AiThority Interview with Meyar Sheik, President and Chief Commerce Officer at Kibo
Please tell us about the role and the team / technology you handle at Kibo.
As president and chief commerce officer, I provide product and go-to-market direction and strategy for Kibo’s suite of cloud commerce software. Our solutions include B2C and B2B e-commerce, order management, personalization, optimization and POS products for retailers, manufacturers and brands. Through our predictive analytics, we empower retailers and other multi-channel businesses to generate more revenue and higher conversion rates through behavioral targeting.
As evident in our e-commerce benchmark report, we gain valuable insights by analyzing aggregate consumers’ behavioral and transactional data across a wide range of retail categories, geographies, GMV volumes and business models.
How have the e-commerce benchmarks evolved in the pandemic era?
At Kibo, we started these e-commerce benchmarks in the first quarter of 2020—based on legacy work that was started by Monetate in 2015—not knowing the disruption that lay ahead with the COVID-19 pandemic. A year in, we now have these snapshots of moments in commerce history, and we’re able to analyze them to better understand how consumer behavior has evolved, and where commerce is headed next in response to this.
There are a few general takeaways from the collective of all Kibo’s quarterly benchmarks. For example, in Q2 2020, we saw visits from desktop accounting for almost half of shopping sessions in the United States, a shift that can be attributed to the “WFH life” as a result of the pandemic. That same quarter we also saw that mobile conversion rates in the U.S. increased by 31% compared to the same quarter in 2019.
Then in Q3, there was a surprising 50-50 split between desktop and mobile shopping in the United States. Conversion rates declined 30% on desktop and 11% on mobile, compared to Q3 2019. From Q2 to Q3 2020, bounce rates from social media visitors were up 11%.
As we ended the calendar year, we noticed in the Q4 data that average page views fell year-over-year across all device categories. This could be because shoppers were more accustomed to shopping online and had much shorter shopping journeys on digital channels. Bounce rates continued to increase in 2020, both from the previous quarter and compared to YOY – bounce rates in Q4 2019 were 44.3% compared to 67.6% during the 2020 holiday season. This may also suggest the negative impact COVID-19 had on any sense of brand loyalty.
What technologies and behavioral patterns would you attribute this evolution to?
I think it’s safe to say that any change in behavior on the part of consumers, or adoption of innovation on the retailer side, was attributable to the COVID-19 pandemic. When the world shut down in March of last year, many consumers started working from home, schooling from home, ordering their groceries and clothing online for delivery or for curbside pickup. This naturally changed consumer behavior over time.
Tell us more about Average Order Value and how do devices / gadgets control AOVs?
Average order values tend to be about 10 to 20% higher on desktops in the U.S. versus the UK, and the same holds true for mobile orders in the U.S. versus the UK. Tablet users in both the U.S. and UK have similar AOVs and correlate closely across different quarters. iOS users consistently have about 20% higher AOV than Android users. Mac users have the highest AOV among any device/OS and between 3 and 30% higher than Windows users.
A key digital marketing and advertising trend you found out through the report?
While social marketing and commerce continue to gain popularity among consumers, search continues to be a reliable and predictable means of customer acquisition. Email continues to lead in driving the highest AOV and the lowest bounce rate among all the customer acquisition or re-marketing vehicles.
How do email marketing tactics and social media trends fare in your report?
We noticed a jump in bounce rates from direct web visits. This indicates that there were a lot of people quickly visiting the site, perhaps hunting for bargains during the holiday season. The good news, however, is that on email and social channels, bounce rate improved, indicating that the testing, optimization and personalization happening for Kibo Personalization clients across those key lead-generation channels brings in engaged shoppers.
Any advice to all CMOs and marketing leaders looking to expand on omnichannel marketing budgets?
Kibo’s benchmark data can help with near-term plans to determine where marketers might want to prioritize updates and improvements. CMOs and their marketing teams should make sure their website is completely optimized for mobile and figure out how to keep users on-site and converting. With consumers more likely to be shopping across multiple devices, marketers also need to make sure they are able to recognize customers as they switch, delivering a consistent and personalized experience from channel to channel. Brand marketers should be accelerating their personalization programs while using optimization tactics for up-selling and cross-selling.
If retailers can stand up a robust personalization program as part of their larger unified approach to commerce, they can drive the kind of business goals needed to make up for a turbulent year.
Thank you, Meyar! That was fun and we hope to see you back on AiThority.com soon.
Meyar Sheik is a President and Chief Commerce Officer at Kibo
Kibo, provide cloud commerce solutions inspired by your needs and designed to empower your teams. We’re at your side, committed to your financial success in an unpredictable world. Together, we can see further, think bigger, and climb higher.
With over 40 years of innovations, Kibo provides a complete omnichannel commerce platform delivered with the lowest total cost of ownership and the fastest time to market. By leveraging cloud technologies, individualized buying experiences, and true enterprise scale, Kibo enables you to reach higher peaks of sales and consumer loyalty. No matter the challenge, Kibo powers your success.