5 things you need to know about selling to local consumers
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Transcript of 5 things you need to know about selling to local consumers
5 Things You Need to Know About Selling to Local Consumers
www.streetfightmag.com@stevenhjacobs #modernshopper
Steven Jacobs | Deputy Editor | Street Fight
Kill the ecommerce division Consumers now shop at the seam of the physical and digital worlds1Think consumer — not device — first A unified experience is no longer an opportunity — it’s a necessity 2Forget the funnel The shopping journey can begin and end wherever the consumer choses. 3Stop thinking of mobile as a sales channel Mobile is the thread that ties the modern shopping experience together4
5 Mobile is for doing Commerce — not content — will drive marketing innovation on mobile
1 Kill the ecommerce division Consumers now shop at the seam of the
physical and digital worlds.
Mobility has broken down the wall that once separated online and offline commerce. Shoppers now rely on
both digital and physical resources to discover, evaluate and buy goods and services.
Separating ecommerce and store operations only hampers innovation, keeping the web out of the store
and the store out of the web.
1
The largest category of commerce is now web-influneced offline sales
$450.00
$900.00
$1,350.00
$1,800.00
2012 2013 2014 2015 2016 2017
Non-web-influenced-offline sales Web-influenced offline sales Online sales
Source: eMarketer
Stores have become productive as ecommerce has grown
Foot
traf
fic (m
illion
s)
0
850
1,700
2,550
3,400
Offl
ine
reta
il sp
endi
ng (b
illion
s)
$2,775.00
$2,850.00
$2,925.00
$3,000.00
2012 2013 2014
Foot traffic Offline retail spending
Foot traffic is declining — but store spending is slightly up
Source: WSJ, eMarketer
Nearly every consumer is a cross-channel shopper
95%of shoppers
said they shop both online and in stores.
Source: eBay
2 Think consumer — not device — first A unified experience is no longer an
opportunity — it’s a necessity.
2The cloud has fundamentally changed what we expect
from technology. Consumers now assume that they can do anything anywhere — website, app or store.
But it turns out that retailers are dramatically behind demand. Soon, that will become a liability — not just
an opportunity.
Shoppers want digital functionality in stores
Halfof holiday shoppers
said they were frustrated because their in-store
experiences were different from those online.
Source: Accenture
Shoppers avoid stores because of poor information
25% 60%of consumers who avoid
stores do so because of limited awareness of nearby stores.
of holiday shoppers said they were frustrated with
out of stock items
52%of holiday shoppers said they were frustrated with
lack of information to make purchasing decisions
Source: Google IPSOS
Retailers trail consumers in omnichannel adoption
of retailers offer store inventory search online.
32%Retailers offer….
of retailers said they currently support buy online
and pickup in store capability
33%
Source: Accenture
71% of consumers said
searchable store inventory online was important
of consumers said the ability to buy online and pickup in
store was important
Consumers want….
50%
3 Forget the funnel The shopping journey can begin and end
wherever the consumer choses.
3Shoppers view the digital and physical assets of a
brand as a means to an end.
Marketers should strive to create flexible systems that can adapt to the unique needs of every
purchase decision.
Click-and-Collect (Decide Remotely, Fulfill In-person)
Local Commerce (Decide In-person, Fulfill In-person)
Ecommerce (Decide Remotely, Fulfill Remotely)
Showrooming (Decide In-person, Fulfill Remotely)
Remote
Rem
ote
In-person
In-p
erso
n D
ecis
ioni
ng
Fulfillment
We discover, buy and fulfill goods and services across the commerce graph
Source: Street Fight
Nearly everyone buys goods or services offline.
Nine in ten americans shopped online last year. That’s 90% of all Internet
users
Two-thirds of consumers said they bought in-store after
browsing digitally.
72% of consumers said they bought online after
browsing in store.
The majority of American shoppers already buy across the graph
Source: Pew Internet, Punchtab
87% 79% 34%
Before While AfterVisiting a store
Discovery occurs throughout the shopping experience
When do consumers search for information during the buying process?
Source: Google IPSOS
4 Stop thinking of mobile as a sales channel Mobile is the thread that ties the modern
shopping experience together
4Mobile isn’t a virtual shop in a shopper’s pocket. It’s
the thread that ties a brand’s online and in-store assets into a cohesive experience.
It’s value is in interpretability: the ability to make two systems — digital and physical —
communicate more effectively.
Mobile is increasing — not decreasing — the amount we shop in stores
18-29 years
30-40 years
50-64 years
65+ years
0% 25% 50% 75% 100%
18-29 years
More young shoppers say that mobile has led them to shop in stores more frequently — not less
87% of millennials now shop the same more in stores because of mobile
Source: Gallup
Shoppers use the store and mobile throughout their shopping process
0%
15%
30%
45%
60%
Inspiration Research Purchase Post Purchase
Percentage of shoppers who search on mobile and used the store during phase of purchase cycle
Source: Google IPSOS
42%of shoppers use their
device for in-store research
Mobile is the thread tying together the shopper journey
71%of those shoppers
say the device is more important to their
experience
Source: Google IPSOS
5 Mobile is for doing Commerce — not content — will drive
marketing innovation on mobile
5The hallmark of the desktop experience —
researching multiple sites in multiple taps in multiple windows— does not apply to mobile.
Research suggest that mobile consumers want to focus less on search and discovery and more on task completion. That means applications that emphasize features such as commerce, ordering and delivery
tend to thrive.
Mobile behavior is moving from “viewing” to “doing” — That’s good for commerce.
0%
45%
90%
135%
180%
Lifestyle & Shopping
Utilities & Productivity
Messaging Social
Health & Fitness
Travel Sports News & Magazines
Media & Entertainment
Games
Doing
Viewing
Growth last year for mobile applications by category
Source: Flurry
In the 2000s, innovation focused on organizing information. Now, it’s shifting to commerce.
Google LocalReleased Yelp
founded
Yellow Pages Revenues Peak
$15.3 BFoursquare
founded
GrubHub IPOs Square nets $1b
valuation
Uber raises $1.6B
2003 2011 2015
Buy and retrieveFind and discover
Source: Street Fight
In the 2000s, innovation focused on organizing information. Now, it’s shifting to commerce.
Google LocalReleased Yelp
founded
Yellow Pages Revenues Peak
$15.3 BFoursquare
founded
GrubHub IPOs Square nets $1b
valuation
Uber raises $1.6B
2003 2011 2015
Buy and retrieveFind and discover
Source: Street Fight
Steven Jacobs | Deputy Editor | Street FightContent, research and events for the new local economy
www.streetfightmag.com@stevenhjacobs #modernshopper