ibm 2013 improving holiday readiness presentation
DESCRIPTION
TRANSCRIPT
© 2013 IBM Corporation
Improving 2013 Holiday Readiness:
Key Online Shopping Trends and Best Practices
IBM Enterprise Marketing Management
© 2013 IBM Corporation © 2013 IBM Corporation
Sucharita Mulpuru Principal Analyst
Forrester
@smulpuru
Jay Henderson Strategy Director,
Enterprise Marketing Management
@jay_henderson
Today’s presenters
© 2013 IBM Corporation
2
© 2013 IBM Corporation © 2013 IBM Corporation
Agenda
Holiday 2012 refresher
Things to keep in mind for 2013
Q&A
© 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
3
© 2013 IBM Corporation © 2013 IBM Corporation
Agenda
Holiday 2012 refresher
Things to keep in mind for 2013
Q&A
© 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
4
Last year was a bit of a yawner
#SmarterCommerce @smulpuru @jay_henderson
5
© 2013 Forrester Research, Inc. Reproduction Prohibited 6
30% 29% 29% 29% 30% 32%
201220112010200920082007
Source: Forrester Research
15% year-
over-year
growth in
2012 over
2011
Online sales are disproportionately critical for web retailers
November-December online sales as a %
of total online sales for the year
#SmarterCommerce @smulpuru @jay_henderson
There don’t appear to be many new shoppers shopping online at this time
Pre-Thanksgiving
Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011 and Q4 2012
Thanksgiving
Weekend
Cyber Monday
66%
78%
65%
76%
I shopped in storesless because Ishopped online
instead
I shopped onlineinstead of in storesfor this purchase
because there werebetter deals online
72%
73%
70%
71%
77%
81%
76%
81%
2011 2012
#SmarterCommerce @smulpuru @jay_henderson
7
© 2013 IBM Corporation © 2013 IBM Corporation
In 2012…
Monday after
Cyber Mon Green
Monday
Free Shipping Friday
Tues after
Cyber Mon
Last chance
shopping Pre-Thanksgiving
Promotion
Cyber Monday
Promotions launched earlier,
buying started sooner,
peaks were higher,
and deals lasted longer
Source: IBM Digital Analytics Benchmark
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
8
Shoppers may be showing signs of promotional fatigue, especially pre-holiday
Pre-Thanksgiving
Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011 and Q4 2012
Thanksgiving
Weekend Cyber Monday
Which of the following best characterizes your feelings about online deals, promotions, and
specials around the holidays?
6%
15%
23%
17%
16%
19%
15%
12%
Deals are so frequentlyoffered that it is easy to
always buy with a sale orpromotion
Taking advantage ofdeals is even more
important to me nowthan in previous years
I love deals! The more,the merrier
I will only buy if I have adeal, sale or promotion
6%
15%
23%
21%
7%
13%
22%
20%
5%
16%
23%
22%
5%
15%
24%
21%
2011 2012
#SmarterCommerce @smulpuru @jay_henderson
9
Promotions were lackluster
“[Decide.com] looked at more than 500
doorbusters advertised in Black Friday circulars
by big-box and department stores …and found
that nearly one-third of the products had been
sold at lower prices this year.”
#SmarterCommerce @smulpuru @jay_henderson
10
© 2013 IBM Corporation
Bright Spots?
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
11
© 2013 IBM Corporation © 2013 IBM Corporation © 2013 IBM Corporation
12
Is Cyber Monday obsolete?
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
13
Not yet…. 2012
biggest online shopping day
30.3% year over year
ever
Source: IBM Digital Analytics Benchmark
© 2013 IBM Corporation © 2013 IBM Corporation
Online sales growth was fueled by a strong holiday weekend
Nov1
Nov8
Nov15
Nov22
Nov29
US Daily Sales November 1 - 30
2011 2012
Thanksgiving day sales up: 17.4%
Black Friday sales up: 20.7%
Cyber Monday sales up: 30.3%
Cyber Monday
Source: IBM Digital Analytics Benchmark
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
14
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
15
…But promotions were consistent….
0%5%
10%15%20%25%30%35%40%45%50%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Marketing Driven Site Traffic Current Period (2013/12)
Prior Period (2011/12)
consistently
driving
~30% of
traffic
Source: IBM Digital Analytics Benchmark
© 2013 Forrester Research, Inc. Reproduction Prohibited 16
Email continues to be a big driver of holiday traffic
5%
6%
8%
9%
8%
46%
39%
4%
6%
7%
11%
9%
44%
41%
Retailer's socialpresence
Deals or shoppingwebsite
Other email
Someone told meabout it
Through searchengines
Via email from theretailer
I visited the retail sitedirectly
3%
7%
9%
10%
10%
39%
44%
3%
6%
7%
11%
10%
39%
44%
Retailer's socialpresence
Deals or shoppingwebsite
Other email
Someone told meabout it
Through searchengines
Via email from theretailer
I visited the retail sitedirectly
4%
6%
8%
9%
11%
37%
44%
4%
6%
8%
10%
11%
37%
43%
Retailer's socialpresence
Deals or shoppingwebsite
Other email
Someone told meabout it
Through searchengines
Via email from theretailer
I visited the retail sitedirectly
How did you learn about these special deals [from today’s purchase]?
Pre-Thanksgiving Thanksgiving
Weekend Cyber Monday
Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011 and Q4 2012
2011 2012
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation © 2013 IBM Corporation
Online shopping
is upwardly
mobile
17
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
18
over 15% of all online
sales come from
mobile devices1
Mobile (including tablet) continues to increase dramatically… Sales, traffic, and even email
over 25% of all site
traffic comes
from mobile devices2
47% of all email is
opened on mobile devices
(more than apps or web)3
Sources: 1 IBM Digital Analytics Benchmark (consistently Nov 2012 – March 2013) 2 IBM Digital Analytics Benchmark (as of March 2013) 3 Email Optimization benchmark
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
19
Is mobile really on the move?
…the rise of couch commerce…
© 2013 IBM Corporation
© 2013 IBM Corporation © 2013 IBM Corporation
iPad now consistently leads all devices with more overall traffic & more growth
4.07%
5.16%
4.30%
6.09%
8.21%
8.82%
Android
iPhone
iPad
US Mobile Traffic by Device December 2011 vs December 2012
Dec-12
Dec-11
Source: IBM Digital Analytics Benchmark
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
20
© 2013 IBM Corporation © 2013 IBM Corporation
Tablets consistently drive higher conversion
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Conversion % by Mobile Device More pronounced
during heavy
shopping periods
Black Friday,
2012, iPad
conversion rate
was 4.4%
iPhone & Android
conversion rates
were 1.7%
Source: IBM Digital Analytics Benchmark
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
21
© 2013 IBM Corporation © 2013 IBM Corporation
Social is a
tough nut to crack
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
22
© 2013 IBM Corporation © 2013 IBM Corporation
Social…. has yet to make a significant impact on “same session” traffic or sales
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
% sales from social
% traffic from social
Source: IBM Digital Analytics Benchmark
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
23
© 2013 IBM Corporation © 2013 IBM Corporation
Agenda
Holiday 2012 refresher
Things to keep in mind for 2013
Q&A
© 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
24
1. Traditional web marketing still matters a lot
#SmarterCommerce @smulpuru @jay_henderson
25
#SmarterCommerce @smulpuru @jay_henderson
26
© 2012 Forrester Research, Inc. Reproduction Prohibited
2. Smartphone revenue is growing but is only part of the picture
#SmarterCommerce @smulpuru @jay_henderson
27
Mobile open-rate figures vs focus on customized content
#SmarterCommerce @smulpuru @jay_henderson
28
© 2013 IBM Corporation © 2013 IBM Corporation
Richest
experience; links
and images on
by default.
Rich graphics;
user may need to
side-scroll to view
full message.
Shows text part of
HTML as well as
URLs for links and
images.
HTML supported, but
images-off under default
settings.
Blackberry Android iPhone Windows Mobile 6
Rendering can vary wildly across devices
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
29
© 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
30
Understand the customer experience across websites and mobile
Capture and replay customer
interactions
Discover “why” mobile customers
succeed or fail
Automatically detect customer
struggles, obstacles or issues
Drill down into actual user
behavior, complete with gestures
Native Apps
Hybrid Apps HTML5
Mobile Site
Cover all mobile channels
© 2012 Forrester Research, Inc. Reproduction Prohibited
The phone supports the cross-channel experience Activity On smartphones On tablets
Read emails from retailers 65 % (1) 65% (2)
Locate retail stores/store hours/directions 55 % (2) 51 % (5)
Receive texts with special offers from retailers 53 % (3) 36 % (10)
Browse or research products 50 % (4) 68 % (1)
Identify where products are sold (online, store, etc.) 40 % (5) 51 % (5)
Compare prices while shopping online 40 % (6) 62 % (3)
Read product or store reviews 39 % (7) 54 % (4)
"Check in" via Yelp, Foursquare, Facebook Places, etc. 36 % (8) 29% (11)
Compare prices while in a retail store 35 % (9) 26% (12)
Scan QR codes 34% (10) 12% (14)
Place orders for digital media (e.g. books, music, apps) 24% (12) 42 % (8)
Gather product/style advice and information from retailers 25% (11) 41 % (9)
Place orders for physical goods (e.g. apparel, electronics) 24% (12 44 % (7)
Review store layout 11 % (14) 21% (13)
Source: Forrester-Bizrate Insights Flash Survey, Q2 2013
Base: recent online shoppers with mobile devices
#SmarterCommerce @smulpuru @jay_henderson
31
Tactic Key facts
Endless aisle Also called “web enabled POS”; provides ability to
capture store out-of-stocks
Ship from store Fulfilling web orders from stores, particularly slow-
moving or aged inventory
In-store pickup (including ship to store)
Enabling shoppers to pick up web orders at local stores
either immediately or after shipping products from DCs;
consumers select this to avoid paying freight
Inventory visibility across channels Enabling “know before you go” features in which
customers can check in-store availability of items
Same-day delivery
Providing shoppers with delivery of packages to their
homes or offices; transfers the value chain to retailers
from shoppers
3. Omnichannel is a big investment area: it all comes down to real-time inventory lookup
#SmarterCommerce @smulpuru @jay_henderson
32
© 2013 Forrester Research, Inc. Reproduction Prohibited 33
Caveat: don’t overhype same-day delivery
#SmarterCommerce @smulpuru @jay_henderson
© 2013 Forrester Research, Inc. Reproduction Prohibited 34
A number of omnichannel efforts are less discussed but should be prioritized
› E-receipts in stores/email collection in stores
› Scheduling store visits
› Mobile self-checkout and m-pos (QSRs have the best business case)
› Texting from stores
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
35
To deal with omnichanel retail, marketer’s need to create a “system of engagement” across channels
customer
System of engagement:
Coordinates all decisions across all channels
to create an engaging relationship with each customer and prospect
ad
social
search
display ad
Web
mobile
ATM/kiosk
phone
branch
POS
4. Personalization is an opportunity
#SmarterCommerce @smulpuru @jay_henderson
36
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
37
Personalization: Lots of different ways to treat different people differently
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
38
Identity Information that sits in a
typical customer
database:
• Demographics
• Psychographics
• Account details
• Purchase history
• etc.
Personalization: Lots of different ways to treat different people differently
Types of information that can be used for personalization:
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
39
Behavior Information about what the person is doing during the moment of interaction:
• Where a person has been on a Web site during this visit
• Location as identified by a mobile device
• Reason for calling as explained to a call center agent
• Products about to be purchased in a store
Identity Information that sits in a
typical customer
database:
• Demographics
• Psychographics
• Account details
• Purchase history
• etc.
Personalization: Lots of different ways to treat different people differently
Types of information that can be used for personalization:
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
40
Behavior Information about what the person is doing during the moment of interaction:
• Where a person has been on a Web site during this visit
• Location as identified by a mobile device
• Reason for calling as explained to a call center agent
• Products about to be purchased in a store
Identity Information that sits in a
typical customer
database:
• Demographics
• Psychographics
• Account details
• Purchase history
• etc.
Product
recommendation
engines
Online behavioral
advertising
SEM Display ads SPAM
Pre-calculated
offers
Personalized
Personalization: Lots of different ways to treat different people differently
Types of information that can be used for personalization:
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
41
Behavior Information about what the person is doing during the moment of interaction:
• Where a person has been on a Web site during this visit
• Location as identified by a mobile device
• Reason for calling as explained to a call center agent
• Products about to be purchased in a store
Identity Information that sits in a
typical customer
database:
• Demographics
• Psychographics
• Account details
• Purchase history
• etc.
Product
recommendation
engines
Online behavioral
advertising
SEM Display ads SPAM
Pre-calculated
offers
Personalized
Most
personalization
approaches use
more of one than
the other
Personalization: Lots of different ways to treat different people differently
Types of information that can be used for personalization:
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
42
Personalization: Lots of different ways to treat different people differently
Behavior Information about what the person is doing during the moment of interaction:
• Where a person has been on a Web site during this visit
• Location as identified by a mobile device
• Reason for calling as explained to a call center agent
• Products about to be purchased in a store
Identity Information that sits in a
typical customer
database:
• Demographics
• Psychographics
• Account details
• Purchase history
• etc.
Product
recommendation
engines
Online behavioral
advertising
SEM Display ads SPAM
Pre-calculated
offers
Personalized
email Best option: use both
fully
Types of information that can be used for personalization:
Most
personalization
approaches use
more of one than
the other
© 2012 Forrester Research, Inc. Reproduction Prohibited
39%
70%
73%
81%
84%
Getting offers from retailers andbrands
Inspiration on what to buy
Entertaining myself
Enjoying what others share
Discover new products, styles,ideas
26%
17%
61%
72%
24%
5. Social can come alive during the holidays
Source: Forrester-Bizrate Insights Flash Survey, Q3 2012
Base: 4,700 recent online buyers with
Facebook accounts Base: 1,200 recent online buyers who
have visited Pinterest
#SmarterCommerce @smulpuru @jay_henderson
43
© 2012 Forrester Research, Inc. Reproduction Prohibited
“History” of image-rich/sharing sites
Several attempts at outfitting and rich sharing have been tried without
much success to date
1st dot-com
boom (late
90s)
Retailers
and brands
(early 2000s)
Style CSEs
(2004)
Social
commerce
players
(2009)
Photo sites
#SmarterCommerce @smulpuru @jay_henderson
44
© 2013 IBM Corporation © 2013 IBM Corporation
6. Benchmark yourself relative to your peers
IBM Digital Analytics Benchmark
• Over 1,300 online brands
• Aggregate index
– Compare against industry
– Compare against peers
• Geographic coverage
– US, UK, AU, Euro
• Industry specific
– Retail
– Content
– Financial Services
– Travel
• Segment specific
– Apparel
– Department Stores
– Health and Beauty
– And 12 others. . .
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
45
7. The “fringes” have great ideas
#SmarterCommerce @smulpuru @jay_henderson
46
“Mystery bag” shopping is the Black Friday of Japan
#SmarterCommerce @smulpuru @jay_henderson
47
Swapping is a crucial component of this
#SmarterCommerce @smulpuru @jay_henderson
48
We’re not done innovating in payments
#SmarterCommerce @smulpuru @jay_henderson
49
A preference center can make a difference when there’s overemail in Q4
#SmarterCommerce @smulpuru @jay_henderson
50
© 2013 Forrester Research, Inc. Reproduction Prohibited 51
Promote your app in mobile search
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation © 2013 IBM Corporation
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
52
http://ibm.co/1bKCL4h
More benchmark analysis & best practices from IBM
© 2013 IBM Corporation © 2013 IBM Corporation
Questions?
Suchirita Mulpuru Principal Analyst
Forrester
@smulpuru
Jay Henderson Strategy Director,
IBM, Enterprise Marketing
@jay_henderson
http://ibm.co/1bKCL4h
#SmarterCommerce @smulpuru @jay_henderson
© 2013 IBM Corporation
53