RETAIL NEWS

Report: Omnnichannel shoppers offer highest lifetime value

BY Deena M. Amato-McCoy

Customers that browse across multiple digital environments hold the highest conversion rates — and lifetime value.

Omnichannel consumers continue to shift between devices, environments and walled gardens, or services restricted to digital members, when making a purchase decision. Based on this purchase behavior, multi-screen mobile shoppers are generating the highest lifetime value in terms of sales, according to “Global Commerce Review for Q1 of 2018,” a report from Criteo.

According to data, omnichannel consumers represent a mere 7% of all customers. Yet, omnichannel consumers are responsible for 27% of all sales.

This customer segment is being driven by mobile shoppers. In addition to making purchases while on-the-go, these customers are active across all browsing environments. However, mobile transactions are no longer confined only to mobile websites.

Apps account for over two-thirds (70%) of mobile e-commerce transactions in North America, for retailers with a shopping app. This trend extends across most world regions, as in-app sales dominate.

Almost half (47%) of all consumers in North America prefer purchasing via app, compared to mobile Web (20%) or desktop (33%). In North America, the conversion rate on shopping apps is more than three-times higher than on mobile Web. Globally, in-app transactions have increased by 22% year-over-year.

“Retailers must prioritize and optimize shopping apps, or risk leaving money and revenue opportunities on the table, as mobile transactions are no longer confined to mobile websites only,” according to the study.

Retailers need a mobility strategy going forward, especially as the mobile market continues to mature. The number of sales transactions on smartphone devices grew 22.5% year-over-year, while tablet and desktop usage declined.

The health/beauty and sporting goods industries comprised the highest share of mobile sales at 44% and 43% respectively, beating out other categories such as fashion/luxury, flowers and gifts, and home wares.

With every transaction, these omnichannel customers also share “digital fingerprints” that present an opportunity for retailers to re-engage them on future visits. Matching this online data with offline information is key to unlocking shopper intent and purchasing power, the study said.

For example, omnichannel data is key to optimizing marketing efforts. Retailers that combine offline and online data can apply over four-times as much sales data to inform their marketing strategies.

“[There are] continuing shifts from desktop to mobile shopping, as well as from retailer websites to apps. Today’s shopper is on-the-go and researching across multiple screens, requiring a cohesive, data-driven approach to intersect and influence buying decisions,” said Jonathan Opdyke, chief strategy officer, Criteo. “For retailers with physical stores, app adoption and improved data infrastructure are opening new horizons in omnichannel marketing, with online and offline blending into a seamless and measurable shopping journey.”

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