Diving into Digital Commerce Data
Demandware is measuring digital commerce growth and identifying trends in the industry with the launch of its new Shopping Index.
The Shopping Index assesses the behavior of more than 100 million consumers across the globe that shop with retailers on the Demandware Commerce Cloud, as well as measures digital commerce growth across two key attributes – shopping attraction and shopping spend. According to the data, shopper attraction, which measures the number of shoppers, was up 25 percent in Q4 2014 compared to a year ago, driving 81 percent of digital commerce growth. Additionally, shopper spend, which combines site visit frequency, conversion rate and average order value (AOV), grew 6 percent in the fourth quarter and drove 19 percent of the industry’s growth.
Unsurprisingly, the data also revealed growth in cross-device shopping, with 21 percent of all multi-visit shoppers now using multiple devices. Plus, the Shopping Index found that computers and smartphones replaced computers and tablets as the new favorite device pairing for consumers.
“Many retailers are leveraging offers and discounts to drive consumers to their sites. That pays off in attraction but can negatively impact margin. The opportunity is for retailers to leverage the cross-device growth to deliver richer and more seamless experiences that maintain context as the consumer migrates from one device to another throughout her day or shopping journey,” said Elana Anderson, SVP worldwide marketing, Demandware. “Retailers that take advantage of this opportunity will more effectively engage and retain their customers and drive conversion.”
Additional data from the Shopping Index shows that basket rate increased in Q4 by 13 percent, which shows that shoppers are increasing the rate at which they add products to their cart and could be a strong sign of shopping intent.
"The retail industry is transforming at an astounding rate and retailers must rely on data to anticipate shopper desires and deliver relevant, personalized experiences," said Rama Ramakrishnan, chief data scientist, Demandware. “The Demandware Commerce Cloud powers more than 1,100 digital commerce sites across the globe and manages the interactions of more than 200 million shoppers on an average monthly basis. By tapping into the power of this data, we provide rich guidance to retailers on trends and opportunities to help them enhance consumer shopping experiences.”