Consumer Shopping TrendsWhat makes them tick? What makes them click?
Ronan VanceSeptember 22, 2011
2
3
Where to buy?
4
Many choices
5
PersonalSocial
ImmediateInformative
VarietyExperiential
SocialImmediate
VarietyConvenienceTransactionalInformative
The Times They Are A-Changin’
Early 20th Century
Late 20th Century
Early 21st Century
6
Agenda
Understanding the Online Shopper
Three hot trends that continue in 2011• Coupons• Daily Deal/Deal of the Day• Social Local Mobile (SoLoMo)
What’s Next?
Understanding the Online Consumer
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8
The Online Shopper
2005 2006 2007 2008 2009 2010
3.7%
4.3%5.0% 5.1% 5.3%
5.8%
US Retail Ecommerce Sales as a Percent of Total Retail Sales
2005-2010
Source: U.S. Department of Commerce, Feb 2011 (via eMarketer)
9
The Online Shopper
I often don't have to pay tax
Better variety online
Easier to find items online
More convenient to shop online
I don't want to fight the crowds
Free shipping offers
Easier to compare prices
24 hour shopping
0% 10% 20% 30% 40%
Top Reasons US Shoppers will Shop On-line
Source: Shop.org, Oct 2010
Coupons
10
In response to economic conditions
12
Using social networks
Looking for employment
Finding and printing coupons
Shopping/researching online
Obtaining news and information
Price comparison shopping
0% 10% 20% 30% 40% 50% 60% 70%
28%
22%
36%
55%
44%
59%
15%
16%
26%
26%
32%
40%
Activities that US Internet Users Are Spending MoreTime on Now Than Before the Recession, 2009 & 2010
Source: PriceGrabber.com, “US Shopping Behavior in this Economic Climate” 6/1/10
20102009
Part of our culture
14
Maximize Coupon Usage
• Give choices• Diversify placement• Remove obstacles• Promote sharing • Go mobile
16
Adult Mobile Coupon Users (in US)
Series1
19.8
9.5%
35.6
16.5%
2011 2013 2011 2013
millions % of adult mobile phone users
Source: eMarketer, Aug 2011
Daily Deals
17
18
19
20
Daily Deals/Group Deals
22
23
Sources: Rice University Survey, June 2011 & Consumersearch.com and The About Group Research, June 2011
of deal buyers spent beyond the deal value
36%
of deal buyers for Groupon, LivingSocial, Travelzoo, and BuyWithMe were new customers
77%
of daily deal buyers returned to the establishment even without another discount
68%
of these new customers became regular customers20%
of deals were unredeemed at the end of the promotion22%
24
Social, Local, Mobile“SoLoMo”
25
26
SoLoMo
27
Direct mail
Social network presence
Email prospecting
Organic traffic
Affiliate marketing
Search engine Marketing
10%
18%
18%
44%
58%
90%
Which of the following were your top 3 most effective sources used for acquiring
customers
Source: Shop.org/Forrester, May 2011
F-Commerce?
Impact on Buying Behavior
30
Discovery +
E-Commerce+
Community =
Future of F-Commerce
31
SoLoMo Penetration
2009 2010 2011 2012 2103 2014 20150
102030405060708090
23.8
38.9
49.458.5
65.672.8
79.1
US Social Mobile Network Users, 2009-2015 (millions)
Source: eMarketer, Dec 2010
Note: Mobile phone users who have a profile and access social networks from a browser or installed app at least once a month
32
Local
• Check in
33
Local
• Check in• Find deals
34
Local
• Check in• Find deals• Build loyalty
35
Local
• Check in• Find deals• Build loyalty• Earn rewards
36
Local
• Check in• Find deals• Build loyalty• Earn rewards• Instant
gratification
37
Mobile
• Check stock
38
Mobile
• Check stock• Compare prices
39
Mobile
• Check stock• Compare prices• Find coupons
40
Mobile
• Check stock• Compare prices• Find coupons• Learn more
41
Mobile
• Check stock• Compare prices• Find coupons• Learn more• Read reviews
42
Mobile
• Check stock• Compare prices• Find coupons• Learn more• Read reviews• Shop online
43
Mobile
• Check stock• Compare prices• Find coupons• Learn more• Read reviews• Shop online• Phone order
44
Make a purchase
Compare features
Check availability
Look at competitive product/service
Read reviews
Check for discounts
Find the nearest store location
Compare prices of a product/service
17%
37%
38%
46%
49%
58%
58%
66%
Reasons to Use Smartphones While Shopping by US Smartphone Users
Source: Chadwick, Martin, Bailey, March 2011 (via eMarketer)
What’s Next
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46
What’s Next
• Informative• Experiential• Personalized• Social• Immediate
47
48
49
Social Influence
50
