Today, we are glad to introduce the inaugural Demandware Shopping Index. The Demandware Shopping Index measures digital commerce growth and is based on an analysis of activity from over 100 million consumers that shop with retailers on the Demandware Commerce Cloud. This index considers shopper frequency, conversion rates, average order values and net change in shoppers.
When developing the index, we asked a simple question: why is digital commerce growing? We heard the typical chorus of responses: innovation, devices, connectivity and convenience. But when developing the Shopping Index, we wanted to quantify and give credit to the growth factors. Our analysis led us to two primary drivers of digital commerce growth: a 12% increase in shopper frequency and a 25% increase in shoppers.
First, we looked at the shopper – and found some astounding metrics. While there has been much press about falling conversion rates, we found that the 12% increase in visit frequency was not only offsetting that decrease, but actually driving a net increase in orders. In fact, shopper spend is up 6% year-over-year, which drives 19% of overall growth.
The attraction of digital commerce is strong, as we are seeing a 25% increase in shoppers. This increase in shopping attraction is driving 81% of digital commerce growth.
Together, the increase in shopping spend and shopping attraction reveals 32% digital commerce growth.
Over the next series of posts, we’ll explore the other key metrics, trends and predictions that matter in digital commerce. In the meantime, I encourage you to download the Demandware Shopping Index and visit the interactive landing page to explore some of the country-specific figures.
The Demandware Shopping Index analyzes activity of over 100 million shoppers to identify trends and opportunities for retailers to elevate the shopper experience and grow revenue. The report reflects a comparison of digital commerce sites transacting on Demandware Commerce in Q4 2014 and Q4 2013.