25 tips for turning your holiday season into an omni-channel … · 2015-02-24 · 25 tips for...

25 tips for turning your holiday season into

an omni-channel success story

An Intelligent Selling® whitepaper from MarketLive© and the e-tailing group www.marketlive.com

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25 tips for turning your holiday season into an omni-channel success storyMarketLive, Inc.

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25 tips for turning your holiday season into an omni-channel success story | e-tailing group | www.e-tailing.com | www.marketlive.com © MarketLive, Inc. 2014 3

25 tips for turning your holiday season into an omni-channel success story

2014 will prove to be a transformational year as omni-channel takes on more meaning than ever before. The customer once again is ahead of the retailer where omni-channel is fueled by growing mobile usage connecting the channels in unprecedented ways. While we once again focus on the tactical components of delivering a strong holiday season, we will for the first time emphasize the dynamics that are truly shaping the year where mobile, social and omni-channel are heightened in the minds of the retailer and the consumer. Price and promotion will prove to be the true disrupters changing both channel and device behavior so creativity in selling will be essential to secure sales and maintain margin. Information and inventory transparency allows shoppers to learn more about products but also to select the channels from

which they wish to purchase. Merchandising must be elevated to inspire and problem solve while customer service continues to weigh heavily in merchant selection as well.

Highlights from our 6th Annual Research Study sponsored by MarketLive will be integrated throughout this whitepaper to reinforce the shopper’s mindset and to emphasize the importance of optimizing your holiday season in the context of consumer insights. Additionally, from a repository of over 250 examples we’ve selected our favorites and share 25 tips to power your holiday season and meet the ever increasing demands of digital shoppers.

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The 6th Annual MarketLive/ e-tailing group holiday survey

SURVEY OBJECTIVE AND METHODOLOGY

Find the consumer voice regarding their proposed omni-channel and cross-device research and buying behavior relative to gifting and 4Q14 holiday shopping including tactics that resonate and untapped merchant opportunities.

1,000 consumers completed an online question-naire in September 2014

• 50%female/50%male• Shoppedonline4ormoretimesinthepast

year• Typicallyspend$250ormoreonline

annually• 100%ownedasmartphone

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What can we expect from this holiday season?

A quick look at the upcoming season suggests that consumer gifting behavior will be on par with last year. Given the current economic climate, year-over-year spending is fairly consistent with 56%spending about the same as 2013. The majority (6-in-10 shoppers) will purchase 11 or more gifts and 55%willspendinexcessof$500ongifts.

Amazon’s reach is unprecedented as our survey indicates that 2-out-of-3 shoppers will make more than 25% of their purchases at Amazonand they have a hold on the shopper even when purchases are made elsewhere. Consensus among consumersisseeninthat90%agreethattheycheckAmazon before making most online purchases and for79%itistheir“goto”siteforholidayshopping.When not capturing their business, its role as price comparison engine when shopping local ensures its dominance where smartphone access only servestoexacerbatethesedynamics(62%).

Generally speaking growth in online purchasing isstillseenas37%ofshoppersindicatethatthey

will be spending more online though the majority (59%)reportstatusquointheirbehavior.Themoreinteresting shift is seen in mobile purchasing as 1-in-3 shoppers will do more than 50% of theirpurchases via mobile devices. It is these devices that are fueling omni-channel behavior and merit monitoring.

25 tips for 2014

OMNI-CHANNEL MATTERS

#1 Ensure mobile is part of your brand’s story A few critical insights from our research indicate that messaging to a mobile culture should be a mandate for every retailer. This means access to a thoughtful mcommerce experience as well as parallel marketing efforts that highlight mobile access and its residual benefits. No matter the device, shoppers will use mobile multi-dimensionally to find the right price and the right product prior to and while shopping in stores. First and foremost shoppers seek out information about your products, your stores and how your prices stack up relative to your competitors.

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Survey Findings• Smartphonesseegreatertractionthan

tablets relative to every dimension particularly price and information gathering

• ½oftheshopperssurveyedhavemadeatleast 2 smartphone purchases over the past year via both tablets and smartphones

• Tabletpurchasingiscatchinguptosmartphone

Macy’s email notifies their customer that a mobile app and mobile website are now available. Tools that provide a “fast” experience includingonsite search are called

out including flyout menus and customized recommendations. Trend reports, fit guides and promotions move beyond the basics and are accompanied by a holiday gift guide. In-store use of smartphones also centers on pricing while product information including ratings runs strong as shoppers need to quickly make purchases. An awareness of this behavior is important given its omni-channel implications.

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#2 Eliminate roadblocks to “fast” shopping putting mobile efficiencies in play As one can see from the chart below the top 3 aspects of the shopping experience that cause consumers to shop more via mobile start with an easier checkout. Full product selection is expected. The other aspect that continues to present itself is around imagery where mobile suggests new challenges and optimization techniques are still a work in progress.

Footlocker’s collapsible cart quickly takes shoppers through the steps of placing an order. The bold visual brand treatment makes checking out a pleasure. The presence of their toll-free number and reinforcement of the VIP Club and Unlocked represent savvy marketing. #3 Build your list across all channels Consumers visit many aspects of your site across a myriad of devices so capturing their name for future marketing is a wise decision. Whether it be along the lines of eBags securing your mobile number or Cabela’s asking for an email via Facebook, growing one’s list is always paramount.

Omni-channel consideration should also be factored into these activities particularly as mobile marketing at the store level gains ground.

#4 Be a social butterlyFor the first time, I am feeling the excitement surrounding social and of course that is due to its ability to finally move beyond engagement into fueling purchasing changing up the ROI discussion. Our research indicates that 1-in-3 shoppers have made a purchase as a result of a social networking siteupfrom18%inour2013study.Additionally,shoppers give credence to many social activities

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where sharing and reviewing product along with gift idea research will be important to 1-in-2 shoppers. Influences in purchase behavior remain consistent year-over-year where free shipping and price-related deals see the greatest traction.

The opportunity is now to ensure your presence is strong across every social network. At the same time links should be available via the home page and sharing tools part of every product detail page to facilitate viral activity. This Children’s Place email is an excellent example of taking advantage of a traditional marketing tool to encourage consumers to connect via social means.

#5 Leverage facebook to test merchandising and marketing strategies within the social contextOur review of Facebook in the e-tailing group’s Annual Mystery Shopping research suggests that more could be done via merchandising in these important locations. Opportunities to showcase existing product, repurpose videos that tell the brand and product story should be evaluated. At the same time, key omni-channel tactics including store locators, gift cards and customer support tools can be incorporated for a more complete experience.

Modell’s capitalizes on their Facebook page where gifting is the order of the day. Highlighting a wide variety of gift cards along with a gift of the day merchandising tout are sure to garner attention.

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As per the example below from Armani Exchange, it’s important to to know what social networks are important to your audience. The example suggests that Instagram is important to their brand and customer base. Dedicated home page real estate indicates that these social dynamics are exciting to their audience and well presented for even greater traction.

#6 Inventory must be transparent across channels Many retailers have realized the power of transparency and shoppers report that checking product availability is most important to them

when thinking about desired capabilities. In fact 82% ranked this option as important to theiromni-channel shopping followed by the ability to reserve and pick up the product at retail which certainly goes hand in hand. Of course this is not something that can be delivered late in the year, but nonetheless we encourage prioritizing this functionality in 2015 if your business and your customers are omni-channel.

Staples inventory recap by stores makes selecting the best for the shopper simple while Gap’s reserve capabilities and 20-30 minute inventory updates are ideal for a successful trip to the store.

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#7 Promote channel-centric strategies across all of your channelsAs a starting point, remember that consumers’ preference for a consistent shopping experience is clear. When asked about what areas they prefer from a consistency point-of-view, product pricing topped the “ideal” list (94%)while free shippingcame in a close second (92%) and promotionsrounded out third place (85%). From therebranding and merchandising shopping features were also mentioned by 3-out-of-4 shoppers. Retailers should factor this into their thinking but also differentiate according to tactics that fit with a brand’s selling strategy.

3-out-of-4 shoppers find elevated in-store services desirable suggesting retailers must match demand. Golfsmith addresses last-minute gift giving with online and offline dynamics that include an ecard and in store pickup letting shoppers know that there are multiple ways that they can be accommodated. Free shipping finds important visibility along with reinforcement of guarantees for both low price and playability.

Sport Chalet introduces both online only sales and clearance while also presenting their omni-channel rewards program. Reinforcing their price matching policies means shoppers should have no fear about purchasing under this risk-free environment.

SAVVY GIFTING TACTICS

#8 Articulate your gifting DNAOften times, retailer differentiation is the best kept secret. We would suggest that positioning one’s strengths as is seen in L.L. Bean’s holiday home page is optimal. They effectively highlight their strongstancewrappedundera“HolidayShoppingMade Easier” umbrella including their deliveryschedule, the ability to track your order, access past purchase history and the option to create a wish list. An omni-channel touch is seen via the link to their extended store hours and store events.

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#9 Smartly manage your inventoryWhile much of the media spend their time on shiny objects and technology innovation, retail basics should not be ignored as consumers rank in-stock product, free returns and guaranteed online delivery as most important. While price also garners great attention, failure to deliver always trumps for shoppers as we all learned last holiday season with late deliveries resulting in unhappy shoppers.

This Zappos email reminds shoppers that their favorite brands are still in stock. They highlight their last minute delivery prowess and have positioned an egift certificate should last minute shoppers be unable to make a decision.

#10 Revisit your email cadence and creative treatment one last timeWhile many have written off email, every retailer knows of its ability to deliver results. This new survey question produced the results one might expect where caution should be the order of the day. Consumers are quick to hit the delete button with ever increasing mobile open rates so it behooves every retailer to revisit creative to ensure it is attention grabbing. One can’t help but enjoy this email from the irreverent Moosejaw, which at a minimum is sure to get every shopper’s attention this holiday season.

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#11 Visualize gift cards as a destination while also exposing throughout the shopping experienceWith$126B ingift cardsalesprojected for2014according to CardHub, gift cards are an ideal merchandising message for almost every retailer. They serve them well onsite as well via email where capturing last-minute harried gift givers make this a no-brainer for retailers to dedicate real estate.

Sephora starts with the classic gift card while also embracing egift cards and corporate gifting options. Showcasing Passport capabilities once again positions them as a progressive retailer for strong holiday selling. We would encourage retailers to highlight via drop down navigation, product page and shopping cart add-ons while also reinforcing via email in order to be top-of-mind when consumers are ready to buy.

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#12 Design a destination gift center While there are many ways to tap into gift givers, creating a destination where all things gifting lives on your site can serve time-starved shoppers well. A recipe for success includes the ability to shop by price and shopper segment as well as the display of gift favorites. Services can also be shared alongside gift cards making for a true one-stop destination. Sundance once again meets and exceeds those requirements where photography and layout should seal the sale.

West Elm puts the perfect touches on a well segmented email. From Buy More Save More promotions to segmentation by price point, customers can quickly find what they need. Including store hours ties an omni-channel twist to wind up this email.

#13 Inject humor into shoppingKnowing the simplicity and tradition of buying a sweater for many male shoppers, Title Nine getscreativewith their “bettergetherasweatercampaign.” It’s an opportunity to showcasetheir assortment providing suggestions shoppers need when deciding on the perfect holiday gift. Free shipping is displayed along with personalization based on past shopping behavior.

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#14 Test inspiration through curationConsumers need help as they make their way through the holiday season. It is under this guise that utilizing tactics such as trending now at HSN and Top 13 Best Sellers of 2013 on Cooking.com guide consumers to safe choices sure to resonate with gift recipients.

#15 Smartly integrate gifting throughout the siteIt’s never just about a single destination but rather ensuring that gifting is introduced via email and throughout the site. Finish Line’s email reminds shoppers that today is their ground shipping cutoff date. From there they lead with most popular gifts,stockingstuffersandgiftsunder$100.Theyalso tee up their holiday gift guide and wish

lists culminating in the all-important shopping deadlines.

Peruvian Connection nicely positions their holiday gift guide on their home page and integrates it with the always well trafficked sale section. Also take note of their email sign up for list building purposes.

#16 Navigation gets the shoppers’ attention so merchandise accordinglyNavigation has proven to be one of the most powerful locations to categorize merchandise and sell. Best Buy gets creative with their hot deals from every department visualizing them in their dropdown navigation.

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Harry and David promotes easy access into the site with shop by category, price, and occasion along with a product pick giving customers a myriad of ways to find food favorites over the holidays.

POWER UP PROMOTIONS

Shoppers will be bargain hunting this holiday season as they have been doing all year long. They are reluctant to pay full price indicating they will do so when finding something on someone’s list

(43%),nevergoonsaleproducts(28%)andhard-to-findproduct (37%).These three top the listofitems where shoppers will play the full price game. When asked if you could pick any 3 promotions that retailers could offer this season, free standard shipping(noconditions)wasselectedby71%ofrespondentswhile68%desirepercentoffproduct.It’s instructive that these two were twice as desirable as the remaining options which can be seen in the chart below.

#17 Flaunt free shippingWilliams-Sonoma positions free shipping on all orders (no minimum) while visually showcasing a rangeoffavoritesunderthetagline“HolidayDealsStartHere.”

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#18 Double down on promotionsKnowing the promotional mindset of the shopper, should circumstances permit, stacking up promotions can serve retailers well. Francescas leads with 25% off the entire site and alsoincludes a Buy More Save More promotion. Their merchandising theme of great gifts under $25delivers the “value” shoppers alwaysdesire yearround.

#19 Create a sense of urgency with limited-time only offersWhen promotions are being executed it’s always wise to test limited-time only promotions. Perricone MD works Black Friday magic for 4 days only on their beauty book. It’s a great opportunity to get price reductions in a category where promotions are not standard fare.

#20 Secure the shopper’s personal orderRetailers realize that holiday shopping is not just about gift giving. The chance to slip in a personal order here or there is a standard as 89% ofshoppers indicate they will make such a purchase. ShaneCo. positions this email for just this customer throughtheir“To:Me,From:Me”creative.

#21 Test cart abandonment strategiesCart abandonment tactics are a favorite among retailers. Testing tactics and incentives or simply reminding shoppers that they have left something in their cart is a wonderful service and a strong conversion driver.

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LIVING BY THE CALENDAR

Despite 1/3 of shoppers getting a jump on theholiday season, 3-out-of-4 still finish in December.

Sept or earlier Oct Nov Dec

Start 29% 29% 35% 7%

Finish 2% 4% 16% 78%

Knowing the calendar and the behavior of your customers means laying out a holiday program that embraces this shopper timing. Every holiday will be important though Black Friday and CyberMonday will be the most anticipated high volume days. Given our discussion about free shipping, it’s amazing that an industry created holiday (Free Shipping Day) sees 1-in-2 shoppers planning to make purchases. While some retailers have marketing in the works for all of these time periods, it can’t hurt to revisit to ensure you are putting forth powerful messages.

#22 Seize the moment for every holidayWe believe like Amazon that it is never too early to start and like all About Dance that extending promotional benefits can rarely do any harm. The lattergivesshoppersasecondchancewith15%offallordersover$49.TheyalsopromotetheirSecretSanta Giveaway that can drive lead generation. It is however important to be consistent and not to train your shoppers this way as they have long memories and will expect to continue to see such promotions throughout the season and into 2015.

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#23 Make shoppers aware of the calendarGorsuch uses a calendar interface to get that message across sharing lead times with their customer base via onsite display and email reminders.

#24 Optimize last chance selling with a multi-dimensional approachWhen the going gets tough and the season starts to wind down, it’s hard to try and maintain higher

margins. Therefore putting forth multiple offers and tactics can be a wise move. Men’s Wearhouse does just that framing up last minute gifts and their associated promo code. From Buy One Get One to standard markdowns, they’re sure to hit it right with one of them. If not, shoppers can rely on their holiday gift card as a sure bet.

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#25 Ring in the new year rightTo ring 2015 in right, Intermix introduces a mix of markdowns and new products to achieve higher margins. Helzberg taps into social marketing to engageshopperswiththeir“BlingIntheNewYear”campaign. It’s important to be ready and review your plans after the season winds down making the necessary adjustments rather than relying on early season forecasting.

Take care for your customers to foster loyalty

Every retailer’s goal is to build relationships and life-time value with their shoppers. No one does that better than Nordstrom and their rewards program serves as the foundation along with a culture built on taking care of customers. As 2014 winds down and 2015 looms on the horizon, it will be important to understand what creates loyalty versus a one-time buy. We encourage you to explore what it will take for your brand to accelerate on the loyalty proposition. Product still influences retention but price simply can’t be the only way to connect though certainly appealing.

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25 tips for turning your holiday season into an omni-channel … · 2015-02-24 · 25 tips for...

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