Web users in London spend on average more than twice as much as their provincial counterparts every time they make a purchase online according to new research from Customer Experience Management (CXM) platform @qubitgroup Qubit. The average online order value in London is £268.00 compared to just £100.23 for internet shoppers in the rest of the UK.
However, this doesn’t mean that Londoners are an easy target for internet retailers – whilst they spend more with each purchase, they tend to be more picky, with an average conversion rate (e.g. the percentage of visitors who go on to purchase) standing at 2.07% compared to a non-London average of 2.32%.
Online shoppers in the capital also seem to be more decisive than the rest of the UK – non-Londoners are more likely to use search to find what they’re looking for (27.43%/30.35% London/Non-London) whilst Londoners are far more likely to go directly to the website they’re looking for (43.2%/33.98% London/Non-London).
The research, which was created using Qubit’s customer geo-location analytics capability, also demonstrates some key behavioural traits amongst London’s online shoppers. The daytime online shopping peak happens two hours earlier outside of London (around 10.00am), suggesting that shoppers outside the capital like to use their work time for shopping whereas rushed Londoners browse the shops in their lunch hour. The capital’s nightlife also appears to distract its residents from retailers, with evening online sales outside of London peaking about 25% higher than in the capital.
Graham Cooke, CEO of London-based Qubit, said: “We all know that London is a city of shoppers and this research shows that this is as true online as it is on Oxford Street. Londoners spend more with each purchase and are more focused on their choices.
“The sort of discrepancies that this data shows graphically demonstrates the power of geographic analytics. If you can understand regional behaviours online and then personalise your website to take those things into account you’re going to turbocharge your sales. For example, you might give non-Londoners a money-off deal to encourage them to buy whilst a big-spending Londoner might be more tempted by same day delivery or other convenience factors.”
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Qubit is a big data customer experience management (CXM) platform. Its technology helps the twenty-first century marketer create personalised website experiences to drive enhanced conversion rates.
Qubit’s products collect huge amounts of information about users’ interactions with a website and analyse this to identify patterns of behaviour. They then use this understanding to deliver live personalisation, driving improved conversion rates and increased customer satisfaction.
The company’s suite of products brings together visitor analytics, tag management, AB testing and personalisation within a single integrated platform. This allows marketers to optimise and test websites in real time, without the need for specialist IT resource, helping to drive rapid and sustained ROI.
Founded in 2010 by four ex-Googlers, Qubit is headquartered in London with offices in New York. Qubit works with some of the world’s leading ecommerce businesses, including TopShop, Staples, John Lewis, Farfetch and Harveys Furniture. The company received $7.5 million funding from Balderton Capital in December 2012.