ret ailÕs next fr o ntie r0ca36445185fb449d582-f6ffa6baf5dd4144ff990b4132ba0c4d.r41.cf… · their...

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ONLINE OFFLINE OFFER INNOVATION REVEALED… OFFLINE RELEVANCE HORIZON: NOW OFFLINE RELEVANCE HORIZON: 5-10 YEARS OFFLINE RELEVANCE HORIZON: 10+ YEARS ONLINE TESTING DIGITAL COUPONS E-COMMERCE Retail’s Next Frontier THE BLURRING OF ONLINE AND OFFLINE retail now has a myriad of online opportunities. But some are more immediate than others. So which online opportunities should oine retailers focus on next? ONLINE AS A DIGITAL TESTING PLATFORM Today, e-commerce companies use a secret weapon called A/B testing to drive more clicks, conversions, and sales online: THE UBIQUITY OF DIGITAL COUPONS A growing number of shoppers are starting to look for coupons online: THE RISE OF E-COMMERCE E-commerce share of grocery sales is slated for explosive growth in the next decade: Generating thousands of di erent o er variations Testing them on digital platforms such as load-to-card & print-at-home coupons OF ALL COUPONS OF ALL PROMOTIONS 1 % % Today retailers already have the tools to test the eectiveness in-store o ers with their shoppers online O er Innovation enables o ine retailers to use online as a digital testing platform to uncover the best in-store promotions Today digital coupons make up just ~1% of all coupons and only a tiny fraction of all promotions Today most purchase decisions and the vast majority of grocery sales are still made in store 75 % of decisions are still made in-store 97 % all grocery sales still take place in brick-and-mortar stores eversightlabs.com A leading consumer goods manufacturer discovered that, sur- prisingly, 4 for $5 was more appealing to consumers than $3 for 3 A leading beverage company learned that a “buy one, get one” oer drove a 40% lift in volume sales over their regular oer of 20% oof one Demand for one produce item found in every supermarket dropped by 43% when price was raised by just $0.01 above a seemingly arbitrary threshold 3.3 % 10 yrs 16.9 % 16.9 % Annual in direct-to consumer e-commerce Predicted of total CPG sales by 2020 20 % 10 % Shoppers use their mobile device in store 90 % 24 % Shoppers look for coupons in aisle Browsing for coupons is the second most popular digital activity for grocery shoppers. Redemptions in 2013 (up 141% year on year). 66M 69% increase in website conversions 49% lift in “adds-to-cart” 24% higher revenue 69 % 0 % 100 % 75 % 50 % 25 % 49 % 24 % 40 % Coupons redeemed on food share growth With the rise of omni-channel, brick & mortar

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Page 1: Ret ailÕs Next Fr o ntie r0ca36445185fb449d582-f6ffa6baf5dd4144ff990b4132ba0c4d.r41.cf… · their mobile d ev ice in sto re 9 0 % 2 4 % Sho pp er s lo o k fo r c o u p on s in aisle

ONLINE

OFFLINE

OFFER INNOVATION REVEALED…

OFFLINE RELEVANCE HORIZON:

NOWOFFLINE RELEVANCE HORIZON:

5-10 YEARS OFFLINE RELEVANCE HORIZON:

10+ YEARS

ONLINE TESTING

DIGITAL COUPONS

E-COMMERCE

Retail’s Next Frontier THE BLURRING OF

ONLINE AND OFFLINE

retail now has a myriad of online opportunities.But some are more immediate than others.

So which online opportunities should offline retailers focus on next?

ONLINE AS A DIGITAL TESTING PLATFORMToday, e-commerce companies use a secret weapon called A/B testing to drive more clicks, conversions, and sales online:

THE UBIQUITY OF DIGITAL COUPONSA growing number of shoppers are starting to look for coupons online:

THE RISE OFE-COMMERCEE-commerce share of grocery sales is slated for explosive growth in the nextdecade:

Generatingthousands of di erent o er variations

Testing them on digital platforms such as load-to-card & print-at-home coupons

OF ALL

COUPONS OF ALL

PROMOTIONS

1% %

Today retailers already have thetools to test the effectiveness in-store o ers with their shoppers online

O er Innovation enables o ineretailers to use online as a digital testing platform to uncoverthe best in-store promotions

Today digital coupons make upjust ~1% of all coupons and only a tiny fraction of all promotions

Today most purchase decisionsand the vast majority of grocerysales are still made in store

75%

of decisions are still made in-store

97%

all grocery sales still take place in brick-and-mortar stores

eversightlabs.com

A leading consumer goods manufacturer discovered that, sur-prisingly, 4 for $5 was

more appealing to consumers than

$3 for 3

A leading beverage company learned that a

“buy one, get one”offer drove a 40% lift

in volume sales overtheir regular offer of

20% off of one

Demand for one produce item found in every supermarket

dropped by 43% when price was

raised by just $0.01 above a seemingly arbitrary threshold

3.3%

10 yrs

16.9%16.9%

Annual

in direct-to consumer e-commerce

Predicted

of total CPG salesby 2020

20%

10%

Shoppers use their mobile

device in store

90% 24%

Shoppers lookfor coupons

in aisle

Browsing for coupons is the second most popular digital

activity for grocery shoppers.

Redemptionsin 2013

(up 141% year on year).

66M

69% increasein website

conversions

49% lift in“adds-to-cart”

24% higherrevenue

69%

0%

100%

75%

50%

25%

49%

24%

40%

Coupons redeemed

on food

share

growth

With the rise of omni-channel, brick & mortar