Do You Know Where Your Customers Are Buying?
Customers today have more choices than ever for where to purchase their favorite products and brands. While good news for customers, this can be a challenge for any e-retailer seeking to influence the entire customer journey, even beyond their own domains and into these walled gardens.
Our new data report, Jump the Garden Walls, analyzed more than over 42,000 consumer purchases and revealed some surprising behavior about how much customers actually purchase from a brand versus an online marketplace like Amazon.
It begs the question: do you know how your customers decide where to buy your products?
The growth in eCommerce is driving consumers away from brand sites and into marketplaces.
- Consumers make 54 percent of online purchases on their preferred online marketplace, rather than individual brand websites.
- Consumers will reroute themselves to their preferred online marketplace, even when directly advertised to by brands.
- 24 percent of search and 15 percent of retargeting conversions occurred in a marketplace, even though consumers clicked ads that linked to brand sites.
Time to Think Beyond Your Own Domain
eCommerce retailers are savvy digital marketers who are more like data scientists than advertisers. That’s because they rely on data to guide decisions on what to offer, to whom, and when. But with the rise of popular marketplaces, they are facing an age-old challenge of all marketers; how much of what you do actually influences the final purchase decision?
In the past, attribution was relatively easy; send an email or buy a digital ad, get click-throughs, track conversions on your website. But Jump the Garden Walls reveals that much of the customer journey, from awareness all the way to purchase, happens outside of a brand’s visibility. According to the report, almost 24 percent of brand searches and 54 percent of purchases occur in the vacuum of a marketplace website.
Even digital ads aren’t safe. The report reveals that nearly a quarter of customers who clicked on a Google search ad that routed them to a brand website ended up purchasing the brand product from a marketplace instead. How are e-retailers supposed to influence these customers who are doing research, weighing their options, and purchasing on these third-party websites? How can they fully attribute the value of their marketing efforts when these conversions occur in walled gardens?
Marketers who rely solely on the data from their own sites are potentially missing out on the true value of their digital campaigns, and subsequently missing out on important opportunities to influence purchasing decisions and increase their overall revenue.
Planting the Seeds of Partnerships
The report indicates that customers are still as loyal to brands as they ever were, but it appears they’re also loyal to eCommerce experiences too. Depending on the category, customers will respond well to brands that put effort into merchandising in marketplaces. For example, 54 percent of Adidas online purchases occur in marketplaces, while Nike sees just 29 percent of its online purchases outside of its own website. Does this mean that Nike is giving these marketplace customers to its competition? Are you?
With a well-loved brand and fiercely loyal customers, Nike has long resisted merchandising on walled gardens like the world’s largest marketplace, Amazon. But even it couldn’t ignore the growing impact of marketplaces on overall sales. Which is why the company announced a partnership with Amazon earlier this year, a partnership, Jumpshot data shows, still has room for growth
Food for thought for all e-retailers; what is your marketplace partnership strategy?
Meaning Behind the Data from Walled Gardens
Today’s consumer is savvy and loyal, and has multiple venues to buy. No longer is their buying process a straight-shot from your marketing to your website. If you have a strong brand, this is great news. Because as marketplaces attract your deeply loyal customers, your best bet is to expand your distribution strategy and partner with them to influence your customers where they prefer to shop. It’s marketing 101: go where your customers are.
This makes knowing where your customers are buying your products more important than ever. But with the right data, you can likely expect a jump in your overall revenue by including a marketplace partnership in your eCommerce strategy.