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Decile Releases 2023 Benchmarking Guide Highlighting Exclusive Industry Specific Statistics in Ecommerce Purchase Behavior

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Leading Ecommerce Data Analytics Software Provider Publishes Statistical Report on Common Marketing Metrics in Four Segments 

ARLINGTON, VA – (NewMediaWire) – January 24, 2024 – Decile, an all-in-one customer data and analytics solution built for marketers, released today its 2023 Ecommerce Benchmarking Guide. The guide provides statistical averages of seven commonly tracked metrics in ecommerce purchase behavior across four industries: fashion and apparel, food and beverage, health and beauty, and home goods.

Designed to guide brands and marketers with an average baseline, the findings provide data relating to respective industries. The guide also shares a look back at previous years and observation of trends in ecommerce behavior from 2022 to 2023.

The seven categories measured in the report are as follows:

      Repurchase Rate

      Purchase Frequency

      Retention Rate (percentage of customers retained over 12 months)

      Customer Lifetime Value (LTV) to Customer Acquisition Cost (CAC) Ratio

      First Order Payback Rate (the rate at which the cost of the acquisition of the customer is covered from their first purchase)

      New vs. Returning Customers

      Average Order Value (AOV)

2023 Key Findings

FASHION & APPAREL

Repurchase Rate

30%

Purchase Frequency

1.60

Retention Rate

19%

LTV:CAC ratio

2.30

1st Order Payback Rate

165%

New vs. Returning Customers

N 57% / R 52%

Average Order Value

$125

FOOD & BEVERAGE

Repurchase Rate

34%

Purchase Frequency

2.30

Retention Rate

23%

LTV:CAC ratio

3.40

1st Order Payback Rate

167%

New vs. Returning Customers

N 25% / R 75%

Average Order Value

$65

HEALTH AND BEAUTY

Repurchase Rate

35%

Purchase Frequency

2.20

Retention Rate

21%

LTV:CAC ratio

1.40

1st Order Payback Rate

84%

New vs. Returning Customers

N 50% / R 50%

Average Order Value

$100

HOME GOODS

Repurchase Rate

20%

Purchase Frequency

1.30

Retention Rate

12%

LTV:CAC ratio

2.70

1st Order Payback Rate

200%

New vs. Returning Customers

N 54% / R 46%

Average Order Value

$175

2022 v. 2023 YoY Analysis Key Takeaways

Fashion and Apparel

Repurchase rates remained consistent (31% to 30%), while both purchase frequency and retention rates decreased (1.7 to 1.6 / 29% to 19%). Interestingly, the average LTV:CAC ratio for the category went up (1.8 to 2.3) which potentially indicates that brands increased their prices while keeping acquisition costs the same and new customers versus repeat customers increased.

Food and Beverage

Repurchase rates and purchase frequency remained consistent (33% to 34% / 2.3 to 2.3). However, both retention rate and the LTV:CAC ratio decreased significantly (30% to 23% / 9.1 to 3.4).

Health and Beauty

Repurchase rates remained consistent at 35% while purchase frequency increased from 1.9 to 2.2. Conversely, retention rates declined from 32% to 21% yet the LTV:CAC ratio increased slightly from 1.2 to 1.4.

Home Goods

The home goods category experienced the most downward trends of those analyzed within the guide. Repurchase rates decreased from 22% to 20%, purchase frequency from 1.4 to 1.3, retention rate from 21% to 12%, and LTV:CAC ratios decreased from 3.1 to 2.7.

CEO of Decile Cary Lawrence provided the following commentary on findings in the report:

“Benchmarking against industry averages is an important step in analyzing the overall health of a brand’s marketing program. While internal comparisons provide crucial insight to performance, understanding macro environmental fluctuations in standard metrics helps marketers to get a clearer picture of how they are performing relative to their peers. It is for this reason we compile our annual guide and provide it to brands operating in these four industry categories.

In order to acquire more high value customers and grow profitably, it is essential that marketers focus on the repurchase rate metric. One common mistake that marketers make is prioritizing too much of their focus and spend on acquiring new customers vs. nurturing their existing customers. Year over year, we observed that repurchase rate and purchase frequency among all four vertical categories remained mostly consistent, however retention rates decreased across all categories. This indicates that brands are struggling to connect with their top performing customers and retain them for future purchases.

Another key metric for tracking the health of your customer base is average order value. Our team understands the importance of this metric for marketers looking to gain insight into what the average consumer is willing to spend. We have seen that making minor adjustments to pricing strategy can have a big impact on the average order value (AOV) metric and overall lifetime value (LTV) of a customer. As the ecommerce sector continues to stabilize post-pandemic, paying careful attention to the key customer value metrics will be an essential part of a marketer’s growth strategy. In order to drive continuous improvement in 2024, I encourage marketers to continue gathering first party customer data and to further embrace technologies and methodologies in data analysis to identify and focus on their largest opportunity, their highest value customers. Many marketers focus on getting new customers, which is very important, but once acquired, a customer cannot be forgotten. There is no one easier to sell to than someone you have sold to before.”

A full copy of the report is available for download here.

About Decile

Decile is a customer data and analytics platform whose founding mission is to help brands grow profitably. Our belief is that a marketer’s most valuable asset is their first-party data. But leveraging that data to drive meaningful and actionable insights is oftentimes difficult. Decile simplifies this process with business insights that help build loyal customers, optimize product strategy, and drive lifetime value for your brand.

Inquiries

decile@virgo-pr.com

212-584-4289

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