4 in 10 online transactions may be inaccurately measured by regional retailers: Criteo
By Digital News Asia April 6, 2017
- Smartphones are now involved in around 25% of all online retail sales
- Retailers must turn to cross-device measurement for accurate attribution
CRITEO, the performance marketing technology company, on April 4 released its first The State of Cross-Device Commerce Report, which highlights that Southeast Asian retailers who lack a cross-device perspective will have a distorted view on up to 41% of their online transactions.
In the long run, this distorted view results in inefficient allocation of marketing spend, which would in turn affect the quality of shopper engagement and the volume of customer acquisitions.
The analysis reveals insights into consumer shopping habits and predictions for cross-device commerce.
In prior years, Criteo’s bi-annual report was focused on mobile commerce.
However, this edition reflects the pressing need for retailers to deepen their understanding of cross-device consumer behaviour and align marketing strategies to maximise ROI.
“Consumers are using multiple devices in their buying journeys, from searching and browsing, to buying. Southeast Asian retailers must therefore distance themselves from outdated device-centric marketing and adopt a user-centric approach,” said Criteo Southeast Asia general manager Alban Villani.
“In today’s competitive landscape, eCommerce businesses cannot afford to draw the wrong conclusions and waste money on the wrong channels. They must turn to cross-device measurement to ensure accurate attribution, before investing optimally in high performing engagement and sales channels. Retailers who successfully deliver a seamless and personalised customer experience across devices will then stand out from the rest.”
Cross-device measurement means smarter spending and higher returns
Marketers need to consider how much cross-device shopping may cost in ad wastage if they do not have accurate and scalable measurement. Traditional analytics tools look at activities on a device-by-device basis, providing a limited and siloed view of a customer’s multi-device journey.
Shifting to a user-centric approach that leverages advanced cross-device measurement tools can accurately identify a consumer and capture a complete view of their shopping experience.
This approach aligns with buying behaviour and intent to more accurately report transaction attribution. The case for proper cross-device measurement, identification and attribution is clear:
- More than two in five transactions may be misattributed without cross-device measurement.
- With user-centric, cross-device measurement, retailers can more accurately track conversions and optimize marketing spend. Observed global eCommerce conversion rates are 1.4 times higher than seen with a device-centric approach. In Indonesia, the representative market for Southeast Asia, observed conversion rates are 1.6 times higher than seen with a device-centric approach.
- Cross-device measurement reveals that buyer journeys are up to 41% longer than partial-view models indicate.
Smartphones becoming the dominant force and key device in cross-device buying
The adage “browse on your smartphone, buy on your desktop” is officially dead. Consumers now reach for their smartphones for both searching and purchasing, making it even more important for retailers to provide a synchronised experience across desktop and mobile devices:
- In Southeast Asia, smartphones are now involved in around 25% of all online retail sales, with a year-on-year increase of 44%, while tablets continue to decline.
- On smartphones, add-to-basket and conversion rates increased 49% and 19% year-on-year respectively.
- In Indonesia, the representative market for Southeast Asia, cross-device buyers are evenly represented across the three primary purchase devices: smartphones (40%), tablets (44%) and desktops (41%). In addition, 21% of cross-device desktop transactions started on a smartphone; 37% of cross-device smartphone transactions started on a desktop.
This means that marketers can no longer afford to have just a siloed view of their customers’ shopping behaviours.
Savvy retailers offer a seamless user experience across both desktops and mobile devices to capture purchases wherever they take place.
Having adopted a cross-device view of the customer shopping journey, they can spend their marketing dollars more wisely and effectively.