holiday 2013 gift buying online and offline
TRANSCRIPT
Holiday 2013 Gift
Buying Online and Offline
With e-tailing group
What to expect today
2
Lauren Freedman
President,
The e-tailing group
Ken Burke,
CEO,
MarketLive, Inc.
Is Price all That Matters? Find out how to prepare and gain your share of holiday shoppers’ wallets
• What to expect…
• A copy of the presentation
and link to recorded event
• If you experience technical
probems please contact:
• WebEx Technical Support: 1
(866) 229-3239
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Agenda
5
Agenda
I. The Forecast
II. The Numbers Speak for Themselves
III. General Shopping Plans
IV. Customer Service
V. Promotions
VI. Gifting
VII. The Holidays
VIII.Mobile, Social, Omni Channel
Holiday numbers remain consistent with current spending
patterns
6
The Forecast: Retailers are cautiously optimistic, promotion-
minded and believe they will make their numbers
7
Lack of customer confidence plays into caution & fear that aggressive plans won’t be met
Top-2:
Strongly to
Somewhat Agree
Neither agree
nor disagree
Top-2:
Strongly to
Somewhat Disagree
We’re cautiously optimistic that it will be a strong online holiday season 80% 12% 8%
The holidays will be promotion-centric so we are planning accordingly to ensure we deliver
from a bottom-line perspective 73% 18% 9%
The holidays will start out slowly but eventually gather momentum, and we’ll make plan 53% 30% 17%
It’s going to be a strong online holiday season 52% 30% 18%
We’re a bit nervous that we won’t make our aggressive plan 47% 19% 34%
Consumers still lack “complete” confidence in the economy so it’s going to be a flat online
holiday season at best 35% 26% 39%
We are pessimistic and have adjusted our forecast accordingly 14% 17% 69%
Please note your level of agreement with the following statements.
Q4
MarketLive/e-tailing group 5th Annual Holiday
Survey
8
OBJECTIVE
Find the consumer voice regarding their
proposed online, mobile and social shopping
behavior relative to gifting and 4Q13 holiday
shopping including tactics that resonate and
untapped merchant opportunities.
Methodology and Sample Summary
•1,000 consumers completed an online questionnaire
• in September 2013
• 50% female/50% male
• shopped online 4 or more times in the past year
• typically spend $250 or more online annually
• 100% owned a smartphone
9
Demographics
10
10%
20%
30%
20%
20%
1%
18-24
25-34
35-44
45-54
55+
Prefer not to respond
What is your age?
54%
19%
17%
6%
3%
1%
None
1
2
3
4 or more
Prefer not to respond
How many children 18 years of age or younger do you have living at home with you?
1%
13%
26%
38%
6%
17%
1%
Some high school or less
High school graduate
Some college, but no degree
College graduate
Some graduate school
Post-graduate degree
Prefer not to respond
What is the highest level of education that you have completed to date?
7%
8%
18%
27%
21%
15%
4%
Under $25,000
$25,001-$35,000
$35,001-$50,000
$50,001-$75,000
$75,001-$100,000
More than $100,000
Prefer not to respond
Which of the following best represents your combined annual household income before
taxes?
Q5, 40-42
Top-Line Findings
• Comfort with online shopping includes broader category
consumption
• Gift giving accelerates online where shoppers seek to stretch their
budgets through smart shopping
• Price is top-of-mind for shoppers looking to save money where they
will embrace every promotion and shop any holiday; free shipping still
remains the favorite
• Amazon continues to capture incremental business while serving
as a checkpoint in the path to purchase
• Gifting tools are important but the gift card continues to garner the
greatest attention
• Mobile plays an elevated role in holiday shopping while social
sees limited impact
• Service expectations are heightened starting with in-stock
demands, expedited deliveries and accessible high performing CSRs
11
Today’s Agenda
General Gifting Trends
Customer Service Differentiators To Satisfy Even The Most Demanding Shopping
From Traditional To Digital--Winning Gifting Tactics Onsite And Across Channels
Promotional Powerplay—Embracing the Value Shopper Head-On
Timing is Everything: Calendar Standouts from CyberMonday to Black Friday and Beyond
Can’t Miss Gifting Visibility Strategies Onsite And Post-Order
12
General gifting trends
13
41% of consumers intend to buy at least 16 gifts this
holiday season
14
12%
25%
22%
18%
23%
19%
24%
20%
17%
20%
1-5
6-10
11-15
16-20
21+
How many gifts do you intend to purchase over the holiday season?
20132012
Yet budgets remain consistent year/year with the
majority (59%) planning to spend $500 or more
15
Q7
3%
16%
21%
21%
17%
16%
5%
7%
15%
22%
20%
13%
17%
6%
Under $100
$100-$300
$301-$500
$501-$800
$801-$1,000
$1,001-$2,500
$2,501 or more
In which range does your TOTAL holiday budget for friends and family fall?
2013
2012
Shoppers continue to give non-store based channels
greater priority in their gift giving
16
Q18
65% of shoppers will do the majority of the their gift purchases via PC
65%
43%
15%
13%
9%
8%
53%
48%
12%
14%
14%
12%
Via a computer
In stores
Via a smartphone
Via a tablet
Via catalogs
Via TV
For your overall gift buying this holiday season, how much of your shopping do you
intend to do in each of these locations or channels?
Top-3: 50%+
The web sees great gains as 40% will purchase
significantly/somewhat more gifts
17
Q15
40%
56%
5%
23%
68%
9%
Significantly/SomewhatMore
About the Same
Somewhat/SignificantlyLess 2013
2012
Do you plan to purchase more gifts online this year than you
purchased online last year?
Most categories expect to be purchased exponentially as
consumers embrace online conveniences and savings
18
Q11
59%
57%
51%
50%
49%
41%
35%
28%
26%
23%
22%
22%
20%
19%
17%
12%
9%
33%
31%
31%
33%
32%
37%
21%
15%
15%
13%
14%
16%
14%
10%
13%
9%
9%
Clothing and accessories (men’s, women’s, kid’s)
Gift Card/Certificates
Toys, Video games
Music/DVD/Videos
Consumer electronics
Books/Magazines
Computer hardware and software
Jewelry/Watches
Sporting goods/Outdoor gear
Health and beauty items
Food/Wine
Tickets (movies, concerts, theatre)
Crafts/Hobbies/Party
Pet supplies
Gifts and Collectibles/Flowers
Furniture, home and garden
Luxury items
20132012
In which categories will you likely PURCHASE gifts online? Check all
that apply.
Amazon will capture incremental gift business for 2013
holidays
19
Q14
3%
12%
21%
33%
31%
6%
14%
23%
28%
29%
12%
25%
28%
17%
18%
None
1%-10%
11%-25%
26%-50%
51%+
2013
2012
2011
Amazon Facts
6-out-of-10 shoppers will buy at least 25% of their gifts
31% will buy more than 50% of their gifts
What percent of your online holiday gift purchases will
be spent at Amazon?
Amazon is both the destination for all things holiday as well
as the de facto price check before online purchasing
20
Q13
87%
81%
74%
73%
64%
I always check Amazon beforemaking most online purchases
Amazon is my go to site for all thingsholiday gifting
I typically use Amazon tosupplement shopping at my…
When I am shopping at local stores Istill go to Amazon to check their…
Amazon is now even easier toaccess as I use my smartphone to…
Top-2: Completely/Somewhat Agree
In thinking about Amazon and your likely behavior over the holiday season,
please note your level of agreement with each of the following statements.
Customer service
differentiators to satisfy
even the most demanding
shopping
21
Customers have heightened service expectations as they
want product to be in-stock with guaranteed online delivery
22
Q20
Overall return policies and a desire for free returns also a factor
91%
87%
86%
85%
78%
67%
57%
Product in stock and ready toship
Guaranteed online delivery
Flexibility of overall return policy
Free returns
Shipping deadlines/cutoff dates
Peer ratings and reviews
Express ordering
How important is each of these CUSTOMER SERVICE factors when making
choices about which merchants you wish to do business with?
Top-2: Most/Somewhat Important
Culture and value proposition are ingredients for success
23
12/11/2012
Subject Line: Gift Giving Made
Easy: From Nordstrom with Love
No sale is ever final and easy returns reflect customer desire
24
3-out-of-4 customers have high expectations for CSRs with
accessible contact info and 24-hour access desirable
25
Q25
77%
77%
75%
75%
67%
57%
39%
Customer service representatives
24x7 customer service access
Accessible contact information (phone, email)
Perpetual shopping cart (ability to add an item to your cart or viewcart contents without leaving the page that you are on)
800 or toll-free telephone #
Click to chat (live text chat help available)
Chat on mobile phone
Thinking about a website's CUSTOMER ASSISTANCE, rate each feature from 1-5
with "5" being the most important and "1" the least important when buying gifts
online.
Top-2: Most/Somewhat Important
Assistance online and offline is mandatory
26
Aveda: 12/7/2012 Williams-Sonoma: 12/20/2012
Promotions power play
27
Shoppers continue to find both saving money and time
appealing when buying gifts online
28
Q17
88%
88%
88%
87%
86%
83%
71%
65%
58%
57%
82%
78%
78%
80%
75%
76%
62%
50%
44%
45%
Saving money
Saving time
Shipping ease
Locating hard to find products
Greater selection
Avoid the crowds at the mall
Save on gas by not driving to a store
Finding more personalized gifts
Ability to purchase from wishlists
Online peer recommendations or reviews
20132012
Rate the reasons you buy gifts online from 1-5 with "5" being the most
important reason and "1" the least important.
Top-2: Very/Somewhat Important
All the reasons people shop and more
29
JCPenney: 12/16/2012
Subject Line: Gifts That Are Merry And Bright
Price tops the list of what’s important in a merchant as
shoppers desire a good value via any means possible
30
Q21
94%
94%
86%
86%
84%
77%
68%
51%
Good value
The price of the product
Everyday low prices
Broad assortments
Promotional offerings
Unique/exclusive products
Price-match guarantee
Outlet
How important is each of these PRODUCT/PRICE factors when making
choices about which merchants you wish to do business with?
Top-2: Most/Somewhat Important
The perfect and the hard-to-find spur shoppers to pay full
price
31
Receiving a benefit in terms of free shipping or rewards impacts consumer interest in
paying full price
Q9
40%
39%
35%
31%
29%
24%
24%
21%
19%
34%
32%
31%
25%
18%
35%
18%
17%
15%
I will pay full price for something that is perfect forsomeone on my list
Hard to find product that a friend or family member hasrequested
I will pay full price for items that never go on sale
I will pay full price when I receive free shipping on myorder
A store where I receive loyalty/rewards points for mypurchase
I will not pay full price for gifts this holiday season
Hot product that is likely in limited supply
Am running out of time and just need to get peopletaken care of on my shopping list
Excellent customer experience coupled with the rightproducts
2013
2012
What will it take for you to pay full price for gifts this holiday season?
Check all that apply.
Free standard shipping without conditions remains the
consumer favorite
32
Coupons and a range of promotions will be taken advantage of this holiday season
Q22
91%
83%
83%
74%
73%
72%
63%
61%
58%
57%
56%
47%
45%
Free standard shipping without conditions
Coupon with $ off
Coupon with % off
Free expedited shipping
Online only sale
Free gift card with purchase
Free shipping upgrade
Free gift with purchase
Buy x get x free (i.e. buy one get one free, buy one, get 50% off your…
Limited time promotion
Save x if you spend x (i.e. save $20 if you spend $100)
Free shipping with a threshold (i.e. spend $100 to receive free shipping)
Buy more save more
Top-2: Most/Somewhat Likely
Which of the following types of promotions would you be most likely to
take advantage of when shopping online this holiday season?
Stacking up promotions is attractive to shoppers
33
Moosejaw: 12/4/2012
Subject Line: Moosejaw Whip-a-Pickle + LAST
DAYS for your Free $101 Gift Card
Men’s Wearhouse: 12/17/2012
Subject Line: Free Shipping (no
minimum) + Buy 1 Get 1 Free
Introduce flash sales given consumer demand
34
Lane Bryant: 12/18/2012
Subject Line: Flash Sale Online & In Stores - 40% Off +
20% Off
Put free shipping front and center
35
Sur La Table: 11/23/2012
Subject Line: Our Best
Black Friday Deals Ever
+ Free Shipping
Most shoppers will also be on the hunt for personal
bargains while gift shopping
36
Do you plan to take advantage of sales or price discounts during the holiday
season to make additional, NONGIFT purchases for yourself or your family?
Q19
Yes 84%
No 16%
Yes
No
Asos: 12/2/2012
Subject Line: Gift inspiration: 'Tis the season to give presents! Up to 25% off cool labels
Price ultimately drives loyalty where customer service
and assortment also play supporting roles
37
In thinking about ultimately what makes you loyal to any given
retailer, please pick your top 3 choices from the following list.
Q27
90%
51%
47%
38%
35%
22%
7%
6%
4%
Prices
Overall customer service
Product assortment
Loyalty/rewards program
Online shopping experience
In-store experiences I receive
Word-of-mouth experiences shared by friends/family
Personalization of the shopping experience
Community/social connection to the brand
From traditional to digital
winning gifting tactics and
across channels
38
The gift card shines as being the most important
gifting tool
39
Conveniences such as being able to ship to multiple addresses and access wish lists see
strong relevance along with gift centers
Q24
65%
55%
52%
50%
50%
49%
47%
46%
41%
34%
Traditional gift certificate/gift card availability
Multiple ship-to addresses can be set up to send in a single checkout
Wish list to find out what others say they want
Gift center that aggregates all of a site's gift offerings and service
Option to include a gift message in the shopping cart
eGift or digital gift cards
Gift suggestions for when I don’t know what to buy
Ability to hold gifts to ship later
Ability to store addresses of friends and family to access when sendinggifts
Gift wrap/box services
Top-2: Most/Somewhat Important
Thinking about a website's GIFTING TOOLS, rate each feature from 1-5 with "5"
being the most important and "1" the least important when buying gifts online.
Gift cards grow as a staple for gift giving 6-in-10 shoppers will spend more than 10% of their budget on gift cards
40
Q12
9%
29%
33%
21%
5%
2%
0%
22%
30%
24%
16%
5%
2%
1%
None
1-10%
11-25%
26-50%
51-75%
76-99%
All
20132012
What percent of your online holiday gift purchases will be spent
on gift cards/certificates?
Elevate gift card offering by extending access across all
channels and embracing new options
41
American Eagle Outfitters: 12/8/2012
Subject Line: AE Gift Cards In Stores & At AE.com | Give
The Perfect Gift
A full-service strategy with time-savings tools ideal
42
Creativity in execution critical from segments to price points
and recipients
43
Restoration Hardware: 12/18/2012
Subject Line: Save Up to 30% on All Stocking Stuffers
Embrace outside the box thinking
44
Ann Taylor: 11/30/2012
Subject Line: First Look: Kate Hudson's Gift List...via lookbook
Tory Burch: 12/4/2012
Subject Line: Classic Hits | Perfect Presents
for Everyone on Your List
Optimize and position all of the customer favorites
45
L.L. Bean: 12/4/2012
Subject Line: Genuine Shearling Makes Our
Slippers "Wicked Good" + Free Gift Card
Timing is everything: calendar
standouts from cybermonday to
black Friday and beyond
46
Retailers look to exceed 2012 performance
47
Shoppers aggressively pursue promotionally-oriented holidays with
CyberMonday and Black Friday receiving heavy interest
48
Q10
34%
30%
68%
51%
69%
54%
30%
31%
29%
53%
47%
55%
50%
23%
Day before Thanksgiving (Wednesday,November 27th)
Thanksgiving Day (Thursday, November 28th)
Black Friday (Friday, November 29th)
Weekend after Thanksgiving (Saturday, November 30th — Sunday, November 31st)
Cyber Monday (Monday, December 2nd)
Free Shipping Day (Monday, December 18th)
Day after Christmas (Thursday, December26th)
2013 2012
Do you expect to shop online during any of the following holiday
promotional days? Check all that apply.
Procrastinators still in play in December as 78% finish late
in the season
49
When do you typically start and finish your holiday shopping?
Q19
September or
earlier October November December
Start 29% 29% 35% 7%
Finish 2% 4% 16% 78%
Test early and late selling tactics to extend revenue
50
Golfsmith: 11/22/2012
Subject Line: Sneak Peek! Why Wait? Shop Early!
Thanksgiving Sale + Black Friday
Dell: 11/19/2012
Subject Line: Why wait? Black Friday started early on
Dell.com.
…..While extending to garner incremental sales
51
Wine Enthusiast: 11/27/2012
Subject Line: Cyber Monday Deals Extended!
One More Day To Save…
Carter’s: 11/27/2012
Subject Line: Surprise! Cyber Monday Extended thru
Tonight!
Give customers the control they covet
52
Toys “R” Us: 11/23/2012
Subject Line: Today Only 20% off your purchase plus $25 off Lego Construction – Wii U is here
Reinforce guarantees as the clock winds down
53
Land’s End: 12/19/2012
Subject Line: Hours left! Pay for standard shipping, get free
upgrade
Tie in store pickup for true cross-channel convenience
54
Things Remembered: 12/20/2012
Subject Line: Guaranteed Christmas Delivery Or Pick Up In Store!
Can’t miss gifting visibility
strategies onsite and post-order
55
Ensure shoppers are aware of ordering cutoffs
56
Use real estate wisely to reinforce timing
57
Confirmations are ideal locations to tout gifting and related
services
58
Mobile/social/omni-channel acceleration
59
Mobile involvement for gifting accelerates particularly on the
smartphone from research to buying
60
1-in-2 shoppers will purchase a gift on their phone or tablet this holiday season
Q29-30
74%
68%
53%
50%
41%
46%
Research gifts on retail stores
Browse email for gift ideas
Buy gifts smartphone
tablet
How likely are you to do any of the following on your
mobile device this holiday season?
Smartphone purchasing in play for 50% of shoppers
61
Q31
50%
36%
35%
Smartphone
Tablet
None
On which mobile devices do you plan to purchase gifts this holiday
season? Check all that apply.
Yet for some the mobile experience is still too awkward to
be mainstream
62
Q33
42%
30%
29%
26%
25%
24%
21%
13%
12%
7%
Shopping is still too awkward on my phone
Can’t get a clear enough image of the product
Concerned about giving my credit card information over a mobile connection
Slow connection speeds or lack of connectivity
Product information cannot be easily reviewed
Takes me too long to buy
Product information is limited
Feel that the full product selection is not offered
Retailers where I shop don't have satisfactory mobile shopping experiences
Retailers are not able to customize my experience based on my currentlocation
Why don’t you plan on purchasing gifts via your mobile device this
holiday season? Check all that apply.
Shoppers want their trips to the store to be successful
63
Checking inventory and reserving product/in-store pickup continue to grow in importance
86%
72%
65%
54%
52%
48%
33%
Ability to check availability of a product prior to visiting the store
Ability to buy or reserve a product online or via smartphone andpick up in store
Option to receive a receipt via email from a retailer
Stored profile information available across all channels for easyaccess
Sophisticated smartphone shopping experience that allows meto access a retailer at my convenience and complete my…
Receipt of a personalized shopping experience from onechannel to the next
Participation in social media for access across the channels Ivisit
Top-2: Most/Somewhat Important
Q26
Thinking about a retailer’s CROSS-CHANNEL capabilities, rate each tactic from
1-5 with “5” being the most important and “1” the least important when
choosing to shop at a given retailer.
Shoppers do their homework in advance of store visits
64
6-out-of 10 consumers check for sales/competitive pricing, availability and store information
64%
61%
60%
59%
58%
54%
51%
40%
42%
42%
28%
37%
30%
33%
35%
22%
Check for sales and specials
Look for competitive pricing at Amazon
Check availability/inventory of a product of interestprior to making a visit to the store
Look up store information (hours, location, map,etc.)
Look up prices on the retailer's mobile site where Iwas intending to buy
Check for product ratings and reviews
Look for competitive prices on products at retailersonline other than Amazon
Reserve products for subsequent pick up at retailstore
Top-2: Frequently/Often
20132012
Q34
PRIOR TO VISITING a physical store this holiday season, how likely are you to
do each of the following activities with your smartphone?
In-store mobile phone usage centers on saving money and
securing the best price vis a vis Amazon
65
55%
53%
46%
45%
44%
41%
38%
37%
29%
25%
31%
31%
27%
26%
25%
24%
24%
22%
19%
0
Access promotional coupons for redemption at the store
Look for competitive pricing at Amazon
Look for competitive prices on products at retailers online otherthan Amazon
Check for product ratings and reviews
Look on retailer's website for product or information beyond whatthey carry or share in the store
Scan bar codes to learn more about a specific product (i.e. prices,product information, product images, video, etc.)
Purchase a product from the retailer’s website because they do not have inventory at that location
Check in to receive promotions/reward points for visiting retailstores using ShopKick, FourSquare, Belly or other solutions
Make a purchase on your smartphone from a retailer other thanthe one you are visiting
Self-checkout via your own mobile device
Top-2: Frequently/Often
20132012
Q35
WHILE VISITING a physical retail store this holiday season, how likely are you to
partake in the following behavior with your smartphone?
Half of consumers clearly spend more time in social
pursuits
66
49%
42%
9%
26%
53%
21%
I spend significant time onthese types of sites
I spend limited time on thesetypes of sites
I never spend time on thesetypes of sites 2013
2012
Q36
How would you describe your use of social
networking sites (i.e. Facebook, Twitter, YouTube)?
Social networks see limited traction from a shopping
perspective
67
Q37
18%
82%
13%
87%
Yes
No
20132012
Have you made a purchase from a social networking site within the
past 12 months?
Shoppers are active socially from email signups, “liking”
retailers and rating of products
68
Q38
78%
69%
67%
56%
54%
40%
36%
64%
55%
54%
41%
39%
0
0
Sign up to receive emails from your favoriteretailers or brands
“Like” an online retailer or manufacturer (Best Buy, Under Armour, Crate & Barrel, Lego, etc.)
Rate/Review a product you purchased
“Share” with others a product you have browsed on a website or are considering buying
“Share” with others a product you have purchased from a website
Pin an item Pinterest
Post a photo via Instagram
Top-3: All the Time/Very Often/Sometimes
20132012
How often do you expect to PARTICIPATE in each of
the following activities over the holiday season?
Gear Up Holiday Tips
•Give shoppers value online and off
•Determine how best to compete with Amazon
•Gift cards demand visibility
•Review calendar to ensure marketing and messaging are on track
•Ensure mobile is on track to reap the traffic this season while still
engaging via social
•Put in place superior customer service all season long
69
Thank you
70
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