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Retail Benchmark Study
Retail Benchmark Study
Retail Benchmark Study
50 TOP
RETAILERS
A BENCHMARK STUDY
Conducted: Q3 2018
Published: Q4 2018
TA B L E O F C O N T E N T S
Introduction 3
Site Security 7
Mobile Specific 16
Tablet Specific 21
Checkout 59
Payment Screen 62
Head-Scratching Moments 67
Conclusion 73
About NordicClick 75
• Educated us
• Surprised us
• Inspired us
• Challenged us
We’ve been around e-commerce for a long time and this kind of data really lets us nerd out. If
you feel the same way, we invite you to read on and enjoy!
Adam Proehl; Partner & Co-Founder
NordicClick Interactive
We’re frequently asked by our clients, “How do we compare to competitors? Who’s doing it
well? These questions made us curious so a year ago we created our first Retail E-Commerce
Benchmark Study to be able to provide some answers.
Like last year’s study, we took our basic e-commerce audit and applied it to the top retailers
in the US. With that in mind, our approach was very similar to last year so the elements of the
study were as follows:
Our goal was to use as much of our audit template as possible. Given that we only have access
to public facing websites, we were limited in scope. For this study, we limited the checklist to
questions to that which we could only answer 1 as “yes”, 0 as “no”, or not applicable.
Retailers selected from this audit were pulled from the National Retail Federation Top 100 for
2017. (Source Link: https://stores.org/stores-top-retailers-2017/). From that list, we made the
following exclusions:
Restricted to desktop, tablet, and mobile web only. Some of the retailers have Native Mobile
Apps. We did not do an e-commerce audit of apps. This was restricted entirely to browser-
based shopping.
The study was conducted over the months of June and July 2018. The data is current as of that
time. It is entirely possible that an e-commerce store has made updates since then that would
alter the results of the study. It is noted that this study should be considered a benchmark of
data that was current as of July 2018.
The audit list contained bona fide retailers only. We did not do an audit of brands selling
directly (example: Nike.com was not audited even though they have a large e-commerce
presence).
Given the exclusions noted above, this should not be considered an audit of “The Top 50
Retailers.” It’s an audit of “50 OF THE Top Retailers.” Please note the difference. The list of
retailers benchmarked in this study includes the following:
Academy Sports
Simply put, domains will either say “http,” which is insecure or “https,” which is secure. When a
site is secure, there will be a padlock displayed next to the domain in the upper left-hand corner
along with the word, “Secure.”
AUDIT RESULTS
Not
Secure
44 of the 50
companies had
secure websites.
Secure
0 10 20 30 40 50
This is an example of an
“Equitable Exchange of
Information.” It could be
argued that “free shipping”
is an expectation in today’s
e-commerce world, but
that isn’t the point. This
customer is being asked
for personal information
and given something that
has a tangible value (that
Figure: TJMaxx Intrusive Pop Up
can be measured).
Yes No
#2 SITE SEARCH
It’s no secret that having search functionality on e-commerce sites is critical to success. If your
company has a large list of products, make it simple on your customer to look for them.
AUDIT RESULTS
Of the 50 retailers audited, 49 of them had site search functionality present. The only one
that did not (Ross Stores) also did not have an e-commerce offering.
No automatic
completion
AUDIT RESULTS: Of the 50 retailers audited, 44 of them had autocompleting site search
functionality.
Two retailers do not have e-commerce so in a way it doesn’t apply, but in another way it does
since they certainly want to drive foot traffic into the store. One of the retailers has a flat price
($1 for everything) so this is not applicable.
This unique live chat is interesting, however – you must be careful when enabling it on your site.
You never know when people may be giving incorrect or inappropriate answers.
Another aspect of live chat that guarantees success is being available during peak hours.
Although Belk is not 24/7, they have posted their hours online, so customers know when they
can expect to be helped.
AUDIT RESULTS
Google has made it no secret that it places significant value on site speed. The most important
consideration, however, is for the end user. Think about your own experience when visiting a
website. The last thing you’re likely to tolerate is a slow site. Google has provided a Page Speed
Insights Tool that tests sites’ optimizations. Note that the score is out of 100. Below are the
results from the retailers that were audited. Link to PageSpeed Tool: https://developers.google.
com/speed/pagespeed/insights/.
MOBILE SPECIFIC
#1 IMMEDIATE APP PROMPTING
Most of the top retailers have native mobile apps specific for consumer shopping, but nothing
can be more annoying that shoving it right in a customer’s face the moment you visit the
website:
AUDIT RESULTS
Only 11 of the 50 Top Retailers immediately prompted the user to download an app.
Apple is a great
example of a properly
rendered site.
Everything is clear
and clean (sounds a
little like their brand
efforts).
Good Bad
Bad
AUDIT RESULTS: 49 of the 50 companies passed the mobile friendly test. The LOFT was the
only company whose website did not pass. A couple notes:
- It is a “Pass/Fail” response
- Google is essentially measuring whether a mobile browser is likely to render all the elements
properly for a handheld device.
Figure: Sherwin-Williams Font Size Figure: Tractor Supply Co. Font Size
Left: Right:
AUDIT RESULTS: 40 of the 50 Top Retailers used font type that was legible on mobile.
Similar to mobile, but specific to the tablet experience the page needs to load and render
properly otherwise you’re turning away your potential customers.
Properly
rendered
tablet site
example.
Good Bad
AUDIT RESULTS
37 of the 50 companies had a properly configured vertical viewport on tablet.
AUDIT RESULTS: Only 28 of the 50 Top Retailers used font sizes that were legible on tablet.
Of course, this isn’t the only valid default setting. In our experience with e-commerce, we
typically find it tends to work the best for many retailers simply because (whether humans admit
it or not) we like to follow the crowd when it comes to the latest trends.
Other popular sorting formats we’ve seen work well are “Highest Rating” (you must have
a robust review program for that to work), “Relevance,” and “Best Match.” It is smart for
retailers to include other options like “Name” and “Price” as dropdown options, but we do not
recommend making those the default option.
• “Featured” - Think about it, what does this mean to the consumer? Also, does the “Featured”
aspect get updated?
• “Newest” - While this one isn’t necessarily bad (especially in clothing), a retailer needs to
exercise caution. Just because something is “New” does not automatically mean it should get
placement above something that is a proven seller.
• “Price: Low to High” – Show the customer low-priced items and you’ll sell low priced items.
The smartest e-commerce site managers pay close attention to the data they can glean from
this filtering. It’s clearly a direct reflection of consumer demand and the subsequent conversion
rate is a scorecard of how effectively that demand is met.
AUDIT RESULTS
43
ACCORDING LY,
out of 50 Retailers audited had strong
filtering options.
For a retailer looking to improve customer experience and ultimately close more sales, side by
side comparisons is a feature that should be strongly considered.
AUDIT RESULTS
Surprisingly (and also disappointing), only 16 of 50 top retailers offered side by side
comparison capabilities.
AUDIT RESULTS
22 of the 50 companies had item availability clearly displayed.
AUDIT RESULTS
1
U N FO RT U NATE LY, ONLY
out of 50 retailers provided a backorder
option. This company was Dollar Tree.
Product availability and delivery time are both critical pieces of information that determine
whether a customer moves forward. Apple does a great job of this.
Getting this part right is all about logistics, integrations, and the e-commerce technology
platform’s capabilities. Sadly, most of the 50 retailers audited for this study did not have the
level of sophistication needed to achieve and maintain this critical leg up.
Below is one example. Note how the system is sophisticated enough to let the shopper know
that there are only two items left. Where it falls short is when it stops with “In Stock. Ready to
ship.”
Another example below sets the expectation for shipping (but not delivery). However, if a
customer is in a rush or needs to be assured of a delivery date, this is not the place to look.
#4 REVIEWS
To pass, the reviews must be present AND prominent. If the site didn’t have reviews, it was
counted as a “no.”
AUDIT RESULTS
44 of the 50 companies had product reviews that were easy to find.
We’ve long argued that a well-executed Q & A is just as important as reviews. This is especially
true for products that have any layer of complexity to them (assembly, installation, multiple
purposes, etc.).
Home Depot is a prime example of a strong Q & A program that ultimately serves three
purposes:
2) The retailer gets to learn what questions, concerns, issues, and hesitations other customers
have.
3) It provides a great means for purchasers to “stay engaged” after the purchase.
AUDIT RESULTS
Sadly, only 20 out of 50 retailers audited have any sort of Q & A present for the buying
experience. On the plus side, this presents an opportunity to improve the customer experience
and gain some real e-commerce traction. In addition, it stands to reason that it would also
positively affect sales at the brick and mortar level since presumably many customers are
researching online before walking into a store.
No
Q&A Present?
Yes
0 15 30
Q&A
Present?
#6 CONCISE, BENEFIT-DRIVEN STATEMENTS
A customer always wants to know how your product will benefit them. The easiest and quickest
way to display benefits is with bullet points. Although this tactic is very successful, only some
of the companies were applying it. Here is an example of bullets being used in BJ’s Wholesale
product copy.
AUDIT RESULTS
Selling a product via a two-dimensional medium has one very distinct and inherent
disadvantage:
There is no physical interaction. You cannot pick it up to examine, you cannot “feel the
quality,” and you cannot appreciate the “full experience.”
Given these limitations, it’s critical that retailers provide images that show as many relevant
angles as possible.
Foot Locker takes it one step further and now offers on some products a 360-degree view.
39
out of 50 retailers provided
multiple views of their
products.
#8 COLOR OPTIONS
On the surface, the success criteria for this would seem obvious, but there are two components
required to gain a “yes” for this part of the audit:
i. The product detail page must clearly show all available options.
ii. When clicking on the option, the product detail image must reflect what the shopper selected.
Note how
the color box
selected reflects
on the image the
shopper sees.
This functionality isn’t relevant for all products (white socks really don’t require options).
AUDIT RESULTS
23 out of the 50 retailers audited had the functionality to show various colors on their site.
This notice is important because it ensures that the customer is knowledgeable of what is in
their cart. Also, providing this notice will avoid any accidental add-ons to the cart.
AUDIT RESULT: 43 out of the 50 companies had a prominent “Items Added” notice.
Main Product
Cross-Sells
E-COMMERCE AUDIT: 50 TOP RETAILERS - A BENCHMARK STUDY 44
Cross-selling can go wrong with incorrect linkage. A prime example of incorrect cross-selling
occurred on Burlington Coat Factory’s website.
Main Product
Cross-Sells
When we say links, we mean click targets that remove the visitor from the specific product
display page. Some of the current detail page efforts were shocking. Companies not only had
cluttered pages but provided links to competing brands in the same product category. Why you
ask? We may never know. Below is an example of JC Penney’s abundant linkage.
Products like electronics, power tools, cameras, and auto parts that have a degree of complexity
can recognize benefits from having full detailed specifications available to shoppers on the
product detailed page.
Not every shopper cares about a product’s specifications nor will all of them take the time to
read through it. However, when your customer is nearing a final purchase decision, the small
differentiating detail in a product specification can make the difference between getting a sale or
a page exit.
In 2018, there’s no excuse for not having the details. Product manufacturers are typically more
than happy to provide it. If they aren’t, retailers should take that into consideration when
determining what to carry and promote.
Even clothing can benefit from having detailed specifications. Think about all the considerations
that go into deciding whether to buy a shirt:
Cleaning (dry clean, machine, hand wash, separately, cold, hang dry)
Materials
Country of origin
Environmentally friendliness
Ethical manufacturing
Wrinkle care
Flammability
People love to feel appreciated (and show off a little bit). Content is also hard and expensive so
a great solution is to prompt your customers to share their images and stories. The technology
is readily available (and allows for moderation to ensure only appropriate media is displayed).
This trend is slowly becoming more popular but has not fully taken over.
AUDIT RESULTS: 14 of the 50 retailers had customer generated pictures on their website.
In our experience, we’ve seen evidence that shows product videos can improve conversion
rates. They are an outlet for customers to see how the product will actually work and be used.
Makeup is a great example when it comes to product videos. Below is an example of how Ulta
used a video to inform their potential customers.
AUDIT RESULTS
13
out of 50 companies used videos to
display their products. Note that not
every product had a video, the company
was included if any of their items did.
Although this may seem small, creating an outlet for the customer to continue shopping is
generally advised. Surprisingly, we found that these two buttons were rarely differentiated and
often there was not a “Continue Shopping” button. The best way to differentiate the two is by
using separate colors to catch the eye of the consumer. Below are some examples of good
button differentiation:
A company earned a “yes” in this section if their cart displayed total cost including tax and
shipping. We found that customers were often made to wait until checkout to see total price,
which is off-putting for many visitors. The more information you give your customer, the more
likely they are to purchase.
#4 GIFT OPTIONS
This setting in a shopping cart is not always prominent, but in most retail cases – it is important.
However, a few of the companies audited would not need this option (for example, Autozone –
gifting brake pads are probably rare). Providing gift options allows the customer to send directly
to the receiver (who could be a new customer) and personalizes the purchasing experience.
Target does a thorough job of explaining gift options within the shopping cart.
Although this example happened in the shopping cart, gift options can also be found other
places. The main areas we noticed gift options present were the product display page, the cart,
and checkout.
AUDIT RESULTS
22 out of the 50 retailers offered gift options. Most commonly, the gift options were found
in the shopping cart.
Deal-specific pages are not always common, but they often encourage a purchase. A great
example of this was found in JC Penney’s shopping cart:
The time limit placed above the cart is constant reminder for the customer to purchase as soon as
possible.
AUDIT RESULTS: Only 7 of the 50 companies used deal-specific pages to encourage a sale.
In the study, we found that global navigation sales events were more common than deal-specific
pages. “Global navigation” means that the sale is promoted on every page of the site, often in the
form of a bar heading. Below are some examples.
AUDIT RESULTS
18 of the 50 companies promoted a sales event globally.
We found that most companies often had a guest checkout feature, however, not all of them
showed a reason for creating an account. This is a huge red flag – if you provide new customers
with a guest checkout and don’t give them reason to create an account, they usually will only use
the guest checkout feature. A short and simple description about creating an account next to
the guest checkout is all you need.
AUDIT RESULTS: 40 of the 50 retailers had the guest checkout option and only 11 of the 50
provided reasoning to create an account.
#2 LAYOUT OF CHECKOUT
Checkout pages take many forms. Single-page checkout and breadcrumb checkout are the most
common layouts. Single page checkout is always preferred because it takes only one step to
fill out information and submit an order. Breadcrumb checkout is a step-by-step process that
usually includes multiple “continue” buttons to advance. Below are some examples of each type
of layout.
Single-Page
Checkout
Breadcrumb Checkout
AUDIT RESULTS
6
out of 50 companies had a single-
page checkout, while 42 of them had a
breadcrumb checkout. The remaining 2
did not have an e-commerce platform
and therefore, do not apply.
SHIPPING SCREEN
In any e-commerce transaction, the available shipping options can make or break the sale. It’s
not always about having “Free” or “Low Cost” shipping. Sometimes it’s about urgency or flexible
delivery times. In any case, the most important thing a retailer can do is to understand their
consumers’ needs and offer the proper options and communication.
AUDIT RESULTS: 31 of the 50 retailers provided clear shipping options with prices and
times for each. Only 27 of the 50 had a free shipping option.
PAYMENT SCREEN
This is where things get serious. Up to this point, there was no real commitment. A shopper
browsed, selected, added to a cart, possibly even entered an address. Committing to making a
payment makes the whole thing real. This process needs to be seamless for the customer. Some
of the items we examine include things that are very basic, but still important.
A few (but certainly not all) examples of trust symbols include the following:
After researching we found that most retailers had security trust seals, but they were rarely on
the payment screen.
AUDIT RESULTS
14
out of 50 retailers
displayed security trust
seals prominently on the
payment screen.
A smart retailer will always provide multiple payment options such as gift cards, credit cards,
and PayPal. None of the 50 companies used Apple Pay as a means of payment. Note that Apple
Pay can be used on desktop, but only on Safari (which is limiting).
Another thing to note is that only 4 of the 50 companies offered a route back to shopping while
on the payment screen.
Want to make more sales? Simple - always be helping your customer. Believe it or not, some
customers do not know what CVV or CC security code is, so just show them. The best way to
do so is with visuals. Often a small question mark or info dot will be directly next to the CVV
question box. This usually means the website plans to show where the code is located on a card.
38 of the 50 retailers had this mastered.
This section is more important than people realize. Sometimes it’s easier to have a product
shipped to the home. Other times a shopper is thinking about something in the moment and
wants to know if the product is in stock at the store that’s on their way home from work.
AUDIT RESULTS
41 out of the 50 retailers had their online experience integrated with the brick & mortar.
For clear symptoms of why some retailers are struggling to adapt in today’s world, look no
further than this shoe retailer. Charging $7.99 for online AND in-store pickup guarantees a
horrible customer experience.
This might make sense in a spreadsheet to an operations manager, but it sure doesn’t to your
customer. In fact, it’s a signal that you really don’t want them to order online. A shoe retailer
gets shipments of new product regularly (either from the manufacturer or the warehouse).
Example A
Example B
Yes, you read the headline correctly. One of big retailers had a broken checkout. The page
would not move past the information screen to the payment screen. This was obviously a
temporary issue that just happened to occur during our test, but there is no doubt some lost
revenue resulted.
1 Picture what is going through the mind of the customer at various points during the
shopping experience. Put yourself in their place as someone with a specific objective
and ask yourself if the experience you provide is helping or hindering.
What are you ok with the customer assuming? Do you want the customer to assume
2 the next steps to take in the purchase journey or do you think it would be better to
show them? Do you want the customer to assume this product is available and will
be delivered within their desired timeframe or is it better to reassure them? Look at
every step along the purchase path and ask yourself how clear you’re being.
How are you making it easier for the customer? Your life as the one in charge of
3 e-commerce should really boil down to making it easier for the customer to achieve
their goals. That’s it. Do this well, and everything will fall into place.
We are a full service digital marketing agency located in Minneapolis, MN with a global
footprint of clients. From a high level, services include:
• Web Development
• E-Commerce Management
• Email Management
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