3rd annual holiday survey results

1/10/13 Baynote, Inc. © 2013 1

The Third Annual Holiday Survey Brought to you by Baynote in coopera8on with the e-‐tailing group

Table of Contents

1/10/13 Baynote, Inc. © 2013 2

About the Survey Determining What To Buy

Device Usage and Holiday Shopping

Privacy Issues

Key Takeaways

Legal Disclaimer

About the Survey

1/10/13 Baynote, Inc. © 2013 3

About the Survey

1/10/13 4

WHAT? Measure holiday shopping behavior in order to understand the shiOs in consumer influence, the role of various devices and sites on holiday shopping and to determine sources of privacy concerns

HOW? -‐  1,000 respondents between Nov. 24 and Dec. 5, 2012 -‐  50% female/50% male -‐  Shopped online 4 or more Umes in the past year -‐  Spent $250 or more online annually -‐  100% owned a smartphone/55% owned tablets

WHO? Baynote in cooperaUon with Lauren Freedman, President the e-‐tailing group

30%

20%

20%

30%

18-‐34

35-‐44

45-‐54

55+

Age Group

6%

19%

23%

17%

18%

7%

3%

3%

4%

Less than $25,000

$25,000-‐$49,999

$50,000-‐$74,999

$75,000-‐$99,999

$100,000-‐$149,999

$150,000-‐$199,999

$200,000-‐$249,999

$250,000 or more

Prefer not to respond

TOTAL annual pre-‐tax household income

18%

14%

5%

2%

61%

One

Two

Three

Four or more

None

Children <18 years old living at home

Baynote, Inc. © 2013

About the Survey

1/10/13 5 Baynote, Inc. © 2013

25%

25%

29%

14%

7%

Majority (>75%)

Most (75-‐50%)

Some (50-‐25%)

Limited (25%-‐10%)

Very Li[le (Less than 10%)

Percent of holiday shopping done online as of survey date

1-‐2 25%

3-‐6 41%

7-‐10 18%

10+ 16%

Total online or in-‐store purchases made this season as of survey date

Key Findings

1/10/13 Baynote, Inc. © 2013 6

Major Findings

1/10/13 Baynote, Inc. © 2013 7

•  Tablets are the future and the future is now •  Retail apps have room to grow, but are sUll not widely used •  Omni-‐channel strategies are strong influencers on shopper behavior both in-‐store and online •  Paper catalogs currently trump social for markeUng effecUveness •  Privacy concerns are fading as convenience and trust in ecommerce rise

Other InteresUng Findings

1/10/13 Baynote, Inc. © 2013 8

•  Age group can determine the best influencers by demographic •  Smartphones are finding their useful niche

•  Social channels may play out, but not unUl the age group grows up

Determining What To Buy

1/10/13 Baynote, Inc. © 2013 9

Personal contact, deal-‐seeking and search engines are the top three ways shoppers figure out what to buy

1/10/13 10

When deciding what holiday gi0(s) to purchase, where does your process typically begin? Percent of respondents who answered “always” or “frequently”

Baynote, Inc. © 2013

58%

42%

32%

29%

28%

28%

28%

15%

15%

Ask the person what they want

Look for discounts and then find that product to make the purchase

Use a search engine to browse for interesbng ideas or locate hard-‐to-‐find product

They send me or I request an email with the items they want

Look through physical catalogs

Browse their favorite stores to find interesbng gies or ideas

Look at the person’s wish list on a site they like

Look at Pinterest to get gie ideas

Look at Facebook or another social sharing site to get gie ideas

When checking prices, shoppers seek stores they know, and most know Amazon.com

1/10/13 11 Baynote, Inc. © 2013

66%

55%

49%

49%

48%

45%

38%

33%

33%

29%

I go to Amazon to check their prices and see if they have it available

I check prices at the stores where I usually make purchases

I use a search engine, like Google, to see where I can buy it

I go to a store or site that I know carries the item and buy it

I check for product availability at local stores

I go to a big box store, like Best Buy, Walmart, or Target, that I think will have the product

I peruse my emails for bargains on these products

I use a price comparison service/app, like Google Products, Shopzilla, Nextag or PriceGrabber, to find the best price

I go to a local store I frequent to make the purchase

I go to the mall and look around at different stores to see if I can find it

Once you have confirmed the gi0 you are going to buy, how o0en is the following behavior a part of your buying process?

Percent of respondents who answered “always” or “frequently”

1/10/13 Baynote, Inc. © 2013 12

While online centric methods like ra8ngs & reviews, search and email promo8ons really influenced shopper purchases, other tradi8onal methods like

catalogs were also very effec8ve.

Most and Least EffecUve MarkeUng Influencers

1/10/13 Baynote, Inc. © 2013 13

Different tools work best with different age groups; but everyone loves a good catalog

1/10/13 Baynote, Inc. © 2013 14

Social exerts very liele influence on shoppers either in-‐store or online

In-‐store Purchases

76%

74%

66%

65%

62%

61%

50%

49%

38%

33%

30%

29%

Twi[er

Pinterest

Facebook

Mobile adverbsing

Text messaging from retailers

eCommerce website

Display adverbsing for product you previously

Product recommendabon on ecommerce

Google search results that included pictured

Online rabngs and reviews

Email promobon

Paper catalog

74%

68%

64%

60%

59%

58%

45%

44%

26%

22%

21%

18%

Twi[er

Pinterest

Mobile adverbsing

Text messaging from retailers

Facebook

eCommerce website

Display adverbsing for product you previously viewed

Product recommendabon on ecommerce website

Google search results that included pictured product

Online rabngs and reviews

Paper catalog

Email promobon

Online Purchases

How o0en did the following channels influence your online or in-‐store purchase? Percent of respondents who answered “never”

1/10/13 Baynote, Inc. © 2013 15

Price, free shipping, availability and merchant reputaUon influence final selecUon most

47%

38%

35%

33%

29%

24%

13%

10%

Final price including any promobonal offers

Free shipping without condibons

Product in-‐stock and ready to ship

Merchant reputabon

Product reviews

Return policy

Ability to receive rewards/loyalty points

Free shipping with a threshold (i.e. spend $100 to receive free

What were the most important influencers when ulDmately making the final purchase? Percent of respondents who answered “most important”

Device Usage in Holiday Shopping

1/10/13 Baynote, Inc. © 2013 16

1/10/13 Baynote, Inc. © 2013 17

Smartphones help shoppers find general info, product previews, prices and use coupons

How oJen did you use your smartphone during the holiday season for any of the following? Percent of respondents who answered “all the 8me,” “frequently” and “some8mes”

54%

50%

49%

46%

46%

45%

45%

43%

42%

39%

39%

36%

Find a store or seek out store-‐based informabon (hours,

Browse websites to figure out what to buy in advance of

Compare prices before a store visit

Get coupons or offers

Compare prices while in the store

Look at product rabngs before visibng the store

Redeem coupons during a store visit

Make a purchase directly on the website

Look at product rabngs while in the store

Scan a barcode while in a store to check the price at another

Make a purchase using a retailer’s app (i.e. Nordstrom,

Use a QR code in search of more informabon (in-‐store, via

1/10/13 Baynote, Inc. © 2013 18

Tablet usage consistently centered on browsing, price comparison, making store connecUons

and involves purchasing

65%

62%

60%

57%

57%

52%

51%

47%

47%

46%

45%

44%













How oJen did you use your tablet for any of the following holiday shopping? Percent of respondents who answered “all the 8me,” “frequently” and “some8mes”

1/10/13 Baynote, Inc. © 2013 19

Tablet usage is much stronger than smartphones from browsing to buying

and involves purchasing

2.94

2.87

2.79

2.73

2.71

2.61

2.56

2.44

2.41

2.4

2.36

2.34

2.54

2.44

2.59

2.26

2.36

2.15

2.41

2.41

2.36

2.24

2.16

2.09













Tablet Smartphone

RATING AVERAGE LEGEND 5-‐POINT SCALE

5 ALWAYS 4 FREQUENTLY 3 SOMETIMES 2 ONCE IN A WHILE 1 NEVER

How oJen did you use your smartphone or tablet during the holiday season for any of the following?

1/10/13 Baynote, Inc. © 2013 20

App usage on smartphones and tablets sUll the minority

Percent of shoppers who made holiday gi0 purchases using a retailer-‐branded app on a smartphone or

tablet this holiday season.

Yes 23%

No 77%

Only 1 in 4 holiday shoppers used branded apps.

53%

34%

17%

17%

13%

9%

8%

Sabsfied with web-‐based shopping experience

Security concerns

Interface not ideal shopper experience

App shopping is too slow

Inferior shopping experience

Search funcbonality not up to par

Forgot I ever downloaded the app

Reasons that the 772 app users surveyed chose not to purchase using an app as the interface.

1/10/13 Baynote, Inc. © 2013 22

Privacy concerns are low: occasional on mobile devices

RATING AVERAGE LEGEND 5-‐POINT SCALE

5 ALWAYS 4 FREQUENTLY 3 SOMETIMES 2 ONCE IN A WHILE 1 NEVER

How concerned were you with privacy while researching and making holiday purchases via the following loca8ons or devices?

2.06

2.02

2.00

1.97

1.94

1.92

1.77

1.75

1.70

1.64

1.58

1.49

Smartphone

Mobile App

Twi[er

Facebook

Tablet

Pinterest

eCommerce Retail Website

Marketplaces (Etsy, Ebay, Fab.com, etc.)

Personal Computer

Google

Amazon

Store

1/10/13 Baynote, Inc. © 2013 23

Order abandonment rate due to privacy concerns is insignificant

Did you find yourself abandoning a loca8on or device because of privacy concerns during your holiday researching and purchasing?

Answer Options Yes No Do Not Use Store 9% 86% 5% Personal Computer 12% 84% 4% Amazon 9% 81% 10% Google 10% 71% 19% Smartphone 15% 65% 20% Marketplaces (Etsy, eBay, Fab.com, etc.) 9% 62% 29% Mobile App 12% 52% 36% eCommerce Retail Website 9% 49% 42% Tablet 11% 44% 45% Facebook 11% 44% 45% Pinterest 7% 34% 59% Twitter 9% 31% 60%

What Retailers Can Do Now

1/10/13 Baynote, Inc. © 2013 25

•  Customize promobonal strategies by demographic. If a large segment of your customers aren’t influenced via social then invest accordingly. Likewise, if your demographic is in a younger age group, keep an eye on how your social metrics are working.

•  Catalogs are no longer stand alone channels. They are an important piece of your overall omni-‐channel markeUng strategy that influence both in-‐store and online purchases across all age groups.

•  Tablets are the future of shopping. Make sure your website is opUmized for tablet browsing and buying.

What Retailers Can Do Now

1/10/13 Baynote, Inc. © 2013 26

•  Strive to understand more about the role of customer loyalty and your brand. This will impact branded app usage. Apps may be more suited to your year round, loyal shopper, not necessarily your holiday buyer.

•  Conbnue to invest in on-‐line markebng. Pump up your raUngs and reviews and make sure they are visible and fresh. ConUnue to invest in personalizaUon within your emails for offers, cart abandonment and shipment. All of these omni-‐channel strategies are strong influencers on online and in-‐store shopper behavior.

•  While privacy concerns are waning among shoppers, conbnue to build their trust through transacbonal security on your site. Also conUnue to invest in personalizaUon technologies to build trust and loyalty within your customer base and their concerns about privacy will fall by the wayside.

Legal Disclaimer

1/10/13 Baynote, Inc. © 2013 27

The contents of this document are copyrighted by Baynote, Inc.

RedistribuUon or reproducUon is prohibited without express, wrieen consent from Baynote.

For wrieen approval to redistribute or reproduce content included in this document, please contact

[email protected].

3rd annual holiday survey results

Technology