What do the 2022 Peak-Shopping Season Results Say About 2023?
Closing strong in a difficult year.
Retailers in the UK had their work cut out in 2022. Crippling shortages of raw materials, soaring inflation and energy prices, the lowest levels of consumer sentiment ever recorded since the 1960s – that's quite a year to navigate. Unsurprisingly, the result is that digital commerce growth is down.
The good news is that while forecasts had been pessimistic, the last quarter of 2022 wrapped up better than expected. And as a result, order value growth is recovering.
So how does your business stack up against the global picture? Take a look at our snapshot of last quarter’s global shopping data and benchmark yourself against industry peers.
UK retailers: forging success in a market drought.
For the opportunities that are out there, UK businesses are converting leads into buyers more successfully than any other market we surveyed. In fact, the UK’s conversion rate is the highest (3.1%) in the world. And it also has the lowest cart abandonment rate.
The highest abandonment rates were for home and furniture goods (88% of orders on desktop) while food and beverage purchases were the least likely to be abandoned (59% of orders on desktop).
Businesses re-engaged shoppers with seasonal discounts that shaped demand.
Across all channels and markets, shoppers spent less in 2022 than the year before. Taking a look at the global picture, businesses responded by reducing the frequency of their marketing messages – on email, push, and SMS. Message growth fell from 27% in 2021 Q1 to 12% in 2022 Q4.
Intuitive site search turned browsers into buyers.
Businesses drilled down into customer intent and made the shopping experience more personal by helping shoppers find what they were looking for with ease and speed. Almost a quarter (24%) of online orders were made through site search.
Globally, site search was most effective when buyers looked for toys and learning tools. However, it was least effective when users were looking for beauty and makeup products, electronics, or accessories.
Globally, site search was most effective when buyers looked for toys and learning tools. However, it was least effective when users were looking for beauty and makeup products, electronics, or accessories.
Chatbots supported customers in real-time.
Businesses used the power of artificial intelligence to speed up self-service channels for customers and resolve common issues. These issues included checking claims status, order modifications, and questions about billing.
With common issues covered by self-service provision, businesses could focus their resources on providing telephone support in high-value areas to deepen personal connections with customers through complex issue resolution and
customer success initiatives. Overall, Chatbot sessions grew by 48% while call volume growth fell by 22%.
Tapping into smart CX to make a difference.
Retailers, both in the UK and around the world, have taken external factors (like economic instability) in their stride and have focused on what they can control – their relationship with their customers. The UK's approach has been particularly effective enabling them to take full advantage of the few opportunities available.
The early signs indicate a better economic outlook for UK retailers. But if businesses want to take ownership of their path forward – they need to deliver seamless journeys that give customers what they want, when they want it.
Want to learn how to keep shoppers coming back with personalised ecommerce experiences?
Read our brand loyalty guide here.
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