New study shows how brands can beat Amazon at its own game
Ecommerce businesses could add as much as 6% to their revenues, representing tens of billions of dollars globally, by focusing on the most effective optimization and personalization techniques, according to new research.
The findings have been assured by PwC and Qubit is calling on the rest of the industry to follow suit. The report shows:
• Using the right personalisation techniques could increase sales per visitor by as much as 6%, which could be worth billions of pounds for businesses selling online. Each technique is broken down and measured on RPV (snapshot table below)
• However the study finds that brands are still pumping huge budgets into techniques which have little, or even negative impact on sales
• Ecommerce businesses are trying to compete with Amazon, but uncertainty over which techniques actually work means that many are struggling. Qubit’s calling on the mar-tech sector to be far more transparent about how effective their tools are to businesses
• The research has taken Qubit years to compile and analyse, and PwC has verified the findings — it represents one of the most comprehensive studies into eccommerce techniques ever undertaken
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.”
A survey of nearly 250 marketers 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 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.”