Before you head off into a weekend full of festive fun, don’t forget to squeeze in a few stats.
This week, we’ve got news about Christmas shopping, chatbots, direct marketing, and more. Check out the Internet Statistics Database too – it’s full of lots more interesting stuff.
36% of UK retailers are damaging profit margins due to pricing errors
A new report by Omnia Retail suggests that some of the UK’s biggest retailers are damaging their profit margins due to errors and inaccuracies in product pricing.
In a survey of 150 UK retailers, Omnia found that 36% of major UK brands are damaging their profit margins by making pricing blunders, which largely stems from a desire to undercut competitors.
Just 34% of businesses said they feel confident that their pricing levels are always accurate. Meanwhile, 19% of those surveyed also confessed that a previously incorrect pricing strategy has not only led to lost revenues, but negatively impacted their overall business.
22% said that competitor price undercutting is a key strategy for their business, with a further 15% of retailers saying that they are usually the first to cut prices ahead of their competitors. However, 27% said they have had to lose out on margins due to price cutting in the past.
57% of UK consumers plan to spend less than £50 on alcohol in Christmas grocery shop
With Christmas on the horizon, a new study of 2,254 UK consumers by GlobalWebIndex has revealed how Brits are spending their budget this year.
66% of respondents estimate that their shop will come in at more than £100 this year, with close to a quarter predicting a spend of more than £200. With 71% of consumers stating that their weekly grocery shop is now down to less than £100, this makes the Christmas shop a significant point of investment in the year.
Interestingly, 57% of consumers state that they plan to spend less than £50 on alcohol this Christmas. Continuing the trend of low prices being a priority, Aldi takes the number one position as the most popular supermarket for UK consumers, with 28% planning to visit the supermarket for their big Christmas shop.
Nearly half of consumers find chatbots annoying
The chatbot market is expected to exceed £1 billion by 2024. However, new research by Acquia suggests that consumers aren’t too keen on the technology.
The ‘Closing the CX Gap’ report – which is based on a survey of more than 5,000 consumers and 500 marketers – reveals that one in five consumers want brands to ditch chatbots. 45% of consumers generally find chatbots ‘annoying’, and 78% of consumers say the problem with automated experiences is that they’re too impersonal.
Sylvia Jensen, VP of EMEA marketing at Acquia suggests that chatbots are “part of a broader disconnect between marketers and customers”. As a result, marketers need to ensure that chatbots are fully integrated with the wider customer journey to offer personalised and helpful experiences.
Data fragmentation is the biggest challenge for today’s marketers
Criteo’s State of Ad Tech 2019 report has revealed that data fragmentation is one of the greatest challenges facing the industry at the moment.
In a survey of 901 marketers, 40% of respondents said they struggle with using data to bridge the online/offline gap – despite the fact that shoppers no longer stick to any single channel.
Elsewhere, the report also reveals that marketers have a lot of different ways of defining what makes effective conversion. 35% of marketers stated new revenue, while 33% said new customer rate, and 30% said cost per action.
Finally, re-engagement is becoming an increasing focus for marketers, particularly as the impact of brand loyalty increases. The report states that existing retail customers spend more on average than new shoppers, while shopping app customers have high loyalty tendencies.
Waitrose delivers the best direct marketing campaign this Christmas
Waitrose has been named by Mailjet as having the strongest direct marketing campaign this Christmas. The results are based on the analysis of emails sent by nine of the leading UK supermarkets, which are scored according to a range of direct marketing metrics including design, best practices, personalisation, subject line, and so on.
Waitrose won on cross-channel tactics, with a score of 3.5 out of 5. Unlike its rivals, Waitrose also invested in the personalisation of its campaigns, scoring an extra 3.2 points.
Lidl did manage to beat Waitrose in the category of ‘call-to-action’. This was due to the budget supermarket’s inclusion of custom buttons such as ‘try recipes’, giving new customers a clear next step in the purchase journey and nudging them to increase basket-size.
Millennials display greater loyalty to brands that respond on social
A survey of 2,000 US consumers by TELUS International has revealed that brand loyalty has a direct link to social media, with the majority of millennials showing favour to those that respond via the channel.
72% of millennials are more likely to be loyal to a brand that responds to feedback via social media over a brand that does not. This is compared to 47% of Americans over the age of 45. What’s more, 43% of millennials also said they’d consider purchasing elsewhere if a brand does not have a social media page to provide feedback on.
Overall, it seems consumers are becoming more vocal thanks to the opportunities afforded by social. 38% of millennials say they have given feedback to brands using company social media channels once a week or more in the past 12 months.
Meanwhile, 18% of millennials mostly prefer to leave positive feedback for a company via company social media channels, and 13% prefer this channel for providing negative feedback.