, but this report proves that
retailers are missing the bigger story," said Graham Cooke, CEO of
Qubit. "Our research has shown that a focus on mobile product discovery
can impact digital revenue by up to 33 percent. Mobile is clearly
providing a halo effect on multiple channels so retailers need to look
at this in the context of how people discover a product catalog. We're
making significant investments in AI-powered product discovery for
mobile because we see real uplift opportunity across a fragmented
shopping journey that's only connected through a mobile device."
Digging into Qubit data of 1.2 billion ecommerce journeys further, the
company found that:
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An investment in mobile benefits other channels-improving
product discovery doesn't just benefit mobile conversion, it has a
mean observable impact of 19 percent on digital sales, increasing to
an average of 24 percent in fashion. Mobile-influenced sales increased
93 percent in 2017, compared to 2016, with some retailers receiving as
many as one in three computer transactions as a result of mobile
browsing.
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Poor product discovery is the biggest barrier for mobile shoppers-better
discovery experiences that engage customers for longer and help them
to explore more of the catalog result in increased returns. The
analysis showed clear, significant correlations between revenue,
catalog size and catalog explorability.
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Transactions on mobile face a dramatic drop off as consumers move
through the customer journey-customers are proven to be more
engaged on mobile than on computers in the discovery phase of the
shopping journey. However, as the consumer moves through the mobile
journey, session engagement sees a dramatic drop off. This highlights
that customers can find products on mobile, but they aren't finding
what they want.
"Netflix recommendations, a Spotify (News - Alert) playlist, or the Instagram feed
provide a model for how people expect to discover on mobile," said Simon
Jaffery, product director at Qubit. "All of these are AI-powered, based
on consumer preferences, context and intent. Our research identifies
that ecommerce businesses have an opportunity to increase revenue across
all channels by creating mobile experiences that help their customers
discoer more of their catalog."
Qubit data shows that during 2017, across 73 retail websites in the EMEA
and the United States, there were more than 78 million products a
consumer could choose from. This demonstrates a 'paradox of choice' and
the need for retailers to focus on relevancy and discovery now more than
ever. Qubit's research was backed up by a consumer survey of more than
4,000 respondents, which revealed:
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67 percent of consumers cite payment methods not being a
significant barrier to purchasing on mobile.
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Consumers in the U.K. and U.S. cite that when discovery on mobile
isn't frustrating they will buy through the channel
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Respondents were asked to rank the factors most likely to encourage a
purchases on mobile. Ranking order was as follows:
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47 percent - if there was a faster or easier browsing experience
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44 percent - if finding exactly what I wanted was easier
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35 percent - if discovering new products that I liked was easier
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33 percent - if it was easier to pay
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48 percent of consumers agree or strongly agree that they find buying
and discovering products directly from brands' mobile sites is
frustrating.
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Consumers are more likely to use their mobile devices for browsing
and inspiration (61 percent) than for purchasing specific items
(58 percent).
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The majority (57 percent) of consumers cited that their favorite
mobile shopping websites make an effort to personalize the
experience to preferences and interests.
Tim MacIvor, Head of Customer Experience at the international retail
brand River
Island said, "We have well over 50 percent of our traffic coming
from mobile devices now. At River Island, we pride ourselves on being
the perfect place to find everything you need for a brand new
head-to-toe look therefore it's essential that we make it easy for our
shoppers to find what they're looking for while browsing on our mobile
site."
Mobile has been growing faster than any other channel, and in 2017 hit
an inflection point, where Qubit data showed traffic to mobile surpassed
computer for first time. This trend, coupled with a consistent shortfall
in mobile conversion, is one of the first opportunities in ecommerce
that Qubit is using AI to solve.
Armed with consumer insights, unrivalled access to ecommerce data, and a
best-in-class technology, Qubit launched their first AI-powered product
for retailers, Qubit
Aura, in the fall of 20173. The solution sits on top of
an existing mobile website and as each visitor browses, the product
instantly creates a tailored product feed based on their behavior. Using
Qubit Aura, visitors can discover products based on their preferences,
context and intent rather than a 'one size fits all' search or hamburger
navigation. Using Qubit Aura, ecommerce companies see an average of
2.25x more products exposed to shoppers in the discovery phase.
A full copy of the report can be found
here.
Qubit Aura will be demoed live on stand 2808 at Shoptalk
in Las Vegas, March 18-21. A Qubit team will also be at Ecommerce
One to One on stand F2 K026 in Monaco, March 20-22.
About Qubit
Qubit is the leader in delivering highly persuasive personalization at
scale. In 2018 the company was named a 'Top Rated A/B Testing &
Personalization Tool' by TrustRadius. Leading brands in retail, travel
and egaming work with Qubit to transform the way they understand and
influence their customers. Companies like NET (News - Alert)-A-PORTER, Topshop,
Emirates, Ubisoft, Thomas Cook, and Ladbrokes Coral 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
1 The
growing influence of mobile on ecommerce revenue, Qubit 2018
2 Survey of 4,118 respondents in the US, UK, France, and
Germany, conducted online by Toluna Surveys on behalf of Qubit on March
7, 2018
3 Using AI to tackle big small screen problems, WIRED Retail
2017, 14 November 2017 http://www.wired.co.uk/article/qubit-wired-retail-small-screen-problems
View source version on businesswire.com: https://www.businesswire.com/news/home/20180320005666/en/
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