Etsy(ETSY) PYMNTS.com·2025-02-19 21:02Core Focus and Strategy - In 2024, Etsy is concentrating on enhancing its core offerings, particularly its mobile app and the new loyalty program, to improve customer engagement and increase purchase frequency [1] - CEO Josh Silverman acknowledged challenges such as declining gross merchandise sales (GMS) but emphasized that investments in customer experience, especially through the mobile app, would yield long-term benefits [2][3] - The company is focusing on driving more app usage, which currently accounts for 25% of visits and represents a potential 18) and annual ($72), with various benefits associated with each [4] - Early indications from the loyalty program are positive, with customers responding favorably to free shipping and increased purchasing behavior [5] Customer Engagement and Insights - Data indicates that 41% of U.S. shoppers prioritize loyalty rewards when making purchasing decisions, and 40% consider ease of navigation when selecting a digital merchant [6][5] - The company is working to enhance browsing experiences to gather more data on user behavior and tailor recommendations based on interests [3] Performance Metrics - In the fourth quarter, reactivated buyers grew by 1.3% to 9.8 million, while active buyers decreased by 2.6% to 89.6 million, and new buyers dropped by 17.6% to 6.9 million [7] - Repeat buyers decreased by 2.5% to 36.1 million, and habitual buyers fell by 9.5% to 6.4 million [7] Future Outlook - Silverman remains optimistic about increasing buyer engagement, driving sales, and returning to GMS growth by infusing discovery into the Etsy marketplace [9] - The goal is to create more personalized shopping experiences that resonate with evolving consumer tastes and preferences [9]