Online Holiday ShoppingGenerations are more similar than we think

2

digital technologies challenge the relevancy of demographic marketing

sophisticated ad targeting technology easily identifies intended audiences

powerful personalized recommendation engines drive additional sales

3

and yet we still think generationally…

4

…as we should.

MillennialsAge 18-34Born 1981-1997

Generation XAge 35-50Born 1965-1980

Silent GenerationAge 70+Born 1945 or earlier

Baby BoomersAge 51-69Born 1946-1964

5

millennials are posed to reshape the economy…the boomers are no longer the biggest generation in the US millennials will be the dominant force shaping the marketplace for decades to come

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Under 25 25-34 35-44 45-54 55-64 65+ $-

$20,000

$40,000

$60,000

$80,000

Avg Annual Income

Avg Annual Spend

…but GenX and Baby Boomers still drive spending todayspending power will come with age for the millennials In the meantime, genX and boomers have the spending power

Source: US Bureau of Labor Statistics, Feb 2015

Combined Average Annual Income andSpend of GenX and Baby Boomers

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data is everywhereyet actionablemarket-level, ecommerce datais elusive

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the right ecommerce data is in ereceipts

receipt discovery field extraction

data science

order datemerchantmerchant categoryitem descriptionitem priceunitsshipping & handling pricesales taxmethod of paymentshipperorigin warehouse/DCshipment transit pointsorder dateship-from warehouse datedelivery date

agegender

household incomeethnicity

occupationzip code

PII available for blind matches

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let’s be honest(this is how we typically view online shopping by

generation)

VS

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baby boomers dominate holiday spend

35%

30%

8%

28%

Baby Boomer Generation X silent Millenial

share of holiday sales by generation

Source: Slice Intelligence. 11/1/14 – 12/31/14. n=1,126,541

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genX spent most per person in2014 holiday season

Millennial

GenX

Baby Boomer

Silent

$- $200 $400 $600

$414

$516

$497

$488

- 4 8 12

9.9

11.1

10.3

10.8

$0 $25 $50

$41.78

$46.55

$48.27

$45.01

1 2 3

2.7

2.8

2.7

2.6

average merchants shoppedaverage order sizepurchase frequencyspend per person

Source: Slice Intelligence. 11/1/14 – 12/31/14. n=1,126,541

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the online holiday shopping season breaks intofour segments

$-

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

time aligned daily holiday season sales 2013 and 2014

2013 2014

sale

s by

day

(in m

illion

s)

Black Friday

Manic MondayCyber MondayNovember 1 December 23

Source: Slice Intelligence. 11/1/13 – 12/23/13, 11/1/14 – 12/23/14. n=1,270,367

Pre-Sea-son

Peak Season

Late Peak

Last Minute

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we all shop at similar times during the season

Pre Season Peak Late Peak Last Minute0%

5%

10%

15%

20%

25%

30%

35%32%

23%

26%

19%

31%

22%

27%

20%

32%

21%

28%

20%

33%

22%

27%

19% MillennialGen XBaby BoomerSilent

perc

ent o

f hol

iday

sale

s

11/1/14 – 11/26/14 11/27/14 – 12/1/14 12/2/14 – 12/14/14 12/15/14 – 12/31/14

Source: Slice Intelligence. 11/1/14 – 12/31/14. n=1,126,541

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no one likes shipping fees

Silent

Baby Boomer

GenX

Millennial

87%

86%

87%

86%

% of holiday orders w/ free shipping

Source: Slice Intelligence. 11/1/14 – 12/31/14. n=1,126,541

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pure play retailers dominate online sales, with big box retailers leading in brick and mortar

15%

10%

10%64%

composition of holiday sales by store type

Big BoxDept StoreMall StorePure Play

top 10 Big Box retailers on-line

1. Best Buy2. Walmart3. Target4. Home Depot5. Costco6. Old Navy7. Toys R Us8. Lowe’s9. Staples10. Sam’s Club

Source: Slice Intelligence. 11/1/14 – 12/31/14. n=1,126,541

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baby boomers and genX account for 68% of big box retailers’ online holiday sales

Baby Boomer36%

GenX32%

Silent7%

Millennial25%

big box online holiday sales by generation

Source: Slice Intelligence. 11/1/14 – 12/31/14. n=1,126,541

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what are the similarities and differences between category and merchant preferences by generation?

which categories generate the most

dollars during the holiday season?

which categories see the greatest increases during

the holiday season?

which merchants generate the most

dollars during the holiday season?

which merchants are uniquely appealing to

each generation during the holiday season?

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online holiday category and merchant preferences are more similar than different across generations

top categories based on holiday sales

“pop” categories during holidays

#1 electronics

#2 apparel

#3 home & kitchen

#1 photos and paper products

#2 toys and games

#3 gift cards

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millennial unique habits

millenials are where new models first pop

key takeaways• mobile-first merchants• Emerging• subscription

key themes

unique categories shopped unique merchants shopped

health & beauty

home improvement

baby products

tickets and events

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genX unique habits

genXers are stretched for time over the holidays

key takeaways• Kids• Full-service groceries

key themes

unique categories shopped unique merchants shopped

electronics

sports and outdoors

photo and paper products

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baby boomer unique habits

boomers haven’t really changed their shopping habits with the advent of online – they’ve just moved channels

key takeaways• catalog/Mall merchants• pets• traditional gift categories• tv shopping merchants• app-based gaming

key themes

unique categories shopped unique merchants shopped

apparel

flowers and gifts

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while not all buy online, those that do spend as much as any other generation – and men account for the majority of spending

key takeaways• neutraceuticals• traditional gift categories• off price/off brand

key themes

unique categories shopped unique merchants shopped

movies and tv

appliances

gift cards

flowers and gifts

silent generation unique habits

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we have found evidence that personalization algos. might act differently if overlaid with generation data

Boomer apparel brand affinities among Nike buyers Millennial apparel brand

affinities among Nike buyers

key takeaways

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key takeaway #1finding

there are more similarities than differences between generations’ online shopping habits.

implication

merchants and brands must not solely look at online as the channel where they cultivate younger shoppers.older shoppers are just as likely to be driving sales today.

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key takeaway #2finding

emerging ‘mobile first’ and subscription businesses are driven by millennials.

implication

brands seeking to cultivate younger shoppers should build and support mobile first and subscription businesses. those in that space today should seek to diversify to older audiences, particularly time starved genXers

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key takeaway #3finding

millennials generate the lowest average order sizes of all generations.

implication

merchants that aspire to attract younger shoppers would benefit from lower minimum free shipping and handling thresholds.

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key takeaway #4finding

boomers and silents dominate sales of traditional holiday gift shopping categories such as gift cards and flowers.

implication

merchants in traditional gift shopping categories would uniquely benefit from age-based ad targeting.

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key takeaway #5finding

genX online holiday shopping behaviors reflect their scarcity of time.

implication

for those that uniquely sell to GenXers, focus on time saving features and functionality:• click and collect• gift suggestions• gift wrappingholiday is a good time to acquire full service grocery customers

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• questions on this presentation? ken@slice.com• want the slides? steve@slice.com• want to learn about our offerings? sales@slice.com• check out our blog - http://intelligence.slice.com/blog/

thank you

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Questions?

APPENDIX

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Which generation accounts for the largest share of purchases during the holiday season?

a) Millenial Generation (18-34)b) Generation X (35-50)c) Baby Boomers (51-69)d) Silent Generation (70+)

Audience Question #1

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Which generation spends the least, per buyer, during the holiday season?

a) Millenial Generation (18-34)b) Generation X (35-50)c) Baby Boomers (51-69)d) Silent Generation (70+)

Audience Question #2

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Category Rank (Holiday $)

Millennial Generation X Booomers Silents Total

Electronics & Accessories 1 101 109 102 104 103 Apparel & Acessories 2 107 105 115 106 109 Home & Kitchen 3 102 100 106 106 105 Health & Beauty 4 92 84 83 80 88 Software & Mobile Apps 5 64 62 62 63 63 Home Improvement 6 102 83 90 98 94 Shoes 7 100 99 103 101 102 Grocery & Gourmet Food 8 77 71 75 74 74 Books 9 72 77 75 78 74 Toys & Games 10 252 286 243 270 252 Jewelry & Watches 11 127 120 126 116 119 Sports & Outdoors 12 104 118 106 111 110 Automotive 13 95 90 96 82 94 Movies & TV 14 94 87 88 97 89 Baby Products 15 69 54 63 61 61 Office Products 16 140 144 110 127 120 Music 17 74 72 74 64 68 Appliances 18 83 83 79 110 87 Pet Supplies 19 76 68 70 67 73 Gift Cards 20 166 79 226 238 152 Photos & Paper Products 21 420 502 453 460 472 Online Services 22 54 44 64 48 55 Flowers & Gifts 23 28 37 53 68 41 Tickets & Events 24 66 33 24 36 39

Holiday Index v. Rest of Year*Holiday Opportunity Matrix

* (Category Share of Dollars Nov 1 2014 – Dec 31 2014 / Category Share of Dollars Jan 1 2014 – Oct 31 2014) * 100