Maximizing Retail Traffic in the Face of Economic Headwinds
True Fit is working closely with our retail partners to help them maximize the spend of their existing traffic, lower the cost of acquisition and build high value relationships that keep shoppers coming back to buy.
To say the last few years have been a mix of highs and lows in retail would be an understatement. Retail’s digital transformation is here but with it has come a series of headwinds from supply chain issues and labor shortages to inflation and the risk of a recession. Navigating these market challenges will be important over the next several months. The key to succeeding in this time as a direct to consumer brand is to focus on lowering the cost of acquisition and connecting with high intent and high value shoppers.
True Fit connects data from more than 90 million active shoppers across 165+ global footwear and apparel retailers today and we have observed several trends across our cross market dataset that point to maximizing traffic to lower return on advertising spend and facilitate customer lifetime value.
- Digital window shopping has leveled out over last year and the year prior, traffic is down slightly over last year by 12%.
- Digital order frequency has also leveled out, down 10% over last year.
- Opportunity is with high intent shoppers. AOV is up 17% over last year, signaling shoppers with high intent are buying more in one visit.
- Retailers have to find ways to solve for fit to drive marketing efficiency. This year, we have seen a 7% growth in registered shoppers over May of 2021 and 20% growth over May 2020 in newly registered True Fit shoppers, signaling high demand for fit guidance.
Read on to learn more about how to tap into high value shoppers to drive marketing efficiency.
Economic headwinds will impact retail traffic but they don't have to impact bottom line results. Any potential slow down in consumer spending means that buyers will show even more discretion in where they spend their money.
True Fit is working closely with our retail partners to help them maximize the spend of their existing traffic, lower the cost of acquisition and build high value relationships that keep shoppers coming back to buy. Retailers that will win in uncertain times will focus on investments that pay off quickly and improve their bottom lines. Maximizing Existing Traffic to Increase Conversion
Digital window shopping peaked in 2020 as shoppers went in and out of lockdown periods. We saw traffic remain higher across True Fit’s Fashion Genome throughout 2021 as consumers became accustomed to the convenience of shopping online. In 2022, we have seen traffic and order frequency level out, traffic down 12% and order frequency down 10% over 2021 in early Spring. This is not surprising given the continued supply chain issues and rising inflation but what we have seen in our market data is that while high intent shoppers are checking out less frequently, they are spending at a much higher rate per order. Strong average order value growth over 2021 signals that shoppers are buying with greater intent than ever before.
Building Consumer Confidence
How can retailers maximize the shopping trips of their visitors? Building great experiences will give shoppers the confidence they need to convert and do so across categories and brands. True Fit offers shoppers a trusted guide to get them only what they love in their size. Fit is still the number one barrier to online conversion, True Fit helps retailers eliminate that barrier. And with 90 million registered users, those consumers get automatic size recommendations at any site featuring True Fit.
Retailers have to find ways to solve for fit to drive marketing efficiency. We have seen tremendous growth in 2022 in demand for fit guidance and fit personalization. The below chart shows growth in True Fit newly registered shoppers from January 2020 through to May of 2022. This year, we have seen a 7% growth in registered shoppers over May of 2021 and 20% growth over May 2020. Today, True Fit is trusted by 90 million active shoppers that receive fit guidance across thousands of brands and hundreds of the world's leading retailers.
In January 2022, True Fit registration rates were up 17% over 2021 and 114% over January 2020. Overall, we have seen registration 20% higher on average than pre-pandemic. For our retail partners, this translates to conversion and ultimately brand loyalty.
Read about Global Golf and Fairway Styles reporting a 250% conversion lift, yielding a 217% order per shopper lift for shoppers that use True Fit.
Quick Payback on Investments
True Fit guarantees results for our retail partners because shoppers want and expect trusted fit guidance. True Fit's technology leads to increasing conversion and repeat purchase rate in apparel and footwear categories. True Fit also decreases the sting and cost of retail returns by enabling shoppers to get their correct fit with their initial purchase. Read how Asics saw a 50% reduction in size sampling returns with True Fit.
Shoppers want fit guidance to help them make buying decisions and our retail partners see the return on investment of implementing our technology quickly. Hotter Shoes saw a 3.1% increase in incremental revenue lift in just three months by implementing True Fit's size and fit guidance, allowing their shoppers to find their best fitting shoes faster and easier than ever before!