Marketing KPIs: March 2024 Trends

After a strong February, shoppers took a breath in March. Demand for apparel remained strong, and home and furniture retailers saw improving market conditions. However, many brands were down slightly compared to last year.

Overall, our outlook for 2024 remains optimistic. Consumers continue to be resilient, economic indicators suggest inflation is moderating, and the stock market continues to surge.

Apparel Growth Continues

Apparel brands are experiencing success by increasing prices and average order values. The growth is expected to continue. Sales of apparel, accessories, and footwear in the US are predicted to reach approximately $205 billion in the current year. As orders continue to increase, apparel companies should focus on improving or maintaining conversion rates. The significant rise in web traffic clearly indicates consumer interest in apparel and the effectiveness of marketing efforts.

Read more on Shopify

Home Brands Showed Promise in March

The demand for furniture has grown slightly faster than the number of orders and sessions, which could be due to up-selling and cross-selling techniques. Furniture retailers are also finding that flexible payment options are becoming increasingly important for customers. The rise in the number of orders by 3.13% is a positive sign. Many furniture brands are using augmented reality (AR) and virtual reality (VR) to enhance the e-commerce experience for their customers. The increase in sessions indicates more engagement, and home brands have maintained their conversion rates, allowing them to take advantage of this growth.

Read more on Furniture World News

Competition is Heating Up for Outdoor Brands

The decrease in average order values is a result of a growing off-price trend, especially in hard goods. On the other hand, the slight increase in orders might be due to effective marketing or promotional activities or illustrate a stabilization in consumer demand for outdoor products. Moreover, the increase in sessions suggests that customers remain interested in outdoor products. The March figures demonstrate a consistent pattern of declining demand and increasing participation, which many outdoor brands have experienced.

Read more on The Daily, Outdoor Industry

Specialty Retailers Commanding Higher Prices

Despite the significant decrease in orders for specialty retailers, demand remained nearly flat compared to last March due to high average order values. This decline in orders by 19.38% may indicate changes in consumer behavior or less traffic. Many consumers are now more focused on value and less likely to splurge. Specialty brands experienced a significant decrease in sessions compared to March last year. However, any improvements made through acquisition and retention efforts could be beneficial if brands can continue to maintain high AOVs.

Tier 1 Brands: Growth Continues

Tier 1 brands are experiencing a surge in demand, with average order values on the rise. In March, many Tier 1 brands saw orders increase by over 10%, indicating strong conversion rates. Retailers are achieving success with their retention and reactivation programs, while large brands are benefiting from investments in apps, loyalty programs, and retargeting campaigns. However, the sessions have only slightly increased compared to last March. Considering this, Tier 1 brands may benefit from exploring additional acquisition efforts.

Tier 2 Brands: Making Gains

Tier 2 brands experienced only slight increases in demand. Although customers are spending more overall, raising the average order values is still challenging. On a positive note, the conversion rates have improved in March. This suggests that customer acquisition and retention efforts are proving to be successful. Seasonal promotions or product assortment enhancements may also contribute to the increase. However, many Tier 2 brands experienced a decline in traffic during March, indicating that it is important to focus on monitoring customer engagement and acquisition efforts in the coming months.

Tier 3 Brands: Conversion Challenges

In February, Tier 3 brands made a strong comeback, showcasing consumers’ preference for supporting small businesses. There was a 1.2% rise in orders, accompanied by a 5.9% increase in demand and a significant 10.3% surge in sessions. The disparity between demand and orders suggests that consumers are spending more per order on average, highlighting a positive trend for these smaller businesses.

Read more on Deloitte

Digital Velocity Podcast

Max Gomez Montejo joins Tim and Erik for an in-depth conversation on leveraging generative AI in digital marketing for heightened creativity, enhanced efficiency, and swifter decision-making, all while preserving a personal touch.

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How important is sustainability to shoppers?

Sustainability continues to be a crucial factor for consumers, as revealed by the third annual Blue Yonder Consumer Sustainability Survey. 78% of participants stated that sustainable practices are an important consideration in their purchasing decisions and choice of retailer.

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NEMOA Hybrid Summit April 16-18

We will be at NEMOA in Boston this April. We can’t wait to gather with our colleagues and friends to share, learn and connect. Join J.Schmid President, and NEMOA Board Member, Brent Niemuth along with other leaders from J.Schmid and CohereOne.

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ACMA National Forum

CohereOne, J.Schmid, and Midland will be participating in the American Catalog Mailers Association National Forum this May. We are looking forward to seeing many of our industry colleagues and partners there.

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