Topics Covered: November 28, 2022

  1. Amazon analytical tool adoption
  2. Declining growth, same spend?
  3. eCommerce teams moving in right direction
  4. Best Buy insights on holiday
  5. Dollar Tree growing in tough macro
  6. Gopuff iterations

Benchmark Research on Amazon Analytical Tools

Stratably surveyed 40 consumer brands on their usage of Amazon's analytical tools including Amazon Marketing Cloud, Amazon Attribution, and Amazon Stream.

 

This is an important study because many brands are unfamiliar with these tools resulting in low adoption. This low adoption is resulting in a competitive edge opportunity that rarely exists on the ultra-competitive platform.

 

To help improve familiarity with the tools and arm retail leaders like yourself with quantitative data to make the case to invest further into them, the following results shed light on adoption, the impact these tools are having so far, and in what ways.

 

SEE THE RESULTS HERE

More from Stratably

The outperformance gap between Amazon and its mass retail peers is forecasted to shrink over the next several years.

 

Does that mean overall investment levels come down on Amazon or do the accounts reach parity because brands invest more at rivals?

 

READ MORE HERE 

For the Nerds

eCommerce teams moving in right direction: Profitero released its sixth annual eCommerce team benchmark looking at where eCommerce teams report into and the prioritization of different capabilities.

 

Key takeaways:

  • Two-thirds of brands say they're now budgeting for data/analytics services (+42% Y/Y)
  • 25% increase in brands hiring dedicated retail media staff
  • 20% increase in brands embedding eCommerce roles throughout the organization (vs. a separate team.

 

Big picture, the results are encouraging for leaders building digital teams as nearly every statistic moved in the right direction. 

 

While its finding that investment into analytical tools just so happens to align with their business, Stratably's independent research backs that up. In conversation with brand after brand, measurement remains a major area of opportunity. (Profitero)

Best Buy's insights on holiday shopping: Amidst a tough backdrop for the consumer electronics category, Best Buy reported comp declines of 10.4% (comps in 2Q down 12.1%).

 

Best Buy typically sees robust holiday demand given its category exposure. Here's what its management team had to say about the current environment:

  1. The promotional environment is back to, and in some cases, surpassing pre-pandemic levels
  2. Consumers are drawing down savings and increasing credit - value matters now more than ever
  3. Management's expecting holiday shopping will be concentrated around the Turkey 5 and last two weeks of December. This expectation appears largely born out of the weak demand it's seen so far, which is troubling. However, Dick's Sporting Good's management team expressed a similar sentiment that most holiday shopping will take place beginning in the Turkey 5 period.
  4. Digital penetration (31% YTD) is expected to continue growing as pandemic-induced shopping behavior changes are here to stay (Best Buy)

Dollar Tree/Family Dollar see accelerating quarter: Unlike Amazon, Target, and the Homecenters, Dollar Tree/Family Dollar indicated they saw accelerating trends through its most recent quarter ending October.

 

Perhaps overkill at this point that the lower-income consumer is trading down. But nonetheless, Dollar Tree management's commentary that it saw accelerating Y/Y trends through each month of its October quarter cements how consumers are responding to inflationary pressure. (Dollar Tree)

Gopuff continues to iterate: Gopuff made several announcements last week including the ability for its items to be found on the Uber app in the UK and for consumers to schedule delivery or pick-up items.

 

The Uber app addition in the UK builds on audience cross-pollination that we've seen in the eGrocery space. Partnering makes a ton of sense especially as social customer acquisition channels have become less effective.

 

There has been much debate around the value of delivery speed vs. delivery reliability in the form of knowing when items will arrive. It's unnecessary to frame it as a binary choice, but Gopuff's addition of scheduled delivery (and store pick-up) fits the eGrocery reality that there are a variety of ways consumers want to shop.  (TechCrunch & Charged)