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Customer Retention. Automated

2018 Industry Benchmark Reports

Posted by Polly Flinch on Aug 22, 2018 8:42:34 AM
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As a marketer it can be hard to gauge how you’re doing against industry standards. One of the things we strive to bring to the forefront is a better understanding of how personalization and data-driven marketing impacts business on a daily basis. In an effort to shine more light on the importance of retaining customers through personalization, we’ve put together 4 industry benchmark reports to help marketers understand how they stack up against industry standards for eCommerce health.

Pulling anonymized data from our database, we’ve created industry benchmarks for apparel and footwear, beauty and skincare, food and beverage, and health and drug.

Apparel & Footwear

While apparel and footwear is traditionally considered to be a brick and mortar industry, eCommerce-only stores have been taking the market by storm. In fact, internet retailing accounted for 16% of global apparel and footwear sales in 2017.¹ In the US alone, apparel and footwear eCommerce sales rose from $72.13 billion in 2016 to $80.95 billion in 2017, and are expected to grow to $123.40 billion by 2022.²

Even in the era of Amazon, apparel and footwear retailers, with an eye toward creating curated experiences, will continue to thrive. The 2018 Apparel & Footwear Benchmark Reports looks at data for worldwide apparel and footwear brands that are WhatCounts + Windsor Circle clients in the US and EU. Here’s a snapshot of the findings:

  • Average retention rate: 32.7%, 27% higher than all other industries
  • Average number of purchases: 14.3, 66% higher than all other industries
  • Average open rate for automated campaigns: 26% (industry average between 12-16%)
  • Average click rate for automated campaigns: 2.8%, (industry average between 2-3%)

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Beauty & Skincare

One of the more stable industries, the global cosmetics market is expected to reach a market value of $805.61 billion by 2023, with a compound annual growth rate (CAGR) of 7.14% from 2018 - 2023.³ With the advent of social media influencers, beauty vloggers, and the likes, the beauty industry continues to grow at an impressive clip; however, the biggest industry shake-ups are coming from brands such as Sephora and ULTA stepping into a market that used to be dominated by big box department stores.

The 2018 Beauty and Skincare Benchmark Report looks at data from worldwide beauty and skincare brands that are WhatCounts + Windsor Circle clients spanning the US, UK, EU, and AUS. Here’s a snapshot of the findings:

  • Average retention rate: 26.9%, 4% higher than all other industries
  • Average number of purchases: 12.1, 40% higher than all other industries
  • Average open rate for automated campaigns: 21% (industry average between 12-16%)
  • Average click rate for automated campaigns: 2.9% (industry average between 2-3%)

2018 Beauty & Skincare Benchmark Report

 

Food & Beverage

The online food and beverage industry is taking the market by storm as one of the fastest growing segments. In 2017, online US food and beverage sales clocked in at $14.2 billion, an 18% increase from 2016.4 While largely viewed as a traditional brick and mortar industry, more traditional food and beverage retailers need to crack the online experience to continue to compete with eCommerce-only food and beverage retailers.

The 2018 Food and Beverage Benchmark Report looks at data for worldwide food and beverage retailers that are WhatCounts + Windsor Circle clients spanning the US, UK, and EU. Here’s a snapshot of the results:

  • Average retention rate: 28.3%, 10% higher than all other industries
  • Average number of purchases by loyal customers: 15.8, 105% higher than all other industries (loyal customers have made 3+ purchases)
  • Average open rate for automated campaigns: 35% (industry average between 12-16%)
  • Average click rate for automated campaigns: 3.7% (industry average between 2-3%)

2018 Food & Beverage Benchmark Report 

Health & Drug

With a growing geriatric population, increasing incidence of chronic illness, and a demand for affordable healthcare all considered to be drivers of growth,5 the Global Health and Wellness market is estimated to grow 5.68% in 2018, adding approximately $681.63 billion by 2022.6

As consumers continue to expect higher levels of convenience, and in some cases, discreteness, from health suppliers, the eCommerce model is going to be pushed to the forefront. The good news: the health and drug industry is well positioned to thrive in this new environment.

The 2018 Health and Drug Benchmark report looks at worldwide health and drug brands that are WhatCounts + Windsor Circle clients. Here’s a snapshot of the results:

  • Average retention rate: 26.8%, 4.2% higher than all other industries
  • Average number of purchases by loyal customers: 9.3, 20% higher than all other industries (loyal customers have made 3+ purchases)
  • Average open rate for automated campaigns: 23% (industry average between 12-16%)
  • Average click rate for automated campaigns: 2.2% (industry average between 2-3%)

2018 Health & Drug Benchmark Report

At the end of the day if you can’t measure it, it’s not worth doing. Having access to metrics such as the ones listed in the benchmark reports will help you get an idea of the overall health of your eCommerce business, as well as understand how you stack up in the industry. And just remember: marketers who are winning in the retail industry are creating curated, personalized experiences for their customers. To learn more about how you can start creating personalized campaigns to increase customer lifetime value and grow revenue, request a demo here.

Sources:

1. https://blog.euromonitor.com/2018/02/key-facts-apparel-and-footwear-2018.html

2. https://www.statista.com/statistics/278890/us-apparel-and-accessories-retail-e-commerce-revenue/

3. https://www.reuters.com/brandfeatures/venture-capital/article?id=30351

4. https://www.statista.com/statistics/293707/us-online-grocery-sales/

5.  https://www.prnewswire.com/news-releases/home-healthcare-market-worth-36469-billion-usd-by-2022-657216163.html

6. https://www.technavio.com/report/global-health-and-wellness-market-analysis-share-2018

 

Topics: Customer Retention