Baynote, a leading provider of personalized customer experience solutions, today revealed new findings in a white paper by the e-tailing group titled,“Metrics Therapy– Details, Dashboards and Diligence.” The paper, which includes data from the e-tailing group’s 2012 Merchant Survey and was developed after completing over 20 in-depth interviews with a cross-section of top retailers, examines how merchants are thinking about and approaching metrics to improve business performance. The paper also features “A Merchant’s Metrics Playbook” to help retailers determine a forward-thinking strategy that takes into account the right metrics and methodologies for running their business.
Baynote collaborated with the e-tailing group to better understand the current state of e-commerce analytics and identify the key metrics that will drive the industry forward. Overall, the report findings revealed that 93 percent of retailers view analytics evaluation as their number one merchandising/navigational priority from a customer retention point-of-view. However, retailers on average have failed to reach optimum data analysis capabilities, citing information silos, limited data access across organizations, and lack of education about which metrics are the most valuable as the top hurdles.
“Data will be the driving force behind growing businesses where gaining a clear picture of one’s customer will suggest ideal marketing and personalization strategies,” said Lauren Freedman, president, the e-tailing group.
Additional findings of the e-tailing group “Metrics Therapy – Details, Dashboards and Diligence,” white paper include:
- It’s about profit, not conversion:
While conversion gets the most attention in media, gross profitability was seen as the top metric, especially in low margin categories where profitability percentage points can have a major impact on overall performance
- Personalization measurement in its infancy:
Retailers increasingly value, and are investing in, personalization technologies yet agree there is an industry-wide need for more sophisticated measurement tactics
- Mobile and tablets delivered:
For mobile and tablets, both traffic and conversion exceeded expectations yet improved optimization across these channels and a better understanding of key metrics will enable retailers to drive growth
In general, retailers are following a “same metrics/different device” approach to metrics, which can work in the short-term, but will become problematic for retailers’ long-term strategies
- Social stuck in measuring “soft ROI,” but looks to evolve:
In social, retailers’ metrics are still focused on the number of Facebook fans and Twitter followers, (78 percent and 61 percent, respectively) not real ROI; retailers cited measuring interactivity and customer preferences as top goals
- Multi-channel view on the horizon:
The ultimate horizon for retailers is to have a holistic 360-degree view of the customer across all touch-points that takes into account interactions and transactions and provides understanding of the most cost-effective ways to reach customers and drive conversion for life
“While retailers are making analytics evaluation their number one priority, the vast majority are still struggling to measure and optimize the customer experience across multiple devices and channels,” said Dan Darnell, vice president of marketing, Baynote. “For retailers, measurement is still a work in progress – our Merchant’s Metrics Playbook is a great resource for e-commerce teams that are serious about taking their analytics capabilities to the next level.”
The e-tailing group and Baynote will be giving a joint webinar on metrics that matter most to retailers, titled,“Metrics Therapy for Merchants,” on Wednesday, April 25th.
Baynote (baynote.com) is a leading provider of personalized customer experience solutions for multi-channel retailers. Using Baynote’s patented approach, retailers personalize the shopping experience “in the moment” across touch points, increasing consumer engagement, conversions and order values. Based in San Jose, Calif., with offices in the U.K. and Germany, Baynote’s personalization solutions are trusted by more than 300 of the world’s most well-known brands, including, Anthropologie, Bluefly, BT, Campbell’s, Dell, J Crew, Jockey and Urban Outfitters.
The e-tailing group 2012 Merchant Survey was completed by 147 merchants in 1Q12. “Metrics Therapy – Details, Dashboards and Diligence” a white paper by Lauren Freedman of the e-tailing group, was sponsored by Baynote and comprised over 20 in-depth interviews with top merchants in 1Q12.