4th Annual Holiday - Personalizationbaynote.com/wp-content/uploads/2012/12/Holiday-Survey...this...
Transcript of 4th Annual Holiday - Personalizationbaynote.com/wp-content/uploads/2012/12/Holiday-Survey...this...
the e-tailing group
Topics
• About the Survey
• Primary Findings
• Top Influencers on Holiday Shoppers
• Mobile is the New Normal
• Key Takeaways
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the e-tailing group
About the Survey
WHAT? Measure holiday shopping behavior to understand the shifts in
consumer behavior over time and the influences of ecommerce
HOW? 1,000 respondents between December 3-6, 2013
- 50% female/50% male
- 100% owned smartphones/65% tablets
- 100% had made a holiday purchase online
WHO? Baynote in cooperation with Lauren Freedman, the e-tailing group
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Demographics
30%
20%
20%
30%
18-34
35-44
45-54
55+
What age group do you fall within?
11%
23%
27%
16%
19%
4%
Less than $25,000
$25,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000+
Prefer not to respond
What is your TOTAL annual pre-tax household income?
19%
15%
7%
58%
1%
One
Two
Three or more
None
Prefer not to respond
How many children <18 years of age are living at home with you?
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What percentage of your holiday purchases
to date have been made online?
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28%
24%
30%
11%
7%
25%
25%
29%
14%
7%
Majority (>75%)
Most (75-50%)
Some (50-25%)
Limited (25%-10%)
Very Little (Less than 10%)
2013
2012
1 in 2
shoppers
made at least
50% of their
holiday
purchases
online
Q5
the e-tailing group
Key Findings
• Promotions influence majority of holiday purchases; unconditional free shipping reigns
‒ Promotions fueled by mobile email
• Mobile usage accelerates; branded apps influence expands ‒ An important shift happened in 2013 as digital’s influence on in-store purchase patterns grew
• Shoppers demand a streamlined customer experience with easy access to information and integrated online and in-store tools
‒ Search results and paper catalogs continue to contribute
‒ Shoppers expect retail websites to support the entire shopping experience
• Ratings and reviews exert the greatest influence on both online and in-store shoppers
‒ Millennials push the limits of digital shopping tools 1/6/2014 Baynote, Inc. © 2014 Confidential 6
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92% of all
shoppers took
advantage of
some type of
promotion
11%
39%
24%
18%
5%
3%
All (100%)
Most (75%+)
Many (75-50%)
Some (50-25%)
Few (25-10%)
Very Few (<10%)
Q: Overall, what percentage of your purchases this
holiday season will include a promotion (e.g. free
shipping, % off, coupon, etc.)?
Q16 1/6/2014 Baynote, Inc. © 2014 Confidential 8
the e-tailing group By a 2-to-1 margin, shoppers always take
advantage of unconditional free shipping
Unconditional
free shipping
as a top
influencer
rose 58% over
2012
98%
86%
83%
82%
79%
85%
80%
67%
64%
42%
80%
47%
42%
39%
38%
37%
36%
31%
27%
18%
Unconditional free shipping (no minimumpurchase required)
Outlet/Clearance/Sale
Flash sales or limited-time promotions
Web-only promotions
Promotions received via email
Conditional free shipping tied to a minimumpurchase
Store-only promotions
Gift with purchase
Buy more save more
Facebook or other promotions received viasocial media
Top-3: Always/Frequently/Sometimes Top-2: Always/Frequently
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Q17
the e-tailing group
Q: How important were these influencers when
making your final purchase?
Return policy &
merchant
reputation were
20% more
important for the
55+ age group vs
the 18-24 age
group
64%
60%
55%
49%
45%
39%
20%
15%
47%
38%
35%
33%
29%
24%
13%
10%
Final price including any promotional offers
Free shipping without conditions
Product in-stock and ready to ship
Merchant reputation
Product reviews
Return policy
Ability to receive rewards/loyalty points
Free shipping with a threshold (i.e. spend $100to receive free shipping)
2013 2012
Q15 1/6/2014 Baynote, Inc. © 2014 Confidential 10
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Q: How often did the following channels influence your in-
store/online purchases?
Women are more
likely than men to
use email or text
promotions both in-
store and online 0
50
100
150
200
Email Promos Text Message Promos
Male (Always/Frequently)
Female (Always/Frequently)
In Store
0
50
100
150
200
Email Promos Text Message Promos
Male (Always/Frequently)
Female (Always/Frequently)
Online
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Q11/12
the e-tailing group
Millennials (ages 18-34) embrace promotions
more than older shoppers
Top-2: Always/Frequently 18-24 25-34 35-44 45-54 55+
Spread
(55+/18-24)
Unconditional free shipping (no minimum required) 78% 83% 85% 76% 74% 4%
Outlet/Clearance/Sale 64% 54% 49% 46% 36% 28%
Flash sales or limited-time promotions 56% 55% 56% 34% 28% 28%
Promotions received via email 53% 49% 41% 32% 27% 26%
Web-only promotions 52% 49% 43% 33% 27% 25%
Store-only promotions 47% 40% 38% 39% 29% 18%
Conditional free shipping tied to a minimum purchase 44% 43% 44% 32% 31% 13%
Gift with purchase 44% 31% 36% 23% 20% 24%
Buy more save more 42% 29% 28% 28% 17% 25%
Facebook or other promotions received via social media 31% 27% 23% 12% 8% 23%
Q: Thinking about the range of promotions that retailers offer, how often will you likely take
advantage of each of the following over the holiday season?
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74%
65%
61%
60%
47%
44%
38%
33%
34%
30%
41%
27%
23%
22%
I seek out stores that have price match guarantees
I ask an associate in a retail store to match a price onproducts I am considering
I have left a store after finding the product of interest onAmazon and later bought the product online
I have bought the product on Amazon or another competitor while in the store as the store wouldn’t match …
An associate reminds me of the retailer’s price match guarantee while I shop
I may pay somewhat more for a product while I was in thestore as I wanted to be finished with my shopping
An associate uses technology (i.e. mobile phone or tablet)to check prices at other competitors while in the store
Q: When shopping in a retail store for products where prices can be easily compared, please identify how often you exhibit or experience the stated behavior.
Top-3: Always/Frequently/Sometimes Top-2: Always/Frequently
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Retailers and shoppers accept price
matching - the end of showrooming?
2/3 of shoppers seek
out retailers who price
match;
men are 30% more
likely to ask about
price matching in-
store than women
Q23
the e-tailing group
Q: How often did you use your smartphone during
the holiday season for any of the following?
The majority of
holiday shoppers
rely on
smartphones
for pre-shopping
research
70%
64%
63%
63%
62%
61%
58%
55%
52%
46%
45%
54%
49%
50%
46%
46%
45%
45%
43%
42%
39%
39%
Find a store or seek out store-based information(hours, directions, etc.)
Compare prices before a store visit
Browse websites to figure out what to buy in advanceof making purchases
Get coupons or offers
Compare prices while in the store
Redeem coupons during a store visit
Look at product ratings before visiting the store
Make a purchase directly on the website
Look at product ratings while in the store
Make a purchase using a retailer’s app (i.e. Nordstrom, Amazon, Zappos)
Scan a barcode while in a store to check the price atanother retailer
2013 2012
Top-3: Always/Frequently/Sometimes
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Q18
the e-tailing group
Q: How often did you use your smartphone during
the holiday season for any of the following?
Smartphones
drive in-store
behavior: 62% of
shoppers
compared prices,
61% redeemed a
mobile coupon
70%
64%
63%
63%
62%
61%
58%
55%
52%
46%
45%
54%
49%
50%
46%
46%
45%
45%
43%
42%
39%
39%
Find a store or seek out store-based information(hours, directions, etc.)
Compare prices before a store visit
Browse websites to figure out what to buy in advanceof making purchases
Get coupons or offers
Compare prices while in the store
Redeem coupons during a store visit
Look at product ratings before visiting the store
Make a purchase directly on the website
Look at product ratings while in the store
Make a purchase using a retailer’s app (i.e. Nordstrom, Amazon, Zappos)
Scan a barcode while in a store to check the price atanother retailer
2013 20121/6/2014 Baynote, Inc. © 2014 Confidential 16
Q18
the e-tailing group
34%
66%
23%
77%
Yes
No
Q. Have you made any holiday gift purchases using a retailer-branded app on a smartphone or tablet (Nordstrom, Amazon, Pottery Barn, etc.)
this holiday season?
2013 2012
47%
43%
41%
26%
22%
18-24
25-34
35-44
45-54
55+
Q. Have you made any holiday gift purchases using a retailer-branded app on a smartphone or tablet (Nordstrom,
Amazon, Pottery Barn, etc. this holiday season?
Yes
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Branded app usage grows 48% over 2012
Q20
the e-tailing group
Millennials 43% more likely to research stores & products via
smartphone than older shoppers Q: How often did you use your smartphone during the holiday season for any of the following?
Top-2: All the time/Frequently 18-24 25-34 35-44 45-54 55+
Spread
(55+/18-24)
Browse websites to figure out what to buy in advance of making
purchases 62% 56% 50% 32% 16% 46%
Find a store or seek out store-based information (hours, directions,
etc.) 62% 57% 55% 35% 33% 29%
Compare prices before a store visit 53% 57% 57% 35% 21% 22%
Get coupons or offers 50% 46% 47% 38% 23% 27%
Look at product ratings before visiting the store 45% 48% 39% 26% 18% 27%
Compare prices while in the store 48% 48% 46% 40% 23% 25%
Look at product ratings while in the store 45% 44% 36% 21% 21% 24%
Redeem coupons during a store visit 39% 46% 52% 36% 31% 8%
Scan a barcode while in a store to check the price at another
retailer 29% 33% 35% 16% 16% 13%
Make a purchase directly on the website 37% 39% 37% 25% 27% 10%
Make a purchase using a retailer's app (i.e. Nordstrom, Amazon,
Zappos) 32% 30% 32% 15% 14% 18%
Purc
hase P
re-s
tore
In
-sto
re
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74%
71%
68%
68%
63%
55%
52%
49%
42%
42%
40%
32%
33%
33%
27%
27%
24%
18%
18%
18%
15%
14%
12%
10%
A simple, streamlined shopping cart that makes…
Being able to find what I want on a retailer's site by…
Seeing product on web pages that are…
Seeing web pages that include robust…
More accessible and responsive customer service…
User-generated content and tools (e.g., reviews,…
A frequent buyer or brand loyalty program
One-click checkout
Seeing web pages that include product videos that…
Live chat (ability to message with customer…
Product recommendations that are tailored to me…
Access to a creative gift center that includes ideas,…
Q. How important are each of these areas when selecting a retailer?
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Shoppers demand easy access, find-ability, a well designed
site and integrated tools
68% of shoppers
cite comprehensive,
well designed web
pages as extremely
important
Q24
the e-tailing group
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Shoppers of all ages prefer to self-service
Pricing,
availability and
social tools
before a store
visit…
75%
69%
66%
64%
55%
45%
45%
44%
43%
42%
37%
37%
31%
29%
Read product ratings and reviews before visiting the store
Researched in advance of my store visit so I didn’t require the …
Took advantage of a promotion sent to me via email and made a…
Researched in advance of my store visit checking for inventory…
Used my mobile device to find a better price
Took advantage of a promotional text sent to me and made a…
Used a retailer’s app to find product information
Had an in-store associate check inventory at another store when…
Reserved a product online or via smartphone and picked it up in…
Downloaded a retailer’s app in advance of a store visit
Used a retailer’s app to find product in the store
Associate offered to look for inventory and arrange to send to…
Checked out by an associate who used a mobile device versus a…
Had an associate assist me in making the right product selection…
Q. In visiting retail stores over the past few months, please identify the frequency with which you conducted or experienced the stated behavior.
2+ times
…apps,
sales
support and
check out tools
for efficiency
in-store
Q22
the e-tailing group
82%
53%
49%
46%
45%
37%
33%
23%
If a site doesn’t have product in-stock I will go elsewhere
I look for store information on my smartphone in advance of avisit (e.g., hours, location, map, etc.) to make shopping more…
I research product availability in advance of every store visit toensure items are in stock
I use my smartphone to comparison shop ensuring that I’m paying the best price for products before I visit the store
I use my smartphone to make shopping more efficient
I seek out retailers where I can reserve the product in advanceto save time when picking it up in store
I typically don’t shop at retail stores where I cannot see product availability before I visit the store
I will not wait more than a day or two to receive my product
Q. In thinking about the meaning of convenience for you relative to shopping, please
state your agreement with the following scenarios. Top-2: Strongly/Somewhat Agree
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Shoppers expect convenient cross channel tools
1 in 3 shoppers
want pricing, in-
store inventory
availability and
product pick up
visible on the
ecommerce site
Q21
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Search, peer review & promotions are top influencers
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Ratings & reviews
influenced 48% of
online shoppers,
(+45% over 2012)
and 37% of in-store
shoppers (+12%
over 2012)
48%
35%
31%
28%
17%
16%
14%
14%
13%
12%
11%
8%
37%
27%
20%
30%
14%
15%
10%
11%
15%
8%
9%
7%
Online ratings and reviews
Email promotion
Google search results that included…
Paper catalog
Display advertising for product you…
eCommerce website
Product recommendation on…
Text messaging from retailers
Mobile advertising
Q: How often did the following channels influence your purchases by channel?
Top-2: Always/Frequently
online in storeQ11/12
the e-tailing group
70%
64%
63%
63%
62%
62%
61%
58%
55%
46%
45%
71%
74%
76%
60%
43%
43%
44%
67%
63%
53%
37%
Find a store or seek out store-based information (hours,directions, etc.)
Compare prices before a store visit
Browse websites to figure out what to buy in advance ofmaking purchases
Get coupons or offers
Compare prices while in the store
Look at product ratings while in the store
Redeem coupons during a visit
Look at product ratings before visiting the store
Make a purchase directly on the website
Make a purchase using a retailer's app (i.e. Nordstrom,Amazon, Zappos)
Scan a barcode while in a store to check the price at anotherretailer
Q. How often did you use your MOBILE DEVICE for any of the following holiday shopping tasks?
Smartphone Tablet
Shoppers use smartphones and tablets for
different purposes
Tablets
stay at home
and support
pre-store
research
While
smartphones
go on the road
with the
shopper
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Q18/19
the e-tailing group Millennials influenced by more channels
(i.e. social) than older shoppers Q: How often did the following influence your online purchase?
Top-2: Always/Frequently 18-24 25-34 35-44 45-54 55+
Spread
(55+/18-24)
Ratings and reviews 51% 62% 50% 40% 40% 11%
Facebook 30% 31% 18% 13% 7% 23%
Pinterest 21% 23% 12% 7% 3% 18%
Twitter 14% 13% 10% 4% 0% 14%
Email promotion from retailers 36% 40% 37% 30% 27% 9%
Google search results with pictured product available
by retailer 35% 40% 31% 28% 23% 12%
Display advertising 27% 20% 15% 11% 12% 15%
Product recommendation on eCommerce website 22% 19% 12% 13% 10% 12%
eCommerce website 20% 21% 15% 11% 10% 10%
Mobile advertising 20% 12% 14% 10% 4% 16%
Promotional text messaging from retailers 16% 15% 20% 10% 8% 8%
Paper catalog 35% 20% 25% 28% 32% 3%
Mobile
D
igital S
ocia
l
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Q: How often did the following influence your in-store purchase?
M
obile
D
igital S
ocia
l
Top-2: Always/Frequently 18-24 25-34 35-44 45-54 55+
Spread
55+/18-24
Ratings and reviews 46% 37% 36% 34% 31% 15%
Facebook 20% 24% 16% 8% 6% 14%
Pinterest 16% 16% 9% 4% 2% 14%
Twitter 13% 13% 8% 3% 2% 11%
Email promotion from retailers 35% 25% 34% 23% 21% 14%
Google search results with pictured product
available by retailer 31% 22% 18% 19% 16% 15%
Display advertising 28% 16% 17% 10% 10% 18%
eCommerce website 19% 9% 11% 8% 6% 13%
Product recommendation on eCommerce website 18% 13% 14% 9% 7% 11%
Promotional text messaging from retailers 22% 17% 20% 12% 9% 13%
eCommerce website 19% 9% 11% 8% 6% 13%
Mobile advertising 19% 12% 12% 8% 4% 15%
Paper catalog 38% 25% 29% 28% 32% 6%
Millennials influenced by more channels
(i.e. social) than older shoppers
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67%
42%
24%
21%
19%
When I am on Facebook, I’m in a social/communication mindset and do not click …
Pinterest gives me ideas for what to buy for thoseon my holiday list
I click on Pinterest links to make a purchase on an eCommerce, website but I can’t always find …
I click on Pinterest links to make a purchase on aneCommerce website
I look at the ads on Facebook and click through tomake a purchase
Q. Please share your agreement on shopping via these channels. If you don’t use a particular channel please select N/A.
Top-2: Strongly/Somewhat Agree
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Not all social channels influence ecommerce equally
Over 2/3 of
shoppers are
“not in the
shopping
mindset” when
on Facebook Pinterest gives
42% of shoppers
gift ideas with
20% of links
converting to
purchase
Q15
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Influencers & Promotions • Influencers
‒ Digital influence on in-store purchasing is an important shift driven by millennials
‒ Ratings, email and paper catalogs hold their own as influencers knowing no channel boundaries
‒ Google search ads are more successful when based on price, offer and retailer familiarity
‒ Pinterest delivers gift ideas for 50% of shoppers; 20% click through to purchase where impact is strongest among millennials and women
• Promotions ‒ Consumers are truly price-sensitive
when making shopping decisions; they hunt for promotions and ask for price matching
‒ Consumers will take advantage of every promotion, but preference still lies with unconditional free shipping
‒ Millennials are aggressive in taking advantage of a range of deals
‒ Mobile devices are the price hunting tool of choice
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Mobile & Shopper Convenience Features • Mobile
‒ Mobile usage accelerates across all age groups
‒ Shoppers use mobile devices to hunt for bargains, research stores and products helping them to find the right product at the right price whether in-store or online
‒ Tablet’s role is pre-store and purchase-oriented
‒ Smartphones play more dominant role both in-store role and as a transaction device
• Convenience Features ‒ Product availability really matters
‒ Shoppers seek out retailers who have cross-channel tools in place ex: in store pick up
‒ Smartphones connect consumers to stores especially millennial shoppers
‒ Shoppers secure the best possible price by hunting down deals via smartphone
‒ Price matching and in-store sales associates use of technology is becoming more commonplace
‒ Shoppers expect efficiencies from finding product through checkout and a superior user experience along the way
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