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Customer Retention. Automated

2016 Industry Benchmark Reports

Posted by Polly Flinch on Apr 21, 2016 7:50:09 PM
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Benchmark_data_for_retailers.jpgOn any given day, you may hear our CEO espousing the phrase, “if you can’t measure it, it’s not worth doing.” This tenet, which happens to be one of our core company values, was a guiding principle behind three new industry benchmark reports. Sure, we’ve been able to tell you how to calculate your own retention metrics (see our Guide to Key Business Metrics) or show you (see our free trial), but we hadn’t yet given our readers the ability to see how their marketing campaigns stacked up in the industry. With this lens in place, we scoured our client database to put together these three industry benchmark guides based on retention metrics that are imperative to creating a sustainable eCommerce business.


Apparel & Footwear

While apparel and footwear have a strong direct retail presence, they only made up 17.2% of eCommerce in 2015 [1]. Looking forward to 2016, these two verticals are showing steady, but not exponential growth.[2] This report looks at data from 100 apparel and footwear brands worldwide. While I encourage you to download the full report, here’s a synopsis of what we found. Apparel and footwear brands see:

  • an average retention rate of 24%, which is 16% lower than all eCommerce brands.
  • a median CLV of $163.09 equal to the median CLV for all eCommerce brands.
  • a $0 increase in AOV from first to third purchase, versus a $22 increase in AOV from first to third purchase for all eCommerce brands.
  • an average latency of 171 days, which is 12% longer than all eCommerce brands.

Download the Apparel & Footwear Benchmark Report

 


Beauty & Skincare

Beauty and skincare is one of the most active eCommerce sectors and is set to see explosive growth online. In fact, skincare alone accounted for 35.3% of the global market in 2014 [3], and is estimated to reach $121 billion globally in 2016 [4]. Here’s a recap of what we found. Beauty and skincare brands see:

  • an average retention rate of 36%, which is 28% higher than all eCommerce brands.
  • a median CLV of $167.37, which is 2% higher than all eCommerce brands.
  • a $26 increase in AOV from first to third purchase, versus a $22 increase in AOV from first to third purchase for all eCommerce brands.
  • an average latency of 139 days, which is 8% shorter than all eCommerce brands.

Download the Beauty & Skincare Benchmark Report


Health & Drug (Supplements)

Behind food and beverage, health and drug is the largest retail category, bringing in $300 billion annually. However, only 7% of these sales were online in 2014.The good news is that this number is expected to rise at a compound annual growth rate (CAGR) of 13% between 2015 and 2020 [5]. Here’s what we found when we looked at our health and drug segment. Health and drug brands are seeing:

  • an average retention rate of 44%, which is 57% higher than all eCommerce brands.
  • a median CLV of $101.79, which is 37% lower than all eCommerce brands.
  • a $26 increase in AOV from first to third purchase versus a $22 increase in AOV from first to third purchase for all eCommerce brands.
  • a median latency of 84 days, which is 44% shorter than all eCommerce brands.

Download the Health & Drug Benchmark Report


Stay tuned for more benchmark reports, I’ll update this blog and the resources section of our website as they become available.


If you’re interested in being part of our next report, make sure to take the Retention Marketing Survey by April 30th, 2016. Upon completion, you will be entered to win one of two $250 Visa gift cards, and we’ll send you a copy of the findings for free.

 

 

Sources: 

  1. http://www.emarketer.com/Article/Apparel-Retailers-Ecommerce-Direct-Marketers-Dominate/1012671
  2. http://www.emarketer.com/Article/Apparel-Retailers-Ecommerce-Direct-Marketers-Dominate/1012671
  3. http://blog.marketresearch.com/the-market-for-beauty-and-cosmetics-products?utm_campaign=2016_01%20Industry%20Updates&utm_medium=Press%20Release&utm_source=PRNewswire
  4. http://www.gcimagazine.com/marketstrends/segments/skincare/US-Skin-Care-Market-to-Reach-Nearly-11-Million-in-2018-311287121.html?utm_source=Most+Read&utm_medium=website&utm_campaign=Most+Read#sthash.Hg8tfIep.dpuf
  5. http://www.businessinsider.com/e-commerce-disrupting-health-and-personal-care-market-2015-4

Topics: Customer Retention, Email Marketing