2016 UPS How to Click with High-Tech Online Shoppers

Transcription

1 2016 UPS How to Click with High-Tech Online Shoppers

2 INTRODUCTION High-tech online purchasers are plugged in across all stages of the shopping experience from research and purchase to delivery and returns. They are a distinctive group of shoppers whose shopping preferences and habits differ in many instances from non-high-tech purchasers. In fact, high-tech online purchasers are a lot like the high-tech industry: they are hyper connected across devices and social channels; they are explorers, always seeking more information; and they are early adopters. The 2016 UPS How to Click with High-Tech Online Shoppers study is designed to uncover high-tech online purchasers unique preferences and behaviors. comscore defines the high-tech online purchaser as someone who purchased a computer, consumer electronic device, mobile phone or wearable device online. Findings provide valuable insights for companies to understand what gets high-tech consumers charged and ultimately deliver a better customer experience. The study looks at the following factors influence on shopper behaviors and purchasing decisions: Mobile device and social media usage Deals, promotions and recommendations Role of the store Third-party resources such as marketplaces and smart connected devices Shipping and returns options UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 2

3 INTRODUCTION SALE HYPER CONNECTED Always online, heavy users of mobile and frequent users of social media in the shopping experience EXPLORERS On the hunt for choices, convenience and deals, and look to multiple sources of information to guide purchasing decisions EARLY ADOPTERS Embrace new trends like wearables, smart connected devices and alternate delivery locations for their high-tech purchases UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 3

4 HYPER CONNECTED Move the needle on mobile High-tech purchasers use mobile devices at every touch point of the shopping experience: Purchases from smartphone 42% 27% Purchases from tablet 32% 20% 28% of high-tech purchasers said they used a retailer s mobile app weekly compared to just 20% of non-purchasers. Researching products Checking store inventory Recent HT purchaser Non/former HT purchasers Using a retailer s mobile app Purchasing products Tracking deliveries Compared to non-high-tech purchasers, high-tech purchasers use smartphones to research (52% vs. 36%) and purchase (42% vs. 27%) more than their counterparts. More high-tech purchasers made purchases on their smartphones in 2016 (42%) than in 2015 (38%). Not only are they shopping more on mobile devices, they are more satisfied: 73% of high-tech purchasers cite satisfaction with the smartphone shopping experience this year. High-tech purchasers use mobile devices throughout the shopping process Tracked delivery Reserved a product for pick-up at a retail store 78% 54% 73% Located stores or store-related info 68% 65% Researched products on a mobile device while in store Checked store inventory 71% Used a retailer s mobile app UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 4

5 HYPER CONNECTED High-tech purchasers are more likely than non-hightech purchasers to use social media in general. Beyond their personal use of social channels, high-tech purchasers use social media to: Follow retailers Influence purchase decisions Make actual purchases Express dissatisfaction 28% say they would post a photo on social media when dissatisfied with a brand or product versus 17% of non-high-tech purchasers In addition to being heavy users of social media, high-tech purchasers also are strongly influenced by reviews. In fact, 61% of high-tech purchasers rate consumer/peer reviews as important in online product selection versus 55% of non-high-tech purchasers. Social media use among high-tech purchasers Use social media in general Follow retailers social media channels Say social media influences purchase decisions Have purchased from social media in the past year 25% 22% 36% 32% Recent HT purchaser Non/former HT purchasers 42% 37% 80% 74% 66% of high-tech purchasers have one or more memberships in shopping loyalty groups, compared to 50% of non-high-tech purchasers. UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 5

6 HYPER CONNECTED Recent high-tech purchases by channel Physical store High-tech purchasers are highly engaged when it comes to online shopping. They are increasingly shopping more online versus shoppers that purchase non-high-tech items On average, high-tech purchasers have made more online purchases in the past three months (54%) than non-high-tech purchasers (48%) They are also planning to shop more in the next year online across all devices and less in physical stores A consistent and connected shopping experience across channels and all digital devices is key for high-tech retailers. Future shopping plans across multiple channels Planning to shop more on devices: Online % 46% 51% 54% 38% 27% 30% 28% 20% 20% PC Smartphone Tablet Recent HT purchaser Non/former HT purchasers UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 6

7 EXPLORERS Look to multiple sources for information Marketplaces, customer ratings and search engines are the top three information sources that influence high-tech purchasers and nonhigh-tech purchasers. Using these channels, retailers can conduct broad marketing campaigns that reach both audiences. Influence of sources when looking for new products and retailers Recent HT Purchaser Marketplaces (Amazon, ebay, Newegg, etc.) Customer ratings on retail websites Search engines (Google, Bing, etc.) Friends/personal network from retailers BROAD TARGETING Non/Former HT Purchasers 32 % 36 % 31 % 39 % 38 % 41 % 48 % 41 % 48 % 51 % Retailers can narrowly target high-tech purchasers through sources that skew much higher for high-tech purchasers than nonhigh-tech purchasers: 12-percentage point difference between the groups use of price comparison sites and social media channels 13-percentage point difference between the groups use of mobile advertising Television Price comparison sites (Shopping.com, PriceGrabber, etc.) Direct mail/catalogs Online advertising Social media Blogs and news articles NARROW TARGETING 36 % 28 % % 24 % % 26 % % 23 % 30 % 18 % 29 % 18 % 28 % Mobile advertising Radio 15 % 25 % 15 % UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 7

8 EXPLORERS Influenced by deals, promotions and recommendations High-tech purchasers want special offers. Over half of survey respondents say s offering free shipping or discounts will prompt them to shop with a retailer. High-tech purchasers also are more likely than non-high-tech purchasers to shop with a retailer that provides offers, promotions and recommendations. Likelihood that actions will prompt you to shop with a retailer Recent HT Purchaser s offering a discount s offering free shipping s reminding you that you left items in your cart that include an incentive Store events s with product recommendations based on past purchasing behavior Non/Former HT Purchasers BROAD TARGETING 25 % 29 % 33 % 32 % 36 % 40 % 47 % 54 % 53 % 53 % The message for high-tech retailers is clear: Shoppers want deals from you Shoppers want free shipping Shoppers want recommendations that help influence their purchasing decisions Direct mail Text messages with promotions s with product recommendations based on what others have purchased NARROW TARGETING 35 % 27 % 35 % 24 % 33 % 21 % Nearly two out of three online high-tech orders receive free shipping. Among high-tech purchasers, 46% will add items to a cart that they plan to keep to qualify for free shipping and 36% will select ship-to-store to qualify for free shipping. s reminding you that you left items in your cart without purchasing Ads that follow you around the internet showing you a recently viewed product Posts on social media 32 % 24 % 30 % 20 % 30 % 18 % UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 8

9 EXPLORERS Continue to embrace the store as part of their shopping experience Stores continue to play a major role in the shopping experience, even among avid online shoppers. In short, high-tech purchasers love to explore in store. Specifically, high-tech purchasers enjoy hunting for and finding great deals in store and say that shopping in-store is still a major part of their shopping experience. They skew higher than non-high-tech purchasers in their appreciation of the in-store experience. Agreement with statements about in-store shopping behavior Recent HT Purchaser I love the thrill of hunting for and finding great deals Shopping in-store still is a major part of my shopping routine Shopping relaxes me I use store visits to gather new ideas for future in-store purchases I make less impulse purchases than I used to when I visit brick-and-mortar stores I use store visits to get ideas for future purchasing that ultimately is done online Non/Former HT Purchasers 26 % 33 % 48 % 43 % 40 % 37 % 31 % 36 % 30 % 36 % 46 % 45 % I browse less than I used to when visiting brick-and-mortar stores because of research I do in advance of my visit 27 % 34 % I use store visits to tap into the knowledge of the sales associate 19 % 29 % High-tech purchasers make an average of 46% of their purchases in store. UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 9

10 EXPLORERS Look for simplified returns process Forty-five percent of all shoppers returned an item that was purchased online in the past year. High-tech purchasers prefer to return items to the store. Of those shoppers who prefer returning an item in store, 73% made a new purchase while in the store. Preferred methods of returns for high-tech purchasers Prefer to return an item in store 61 % Prefer to ship an item back to retailer 39 % 58 % 42 % When it comes to return preferences, high-tech purchasers want an easy-to-print return label, quick product exchanges and a physical store location nearby. Made a new purchase in-store 74 % 73 % Made a new 46 % 48 % purchase online Return preferences among high-tech purchasers 42 % 28 % 22 % Easy-to-print return label Quick product exchanges Proximity of the physical store location UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 10

11 EARLY ADOPTERS A quarter of high-tech purchasers own a wearable device, mostly fitness monitors or smartwatches. Important factors for purchasing their wearable device include: High-tech purchasers intent to purchase a wearable *among high-tech purchasers who do not own device type Less than 1 year Over a year from now No plans to purchase 28 % 23 % 22 % Establishing better fitness and health habits Up-to-date technology Convenient access Listening to music Fitness Monitors (Fitbit, Nike Fuelband) Health Monitors 13 % Smartwatches 14 % Recent high-tech purchasers who are likely to purchase a wearable in the near future are more likely to cite fitness and health, music, weather, and apps as important factors influencing their intent to purchase. 61 % 11 % 64 % 64 % % 19 % % 13 % 67 % GPS Receivers Eyewear Sensor-embedded 12 % 13 % Clothes 68 % 70 % UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 11

12 EARLY ADOPTERS Ownership and purchase intent of connected home devices *Among high-tech purchasers One-third of recent high-tech purchasers own a connected home device. High-tech purchasers who currently own a smart home device and those who intend to purchase one in the future cite safety, convenience and remote access to their home as key reasons for purchase. The most currently owned smart home devices among high-tech purchasers are smoke alarms, home security systems and garage doors. Smart home devices that high-tech purchasers plan to purchase next include lighting, smart refrigerators, connected vehicles and home security. Intend to purchase in the future Already own Lighting 32% 13% Smart refrigerators 30% 8% Home security 29% 17% Connected vehicles 29% 11% Smoke alarms 27% 24% Garage doors 25% 14% Water sensors 25% 9% Sleep systems 24% 8% Sprinklers 23% 12% Reasons for interest in connected home devices Recent HT Purchaser Non/Former HT Purchasers High-tech purchasers cite alerts and reorders as benefits of connected home devices. Among those who own a connected home device I feel safer It s more convenient Remote access to my home I can save money I can save time They are environmentally friendly Among those who intend to purchase a connected home device in the future 44 % 39 It s more convenient % 38 % 40 % 40 % 39 Remote access to my home % 37 % 39 % 38 % I feel safer 39 % 33 % 38 % 34 % I can save money 37 % 27 % 36 % 34 % I can save time 34 % 22 % 31 % 28 % They are environmentally friendly 25 % 19 % 22 % UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 12

13 EARLY ADOPTERS Alternate delivery locations High-tech purchasers prefer packages delivered to alternative locations (39%) more than non-high-tech purchasers (31%). Interest in shipping to an alternate location with extended hours is also higher among high-tech purchasers (59%). The shifting role of the store among high-tech purchasers % 55 % have shipped to store for pick-up The store s role is shifting for high-tech purchasers, but they are using the store in new ways, such as for online order pick-ups. In fact, high-tech purchasers are more likely than non-high-tech purchasers to have used ship to store (55% vs. 45%). Among high-tech purchasers who use ship to store, 51% are likely to purchase additional products in store. 45 % 48 % 50% 51 % 39 % 36 % of high-tech purchasers who currently use ship to store, plan to do so more often in the coming year have made a new purchase when picking up the purchase in store, for those who have used an in-store pick-up option of high-tech purchasers will choose ship to store or pick up in store to qualify for free shipping Approximately two in five high-tech purchasers prefer to have packages delivered to places other than their homes, such as: a retailer s store; a family member or friend; their workplace; another authorized pick-up location; a package delivery locker; or another retail location (grocery store, convenience store, etc.). UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 13

14 CONCLUSION High-tech online purchasers are a distinctive group of consumers with unique preferences and purchasing behaviors. Here are five top takeaways for retailers looking to drive more business with these customers based on the survey: Connect with shoppers across channels: Deliver a consistent and seamless experience across all channels and devices, and remember that high-tech consumers are increasingly mobile and social but still highly value the store. Empower the shopper: Provide convenient resources for consumers to get the detailed product information they crave and offer them choices when it comes to factors like shipping, delivery options and returns. Look for ways to add value: Consider special deals, promotions and coupons to attract the high-tech purchaser and keep them coming back. Don t overlook logistics: Remember that how, when and where consumers receive their products shapes their overall shopping experience and impacts your brand reception. Embrace new trends: Experiment with new technologies and show high-tech customers that your company is plugged into trends that interest them from wearables to connected devices. UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 14

15 METHODOLOGY Conducted by comscore in January and February 2016, the 2016 UPS How to Click with High-Tech Online Shoppers study analyzes data from 5,330 U.S. online shoppers. The data is divided into two key groups: 1.) Recent high-tech purchasers (2,299) who purchased a computer, consumer electronic device, mobile phone or wearable device online within the last 3 months; 2.) Non-high-tech purchasers (3,031) who did not purchase in a high-tech category online in the past 3 months. UPS How to Click with High-Tech Online Shoppers study: fielded by comscore, February United Parcel Service of America, Inc. 15