The 2022 eCommerce Executive Key Initiatives Report
Brands Target Revenue Growth Amidst Soaring Customer Acquisition Costs
The main takeaway in the annual 2022 eCommerce Executive Key Initiatives Report is eCommerce growth and how to achieve it. After unprecedented eCommerce success in 2021, online retailers are feeling the pressure to build on the growth they enjoyed during pandemic shutdowns. 51% of survey respondents said their brands experienced an online revenue uptick of between 26% and 50% in 2021. In 2022, 50% of brands are targeting 10% to 15% year-over-year revenue growth. Although this year’s bullseye seems modest in comparison to the prior year, it’s still an aggressive goal.
Growth Data for the eCommerce Market
While strategizing to meet their growth goals, brands need to consider that even though shoppers are still visiting their sites, in-store shopping has returned to pre-pandemic levels. This graphic from the United States Census Bureau illustrates how eCommerce spiked in 2020 and has now returned to a more normal growth trajectory.
Forbes projects that this year and beyond most consumers will blend their shopping habits between online and in-store and that they’ll expect the experience, regardless of channel, to be seamless. If brands can’t meet expectations, shoppers will have no problem moving on to retailers that will. Although an omnichannel approach offers opportunities, it’s pushing customer acquisition costs through the roof.
Customer Acquisition Costs on the Rise
More than 79% of brands that participated in the 2022 eCommerce Executive Key Initiatives Report are investing 25% to 50% more in online customer acquisition than in previous years. That’s an increase of $125,000 per month for the average brand. Overall, respondents are planning to spend between $300K and $450K per month on customer acquisition.
With customer acquisition costs this high, brands must focus on converting every shopper who visits their eCommerce site and then retaining them as customers.
Digital Experience is Key to eCommerce Growth
71% of eCommerce brands consider digital experience to be an important focus when working to maximize and retain site traffic. The top 3 areas where most of these brands are investing this year are the following:
- Data security (50%)
- Improving site speed (49%)
- Data analytics (49%)
Brands fully realize that data breaches are a blow to both revenue and reputation. Having defense solutions in place to protect against cyber fraud will proactively help them reach revenue growth goals.
The majority of brands interviewed for this year’s report agree that site speed 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 expensive and necessary than ever before, brands need to make sure they don’t risk bounces due to slow page load.
Finally, data analytics are the key to making sure that the resources being used to attract, convert, and retain customers are working. Without proper measurement of investment success, brands can’t be sure their strategies are effective.
The 2022 eCommerce Executive Key Initiatives Report presents valuable data on current eCommerce growth and trends collected from executives at major brands across several verticals and market segments. Download the full report HERE to find out how your brand compares.