1、The State of D2C Marketing 2019 eCommerce and Marketing Benchmarks Presented by in partnership with Table of Contents 01 / Overall Findings 02 / Findings by Company Size Introduction About the Report Small Brands Medium Brands Large Brands D2C eCommerce KPIs, Teams, high rate of loyalty program impl

2、ementation Highest ranking of brand awareness and more emphasis on CLTV than industry average Entertainment & Media Fashion & Accessories Food, Beverage, & Tobacco eCommerce Sales eCommerce Sales eCommerce Sales 103 03 / Findings by Vertical UGC Experiences by Vertical Given the highly visual nature

3、 of travel, it comes as a surprise that the Travel & Hospitality vertical is below industry average for all three types of UGC: reviews, photos, and videos. Meanwhile, there is a high implementation of customer photos by Fashion companies and the Food vertical posted the highest number of deployment

4、s for user- generated videos. AutoFashion & Accessories Electronics & Telecom Entertainment & Media Business & Services 70% 41% 10% 61% 18% 6% 71% 18% 7% 64% 39% 17% 80% 36% 16% PhotosReviewsVideos Av. 73% Av. 36% Av. 16% 102 Top Performances ReviewsCustomer PhotosCustomer Videos Food, Beverage, & T

5、obacco 78% 37% 12% 77% 40% 12% 82% 36% 11% 79% 38% 16% 78% 35% 18% 58% 35% 12% Hobbies, Toys, & Kids Home, Garden, & Pets Sports & Outdoors Travel & Hospitality Health & Beauty yHobbies, Toys, & Kids yAutomotive yHealth & Beauty yFashion & Accessories yHome, Garden, & Pets yBusiness & Services yFood

6、, Beverage, & Tobacco yBusiness & Services yHealth & Beauty 103 105 Referral Programs by Vertical 03 / Findings by Vertical Referral programs convert shoppers into advocates and can be an efficient way to acquire more customers. These are most highly implemented within the Sports, Travel, and Busine

7、ss verticals, whereas Electronics & Telecom and Fashion are under-leveraging this feature. AutoFashion & Accessories Av. 33% Electronics & Telecom Entertainment & Media Business & Services 36% 45% 25% 38% 29% Referral Program Deployment by Vertical 104 Food, Beverage, & Tobacco 38% Hobbies, Toys, &

8、Kids Home, Garden, & Pets Sports & Outdoors Travel & Hospitality Health & Beauty 36% 31% 32% 49%48% Top Performances ySports & Outdoors yTravel & Hospitality yBusiness & Services 105 107 03 / Findings by Vertical Loyalty Programs by Vertical At 31% implemented, loyalty programs are the least deploye

9、d experience by D2C brands in this study. Notably, two seemingly disparate categories, Food, Beverage, & Tobacco and Auto, are at 40%+ implemented. The former is likely because companies selling consumables need to incentivize frequent, repeat purchases. The latter, given higher ticket items in the

10、category, is likely focused on engendering emotional loyalty to the brand as well as inspiring return purchase for service and parts. AutoFashion & Accessories Av. 31% Electronics & Telecom Entertainment & Media Business & Services 40% 33% 29% 38% 33% Loyalty Program Deployment by Vertical 106 Food,

11、 Beverage, & Tobacco 42% Hobbies, Toys, & Kids Home, Garden, & Pets Sports & Outdoors Travel & Hospitality Health & Beauty 31% 36% 25% 39% 32% Top Performances yFood, Beverage & Tobacco yAutomotive ySports & Outdoors 107 109108 03 / Findings by Vertical Social Media Top ranking for influencers & mes

12、senger SEO Messenger ranked highest across verticals Social Media Physical stores ranked highest across verticals Health & Beauty Hobbies, Toys, & Kids Home, Garden, & Pets Automotive Direct Traffic SMS is a significant traffic source Social Media Infuencers third-highest acquisition source across v

13、erticals SEO & Direct Traffic SMS is a significant traffic source Business & Services Electronics & Telecom Top Acquisition Channels by Vertical Top Acquisition Source: Top Acquisition Source: Key Insights: Key Insights: SEO Top affiliate ranking and 2nd partnership ranking across verticals Direct T

14、raffic Messenger ranked second-highest across verticals Sports & Outdoors Travel & Hospitality SEO SEO is number one source across verticals, affiliate programs & SMS higher than average Social Media Affiliates, partnerships, & collaborations above industry average Social Media Influencers ranked hi

15、ghest across verticals Entertainment & Media Fashion & Accessories Food, Beverage, & Tobacco 111110 03 / Findings by Vertical Amazon: Investment by Vertical AutoFood, Beverage, & Tobacco Business & Services Electronics & Telecom Entertainment & Media Fashion & Accessories 27% 18% 12% 25% 3% 19% 16%

16、13% 15% 18% 12% 18% How marketing spend on Amazon Ads is increasing/decreasing in 2019 vs 2018 110 Growing Spend on Amazon Ads Pulling Spend from Amazon Ads yElectronics & Telecom yFashion & Accessories ySports & Outdoors yAutomotive ySports & Outdoors yElectronics & Telecom Health & Beauty Hobbies,

17、 Toys, & Kids Home, Garden, & Pets Sports & Outdoors Travel & Hospitality 20% 9% 18% 27% 19% 14% 13% 14% 16%15% IncreaseDecrease 111 113112 Facebook Ads: Investment by Vertical AutoFood, Beverage, & Tobacco Business & Services Electronics & Telecom Entertainment & Media Fashion & Accessories 65% 42%

18、 44% 46% 45% 63% 8% 21% 14% 11% 14% 18% 03 / Findings by Vertical How marketing spend on Facebook Ads is increasing/decreasing in 2019 vs 2018 112 Health & Beauty Hobbies, Toys, & Kids Home, Garden, & Pets Sports & Outdoors Travel & Hospitality 46% 38% 62% 49% 50% 21% 27% 13% 18% 19% IncreaseDecreas

19、e Growing Spend on Facebook Ads Pulling Spend from Facebook Ads yHobbies Toys & Games yFood & Beverage yHealth & Beauty yAutomotive yFashion & Accessories yHome Garden & Pets 113 115114 Google AdWords: Investment by Vertical AutoFood, Beverage, & Tobacco Business & Services Electronics & Telecom Ent

20、ertainment & Media Fashion & Accessories 69% 40% 48% 71% 42% 49% 12% 13% 11% 11% 13% 27% 03 / Findings by Vertical How marketing spend on Google AdWords is increasing/decreasing in 2019 vs 2018 114 Health & Beauty Hobbies, Toys, & Kids Home, Garden, & Pets Sports & Outdoors Travel & Hospitality 44%4

21、4% 61% 59% 38% 16% 17% 13% 14% 8% IncreaseDecrease Growing Spend on Google AdWords Pulling Spend from Google AdWords yEntertainment & Media yHobbies, Toys, & Kids yHealth & Beauty yElectronics & Telecom yAutomotive yHome, Garden, & Pets 115 117116 Findings at a Glance 04 116117 119118 Snapshot: D2C

22、Industry 04 / Findings at a Glance Implementation of D2C eCommerce Experiences Top Marketing Priorities eCommerce Sales Customer Acquisition Conversion Rates Increasing Investment in Facebook Ads Top Acquisition Channel Social Media (organic & paid) 15% Customer Videos 31% Loyalty Programs 73% Revie

23、ws 36% Customer Photos 33% Referrals 119 121120 04 / Findings at a Glance Snapshot: Small Brands Implementation of D2C eCommerce Experiences Top Marketing Priority eCommerce Sales Increasing Investment in Instagram Ads Top Acquisition Channel Social Media (organic & paid) 15% Customer Videos 65% Bet

24、ter ROI from Referrals vs Digital Ads 36% Loyalty Programs 76% Reviews 33% Customer Photos 30% Referrals 121 123122 Snapshot: Medium-Sized Brands 04 / Findings at a Glance Implementation of D2C eCommerce Experiences Top Marketing Priority eCommerce Sales Increasing Investment in Google Adwords Top A

25、cquisition Channel Social Media (organic & paid) 12% Customer Videos 27% Loyalty Programs 70% Reviews 40% Customer Photos 38% Referrals 123 125124 Snapshot: Large Brands 04 / Findings at a Glance Implementation of D2C eCommerce Experiences Top Marketing Priority Conversion Rates Increasing Investmen

26、t in Facebook Ads Top Acquisition Channel SEO 17% Customer Videos 37% Loyalty Programs 68% Reviews 46% Customer Photos 34% Referrals 125 127126 Automotive Business & Services Top KPI / Conversion rate Top Acquisition Channel / Direct traffic Digital Experiences Top KPI / Customer Acquisition Top Acq

27、uisition Channel / Social Media (organic & paid) Digital Experiences 80% Reviews 64% Reviews 36% Customer Photos 39% Customer Photos 16% Customer Videos 17% Customer Videos 40% Loyalty Programs 33% Loyalty Programs 36% Referrals 46% Referrals Snapshots by Vertical 04 / Findings at a Glance Electroni

28、cs & Telecom Entertainment & Media Top KPI / eCommerce Sales Top Acquisition Channel / SEO & Direct Traffic Digital Experiences Top KPI / eCommerce Sales Top Acquisition Channel / SEO Digital Experiences 71% Reviews 61% Reviews 18% Customer Photos 18% Customer Photos 7% Customer Videos 6% Customer V

29、ideos 29% Loyalty Programs 28% Loyalty Programs 25% Referrals 38% Referrals 129128 Fashion & Accessories Food, Beverage, & Tobacco Top KPI / eCommerce Sales Top Acquisition Channel / Direct traffic Digital Experiences Top KPI / eCommerce Sales Top Acquisition Channel / Direct traffic Digital Experie

30、nces 70% Reviews 78% Reviews 41% Customer Photos 35% Customer Photos 10% Customer Videos 18% Customer Videos 33% Loyalty Programs 42% Loyalty Programs 29% Referrals 38% Referrals 04 / Findings at a Glance Health & Beauty Hobbies, Toys, & Games Top KPI / eCommerce Sales Top Acquisition Channel / Soci

31、al media (organic & paid) Digital Experiences Top KPI / eCommerce Games Top Acquisition Channel / SEO Digital Experiences 79% Reviews 82% Reviews 38% Customer Photos 36% Customer Photos 16% Customer Videos 11% Customer Videos 31% Loyalty Programs 36% Loyalty Programs 36% Referrals 31% Referrals 1311

32、30 Home, Garden, & Pets Sports & Outdoors Top KPI / eCommerce Sales Top Acquisition Channel / Social media (organic & paid) Digital Experiences Top KPI / eCommerce Sales Top Acquisition Channel / Direct traffic Digital Experiences 77% Reviews 78% Reviews 40% Customer Photos 37% Customer Photos 12% C

33、ustomer Videos 12% Customer Videos 25% Loyalty Programs 39% Loyalty Programs 32% Referrals 49% Referrals 04 / Findings at a Glance Travel & Hospitality Top KPI / eCommerce Sales Top Acquisition Channel / SEO Digital Experiences 58% Reviews 35% Customer Photos 12% Customer Videos 32% Loyalty Programs

34、 48% Referrals 133132 The Future of D2C Marketing 05 132133 135134 The Future of D2C Commerce Marketing 05 / The Future of D2C Marketing Social Media: Boon and Bane Social media continues to play a dominant role in D2C marketing. As the top acquisition channel for brands, according to the study, it

35、makes sense that Facebook and Instagram ads are also drawing the largest increases in investment. Of course, these platforms are critical for helping your business achieve rapid growth and market penetration, but social media is also a third- party entity that controls the environment, pathways to e

36、ngagement, and most importantly, your customers data. This reduces your ability to understand your consumer and to build relationships with them. Furthermore, The Business of Fashion reported that with D2C models, “Spending on Facebook ads, paid search results, and promoted posts can eat up the enti

37、re product margin.” This can result in financial volatility if an algorithm change requires you to increase spending to get the same reach. Our report reveals that to the industry overall, the benefits of social media are still too great to shift spending away. Yet, it should be noted that as potent

38、ially more brands increase their spend on social ads, it will make it tougher to compete for visibility and significantly drive up customer acquisition costs. Brands might consider investing in collecting content from customers and producing a variety of ad creative to constantly test and ensure max

39、imum return on ad spend. In fact, Survey respondents leverage user-generated content (UGC) the most in social media, both in organic posts and ads. A case study published by Facebook found that adding review content to Facebook Ads earns 4x higher click-through rates and lowers cost per acquisition

40、by 50%. Additionally, brands should focus on diversifying their acquisition models by included fixed-cost options, like referrals. A majority of survey respondents, 63%, found equal or better return on investment from referrals compared to digital ads. Opportunities for Experience-Driven Commerce As

41、 robust as marketers efforts are to acquire customers, the findings suggest that the online store is under-leveraged as a marketing channel. Direct traffic ranked third highest as an acquisition driver, marking your site as the ultimate brand destination. Some brands are moving away from social medi

42、a and instead investing in brand-centric experiences. In one notable example, Digiday reports that Glossier is “heavily investing in building its own channel to talk to its customers.” The brands COO explains: “Facebook has the reach, but its a monolithic platform thats designed to engage the custom

43、er in certain behavior that isnt always right for the conversation we want to have.” When it comes to on-site experiences, the industry is off to a strong start. About 73% of D2C brands have already implemented customer reviews, inviting visitors into a conversation about their products. Besides gen

44、erating as much as a 161% uplift in conversions, reviews provide extended benefits to other 137136 marketing channels, including social media. Showcasing reviews on site also has a significant impact on SEO, which ranks second highest as an acquisition channel in the study. Reviews are considered tr

45、usted, valuable content for search engines like Google, Moz has found, and bear weight as a factor in organic rankings. Aside from reviews however, the industry is slow to adopt other features that make online stores a richer experience for prospective shoppers and returning customers alike. Visual

46、marketing elements like user- generated photos, for example, are a major missed opportunity: They are implemented only by 36% of respondents, despite the fact that a Yotpo survey found that 77% of consumers say that photos from other shoppers influence their buying decision more than company photos

47、do. Videos, on the other hand, look to be a growing priority for respondents. Although only 15% of brands have implemented user-generated videos, another 39% are looking to add them in the future-the highest rate across all user-generated content. After watching a video, 64% of consumers are more li

48、kely to buy a product online, according to Renderforest. To start improving your eCommerce experiences, build out your on-site media and interactivity features. Brands that are already leaning heavily upon social can also choose to curate Instagram photos and display them on their website. Showcasin

49、g this user-generated content allows the consumer to have a peer-to-peer experience 05 / The Future of D2C Marketing and reinforces the community component. Technology to Power eCommerce Experiences Choosing a tech stack to enable robust eCommerce experiences isnt always easy considering the extensive set of choices in the latest LUMAscap