4 in 10 online transactions may be incorrectly measured by retailers

Retailers must invest optimally in high-performing channels or risk low-quality online shopper engagement and sales, said a Criteo report.

South-east Asian retailers who lack a cross-device perspective will have a distorted view on up to 41% of their online transactions, according to The State of Cross-Device Commerce by performance marketing company Criteo.

In the long run, this distorted view will result in inefficient allocation of marketing spend, which would in turn affect the quality of shopper engagement and the volume of customer acquisitions, added the report.

The analysis revealed insights into consumer shopping habits and predictions for cross-device commerce, and it reflected the pressing need for retailers to deepen their understanding of cross-device consumer behaviour and align marketing strategies to maximise ROI.

Alban Villani, general manager, South-east Asia, Criteo, said: “Consumers are using multiple devices in their buying journeys, from searching and browsing to buying. South-east Asian retailers must therefore distance themselves from outdated device-centric marketing and adopt
a user-centric approach.

“In today’s competitive landscape, e-commerce businesses cannot afford to draw the wrong conclusions and waste money on the wrong channels. They must turn to cross-device measurement to ensure accurate attribution, before investing optimally in high-performing
engagement and sales channels.”

Villani added that retailers who successfully deliver a seamless and personalised customer experience across devices will then stand out from the rest.

Cross-device measurement means smarter spending and higher returns

Without accurate and scalable measurements available, marketers need to consider how much cross-device shopping may cost in ad wastage. Traditional analytics tools look at activities on a
device-by-device basis, providing a limited and siloed view of a customer’s multi-device journey. Shifting to a usercentric approach that leverages advanced cross-device measurement tools can accurately identify a consumer and capture a complete view of their shopping
experience, said Criteo. This approach aligns with buying behaviour and intent to more accurately report transaction attribution. According to its report, the case for proper cross-device measurement, identification and attribution is clear:

• More than two in five transactions may be misattributed without cross-device measurement.
• With user-centric, cross-device measurement, retailers can more accurately track conversions and optimise marketing spend. Observed global e-commerce conversion rates are 1.4 times higher than seen with a device-centric approach. In Indonesia,
  the representative market for South-east Asia, observed conversion rates are 1.6 times higher than seen with a device-centric approach.
• Cross-device measurement revealed that buyer journeys are up to 41% longer than partial-view models indicate.

Smartphones becoming the dominant force in cross-device buying

The adage “browse on your smartphone, buy on your desktop” is officially dead, said Criteo. Consumers now reach for their smartphones for both searching and purchasing, making it even more important for retailers to provide a synchronised experience across desktop and mobile
devices. In South-east Asia, smartphones are now involved in around 25% of all online retail sales, with a year-on-year increase of 44%, while tablets continue to decline.

• On smartphones, add-to-basket and conversion rates increased 49% and 19%
  year-on-year respectively.
• In Indonesia, cross-device buyers are evenly represented across the three primary purchase devices: smartphones (40%), tablets (44%) and desktops (41%). In addition, 21% of cross-device desktop transactions started on a smartphone and 37% of cross-device smartphone transactions started on a desktop.

This means that marketers can no longer afford to have just a siloed view of their customers’ shopping behaviours. Savvy retailers offer a seamless user experience across both desktops and mobile devices to capture purchases wherever they take place. Having adopted a cross-device
view of the customer shopping journey, said Criteo, they can then spend their marketing dollars more wisely and effectively.

The State of Cross-Device Commerce reports trends in South-east Asia and international shoppers’ cross-device habits, using data from 3,300 online retail businesses worldwide, encompassing more than 1.7 billion annual transactions and US$720 billion in sales.