The Single Customer View : Driving Online & Offline Sales in a Multi-Touchpoint World
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1 WEBINAR SERIES SPONSORED BY The Single Customer View : Driving Online & Offline Sales in a Multi-Touchpoint World DON DAVIS Editor-in-Chief Internet Retailer MODERATOR LAUREN FREEDMAN President the e-tailing group KEN BURKE CEO and Founder MarketLive
2 E-commerce vs. stores in the U.S. YEAR-OVER-YEAR GROWTH 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 18% 18% 16% 16% 16% 16% 15% 15% Q Q Q Q Q Q Q Q E-commerce Stores Source: U.S. Commerce Department, Internet Retailer IR INTERNETRETAILER.COM RESEARCH NEWS ANALYSIS DATA EVENTS
3 Amazon vs. e-commerce vs. stores 35.0% (YEAR-OVER-YEAR GROWTH. E-COMMERCE AND STORES, U.S. DATA; AMAZON, NORTH AMERICA) 30.0% 25.0% 20.0% 15.0% 17.7% 17.6% 15.7% 15.5% 15.7% 15.8% 14.6% 15.0% 10.0% 5.0% 0.0% Q Q Q Q Q Q Q Q Source: U.S. Department of Commerce, Amazon.com Inc., Internet Retailer E-commerce Stores Amazon IR INTERNETRETAILE R.COM RESEARCH NEWS ANALYSIS DATA EVENTS
4 Internet Retailer Webinar Series E-retail growth is not all about Amazon YEAR-OVER-YEAR % GROWTH 2014 VS Catalog/TV/call center 9% Consumer goods manufacturers 12% Amazon Web-only with Amazon Retail chains Web-only w/o Amazon Copyright 2015 Internet Retailer & Vertical Web Media LLC. All rights reserved. Top 500 Guide is a registered trademark of VWM. 17% 18% 18% 20% Source: 2015 Internet Retailer Top 500 Guide
5 Internet Retailer Webinar Series How the Top 500 compare by quintile (Growth rate reflects the collective annual web sales of Top 500 retailers included in each group of 100) Source: Top500Guide.com Copyright 2015 Internet Retailer & Vertical Web Media LLC. All rights reserved. Top 500 Guide is a registered trademark of VWM.
6 Internet Retailer Webinar Series Fastest-growing newcomers Source: 2015 Top 500 Guide Copyright 2015 Internet Retailer & Vertical Web Media LLC. All rights reserved. Top 500 Guide is a registered trademark of VWM.
7 Shopping goes mobile Percentage of time spent on retail sites Percentage of sales by device type 15% 41% 59% 85% Mobile Desktop Mobile Desktop IR RESEARCH NEWS ANALYSIS DATA Source: comscore
8 The mobile revolution: Top 1000 retailers respond 394 Mobile sites 283 Mobile apps Top 500 Second 500 Top 500 Second 500 Source: Top500Guide.com IR INTERNETRETAILE RESEARCH NEWS ANALYSIS DATA
9 Mobile grows as a percentage of web sales MOBILE AS A PERCENTAGE OF DIGITAL SALES 11.5% 11.1% 11.1% 13.0% 15.4% Q Q Q Q Q IR RESEARCH NEWS ANALYSIS DATA
10 More clicks from mobile devices Source: Yesmail IR RESEARCH NEWS ANALYSIS DATA
11 WEBINAR SERIES SPONSORED BY The Single Customer View : Driving Online & Offline Sales in a Multi-Touchpoint World DON DAVIS Editor-in-Chief Internet Retailer MODERATOR LAUREN FREEDMAN President the e-tailing group KEN BURKE CEO and Founder MarketLive
12 Agenda Vision: the 360 degree view is crucial Enables delivery of the unified brand experience consumers now expect Foundations of the single customer view Data Consistency Transparency Relevancy Q & A 12
13 MarketLive Clients
14 What Retailers are Saying Convenience and timesavings are core to omnichannel behavior Mobile fuels shifting channel behavior Inventory transparency is foundational to being able to shop across channels effectively The store experience is being transformed by technology and the role of the associate revisited Consistency across channels is a non-negotiable for shoppers when it comes to price Personalization is expected by shoppers where behavior across all of the channels should be factored into customer experiences While investments in data are forthcoming, retailers today do not often have a single view of their customers the e-tailing group - PAGE 14 -
15 Online, offline and mobile all in play Use this means to shop: Top-2: All/Most of the time 38% 29% 18% 32% Use a combination of channels Web only Mobile only Store only the e-tailing group - PAGE 15 - Q. When thinking about all of your online purchases or in-store shopping in the past 6 months, select how often you use a single channel or a combination of channels when shopping. B2C Partners/e-tailing group OmniChannel Survey
16 Online, multi-screen is the norm Multi-screen shopping is the norm Nearly 2/3 of consumers are multi-platform shoppers 1/3 of 18-to-24-year-olds use only mobile Source: comscore, November
17 Many options = inconsistent experience Myriad ways to buy, often with different prices and promotions
18 Vision: The 360 degree view But consumers want a single view of brands Source: B2C Partners/e-tailing group OmniChannel Survey the e-tailing group
19 Vision: The 360 degree view... And they want brands to have a single view of them How important is it to you that retailers recognize you as the same person on all of your devices in order to deliver a consistent and personalized shopping experience? Source: MyBuys/e-tailing group 2015 Personalization Survey the e-tailing group
20 Vision: Retail CRM RESPONSIVE COMMERCE MARKETLIVE ANALYTICS SHOPPING CART CROSS-DEVICE COMMERCE INTEGRATED CUSTOMER CARE MARKETING & PROMOTION EMPOWERED MERCHANDISING RETAIL CRM ENGINE CONTENT MANAGEMENT SOCIAL COMMERCE MERCHANDISING RELEVANCE ENGINE OMNI-CHANNEL DATA INFASTRUCTURE 20
21 Vision: The 360 degree view Focus on core elements of the 360-degree experience Universal data Consistency Transparency Relevancy 21
22 IT STARTS WITH DATA 22
23 Data is the foundation of the 360-degree view To achieve a single view of brands: Internal data must be liberated from silos Discrepancies must be eliminated Real-time changes must be shared system-wide To achieve a single view of the customer: Browsing and purchasing patterns across touchpoints must be tracked Total buying history must be accessible for maximum relevance 23
24 Data given prime importance, but remains unharnessed Merchants recognize the importance of achieving a holistic view of customer behavior 83% strongly/ somewhat agree Source: econsultancy, March
25 Challenges abound when it comes to creating unified view On a scale of 1-10 where 10 is the right data to effectively run and market to your customers, where do you stand today and why? What will it take to reach a better state? Interest in using data to understand and impact LTV Most retailers do not have a single view of the customer Loyalty programs facilitate stronger data usage Integrating store behavior is challenging for retailers Retailers strive for more sophisticated data solutions where investment in systems and resources is a requirement Data on products and sales is strong while customer data is often lacking Data is often inaccessible and doesn t allow for actionable plans Data rich, information poor is the mantra of many a retailer Everyone is investing in this area and trying to get it right B2C Partners/e-tailing group OmniChannel Interviews - PAGE 25 - the e-tailing group
26 Cross-touchpoint tracking out of reach for most Capabilities beyond Web analytics are weak Web analytics 71% strong/ average Data integration 32% strong/ average Source: econsultancy, March 2015 Personalization based on cross-channel data 18-19% strong/ average 26
27 Merchants already overwhelmed with data they do collect Just 27% agree they re able to use all data and act on it Source: econsultancy, March
28 Merchants need to be able to sell anywhere Fit For Commerce, May 2014
29 Capturing cross-touchpoint moments Portable Point of Sale tools allow merchants to build a complete customer profile Enables merchants to provide an optimal customer experience in the Retail Stores and beyond Gives the ability for merchants to connect store associates to online content and promotions 29
30 Capturing cross-touchpoint moments Features that help build total picture of customer activity Make in-store appointments online Save cart E-Receipts In-store QR codes mpos 32
31 Capturing cross-touchpoint moments Optimize loyalty programs across touchpoints Accessible and redeemable on mobile Promoted universally 33
32 Capturing cross-touchpoint moments Heeding privacy concerns is paramount 88% of U.S. consumers say "there are too many technologies tracking and analyzing our behavior" 86% agree that consumers have lost control of their privacy. 34
33 Key Takeaways What You Can Do Now: 360 Degree Data 1. Maximize measurement using existing tools organization-wide (not just Web analytics) 2. Deploy an attribution method beyond last click 3. Work toward a unified customer record as the anchor field Incentivize online account creation with Save cart/wish list tools Loyalty rewards 4. Track usage/performance of Web-to-store features 5. Disclose data collection policies prominently 35
34 CONSISTENCY 36
35 Consistency crucial to consumers Lack of consistency can damage brand credibility Went on Walmart's website pulled up item & printed it...went to store to purchase mgr. said product not that price showed him papers he pulled out scanner & sure enough was right other wise would have been charged price on shelf.
36 The 360 degree view: Consistency Mobile the linchpin of a consistent shopping experience Increasingly used to browse and buy The connector between online/offline experiences A hub of social networking activity 38
37 Retailers Reap Benefits of Mobile M-commerce already makes up 13% of total digital commerce dollars 1 Mobile search ads will be $12.85 billion in 2015, representing over 50% of the search market 2 In-store mobile payments in the U.S. are expected to grow from $3.7B in 2014 to $10B in Sources: 1. ComScore; 2014; 2. emarketer; 2014 ; 3. Nielsen; 2014
38 Mobile Research and Buying Capability = Satisfaction 41% of shoppers used smartphone to research an online purchase and 30% made a purchase 1 in 3 purchases are made on smartphones among those who own both devices (smartphone/desktop) 22% expect to do more shopping on smartphone vs. 14% last year/24% expect to do more shopping via tablet vs. 20% last year 24% used a retailer s mobile app on their smartphone or tablet weekly 45% used a mobile app to check store inventory Satisfaction for smartphone (65%) and tablet (74%) both exceed physical store satisfaction (62%) 4 0 Source: UPS Pulse of the Online Shopper; 2015
39 Mobile = Speed and Convenience The on-the-go shopper finds smartphone shopping faster and more convenient Reasons to shop on smartphone instead of desktop, laptop, or tablet I have my smartphone in the store with me when I need to use it for research or shopping I m often on the go and always have my smartphone with me so it s more convenient I want to take or send a picture of a product to someone and it s easier via smartphone I usually read my s on my smartphone and click through to the retailer s website is a catalyst for smartphone use I don t want to turn on my other devices if my smartphone is already at hand I use my smartphone to shop when I am at work I find shopping on my smartphone faster I usually only download retailers apps on my smartphone Checkout is faster on my smartphone The ability to compare products via smartphone is better I only own a smartphone Retailers have perfected their smartphone experiences/no longer a need to use other devices Source: UPS Pulse of the Online Shopper; 2015 Smartphone users (n=3,537) None of the above 27% 26% 36% 19% 23% 18% 30% 14% 22% 14% 24% 13% 25% 12% 19% 11% 19% 11% 16% 10% 13% 8% 14% 33% 10% 40% Smartphone purchasers (n=1,240) 41
40 Mobile Performance Gaps Gaps compared with desktop hurt mobile performance 49% of shoppers opt to use desktop site on mobile to access full brand offerings 1 Beyond credit card and security issues, what would cause you to give more of your budget to mobile? Check all that apply. Easier checkouts Full product selection Clear and well-sized images Quicker connection speeds One click checkout Sufficient product information Faster mobile searches Retailers where I typically shop have strong mobile experiences Pre-populated profile information (customer information stored from previous visits) Shared profile across channels (profile from PC shopping accessible via mobile) More targeted shopping experience by location Mobile s targeted to recipient's current location 50% 45% 41% 36% 33% 33% 29% 20% 19% 16% 12% 8% Source: 1. Internet Retailer, 2014; Chart E-Tailing Group/MarketLive Consumer Shopping Survey,
41 Mobile Performance Gaps Inconsistency between desktop and mobile hurt mobile performance Mobile cart and checkout leave much to be desired Shipping information, customer service, promotions and in store shipping support are not as user friendly and are key drivers in poor mobile conversion rates Source: MarketLive whitepaper,
42 Responsive Design as Means to Consistency Consider responsive design to standardize brand offerings across touchpoints Responsive design is A design and development approach that leverages a collection of technologies and design techniques to optimize the user experience based on screen size, orientation and purpose.
43 The 360 degree view: Consistency Adoption of responsive design is on the rise Source: MarketLive whitepaper, 2015
44 Key Takeaways What You Can Do Now: Consistency 1. Undertake responsive design 2. Vet cart and checkout across touchpoints and implement best practices Customer service accessibility Free shipping promotions Alternative payments 3. Align key branding elements across touchpoints Design Brand voice Labels and naming conventions 4. Promote access to complete product assortment everywhere Free shipping for online orders placed in-store 5. Clearly delineate touchpoint-specific promotions Store special Exclusively for subscribers Flash sale 1 hour online only! 47
45 TRANSPARENCY 48
46 Shoppers Seek Transparency Transparency fundamental to appeal of online shopping Price View of long transparency tail products (total brand inventory transparency) Source: PwC US Total Retail Survey,
47 In-Store Research Prevalent ~ 1 in 4 check prices in store and result could go either way 9 Source: Forrester,
48 Merchants Should Embrace, Not Fear, Transparency Higher use of digital correlates with higher conversion Researching online while in-store = 27% lift Researching online before store visit AND in-store = 40% lift When compared with no usage of digital resources 9 Source: Deloitte,
49 Transparency critical for making cross-channel purchase Locating products prior to making a store visit In-store Pickup Reserve in Store 46% Essential 47% Desirable 29% Essential 55% Desirable 28% Essential 58% Desirable the e-tailing group Q. How critical are the following omnichannel inventory/delivery services in selecting a retailer, where you will ultimately make a purchase? B2C Partners/e-tailing group OmniChannel Survey 52
50 Transparency critical for making cross-channel purchase Having access to inventory across the entire retail store base when visiting a store Same day delivery from the store 39% Essential 47% Desirable 30% Essential 54% Desirable the e-tailing group Q. How critical are the following omnichannel inventory/delivery services in selecting a retailer, where you will ultimately make a purchase? B2C Partners/e-tailing group OmniChannel Survey
51 Cross-channel information access Mobile POS 72% Valuable 21% Experience QR codes to scan 69% Valuable 23% Experience Alternative Payment options 69% Valuable 24% Experience Access to multi-purpose in-store device 67% Valuable 21% Experience the e-tailing group Q. How critical are the following omnichannel inventory/delivery services in selecting a retailer, where you will ultimately make a purchase? B2C Partners/e-tailing group OmniChannel Survey
52 Cross-channel information access 77% Valuable 22% Experience 63% Valuable 21% Experience Mapping to aisle Store mode the e-tailing group Q. How critical are the following omnichannel inventory/delivery services in selecting a retailer, where you will ultimately make a purchase? B2C Partners/e-tailing group OmniChannel Survey
53 Store associates can play a crucial role Staff can tip the scales toward immediate purchase Consumers WANT associates to connect them with online brand resources and help them close sales 9 Source: Forrester,
54 Store associates can play a crucial role but don t currently rely on them for expertise 59% of shoppers say they re better informed than store associates about pricing, product availability, and promotions 1 9 Source: 1. Deloitte, October 2013; chart Deloitte,
55 Promoting transparency in stores 28% of merchants report increased loyalty due to in-store customer Wi-Fi 9 2% sales increase attributed to in-store Wi-Fi for customers Source: Earthlink/IHL Group,
56 Promoting transparency online 59
57 Key Takeaways What You Can Do Now: Transparency 1. Integrate in-store inventory online and choose how to use it Buy online, pick up in store ( click and collect ) Reserve online View availability online Ship from stores 2. Offer free wi fi in stores 3. Grant seamless access to online content from stores Signage quoting customer reviews Frequently pinned tags on shelves QR codes linking to expert buying guides 4. Equip and train staff organization-wide to encourage access to online resources Store associates Phone and live chat customer service personnel Social media staff 60
58 RELEVANCY 61
59 Shoppers are comfortable with personalization 58% believe they will receive a better overall shopping experience if they share their interests and behaviors Source: MyBuys/e-tailing group 2015 Personalization Survey the e-tailing group
60 Moreover, they buy more with personalization Shoppers increasingly expect tailored offerings 1-in-2 shoppers want to see personal information used to coordinate a better shopping experience across channels realize they buy more with cross-channel personalization Source: MyBuys/e-tailing group 2015 Personalization Survey the e-tailing group
61 Factoring in past online browsing/buying boosts sales Source: MyBuys/e-tailing group 2015 Personalization Survey the e-tailing group
62 Consumers want store purchases factored into personalization 53% shoppers believe retailers factoring in store purchases delivers a superior shopping experience across all channels Source: MyBuys/e-tailing group 2015 Personalization Survey the e-tailing group
63 Merchants without personalization risk losing sales Failure to take into account past behavior can have negative repercussions Source: MyBuys/e-tailing group 2015 Personalization Survey the e-tailing group
64 Deploying personalization effectively Personalize cart and browse recovery campaigns Picturing exact item(s) left behind boosts transaction rate 25% vs. text link back to site 1 Source: 1. Experian, 2014
65 Deploying personalization effectively Post-purchase messaging How to use new products Complementary items Replenishment reminders Replenishment s achieve ~ 28% conversion rate 1 Source: 1. Listrak, 2015
66 Key Takeaways What You Can Do Now: Relevancy 1. Implement personalized triggered messaging series Welcome new subscribers Cart abandonment Post-purchase transactional messages + more 2. Save selections for tailored browsing experience Store location ( Make this my store ) Apparel size 3. Develop interactive buying guides that deliver personalized product recommendations 4. Use behavioral data to deliver individualized Cross-sells and up-sells Value-added content Loyalty club promotions 69
67 70
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