We recently worked with Forrester Consulting on a comprehensive Total Economic Impact Study to determine the financial impact of a Mirakl Marketplace. Spoiler… the total impact was significant! Here’s a short video recapping the key findings including the fact that Mirakl increases revenue $412M over three years.Still hungry for some more facts and figures? Here are additional key findings from the study:
Increased lifetime value of customers worth $5.5 million. With the broader selection of products (SKUs), companies were able to increase the average number of purchases per year per customer. An increase of just one order per named customer resulted in additional revenue measuring $106 million over three years.
Increased results from search engine marketing worth $5.2 million. After launching marketplaces with Mirakl, companies with less well-known brands increased the spend on search engine marketing, including search engine optimization (SEO). On average, they realized a benefit of $20 in sales for every dollar invested in SEM and resulting in $87 million in incremental revenue over three years.
Increased average order size valued at $4.5 million. Expanding to include marketplaces as part of their strategies increased companies’ average orders by 15% and increased revenue over three years by $76 million. Offering a wide range of complementary products elevated the ability to cross- sell and to identify product relationships which were surprising or unanticipated.
Increased sales in physical stores resulting in $2.6 million in net profit. Having an online marketplace increased traffic in physical stores and elevated sales two main ways- some organizations generated traffic via Marketplace product returns, where others generated traffic through implementing Buy-Online-Pickup-In-Store on marketplace products. Through these methods, companies increased the foot traffic in their stores and subsequently increase sales by a total of $140 million over three years.
Increased quality of customer experience valued at $1.8 million. Customer are more satisfied with a broader product offering, although the most successful organizations made provisions for product returns from all marketplace purchases to their physical stores. On average, the organizations increased their CX Index scores by 1.5 basis points by the end of three years.
Streamlined deployment. Mirakl provides a significant selection of the APIs, connectors and existing technology partnerships which streamline deploying a marketplace.
Improved results after prior attempts to expand catalog. Several organizations experimented with more moderate approaches to expanding their eCommerce with complementary products or selling partners, but the approach required significant effort and yielded only moderate success.
Confirmed new growth channel that doesn’t cannibalize owned product sales: A customer interviewed for the study revealed: “We did a study and concluded that marketplace enables us to increase the global conversion rate and global revenue, without preventing growth on our own range.”
Avoidance of pitfalls in launching and operating a marketplace. The interviewed organizations developed a partnership with Mirakl and relied on the company as a strategy advisor.
Segmenting and identifying patterns between buyers and sellers. Mirakl arms customers with critical data on sellers, categories, customer experience, and product feedback enabling businesses to anticipate customer needs and determine marketplace expansion opportunities.
This significant ROI is exactly why Mirakl has seen explosive growth over the past year. Last year alone, we grew 80% year-over-year and launched a record number of marketplaces.To learn more about Forrester’s findings or discuss how a marketplace can help you achieve your eCommerce goals, contact our team of marketplace experts.