1、2022 eCommerce Executive Key Initiatives Report2022 eCommerce Executive Key Initiatives Report 2eCommInsightsMethodologyThe 2022 eCommerce Executive Key Initiatives Report examines online retail trends based on feedback from some of the biggest brands in the industry.It contains data from questions

2、answered by 128 executives from leading eCommerce brands across a wide range of vertical markets.Although this year the majority of respondents were from brands generating greater than$200M in online revenue annually,over 40%of respondents represent smaller market brands.In terms of demographics,ove

3、r 85%of respondents hold the title of Vice President or Global Director.Data was collected online and via telephone during February of 2022.Respondent Demographics ONLINE REVENUE0%10%20%30%40%$25M-$50M$50M-$200M$200M-$700MOver$700M 88%eCommerce/Digital 7%IT 3%Marketing 2%Other0%10%20%30%RETAIL SEGME

4、NTSApparel SpecialtyHealth/BeautyFootwearSports/LeisureHome ImprovementJewelry/AccessoriesElectronicsFurniture/HousewaresFood/BeverageDepartment StoreAutomotiveBusiness SuppliesTITLESAn increase in site speed will help brands achieve revenue goals.The jury is out on the impact of web core vitals.The

5、 eCommerce heavy hitters are spending money to make money in 2022.The focus is on investing in digital experience and maximizing online ROI.72%of large revenue brands will increase their investment in eCommerce initiatives by 25%or more in 2022.The 2022 eCommerce eCommerce Executive Key Initiatives

6、Report:Summary of Findings Brands are investing more in customer acquisition than ever before.Top investment areas for 2022 include data security,increasing site speed,and site analytics.More than half of survey respondents said their brands experienced online revenue growth of between 26%and 50%in

7、2021.87%of brands are targeting conversion rates of 5%to 15%in 2022.1eCommerce Growth is Trending4Large Revenue BrandsSEE RESULTS HERE SEE RESULTS HERE SEE RESULTS HERE SEE RESULTS HERE 32022 eCommerce Executive Key Initiatives ReporteCommInsights3Site Speed is Critical for Growth2Where are Online R

8、etailers Investing?2022 eCommerce Executive Key Initiatives Report 4eCommInsightsMajor Year-Over-Year FindingsThis is the 5th Anniversary Edition of the 2022 eCommerce Executive Key Initiatives Report.In previous years,this report was delivered as the eCommerce Leaders Survey.This year weve re-brand

9、ed to offer even more information about industry findings and trends.Given that weve got several years of data to compare,lets look at where the industry has been to get a better feel for where things are going.20022Average Number of 3rd Parties Added Annually(Projected)In order to make t

10、heir sites more experiential,brands are adding more 3rd parties to their sites this year than in previous years.By the end of 2022,the average brand will have added sixteen 3rd parties since 2019.And those are just the ones they know about.The average eCommerce site now has between 40-60 3rd party t

11、echnologies with larger brands having hundreds of 3rd parties.Far and away,growth is the major theme for both eCommerce brands and this years report.Brands are looking for big increases in conversion rates and revenue in 2022.Brands are investing heavily in eCommerce initiatives this year.52%of bran

12、ds are planning to spend between 26%and 50%more oneCommerce initiatives than they have in prior years.52%The main areas are:INCREASING SITE SPEEDSECURITY/DATA PRIVACY ANALYTICSBrands targeting a year-over-year increase of over 5%for eCommerce conversion rates.Brands targeting a year-over-year increa

13、se of over 10%for eCommerce conversion rates.92%73%65532022 eCommerce Executive Key Initiatives Report 5eCommInsights51%of survey respondents said their brands experienced online revenue growth of between 26%and 50%in 2021.1eCommerce Growth is the Top Priority in 202250%of brands are targeting year-

14、over-year online revenue growth of 10%to 15%.87%of brands are looking for year-over-year increases in conversion rates of between 5%and 15%.50%The big topic in this years eCommerce Executive Key Initiatives Report is eCommerce growth and how to achieve it.Although 2021 brought challenges such as a l

15、ower traffic growth rate and rising customer acquisition costs,the brands we surveyed still experienced significant growth.According to survey respondents,2021 online revenue increases sparked by the pandemic continued,as did major investments in eCommerce initiatives.Brands are looking to build upo

16、n this momentum in 2022.Some brands navigated these issues very well.Others should be trying to mimic this growth.Even with the return of in-person shopping,brands continue the trend of driving more eCommerce revenue since it is their biggest opportunity for growth.95%of Brands have grown since the

17、pandemic and nearly of those brands saw exponential growth.Retailers invested an average of 53%more in eCommerce initiatives in 2021 than they did in 2020.20212020+53%87%50%25%0%95%2022 eCommerce Executive Key Initiatives Report 6eCommInsightsSECTION2Where are Online Retailers Investing in 2022?Supp

18、orting the main theme of this report,a majority of respondents plan to invest more in eCommerce in 2022 than in the past,and they agree that digital experience will spur eCommerce growth as the year unfolds.In addition to spending a significant amount of money on customer acquisition,brands will als

19、o invest in critical features such as data security,site speed,and analytics.Maximizing and retaining their current site traffic is key to making the most of what they spend.More than 79%of brands are investing 25%to 50%more in customer acquisition than in previous years.Thats an increase of$125,000

20、 per month for the average brand.Respondents are planning to spend between$300K and$450K per month on customer acquisition.Customer Acquisitionof brands will invest 26%to 50%more in eCommerce than they have in prior years.of brands will spend between$100k and$500k to increase revenue and improve dig

21、ital experience in 2022.of brands consider digital experience to be an important focus area.75%SITE SPEEDDATA SECURITY/PRIVACY SITE ANALYTICSTop 3 Investment AreasBrands responded that the top 3 eCommerce investments to increase revenue and improve digital experience are the following:Brands are wis

22、e to recognize these important investment areas.Data breaches are becoming more common and more costly(both in terms of revenue and brand reputation)as online shopping increases,and brands cant risk that kind of damage.Almost 60%of online shoppers say they wont do business with a brand that has expe

23、rienced a data breach in the past 12 months.Site speed is another top area that brands must pay attention to as it is the gateway to digital experience.When sites take longer than 3 seconds to load,50%of shoppers will leave,resulting in lower conversions.With customer acquisition being more expensiv

24、e and more necessary than ever before,brands need to make sure they make the most of all their site traffic and not risk bounces due to slow page load times.86%52%2022 eCommerce Executive Key Initiatives Report 7eCommInsightsA 3rd party performance anomaly is a sustained spike in slow site performan

25、ce thats outside normal expected variation for that page.21%of brands have no idea when this happens.Does yours?3rd Parties3rd party technologies deliver great digital experiences for customers and provide efficiencies for brands.This is what our respondents had to say about all things 3rd party for

26、 2020.72%of brands are spending between$100k and$2 million on 3rd parties in 2022.Even with so much budget and resources being put into the deployment of 3rd party technologies,the majority of brands report they dont have every technology they want on their site,and at times even have to remove some

27、 due to slow page loads.See the data below.Does IT restrict 3rd parties or rich content on your site because theyre too heavy?Optimization to the RescueOptimization is the solution to this problem.When 3rd parties are optimized,brands reap the experiential benefits these technologies offer without s

28、acrificing site performance.Its a simple answer that maximizes ROI by increasing site speed and conversion rates while decreasing bounce rates.Nearly a quarter of the brands surveyed reported they currently have no visibility nor do they receive alerts when a 3rd party performance anomaly occurs.Opt

29、imizing 3rd party technologies can have a major impact when it comes to speeding up your site.The graph to the right shows the increase in revenue from optimizing your site for performance.Respondents shared that their main eCommerce initiatives for 2022 are maximizing their return on technical inve

30、stments,optimizing their customers digital experiences,and decreasing page load times.Maximizing return on technical investmentsOptimizing digital experienceSpeeding up site page load times56%48%47%YES79NO4972%Revenue Lift:$39.5MAnnual Average per SiteRevenue Gains From Site Performance Optimization

31、*Assumes 10%conversion lift(for example,2%to 2.2%)for survey respondents$2.5M to$5M$5M to$20M$20M to$70M$70M+0%10%20%30%40%$25M-$50M$50M-$200M$200M-$700MOver$700M2022 eCommerce Executive Key Initiatives Report 8eCommInsightsTo Re-platform or Not to Re-platform?This year,the answer to this question f

32、avors not making a change.While 57%of brands are staying put,43%are planning to make a move.Where are they going?The top 5 choices are:Data Privacy and Security:A Big Concern for eCommerce Brands Half of our respondents say data privacy and site security are their most important 2022 investment area

33、s when it comes to providing shoppers with a great digital experience.This is wise because as eCommerce grows,cybercriminals are seizing the opportunity to make a profit of their own.Virtually every type of cyberattack increased in 2021,and theres no reason to think the trend wont continue.Brands th

34、at dont take security seriously arent just risking their customers data,but their companys reputation and bottom line as well.On the right is a summary of the problems a data breach can cause:If brands take preemptive steps to protect their eCommerce sites before theres a problem,it will go a long w

35、ay in making sure they can meet their growth goals and not end up in a PR nightmare with a revenue downturn.No security measure is guaranteed,but a multi-layered approach will offer excellent protection against cyberthreats.Implementing a web application firewall,a solid content security policy(CSP)

36、,and bot mitigation is a good start.SPAsLast year,SPAs were all the rage with 51%of brands strongly considering adopting this type of site architecture.However,this years data tells a different story.66%of brands interviewed are not using a SPA and dont seem eager to get one.Why is interest in SPAs

37、waning?One reason could be the extra workload thats inherent to the architecture.Everything,even minor changes,must be coded.This drains IT and development resources.Another downside is that while brands move to SPAs to increase site speed,unoptimized 3rd parties will slow SPAs down the same way the

38、y slow page loading on traditional sites.Finally,implementing SPAs is very expensive and labor-intensive.As a result,many brands are likely to conclude that SPAs arent worth the budget and resources they require.2/3 of respondents have not adopted SPA architecture.32451Damage to reputation and loss

39、of consumer trustOnline shoppers wont accept data breaches.60%of consumers say they wont buy from a website that has been breached in the prior 12 months.LawsuitsBrands are legally responsible for any data breach on their site.Shoppers can sue businesses if their data is compromised.FinesThe Califor

40、nia Privacy Rights Act(CPRA),the California Consumer Privacy Act(CCPA)and Europes General Data Protection Regulation(GDPR)protect consumer privacy and data.If online businesses arent compliant,they are subject to fines.Improving site speed by just 1 second can increase conversion rates by 5.7%and re

41、duce bounce rates by 12.2%.eCommInsightsIncreased site speed will help brands realize their lofty 2022 revenue and conversion growth goals.An increase of 10%is typically unattainable without a significant market shift.Given that worldwide shutdowns arent likely to happen again in 2022,brands need to

42、 figure out how to meet this goal.Reducing page load times by one second has been proven to result in nearly a 6%conversion lift.So shaving just 2 seconds off their page load times will allow them to exceed their increased revenue goals without doing anything else.What about Core Web Vitals?When it

43、comes to SEO,Googles Core Web Vitals(CWV)remain difficult to measure.Although 76%of brands have technology in place to measure and improve CWVs,55%of them either arent seeing or dont know if theyre seeing any benefit from it.Google wont share data on this,and brands are split in their opinions about

44、 the overall impact.In what areas does slow site speed impact ROI the most?of brands are targeting a 10%online revenue increase in 202273%SECTION3Site Speed is Crucial to GrowthBRAND REPUTATION3RD PARTIESCHECKOUT PAGESDo you have any technology in place to both measure and improve your Core Web Vita

45、ls?YES97NO31Do you believe that the launch of Googles Core Web Vitals has a significant impact on your SEO?YES49NO49UNSURE30Have you increased your SEO profitability by improving your Core Web Vitals?YES57NO49UNSURE22Over 86%of respondents acknowledge that site speed is one of the most important fac

46、tors in eCommerce success.This is a big change from 2021 when 53%of brands were unaware that over 50%of shoppers will leave a site that takes longer than 3 seconds to load.of brands agree that faster sites result in higher conversion rates.of brands agree that if a page takes more than 3 seconds to

47、load that 50%of shoppers will bounce from the site.of brands agree that site speed is critical to digital experience.84%86%75%92022 eCommerce Executive Key Initiatives Report 2022 eCommerce Executive Key Initiatives Report 10eCommInsights4Large Revenue BrandsBrands with annual revenue over$200 milli

48、on can offer insight to smaller brands.Since brands of all sizes are focused on revenue growth this year,lets take a closer look at how our surveys heavy hitters are getting it done.Target Growth Rates In 2021,74%of large revenue brands experienced an online revenue increase of between 26%and 75%,an

49、d their goal is to keep that momentum going in 2022.88%of these same brands are targeting a year-over-year increase in online conversion rates of between 5%and 15%.How will they do it?Main eCommerce Initiatives of Large Revenue Brands in 2022:Optimizing Digital ExperienceMaximizing ROISpeeding up Pa

50、ge Load Times to Increase Conversions 48%55%49%61%of large revenue brands that believe digital experience is paramount to their success and a heavy focus experienced over 50%online revenue growth in 2021.Conversely,only 18%of large revenue brands that dont place digital experience as a primary focus

51、 experienced over 50%online revenue growth in 2021.Providing a fast,high performing site can make or break a brand,but the data shows that some dont make this a priority.When we look at the big players in the industry,those brands that enjoy online revenue of$200 million or more,we see some interest

52、ing statistics:Customer Acquisition eCommerce transactions have skyrocketed over the past year.Much of this has to do with customer acquisition investment,focusing mostly on digital ad spend.79%of respondents from large brands plan to increase spending in this area by 25%to 50%.Investment is KeyThe

53、large revenue brands arent afraid to invest in eCommerce because they know theyll reap a big return on their investment.The pandemic may have slowed,but eCommerce growth continues to trend upward.18%61%50%25%0%79%2022 eCommerce Executive Key Initiatives Report 11eCommInsightsAmazon:Has the King Been

54、 Dethroned?What a difference a year makes!In 2021,33%of respondents to this survey viewed Amazon as a competitor and 39%saw the eCommerce giant as both a competitor and a channel.Fast forward 12 months and this years data tells a different story.35%of brands surveyed dont view Amazon as either a com

55、petitor or a channel,and only 11%of brands view it as a competitor.Hype Sales:Not Just for Sneakers Any More Hype sales have become popular across all vertical eCommerce segments.74%of the brands we interviewed reveal they use hype sales as part of their marketing strategy.We expect this trend to co

56、ntinue in 2022 as brands look for innovative ways to connect with shoppers at different times of the year.For the brands that run hype sales,their biggest concerns on sale day are site performance issues and security.40%of brands worry about hype sales traffic causing site performance issues on sale

57、 day.25%of brands worry about security problems on sale day.We asked our respondents if they thought that recent innovation and investments in eCommerce sites and digital experience have levelled the playing field for brands to compete with Amazon.The majority said yes.What changed?In 2021,53%of eCo

58、mmerce brands were targeting ad spend of between 5%and 20%of revenue.22%of brands planned to reinvest over 21%of revenue into online advertising.Other initiatives such as SEO,social,and paid search likely also helped brands compete.YES(57%)NO(43%)Do you consider Amazon to be a competitor or a channe

59、l?11%Competitor 30%Channel 24%Both 35%Neither12ConclusionData privacy and security Online shoppers are aware of cybercrime and wont do business with brands that dont take security seriously.Site speed Brands agree that fast page load times result in more conversions.Shoppers are 50%more likely to le

60、ave a site that takes longer than 3 seconds to load and decreasing page load times by just 1 second increases conversion rates by 5.7%.Personalization Modern shoppers expect their favorite brands to know what they like.The shoppers journey often takes place across different channels and customers wa

61、nt this to be frictionless.If they want to buy a winter coat,they dont want to hear about new cruise wear.Customer acquisition and retention The competition for site traffic is stiff and price per click(PPC)is high.Online brands must focus on increasing conversion rates and retaining customers to be

62、 profitable.With proper planning and execution,eCommerce brands will meet their 2022 goals and raise the bar even higher in 2023.Optimize,Accelerate,and Secure Digital Experiences Optimizing your eCommerce site for performance will provide a consistent,fast shopping experience and minimize noncompli

63、ance with privacy laws,exposing customer data,and major performance anomalies due to increased site traffic or 3rd party failures.See and Control 3rd Parties The average eCommerce site hosts between 40 and 60 3rd party technologies.Brands should inventory,optimize,and control all of them.By combinin

64、g application sequencing,actionable analytics,and image optimization,brands can speed up their sites in just hours.Secure Browser-based Services Online brands dont have control over the browser-based digital services on their sites such as Chrome extensions.This can result in lost revenue,data priva

65、cy risks,and slow site speed.Optimize Heavy Images Online retailers rely on large images and video to offer an entertaining shopping experience.Unfortunately,they can drag page load time down.Brands should optimize them using transcending code,image compression and resizing,lazy loading,and compress

66、ion.Add Layers of Security Online retailers need constant visibility to detect and mitigate security threats on their sites.There is no silver bullet to protect against all cybercrime but adding layers of defense such as a WAF,a CSP,and bot mitigation will go a long way in preventing a data breach.C

67、opyright 2022 YOTTAAThe challenge for brands is that the same technologies that provide shoppers with a great online experience also compromise security and drag site speed down.Below is a list of best practices that will help online retailers strike the right balance to keep shoppers coming back for more.The past two years have ushered in a new era of eCommerce.In 2022,all signs point to continued growth.Brands must keep up with customer demand,not just for products,but for great digital experiences.Some of the things online retailers should focus on in the coming year include: