It’s 2019. Accessibility and social justice are everything. As a result, ADA compliance lawsuits are being filed in record numbers, and ecommerce companies are a major target. Here’s the info you need to understand the issue and protect your online business.
ADA Compliance Crackdown
Although the U.S. Department of Justice has delayed the release of the latest federal accessibility guidelines, companies are expected to comply with the Web Content Accessibility Guidelines (WCAG) 2.0 AA. Resulting from this lack of federal guidance, users with disabilities are lawyering up against even the biggest online behemoths. Among these, Amazon, Apple, and Nike have been called out for failure to comply with Title III of the Americans with Disabilities Act, along with hundreds of other businesses, driving a torrent of actions.
According the the Bureau of Internet Accessibility, there were ”at least 814 federal web accessibility lawsuits filed in 2017, but an assessment of the issue by ClassAction.org shows the number of lawsuits [filed] in 2018 may far surpass that number.” In fact, in the first two months of 2018, roughly 200 different ADA lawsuits were filed against websites, at which point retail law advisory Goulston & Storris announced there was “No Relief in Sight”. While it remains unclear just how many lawsuits have been brought since last March, it is expected for this surge in suits to continue.
Why Haven’t I Heard About This?
If you haven’t been targeted yet, chances are you know someone who has. If not, the reason you haven’t heard about this is simple: The Wayfair case. The recent explosion of content on the Supreme Court’s South Dakota v. Wayfair decision incited a media frenzy that circled ecommerce’s corner of the web, from top news agencies to the smallest tech blogs. With the industry distracted by a wide-reaching tax-compliance issue —and retail giants like Nike keeping tight-lipped about their lawsuits— the compliance issue has remained largely under the radar.
In 2018, more than 13,000 suits were filed over online ADA compliance as of October, with ecommerce playing a large role. It’s not the issue alone that’s troubling, it’s the rate at which suits are being brought that’s startling. Last year, 7663 suits were arraigned in federal court, which at the time was a 16% increase over the previous year (see chartL ADA Title III Lawsuits in Federal Court: 2013-2017). With an ever increasing number of lawsuits looming on the horizon, the industry may face a 20% increase over last year for 2019. “I spoke with someone about these suits during Magento Imagine 2018. Just as the conference was ending, they received an email saying their own site had been targeted and served an ADA suit.” Adam Morris, Redstage CEO said. “Ecommerce companies should make accessibility a priority for the year ahead.”
Can My Site Be Next?
While a discriminatory class action suit could spell disaster for any company, the first step is identifying the types of companies that fall into the legal crosshairs. According to the Americans with Disabilities Act, these company categories are as follows:
- Businesses engaged in an industry affeciting commerce (Title I)
- Businesses with 15 or more full-time employees (Title I)
- Businesses operating for 20 weeks or more every year (Title I)
- Businesses categorizes as “Public Accommodations” (Title III) including:
-Inns, hotels, and motels
-Restaurants and bars
-Bakeries and grocery stores
-Hardware stores or any sales/retail outlet
-Laundromats and dry cleaners
-Accountants and lawyers’ offices
-Health care providers’ offices
-Social service centers
While the ADA compliance is primarily focused on physical locations, Title III states that barring access to people with disabilities in the private sector is discrimination, which encompasses websites. With 15% of the global population living with some form of disability (41M+ Americans), and online shopping being so prevalent – think Black Friday – companies are losing business due to inaccessible websites and continuing to run the risk of being served an accessibility lawsuit.
How is Redstage Being Proactive?
Redstage recently partnered with Siteimprove, an all-in-one software that provides the insights needed to address issues relating to accessibility, as well as SEO, content quality, brand compliance, data privacy, and more.
“Our mission at Siteimprove is to make the web a better place for all, and Redstage’s level of commitment to web accessibility fits perfectly into that mission,” says Roger Fuhrman, EVP of Sales at Siteimprove. “We’re excited to help as they work toward increased accessibility on both their own and their clients’ sites.”
The Redstage team is excited about this partnership, as Siteimprove’s automated accessibility checks help identify website elements that violate WCAG 2.0 guidelines, while also organizing those issues into a prioritized list. By partnering with Siteimprove, Redstage will be able to mitigate risk for our clients while building a strong, overall accessibility strategy.
Conforming Your Site to ADA Compliance
At Redstage, we’ve already had our fair share of engagements with merchants facing ADA lawsuits. “Our clients are seeing increased pressure from legal trolls targeting them because they are not ADA compliant. The ADA compliance rules are vague at best, so companies with an ecommerce channel should have an informed partner to help them.” Redstage CEO Adam Morris explained. To mitigate this risk, Redstage is working with specialized authorities in the ADA field to give clients and readers a comprehensive ADA compliance report.
“ADA compliance contains many elements of a great UX strategy,” says Adam Piken, Redstage’s Creative Director, “Your site should be user-friendly and intuitive, allowing customers to find buttons, check out, get your phone number, or type a question into your live-chat quickly and easily.” In this way, ADA compliance is reinforcing activities ecommerce companies should already be doing.
Most importantly, ADA compliance takes considerable design alterations in most cases, so the best time to get compliant is during your next redesign or site migration. If you’ve been following along with our Magento 1 End of Life Initiative, we recommend putting ADA compliance at the top of your Magento 1 to Magento 2 migration checklist.
Get Your ADA Compliance Check Now
If you think your site is at risk of being targeted, email us and we’ll get you set up with a team of experts to help identify and eliminate potential access barriers that may impede access and usability for your users, while safeguarding your business from legal action.
Happy New Year! With 11 months of heavy-lifting ahead of you, there’s no better time to work smarter. To help, we’ve compiled this list of 5 Omnichannel Resolutions to incorporate into your 2019 ecommerce strategy. There’s a lot here, so bookmark this page and subscribe to ensure you’ll never miss a tip that will give your brand a competitive edge.
#5: Monitor & Group KPIs for Data-Driven Decision Making
Here’s a short list of the standard KPIs that marketers, operations professionals, and Ecommerce managers use. Most, if not all of these should be familiar to you. We put them into a few separate buckets that help achieve specific goals. Our team recommends organizing them in a similar way, as each can help you create a simple report rather quickly, and each tells a very different story. Even if you have software that does this for you, putting stats in different tranches like this can help you identify key trends you can act on. Hover over KPIs for individual calculation formulas.
Customer Engagement KPIs
These KPIs allow you to see at a glance how your site is performing:
- Conversion Rate (CR)
- Average Order Value (AOV)
- MVP/VIP AOV (AOV of your most valuable customers)
- Customer Lifetime Value (CLV)
- Cart Abandonment Rate
- Browser Abandonment Rate
- Churn Rate
- Site Traffic
- Mobile Site Traffic (Make sure you’re using this in 2019!)
- Returning vs. New Visitors (includes non-converting traffic)
- Returning vs. New Customers (excludes non-converting traffic)
- Page Views Per Visitor
- Newsletter Subscribers
- SMS Subscribers
- Site Uptime %
Budget Management KPIs
Here we have a short list of “must-have” budget-oriented KPIs:
- Cost of Goods Sold (COGS)
- Gross Profit
- Average Margin
- Customer Acquisition Cost
- Return on Ad Spend (ROAS)
- Return on Investment (ROI)
- Fulfillment Costs (Especially Cost of Returns)
Customer Feedback KPIs
There are additional customer-facing stats you should keep an eye on, which help identify how your customers feel about your products, service, user experience, and more. Under analysis, these metrics are helpful for determining where friction occurs in the buying process. For example:
- Customer Satisfaction Score
- Net Promoter Score
- Customer Service Avg. Response Time
- Customer Service Call Count
- Customer Service Email Count
- Customer Service Chat Count (for those with chatbots)
- Average Customer Service Rating (if you have surveys after chats, emails or calls)
- Average Customer Sentiment (with tech like YOTPO, you can gage overall review sentiment)
- Google Reviews Rating (if applicable)
- Yelp Reviews Rating (if applicable)
- Top 10 Products
- Worst 10 Products
- Top 5 Service Strengths
- Top 5 Service Weaknesses
- Number of App ‘Superusers’ (Customers who use your app every day)
Tracking Revenue Per Visitor (RPV)
In 2018, a relatively new KPI began gaining recognition in the market. Revenue Per Visitor (RPV) has been called “the most valuable metric” for gaging online sales performance, and is especially helpful when it comes to A/B testing. To find your RPV value, multiply your conversion rate by your average order value. This gives you an estimate of how much the average customer is spending.
#4: Make A/B Testing A Habit
A/B testing is invaluable. In an age where data-driven decision making has the highest ROI, companies who make experience alterations on a whim are falling behind. Whether its email subject lines or adding a PayPal Express Checkout button, merchants should be testing these changes with sample groups before making them across the board. Do your due diligence and add A/B testing to this year’s resolutions (especially for Mobile optimization).
Mobile Checkout Testing
Throughout 2018, we tested a variety of mobile checkout enhancements, eventually culminating in the global Mobile Optimization Initiative, now open to Magento merchants everywhere. After running tests on the mobile checkout experiences of more than 20 merchants, we noted several key trends, but one stood above others: The need for merchants to A/B test constantly.
“Some of the changes we assumed would have a big boost to revenue had very little effect and vice versa. It really highlighted the value in making data-driven decisions rather than going off conventional wisdom.”Oliver Sosinsky, Redstage Solutions Engineer
Every site is different, and more importantly, every audience is different. While some tests revealed huge opportunities for brands to rake in more dollars on mobile, the same tests flatlined or even resulted in a downturn for other merchants (in a few cases). As the race to close the mobile conversion gap continues, our top piece of advice is to start designing digital experiences for mobile users specifically. Most importantly, merchants must work to understand what their mobile customers expect and how to simplify experiences to match. If you’re interested in learning more about the initiative or getting some of your own mobile experiments in motion, sign up here.
“In a world where responsive design is trying to give [customers] all the same functionality we have on desktop in mobile, there may be a divergence here where we have to start thinking about different
mobile-first customer experiences.”Adam Morris, Redstage CEO
#3: Create Rich, Interactive Brand Experiences
Creating & Curating Today’s Most Resonant Brands
Traditional retail has hit rock bottom. While Sears and Toys ‘R Us are two of the best known casualties, the implications stretch to each and every physical store on the planet. Both retail giants suffered at the hands of decisions that went against their customer experience. For Sears, the decision to switch to “Everyday low prices” was the first nail in the coffin. Prior to this, the company’s coupon catalog had created buzz and drove customers into stores weekly. Without it, there was little customer experience left, especially with a rapidly decaying in-store experience.
Toy’s ‘R Us was no different. Understaffed stores became empty warehouses. Items were difficult to find in these cold depths, and staff were largely unhelpful when it came to navigating the superstores. Eventually, there was no reason customers wanted to go visit physical locations. With other toy retailers offering better prices online, it was easy for the customer base to choose alternative means. Interestingly, in a last-ditch effort to save the brand, Toys ‘R Us created an augmented reality app. With the app, customers could quickly find the products they were after, and kids could play mini games, test out toys, and go on scavenger hunts around the store, guided by an animated giraffe (the company’s mascot). Unfortunately, it was too little too late, but what are today’s resonant brands doing to keep customers engaged?
The In-Store Experience Revolution will Dominate 2019
Amid cries of 2017’s “Retail Apocalypse,” we made a series of predictions for 2018. In an article titled AR & AI: The Ecommerce Armsrace we anticipated a revolution for in-store experience technology.
Interestingly, while we were wrong about which DTC giant would debut this tech, we were right to suspect its prompt emergence in the market. In early December, Covergirl shook the global beauty sector by installing an “Experiential Makeup Playground” in its Time Square flagship store. The store uses the latest connected retail technology, including voice, IoT, and augmented reality to let customers ‘try on’ products via smart mirror “glam stations.” Expect the company’s rivals to shortly follow suit.
Brand Loyalty and the Immersive Retail Experience
Nike took a similarly immersive approach with in-store experience upgrades at its first “Nike Live” store on Melrose Ave. in L.A. As soon as shoppers enter the store, geofence technology recognizes the presence of the app on their smartphone. From there, Nike’s customer algorithm will give product recommendations based on shopper stats, style and shoe size. Among the rich, app-driven incentives, Nike will even automatically reserve a pair of shoes customers might like. When customers buy Nike products online, Nike ships them to personal smart lockers in-store that can be accessed simply with a Nike+ member pass. No friction, no waiting, no problem.
“[I]n the heart of West LA is also the first Nike Live concept store that blurs the line between digital and physical shopping. Powered by Nike digital commerce data, everything about the store is designed to work seamlessly with the Nike Plus app on shoppers’ phones.”Fast Company
The Digital “Show Room”
Both Nike and Covergirl ushered in amazing retail makeovers by leveraging customer data to solve common customer challenges. For Covergirl, the new tech helps customers try out products they might not be able to physically test anywhere else. As a second key benefit, the experience encourages customers to try on more makeup during their session than they typically would. Third, because shoppers are using AR, this doesn’t cause physical product waste like the often seen “try me” lipstick in other stores.
For Nike, a key decision to place the concept shop on Melrose Ave. arose from the fact that “one in fifty pairs of shoes sold in the area was a Nike Cortez, which was reflected in the product selection available to customers,” according to the Fast Company article mentioned above. Based on this data, Nike responded by creating a store where customers could get expedient access to the newest products (which are usually in high demand). The connected retail space also creates a better environment for millennial shoppers who hate interacting with sales staff, something the retail sector has been slow to pick up on.
Experiences like these are the future of brand loyalty. While we predict stores will become more like show-rooms in the coming years, brand experiences like these will drive customer retention & acquisition. The stage has been set for the in-store experience revolution, and the brands that can best serve customers (digitally and physically) will make it known in 2019.
With this push toward immersive brand experiences in brick-and-mortar stores, brands who lack physical locations will need every advantage to ensure a fast, frictionless, and competitive online experience.
#2: Explore and Implement Deep-Personalization
As Apparel Magazine notes, “According to SAP’s Digital Readiness Survey, 75 percent of retailers believe it is important to deliver a valuable, relevant, and personalized experience specific to the consumer. Further, more than 60 percent of retailers believe it’s important to develop context-relevant, personalized recommendations based on consumer sentiment and history.” This rapidly growing trend is why today’s omnichannel push exists. Making your products available to consumers on their favorite platforms like Facebook, Amazon, Ebay and Google is simply a deeper way of aligning brand experiences with the habits of your customer. With this frame of mind, lets explore some additional methods for creating a rich, visible, and convenient brand.
Recalibrate Your Personalization Tech in the Year Ahead
1. PPC, Email, and Remarketing
Revisiting our #4 recommended resolution for the year ahead, A/B testing isn’t limited to the checkout. Review and optimize your lead-attractors, from PPC and remarketing ads to emails, popups, and SMS. Take a good, hard look at your targeting and make sure you’re using your data to its optimal effectiveness. Test out a revitalized approach to mobile advertising. Investigate your messaging effectiveness between channels. Is the message consistent? Should it be? Have your customer expectations changed? Are customers more responsive to different messaging on different channels or devices? Would you consider creating new PPC ad groups by repurposing your best email subject lines of 2018? Analyze, experiment, evaluate, and optimize.
2. Voice Search Marketing
Comscore predicts half of all online searches (or more) will be conducted via voice by 2020. Despite more than 100 million Amazon Alexas being sold to date, voice search only accounted for a measly 0.4% of online sales in 2018. However, $2.1 billion in sales is nothing to ignore. Between 2016 and 2017, voice search went from zero to 10% of all search volume. Today, more than 20% of searches have voice-based intent. Moreover, smart speakers are predicted to penetrate more than 55% of homes by 2022, a figure that doesn’t account for digital assistants already embedded in smartphones. With millennials relying more on mobile ecommerce and a growing interest in IoT, 2019 may be the year we see another jump in voice search. It’s time for retailers to get invested as adoption continues to pick up.
Video is a marketer’s best friend. Consumers are “anywhere from 64-85% more likely to buy after watching a product video,” and in 2018 the industry began using them in more creative ways. While tutorials, product videos, and UGC have historically driven sales, merchants with content-driven commerce strategies now use video to enhance, repurpose, and revitalize content. Consider creating interview-style videos where users discuss the product with a member of your team. Host a live Q&A on twitter or facebook for popular products, new releases, or products with high views and low sales. Another option is to record video introductions to new or once-popular blog posts to grab additional clicks on social media.
Think what you might about chatbots, but visit any merchant site and they likely have one (or at least a live chat). As customer patience becomes paramount, it’s important to give customers immediate help before they bounce. Moreover, make sure you’re optimizing and changing up your automated greetings at a reasonable pace. Setting up automated conversation paths is another promising benefit of chatbots, and programming responses based on keywords can save time for your sales & support teams.
Newly released data from Adobe and Internet Retailer reinforces once again that mobile sales will continue skyrocketing. As we mentioned earlier, payment options and your checkout process in general needs to be more than simply “responsive.” Mobile customers expect frictionless experiences, and as our research shows, are more likely to buy if you offer payment options like PayPal Express Checkout, Venmo, Apple Pay and even Amazon Pay. However, while we’ve seen success across the board for stores that add the PayPal option before regular checkout, every merchant’s audience will have different preferences. Be sure to make mobile wallet testing a priority, especially before Black Friday rolls around again.
6. Shopping Apps
Shopping apps allow merchants a chance to increase brand value, customer retention, and AOV. The promise of better experiences drives app downloads, which in-turn drive sales and customer loyalty. Think of apps as the most targeted remarketing channel brands can use. The ability to send a notification to a customer is one thing, but getting access to large swaths of individualized data is a whole new world. In this way, apps are the pinnacle of personalization, allowing retailers to alert users about products they might like or share reminders about past purchases they may want to replenish soon. Deals and coupons can be shared instantly, and with the average millennial spending 5.2 hours per day on their smartphone, it’s an avenue worth trying out (The average Gen-Z user spends 5.9 hours on their smartphone per day). Customers generally like apps due to their simplified functionality and UI compared to bulky company websites, and with your brand’s logo on their phone, they’ll likely interact with you more often.
Amazon, Customer Service & Social Selling
According to the Future Shopper Report, 68% of shoppers first visit Amazon.com when searching for products. 80% of shoppers compare prices on Amazon when they’re shopping somewhere else. Why? Because Amazon offers a simple and superior shopping experience. If we dissect the ecommerce monolith, the wide variety of products, wholesale prices, and incredibly fast shipping options make it the easy choice for finding just about anything. All things considered, it’s no wonder Amazon surpassed Google for most product searches last year. That said, theres a lot retailers can learn from Amazon, and several ways to fight back.
For starters, Amazon’s rich product information and advanced search abilities make finding the right product easy. All companies from B2B to B2C can make customer lives easier by following Amazon’s model in these areas. Next, Amazon’s customer support is second to none, replacing lost or damaged items immediately, without additional cost to the consumer (shipping included). In light of this, merchants should work to create better returns policies and frictionless customer service.
Another way to combat Amazon is to succeed in both product authority and social selling. As a specialized retailer, you need to prove yourself as a thought leader to rise above the competition. Whether that means having a presence at Fashion Week, getting influencer endorsements, or simply creating compelling and informative content for your blog — you need to earn authority and respect from your users. You can achieve the same effect by reflecting your extensive industry insight in product descriptions and including niche-specific attributes.
Beating Amazon’s customer support may prove tough, so social selling is another good way to fight back. Rather than focusing on reactive customer support, refocus your sales team’s time and energy on starting conversations that earn trust and influence sales. The team at 4-Tell have some great sales enablement tools, including machine learning algorithms for site search and product recommendations. Sales teams can also build custom product boards to share with customers based on shopping habits. Personalization doesn’t get more personal than that.
#1. Prepare for the Global Omnichannel Transition
Thanks to significant buy-in from major retailers, a global omnichannel transition is now underway. In 2019, more industry titans and mid-tier merchants will progress from the planning and building phase to execution. With this comes a threat to smaller retailers who harbor strong digital backbones, now having to fight on all fronts against groups with bigger budgets. What’s more, as a growing number of B2B companies undergo their own digital and DTC transitions, a realization is coming to the fore: Every business must adopt even stronger logistics capabilities. Here’s how:
Fighting “Faster” with “Frictionless”
With Amazon’s Prime Now option, customers can receive last-minute orders within 2 hours in 50 cities across the united states. However, items available on Prime Now are limited to household goods and groceries, with only a select few grocers (aside from Whole Foods) listing their products on the platform. Since most retailers are unable to compete in terms of delivery time, the industry’s best bet is to drive convenience through pervasiveness.
Use (More) Convenient, Shoppable Channels
Ebay, Newegg, Facebook Marketplace, and Etsy are just a few of the many sites where retailers can flex their omichannel muscle. In line with this thinking, retailers need to up their ad game and start creating more enticing shoppable posts on social media. It’s not enough to have a constant stream of social content. Brands need engaging content that resonates with their audience and keeps them coming back. Take a note from Young & Reckless, the Skateboarding brand that achieved a 3x return on adspend through Instagram. By combining influencer marketing campaigns with branded and shoppable posts, they were able to broaden their audience, reach more customers, and keep their products in the spotlight by aligning with trends and celebrities their audience cares about. In fact, half of the brand’s online traffic comes from social media. That’s the value of resonance.
“Companies with omnichannel customer engagement strategies retain on average 89% of their customers, compared to customer retention rate of 33% for companies with weak omnichannel customer engagement.”Invesp
Creating a simple and frictionless return experience was also a key part of Young & Reckless’ success. When customers know you have a safe and sensible return policy (usually with no cost to them), they’re more likely to buy your product. This is all part of ecommerce consumer psychology. Millennials understand the pain of buying something online that turns out to be the wrong size. Next comes the inconvenience of contacting the return center (sometimes a lengthy process), going to the post office, paying for shipping, and sending the product back. Lastly, the customer has to buy the product all over again, only this time, they’re short a few bucks and have to wait for the delivery to arrive all over again.
Having this experience just once might be enough to make customers look elsewhere for the same product, or worse, never shop on your site again. What might seem like a small inconvenience for some is unforgivable in the minds of millennials, who expect the utmost simplicity. When this expectation isn’t met, their trust in the brand is broken. Moreover, as the most cautious customer segment, they may suspect future purchases from your store could result in the same negative experience, compelling them to avoid the risk altogether.
In 2019, retailers should do their best to offer frictionless returns. Your customers will pay you back in spades. Critically review your returns process and policies. Consider using returnable, pre-paid packaging, and if you can, aim for BOPIS options. The Buy-Online, Pick-up In Store revolution is yet another movement born from evolving ecommerce psychology. It not only relieves customer contention points like faster delivery and delivery safety, but gives “bricks-and-clicks” retailers another opportunity to engage with customers in the physical world.
We designed this rather long-winded thought piece for merchants and marketers to vastly enhance customer experiences in 2019. We hope you found some valuable strategies and new ideas to use this year, or at least began to think critically about some aspects of customer satisfaction and engagement you may have overlooked. If you think anything should be added to this article, feel free to share your thoughts in the comments below! If you’re looking for a team of Ecommerce veterans to help you achieve your 2019 goals, reach out today to schedule your free project consultation.
“It is easier to invent the future than it is to predict it.”
This variation of a quote by computer scientist Alan Kay was the last line of a 1994 job listing written by Jeff Bezos, and still holds true to this day. While Redstage’s team of forward thinkers possess a knack for accurate predictions, we’ve also helped shape the future of ecommerce through our mobile research initiatives.
Throughout 2018, our team made strides to advance the cause of B2B ecommerce, offering insight into new technology, mobile commerce, and the millennial customer experience. We remain dedicated to helping clients and readers alike stay informed of emerging trends and the strategies you can use to master them. With this said, here are the top insights and articles of the past year:
OUR YEAR IN REVIEW: TOP ARTICLES OF 2018
“B2B ecommerce has several types of customers, each with their individual requirements for how they define their success. These customer types include B2B consumers (the company plans to resell the product or service to them). Other customer types include wholesalers/distributors who will sell your products and services to other B2B companies and dealers who sometimes resell the company’s product for them. Knowing your customers, here’s a few things to consider when selecting the best e-commerce platform for your online store.” — Read More
“Will it be the illustrious AI, the illuminating abilities of augmented reality, delivery drones, or perhaps… chatbots? With the emergence of all this new tech, marketers are left to base their budget allocation for 2018 on speculation. As a result, I am inclined to believe that without a doubt, 2018 will be somewhat of a plateau for marketing; defined by a knowledge-gap surrounding new avenues for advertising and the deteriorating value of current methods. Here’s why…” — Read More
“At this very moment, it’s likely that retail executives around the US are screaming about their Black Friday and Cyber Monday sales performance. For some, these sounds resemble a triumphant war chant. For others, these are the shrill cries of defeat. The reason? Mobile-first adoption. No matter where you stand, this data changes the ecommerce landscape. Here are the latest stats and key trends from the long-weekend of holiday sales events.” — Read More
“The development of AI and Big data, in recent years, has given online retailers both opportunities and challenges. In the next decade, digital stores will be equipped more optimized tools based on AI, and through this, they are empowered to strengthen customer relationship and enhance customer retention. This is a technology competition and I believe that the one who wins the game will also win the customer’s heart.” –Read More
“Today, a single blogger has the same opportunity to get a million comments on a post as Walmart does. A mom and pop online store has the same chance of winning over customers as Amazon. Time, resources and budget notwithstanding, the Internet provides a fair medium for all business to compete, and we owe the state of our world to this universal marketplace of ideas… With the Net Neutrality repeal in effect, major changes are coming that will affect every businesses, especially in the world of advertising and ecommerce.” — Read More
Top Case Study of The Year!
Check out our most viewed case study of the year: White Mountain Footwear
. If this were a blog post, it would hold the #3 spot above!
Top Download of The Year!
Take a look at our Digital Sales Engagement Ebook
, our most viewed downloadable of 2018! Discover all the tools you can use to optimize your digital sales team and top tactics to revolutionize your digital acquisition strategy.
Top 5 Most Popular Articles of 2017:
#1. Online Buying Behavior: The Difference Between Men & Women
#2. Selling & Upselling with Psychology & Human Behavior
#3. How All B2C Companies Should Be Marketing By 2020
#4. The Incredible Benefits of Magento 2
#5. Top Ecommerce Challenges Stores Will Face This Holiday Season
Can’t find info on a specific topic? Send us a message and we’ll help you find it, or we’ll add it to our content schedule! Our team of researchers and thought leaders are always looking for ways to best serve our readers. Visit our blog page to subscribe!
At this very moment, retail executives around the US are likely screaming about their Black Friday and Cyber Monday sales performance. For some, these sounds resemble a triumphant war chant, for others, these are the shrill cries of defeat. The reason? Mobile-first adoption.
No matter where you stand, this data changes the ecommerce landscape. Here are the latest stats and key trends from the long-weekend of holiday sales events. We will update this article as soon as new data is released, so make sure you subscribe to be the first to know!
Thanksgiving Takes an Extra Helping
On Thanksgiving day, as of 7:00am Pacific Time, U.S. consumers spent $406 million. By 2pm, Adobe announced that this number skyrocketed to a whopping $1.75 billion, representing a 23% increase over sales in the same time period in 2017. By the end of the day, Americans beat out last year’s sales for the day by a shocking 28%, resulting in a shocking 3.7 billion dollar Thanksgiving. Adobe initially projected a $3.1B bottom line for the holiday.
Mobile Wins Big
Here’s a quick breakdown of the major events in bite-size chunks:
$2.1 billion or 33.5% of sales came from smartphones this Black Friday. Another 10% of sales, or roughly $627 million, came from tablet users. All in all, the day yielded an impressive $6.2 billion, a 23.6% increase over 2018.
Cyber Monday Breaks The Internet
Here’s the big one. Cyber Monday sales shattered all previous records for online sales… in U.S. history.
“Cyber Monday [topped] $7.9 billion by the end of the day, making it the largest online shopping day of all time in the U.S. This represents a 19.7 percent increase year-over-year (YoY) as of 7:00 p.m. ET. In comparison, Thanksgiving Day and Black Friday brought in $3.7 billion (28 percent growth YoY) and $6.2 billion (23.6 percent growth YoY) in revenue, respectively.”BusinessWire
Here’s the share of devices (as of ~1:30pm ET November 27, 2018):
See more live stats at ExploreAdobe.com
7 Days of Spectacular Sales
Additionally, Adobe’s latest report notes that this November has seen 7 days where total sales broke the $2 billion mark (as of Nov. 28, 2018)… Thanks in no small part to the mobile sales spikes.
Omnichannel Adoption Drives Sales
The trend of “buy online, pick-up in-store (BOPIS)” continued, with the trend growing 50% during this past weekend over 2018. According to Adobe, this spells dollar signs for omnichannel merchants: “As the online and offline retail experience continues to blend, retailers with physical stores drove 28 percent higher conversions online.” While this trend helped retailers increase their share of online earnings, in-store sales lagged far behind.
It’s time to join the mobile-first movement. As Adam Morris, Redstage CEO notes, “Cusotmers are no longer expecting an in-store Black Friday and Cyber Monday, but instead, an omnichannel experience.” While many retailers successfully ramped up their omnichannel strategies for this holiday, the data shows this trend is here to stay, and more work is needed.
If you want to reduce mobile checkout friction before the holidays are over, contact us asap! To see the results we’ve achieved with our recently launched Magento Community Initiative, find the latest data here.
These extravagant stats spell success for an industry racing to close the mcommerce gap. It’s seems the industry is all-aboard the mobile-first customer experience wave. As Internet Retailing points out, retailers may have finally reached ‘always-on‘ mobile consumers. Now it looks like the key areas for improvement are streamlining mobile checkouts, and optimizing omnichannel experiences.
Update Nov. 28, 2018
Black Friday + Cyber Monday Stats You Need To Know
Here’s a breakdown of YOY holiday sales by device and region based on data collected by our partners at Nosto!
- United States
Desktop: 39% (2017) / 34% (2018)
Mobile: 56% (2017) / 61% (2018)
Tablet: 5% (2017) / 3% (2018)
- United Kingdom
Desktop: 47% (2017) / 40% (2018)
Mobile: 42% (2017) / 48% (2018)
Tablet: 11% (2017) / 12% (2018)
- Northern Europe
Desktop: 39% (2017) / 37% (2018)
Mobile: 51% (2017) / 57% (2018)
Tablet: 10% (2017) 6% (2018)
Desktop: 69% (2017) / 67% (2018)
Mobile: 19% (2017) / 22% (2018)
Tablet: 12% (2017) / 11% (2018)
Desktop: 40% (2017) / 53% (2018)
Mobile: 42% (2017) / 39% (2018)
Tablet: 8% (2017) / 8% (2018)
Update Nov. 29, 2018
PayPal Mobile Payments Get A $2B Holiday Boost
- For the first time in PayPal history, mobile payment volume topped $1 billion, and did so on both Black Friday (November 23) and Cyber Monday (November 26). – PAYMNTS
- Adobe reports U.S. shopping carts averaged $138.00 during Cyber Monday, a 6% bump over last year.
- 49% of Black Friday traffic came from smartphones, driving 30% of online sales.
- “In the [PYMNTS] Checkout Conversion Index report, the 30 merchants with the fastest, most streamlined online checkouts ranked well. Conversely, the 30 merchants with the lowest scores offer a widely inconsistent checkout experience…”
Update Nov. 30, 2018
Cyberweek 2018 Trends Report
Our partners at BigCommerce identified a few additional trends in their Cyberweek 2018 Trends Report. Key findings include:
- While online stores continue to have the highest AOV for any sales channel, Facebook took second place, accounting for “70% of total GMV” for Fashion and Jewelry brands using the channel. Home and Garden brands selling on Facebook came in at 16% GMV.
- “The Fashion & Jewelry and Toys & Games verticals saw the highest GMV increases over 2017.
Sellers wait anxiously as distant bells chime through the chilly air. Less than a week remains until Black Friday, and projections are looking good. Despite the ghost of retail’s past taking down giants this year, U.S. retailers are positioned for a “Trillion Dollar Christmas” in 2018 (eMarketer).
In line with holiday tradition, Redstage and our partners have an early gift for online merchants. Together, we’re launching this last-minute holiday prep series to ease your seasonal anxieties. The geniuses at Brightpearl combined this year’s top trends and strategies to create the ultimate holiday guide for omnichannel and back office prep.
Use this post as your last-chance optimization guide so you can sleep soundly and avoid the dread of feeling there’s one last thing you forgot. Here’s 8 critical areas you need to master to survive this year’s holiday rush:
#1 Understand your omnichannel buyer journeys
To truly tackle omnichannel retail this holiday season, there are a few steps you need to take. The first is to understand your omnichannel customer and the path they take to get to your ecommerce website or brick and mortar store, so that you can ensure you’re on the channels they use the most.
Nicole from Retail Minded has identified the following omnichannel buyer journeys. Which do you focus on?
1. The Omnichannel Savvy Customer:
○ The journey: Visits store > Connects on Facebook > Buys online via mobile
○○ This customer typically spends 10% more when shopping online
2. The Last-Minute Buyer
○ The journey: Searches online via mobile > Buys online via tablet or desktop.
○○ 75% of last-minute buyers rate shipping costs as the most important buying factor.
3. The Researcher
○ The journey: Searches online > Visits multiple stores > Continues researching online > Buys from one of the original stores
○○ It’s said that over 92% of online consumers don’t intend to buy during their first visit.
4. The Impulse Shopper
○ The journey: Visits store > Buys in store almost immediately.
○○ 5 in 6 Americans admit to impulse buying.
5. The Feel-Good Buyer
○ The journey: Scrolls through social media > Buys online or in store.
○○ 45% of digital buyers worldwide say reading reviews, comments and feedback on social media influence their shopping behavior.
#2: Gain a strong presence on your customers’ most used channels
Today’s digital age means connecting with customers has never been easier. As the above buyer journeys show, the majority of shoppers experience multiple touchpoints before buying. It’s important to show your presence across a number of channels and offer a consistent customer journey throughout (based on what you know about your own customers).
The following channels are a guide to show you what you need to consider adopting within your business:
- Brick and mortar
- Social media
- Online marketing
- Email marketing
- Special events
- Location based marketing
- Loyalty programs
- Text message marketing & live chat
“Know which popular channels your customers are most frequently fulfilling their orders, so that you know where to concentrate your marketing and inventory planning.” – Anthony Payne, VP of Global Marketing, Brightpearl
#3: Use omnichannel fulfillment as a differentiator
Getting omnichannel fulfillment right can have a huge payoff but it can be one of the most difficult areas to implement without the right technology. This is because it requires inventory to be tracked across all physical locations and sales channels.
Some key examples of how omnichannel fulfillment can be used as a differentiator this holiday season are listed below. Which are you taking advantage of this season?
- Click and collect: The option for a customer to purchase online and pick up in store. By offering this service, you can expect an immediate uplift in revenue based on impulse purchases made in store when picking up items.
- Ship from store/endless aisle: The ability to offer products not available at the location the customer originally visited. This helps avoid losing a customer if a product is out of stock at a particular location.
- Online store inventory availability: The ability to lookup inventory at a given store online. This is important as it’s said that 33% of millennials (today’s most influential spenders) won’t visit a store if online inventory availability isn’t published.
#4: Clean up your inventory data
No one likes the idea of disappointing a customer due to inaccurate inventory availability, and especially not when that item was intended as a gift for someone else. Therefore, ahead of the holiday season, you should always endeavor to do a complete inventory count in your warehouse, ensuring inventory is correct across your back office and sales channels.
Furthermore, it’s also important that you know (and have recorded) your true landed costs as well. The holiday season is driven by discounts, promotions, and flash sale days like Black Friday and Cyber Monday, so getting a clear gauge on your true landed cost of products (e.g. the associated freight, duty, tax, and storage expenses) ahead of time is essential for making business decisions on pricing and for final supplier selections.
#5: Analyze your sales and inventory data
From knowing what items your customers love the most to knowing where you should be stocking your products, last year’s data is this year’s sales gold mine. At the very least, you should use your back office data and reports to analyze the following (and act on your findings) ahead of the holiday season rush. Check the box if you’re using your data for the following:
- Best selling products: Stock them again if possible or look for similar alternatives
- Top performing channels, stores and locations: Ensure you’re fully stocked up on your best channels
- Most loyal customers (MVPs): Send offers and discounts to lure them back to your website or store
- Stock-outs: Consider ordering more inventory or implement a process that ensures reorders are fast
- Returned inventory reports: Ensure you know why inventory is being returned; you may need to add more detailed product descriptions, change suppliers or improve packaging
- Time to ship: Consider the use of automation bots to speed up your time to ship and avoid unnecessary fulfillment delays
- Warehousing inefficiencies: Implement barcode scanning in the warehouse to power up your staff and reduce cases of human error
- Checking for business-wide integration
It’s not too late to ensure your different departments are all talking to each other where relevant. We suggest you focus on the following as a priority. What tech are you using to keep teams informed, in the loop, and up to speed?
- CRM + Marketing: Ensures order confirmation emails, discounts, offers and other marketing messages can all be personalized, which increases their ability to convert.
- Ecommerce + Shipping: Customers want to be able to track their orders all the way to their door, which means shipment notifications must contain tracking references. This is where easy to use back office shipping integrations like ShipStation or Shiptheory become your new best friends.
- Inventory + Ecommerce: Avoid stock-outs and disappointing customers by ensuring your inventory levels can be automatically updated across all your sales channels whenever an item is brought into stock, shipped or returned.
- Inventory + Accounting: With holiday season discounts and sales taking place, knowing your true margins is essential. With each inventory update, you should ensure your accounting is updated automatically… after all, who wants to be updating their accounts manually during the holiday season rush?
#6: Automate your workflows
If you already have a back office system that allows for automated workflows, then you should definitely make use of it as best you can. When setting up automation bots, it’s recommended that you map out your current workflows first in a tool like Lucidchart. This allows you to identify where bottlenecks can be removed by automation software.
“Make sure your operating systems don’t need any final touches and any special workflows are all set up before the holiday season because as you get closer and closer to the big day, your order volume and site traffic will just continue to increase. Fast and Frictionless experience is key for all your busy customers. Both before and after the holidays.” – Justin Press, VP of Global Customer Success, Brightpearl
#7: Make sure you’re ready for the inevitable holiday season returns
It’s estimated that 28% of holiday gifts bought last year were returned at a value of $90 billion. We all know that returns are inevitable after the drama of the holiday season, but you should be putting in steps now to ensure you’re able to ride the returns tsunami like a surfing pro.
Here are a few actionable steps for you to take as a starting point:
- Assess your current ability to handle holiday season returns
- We’ve recently created a self-assessment that enables you to assess your current returns processes. You’ll also gain actionable advice along the way for what needs to be improved. Check it out here.
- Understand your return rates and reasons for return
- Analyze your returned inventory reports from last year to identify common themes for why items were returned. Do you need to source a new supplier to improve quality? Should you stop stocking a certain item altogether? Does your packaging need to be improved? Try to isolate the problem and prevent it from happening again this year.
- Give customers what they want
Everything that happens in exceptional events (such as when items need to be returned) is where your customers will measure the service they receive from you and whether they want to shop with you again, so it’s important to understand what your customers want (and expect) from your returns process. A survey sponsored by shipping technology leader Endicia revealed these insights about American shoppers:
- 51% want free return shipping
- 36% want an easy and convenient shipping process
- 12% want a swift refund or credit
- 89% say they’ll shop again at an online store after a positive returns process
- 62% want a returns label in the package
- 61% want an easy to print returns label
#8: Identify your “serial returners”
Recent data suggests there is a rise in “serial returners.” These customers are identified as those who purposefully buy more items with the intention of returning some. By flagging this type of customer within your CRM software, you can ensure they don’t receive certain marketing promotions or discounts as they are already likely to inflate your return rates. Check out Brightpearl’s Returns Readiness Guide to assess whether or not you’re ready to face the returns tsunami this season.
Author Bio: Justine Cross is the Content Marketing Executive at Brightpearl – a cloud-based back office solution for retailers and wholesalers. Brightpearl allows you to provide a truly omnichannel experience for your customers, whilst unifying all of your sales channels, inventory, accounting, CRM, suppliers, fulfillment, warehouse management, reporting and POS in one single automated system.
A well curated eCommerce email list can provide your online store with recurring revenue and provide you with a strong competitive advantage. Realizing that value, however, is highly dependent on how you use it, and a variety of factors that can make or break your bottom line. In 2016, the average open rate across industries was 25% of recipients. If you can reach that number or improve upon it, you’ll see incredible benefits. But how can you get there?
Email marketers employ many useful strategies, such as email verifier tools, list segmentation, performance tracking, and critical CX details Redstage covered in last week’s webinar with dotmailer (video). However, there are four specific types of eCommerce emails that can lead to high conversion rates and drive repeat customers. Implementing each of these is a low-cost investment that, when done correctly, can lead to an extremely high return.
1. Ecommerce Email Up-Selling & Cross-Selling
These types of emails are among the most lucrative in the world of eCommerce email marketing. This becomes clear when you compare the average 25% open rate to the 61.7% seen in post-purchase emails. These can be sent out in a variety of ways, but the following are two of the most common:
- Follow-up with receipt: include a discount or exclusive offer with post-order receipt or other custom transactional emails, incentivizing repeat purchases and customer referrals.
- Follow-up with similar items: when a customer purchases an item in a given category or collection, you can send a follow-up email promoting related items (think of Amazon’s “frequently bought together” up-sell strategy).
2. Loyalty Programming
Building a relationship with your customer is extremely important to the long-term value of that customer, and email marketing is a great way to overcome this issue. Here are a few ideas to get you started:
- “We’ve Missed You”: If a customer hasn’t returned to your store in a while, send them an email that includes a promo code and an easy way to opt out of future communications.
- Personalized Life Events: Many businesses collect information about customers in order to provide them with personalized service. Consider sending a birthday email, along with a discount eligible for that week or month.
- Restocking: If your business sells replenishables (like air filters, motor oil, and engine belts), launching automated emails at certain intervals can help keep your brand top of mind when supplies need to be replenished. How long does it take your average customer to go through a gallon of cleaning liquid?
3. Incentives and Promotions
Letting your customers know about a sale or limited-time offer is a tried and true method for driving traffic. Whether you’re offering holiday deals, announcing a new product line, or sharing an exclusive offer, customers are much more likely to be interested if they’re getting a unique product or price. These kinds of emails become critical for B2B buyers, who are always looking for easier ways to find the best product and price. Promotional campaigns like these are often extremely successful. In fact, according to Coteries Lab, “44% of people who received targeted emails acknowledged buying at least one item because of promotional message.” Emails advertising a discounted price have a conversion rate of over 1%, and a 9.68% click-to-conversion rate.
4. Win-Back Campaigns for Abandoned Carts
Customers will often be interested in an item, add it to their cart, and then fail to complete the purchase. This lost revenue can be reclaimed simply by reaching out through abandoned cart emails. Something as simple as “Hey, you forgot!” or “Check out now for 5% off your entire order!” can help turn abandoned carts into solid sales. As you might expect, these are among the most efficient emails in terms of conversion, especially when combined with discounts.
While email marketing platforms can help you target any segment of your customer base, these are some of the most common ways marketers use email to reach out. Each option offers a great starting point for strong B2B eCommerce email marketing campaigns. These four methods can have a quick, significant effect on your overall sales. Having trouble with your email marketing? Need a recommendation on what platform is best for you? Ask the experts at Redstage!
About Our Guest Author:
Rae is a graduate of Tufts University with a combined International Relations and Chinese degree. After spending time living and working abroad in China, she returned to NYC to pursue her career and continue curating quality content. Rae is passionate about travel, food, and writing, of course.