The Digital Shopping Experience

PRESENTED BY: SPONSORED BY:

PRESENTED BY:PRESENTED BY:PRESENTED BY:PRESENTED BY:

Kelly MooneyPresident & CXO, RESOURCE INTERACTIVE

More thanMore thanMore thanMore than 25% of 25% of 25% of 25% of the search resultsthe search resultsthe search resultsthe search results on on on on Google for the Google for the Google for the Google for the worldworldworldworld’’’’s 20 largest s 20 largest s 20 largest s 20 largest brands, arebrands, arebrands, arebrands, areconsumer generated consumer generated consumer generated consumer generated content.content.content.content.————Nielsen Buzz MetricsNielsen Buzz MetricsNielsen Buzz MetricsNielsen Buzz Metrics

The number of The number of The number of The number of text text text text messagesmessagesmessagesmessages sent and sent and sent and sent and received each day received each day received each day received each day

exceed the exceed the exceed the exceed the population of Earthpopulation of Earthpopulation of Earthpopulation of Earth....

————mmmm----metrics, 2007 Mobile Commerce metrics, 2007 Mobile Commerce metrics, 2007 Mobile Commerce metrics, 2007 Mobile Commerce LandscapeLandscapeLandscapeLandscape

77%77%77%77% of Internet of Internet of Internet of Internet shoppersshoppersshoppersshoppers read read read read online online online online

productproductproductproduct reviews.reviews.reviews.reviews.————JupiterResearchJupiterResearchJupiterResearchJupiterResearch, August 2007, August 2007, August 2007, August 2007

86+ million86+ million86+ million86+ millionsocial network social network social network social network users in the U.S.users in the U.S.users in the U.S.users in the U.S.————eMarketereMarketereMarketereMarketer, 2008, 2008, 2008, 2008

1.4 1.4 1.4 1.4 blogsblogsblogsblogs createdcreatedcreatedcreatedevery second of every every second of every every second of every every second of every

day.day.day.day.————TechnoratiTechnoratiTechnoratiTechnorati 2007200720072007

The average U.S. citizen The average U.S. citizen The average U.S. citizen The average U.S. citizen will spendwill spendwill spendwill spend 5.4 years5.4 years5.4 years5.4 years per per per per

lifetimelifetimelifetimelifetime online.online.online.online.————Nielsen Online Stats, 2007Nielsen Online Stats, 2007Nielsen Online Stats, 2007Nielsen Online Stats, 2007

Over Over Over Over 2.9 million2.9 million2.9 million2.9 milliontwitter users in the twitter users in the twitter users in the twitter users in the U.S.U.S.U.S.U.S.————TwitdirTwitdirTwitdirTwitdir, 2008, 2008, 2008, 2008

86%86%86%86% of the online of the online of the online of the online population are creating, population are creating, population are creating, population are creating, sharing, or influencingsharing, or influencingsharing, or influencingsharing, or influencing

————Resource Resource Resource Resource Interactive,iCitizenInteractive,iCitizenInteractive,iCitizenInteractive,iCitizen Motivational Study, Motivational Study, Motivational Study, Motivational Study, 2007200720072007

Web sales remain too small to matter.

MISCONCEPTION #1MISCONCEPTION #1MISCONCEPTION #1MISCONCEPTION #1

The web remains the fastest-growing channel and is responsible for disproportionate growth.

FACT:FACT:FACT:FACT:

TOTAL SALES (millions)




Retail Growth is Relatively Flat Overall

2007200720072007

2.6%2.6%2.6%2.6%

Total Retail CAGR is projected to be Total Retail CAGR is projected to be Total Retail CAGR is projected to be Total Retail CAGR is projected to be 2.6%2.6%2.6%2.6% fromfromfromfrom 2007200720072007----2012201220122012

2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012

Source: Forrester Research, January 2008





Online Growing 5x Faster than Offline

2002002002007777

14%14%14%14%

ONLINE Retail CAGR is projected to be ONLINE Retail CAGR is projected to be ONLINE Retail CAGR is projected to be ONLINE Retail CAGR is projected to be 14%14%14%14% fromfromfromfrom 2007200720072007----2012201220122012

2002002002008888

2002002002009999

2012012012010000

2012012012011111

2012012012012222

Source: Forrester Research, January 2008

Source: Internet Retailer, April 2008

2007: Web Fueled Majority of Growth For Some Major Retailers

Web as a % of totalSALESSALESSALESSALES

Web as a % of total salesGROWTHGROWTHGROWTHGROWTH

10%10%10%10%

90%90%90%90%

29%29%29%29%

71%71%71%71%

68%68%68%68%

32%32%32%32%

58%58%58%58%

42%42%42%42%

2012: Web Significant Growth Contributor

43%ONLINEONLINEONLINEONLINE

57%OFFLINEOFFLINEOFFLINEOFFLINE

11%*ONLINEONLINEONLINEONLINE


Source: Forrester US eCommerce Forecast: 2008-2012

*These %s are deflated by large categories with extremely low online penetration—such as autos and food





2012: Web Significant Growth Contributor

43%ONLINEONLINEONLINEONLINE




Source: Forrester US eCommerce Forecast: 2008-2012

*These %s are deflated by large categories with extremely low online penetration—such as autos and food



The web is primarily an e-commerce channel.

MISCONCEPTIONMISCONCEPTIONMISCONCEPTIONMISCONCEPTION #2#2#2#2

The web uniquely catalyzesand impacts cross-channel shopping.


Impact of traditional brand communications at the Impact of traditional brand communications at the Impact of traditional brand communications at the Impact of traditional brand communications at the onset of the consumer purchase journey is decreasingonset of the consumer purchase journey is decreasingonset of the consumer purchase journey is decreasingonset of the consumer purchase journey is decreasing

AWARENESSAWARENESSAWARENESSAWARENESS CONSIDERATIONCONSIDERATIONCONSIDERATIONCONSIDERATION TRIALTRIALTRIALTRIAL PURCHASEPURCHASEPURCHASEPURCHASEREPEAT REPEAT REPEAT REPEAT

PURCHASEPURCHASEPURCHASEPURCHASELOYALTYLOYALTYLOYALTYLOYALTY

The Web-Catalyzed Customer JourneyA proliferation of touchpoints - micro-experiences





2007200720072007

50%50%50%50%

2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012

48%48%48%48%47%47%47%47%

45%45%45%45%42%42%42%42%

38%38%38%38%

Offline SalesOffline SalesOffline SalesOffline Sales

Offline Sales Offline Sales Offline Sales Offline Sales Influenced by Influenced by Influenced by Influenced by

OnlineOnlineOnlineOnline

Online SalesOnline SalesOnline SalesOnline Sales

The Web is Projected to Influence 50% of Offline Sales by 2012

Jupiter: US Online Retail Forecast, 2007 - 2012

Total Online Total Online Total Online Total Online ImpactImpactImpactImpact

Web Improves Total Customer ExperienceThe web should be the hub for engagement and transactions

WebWebWebWeb----andandandand----Spoke ModelSpoke ModelSpoke ModelSpoke ModelSource: Resource Interactive 2002, rev 2008

WEBWEBWEBWEB

Stores are the most important channel for purchasing.


The web has begun to rival stores for purchase decision-making.


Web Rivaling Offline in ImportanceHome electronics buyers rated stores and online equally

Source: Resource Interactive Survey, August 2008Source: Resource Interactive Survey, August 2008Source: Resource Interactive Survey, August 2008Source: Resource Interactive Survey, August 2008

Q: How important were each in helping you Q: How important were each in helping you Q: How important were each in helping you Q: How important were each in helping you make your decision on what to purchase?make your decision on what to purchase?make your decision on what to purchase?make your decision on what to purchase?

Advertising dollars are being judiciously shifted to the web.


Consumers’ diverse activities and time spent online are outpacing Internet advertisingplanning.


2007 U.S. AD SPENDING TOTALS BY MEDIUMfor the top 100 National Advertisers

MEDIAADVERTISING SPEND

(Millions)MEDIUM AS A % OF

TOTAL SPEND

Magazine $9,538 9Sunday magazine $755 0.7B-to-B magazine $491 0.5Local magazine $16 0National newspaper $1,063 1Local newspaper $5,328 5.1FSI $818 0.8Network TV $18,029 17.1Spot TV $5,165 4.9Syndicated TV $2,557 2.4Cable TV networks $9,075 8.6Network radio $460 0.4National spot radio $1,015 1Local radio $1,751 1.7Outdoor $1,038 1Direct mail NA NAInternet $4,185 4Measured media $61,283 58.1Unmeasured spending $44,205 41.9Total U.S. spending $105,488 100

Source: Advertising Age, June 2008

Notes: Dollars in millions. Media expenditures by medium from TNS Media Intelligence. *Medium's percentage of all measured and unmeasured advertising.




TOTAL SPEND





TOTAL SPEND


Source: Advertising Age, June 2008

Notes: Dollars in millions. Media expenditures by medium from TNS Media Intelligence. *Medium's percentage of all measured and unmeasured advertising.




TOTAL SPEND


““““InternetInternetInternetInternet”””” includes includes includes includes Display Ads, not Search Display Ads, not Search Display Ads, not Search Display Ads, not Search orororor…………---- Search optimizationSearch optimizationSearch optimizationSearch optimization---- AffiliatesAffiliatesAffiliatesAffiliates---- Social mediaSocial mediaSocial mediaSocial media---- EmailEmailEmailEmail---- EEEE----circularscircularscircularscirculars---- Web siteWeb siteWeb siteWeb site---- InInInIn----store store store store ---- CRMCRMCRMCRM---- MobileMobileMobileMobile

Greatest Disparity Between Time Spent Online and Internet Ad Spending

Source: Forrester Research, January 4, 2008

*Note: consumer media time does not include time spent using a cell phone, watching DVDs or playing video games.

Share of time in a typical week that US adults spend with SelectShare of time in a typical week that US adults spend with SelectShare of time in a typical week that US adults spend with SelectShare of time in a typical week that US adults spend with Select Media* Media* Media* Media* vs. Share of US advertising spending by media, 2007vs. Share of US advertising spending by media, 2007vs. Share of US advertising spending by media, 2007vs. Share of US advertising spending by media, 2007

Reduced advertising spend where customers weren’t paying attention

COSTCOSTCOSTCOST

PROFITPROFITPROFITPROFIT

18%18%18%18%

40%40%40%40%

Gap Makes Data-Smart Spending Move

Source: Advertising Age, May 2008

GM Makes Spending Shift


Re-assessed Ad Spending to Align with Consumers

$200M Online Spending in 2007 - Gaming- Search- Internet applications

50%50%50%50%

GM Makes Spending Shift - $3 Billion


Shifting 50% of Ad Spending Online in Next 3 Years

Differentiation should be less of a priority online than it is in other channels.

MISCONCEPTION #5MISCONCEPTION #5MISCONCEPTION #5MISCONCEPTION #5

Appealing yet still emerging features can unlock new differentiated, growth potential.


Understand Consumer Attitudes About Shopping Experiences

: QualitativelyQualitativelyQualitativelyQualitatively tested the relative appealappealappealappeal of 23 micro- experiences

: Online bulletin boards with 40+ respondents (18-26 and 27-45); 4 days

: Made apparel or HE purchase online within past 3 months

: Participants engaged with existing digital experiences and viewed new concepts

: QuantitativelyQuantitativelyQuantitativelyQuantitatively tested the relative importanceimportanceimportanceimportance of 30 micro-experiences

: Survey with 2000+ respondents, ages 18+

: Made apparel or HE purchase in the past year

: Respondents rated tools based on descriptions provided in survey

EASE AND EFFICIENCYEASE AND EFFICIENCYEASE AND EFFICIENCYEASE AND EFFICIENCY• Visual Search• Single Page/Multi-store Checkout• Mobile

DIALOGUE AND CUSTOMIZATIONDIALOGUE AND CUSTOMIZATIONDIALOGUE AND CUSTOMIZATIONDIALOGUE AND CUSTOMIZATION• Custom Product• Co-shopping• Relationship Hub

IMMERSION AND PARTICIPATIONIMMERSION AND PARTICIPATIONIMMERSION AND PARTICIPATIONIMMERSION AND PARTICIPATION• Visualization Tools• Video• Extended Content

COMMUNITY AND PORTABILITYCOMMUNITY AND PORTABILITYCOMMUNITY AND PORTABILITYCOMMUNITY AND PORTABILITY• Ratings and Reviews• Shareable Content• Mobile

ONONONON----DEMANDDEMANDDEMANDDEMAND

PERSONALPERSONALPERSONALPERSONAL

ENGAGINGENGAGINGENGAGINGENGAGING

NETWORKEDNETWORKEDNETWORKEDNETWORKED

ONONONON----DEMANDDEMANDDEMANDDEMAND

PERSONALPERSONALPERSONALPERSONAL

ENGAGINGENGAGINGENGAGINGENGAGING

NETWORKEDNETWORKEDNETWORKEDNETWORKED

Top 10 Micro-experiences by Importance

Q: Please indicate how important the ability to do each of the fQ: Please indicate how important the ability to do each of the fQ: Please indicate how important the ability to do each of the fQ: Please indicate how important the ability to do each of the following is or could be to you ollowing is or could be to you ollowing is or could be to you ollowing is or could be to you in helping you during your shopping and purchasing process , evein helping you during your shopping and purchasing process , evein helping you during your shopping and purchasing process , evein helping you during your shopping and purchasing process , even if you have never done n if you have never done n if you have never done n if you have never done them in the past.them in the past.them in the past.them in the past.

Scale: not at all important, slightly important, somewhat importScale: not at all important, slightly important, somewhat importScale: not at all important, slightly important, somewhat importScale: not at all important, slightly important, somewhat important, important, very ant, important, very ant, important, very ant, important, very important, extremely important, absolutely essentialimportant, extremely important, absolutely essentialimportant, extremely important, absolutely essentialimportant, extremely important, absolutely essential

Email sales notification for identified productsEmail sales notification for identified productsEmail sales notification for identified productsEmail sales notification for identified products

Control the product view with zoom & rotateControl the product view with zoom & rotateControl the product view with zoom & rotateControl the product view with zoom & rotate

Asking/posting to community on a retail siteAsking/posting to community on a retail siteAsking/posting to community on a retail siteAsking/posting to community on a retail site

Visit a retail storeVisit a retail storeVisit a retail storeVisit a retail store

Obtain help of a salesperson in storeObtain help of a salesperson in storeObtain help of a salesperson in storeObtain help of a salesperson in store

Access crossAccess crossAccess crossAccess cross----channel inventory visibilitychannel inventory visibilitychannel inventory visibilitychannel inventory visibility

Read ratings and reviews on web siteRead ratings and reviews on web siteRead ratings and reviews on web siteRead ratings and reviews on web site

Checkout anonymouslyCheckout anonymouslyCheckout anonymouslyCheckout anonymously

Buy online, pick up in storeBuy online, pick up in storeBuy online, pick up in storeBuy online, pick up in store

Access to loyalty program/rewards on siteAccess to loyalty program/rewards on siteAccess to loyalty program/rewards on siteAccess to loyalty program/rewards on site

4.74.74.74.7

4.54.54.54.5

4.04.04.04.0

3.53.53.53.5

3.43.43.43.4

3.43.43.43.4

3.33.33.33.3

3.23.23.23.2

3.13.13.13.1

3.03.03.03.0

Source: Resource Interactive Survey + Harris Interactive,Source: Resource Interactive Survey + Harris Interactive,Source: Resource Interactive Survey + Harris Interactive,Source: Resource Interactive Survey + Harris Interactive,August 2008August 2008August 2008August 2008

Importance correlated with feature ubiquity and/or familiarity

Micro-experiences by Consumer Appeal

Source: Resource Interactive Survey + Harris Interactive,August 2008

Q: On a scale from 1Q: On a scale from 1Q: On a scale from 1Q: On a scale from 1----10, how appealing is this feature to you and why?10, how appealing is this feature to you and why?10, how appealing is this feature to you and why?10, how appealing is this feature to you and why?Ratings and reviews Ratings and reviews Ratings and reviews Ratings and reviews

Mobile shopping listMobile shopping listMobile shopping listMobile shopping list

MultiMultiMultiMulti----store checkoutstore checkoutstore checkoutstore checkout

Mobile product comparisonMobile product comparisonMobile product comparisonMobile product comparison

CustomizatioCustomizatioCustomizatioCustomizationnnn

Related contentRelated contentRelated contentRelated content

Visual searchVisual searchVisual searchVisual search

CommunityCommunityCommunityCommunity

Mobile shared shopping listMobile shared shopping listMobile shared shopping listMobile shared shopping list

InInInIn----store mobile promosstore mobile promosstore mobile promosstore mobile promos

Mobile ratings and reviewsMobile ratings and reviewsMobile ratings and reviewsMobile ratings and reviews

Mobile guided shopping (GPS)Mobile guided shopping (GPS)Mobile guided shopping (GPS)Mobile guided shopping (GPS)

Outfitting toolOutfitting toolOutfitting toolOutfitting tool

Shop by outfitShop by outfitShop by outfitShop by outfit

Mobile personal saved contentMobile personal saved contentMobile personal saved contentMobile personal saved content

Access loyalty program onlineAccess loyalty program onlineAccess loyalty program onlineAccess loyalty program online

Video catalog Video catalog Video catalog Video catalog

Product Product Product Product configuratorconfiguratorconfiguratorconfigurator

CoCoCoCo----shopping onlineshopping onlineshopping onlineshopping online

Mobile ask employee/friendMobile ask employee/friendMobile ask employee/friendMobile ask employee/friend

Family/group shopping portalFamily/group shopping portalFamily/group shopping portalFamily/group shopping portal

Mobile shoppingMobile shoppingMobile shoppingMobile shopping

Mobile text promosMobile text promosMobile text promosMobile text promos

Emerging features found appealing, if not (yet) important

MOBILE SHOPPING LIST

“I'm already using post-it notes getting items at the store or recording a recording a recording a recording a memo on the phonememo on the phonememo on the phonememo on the phone as a reminder.”———— Van, 40Van, 40Van, 40Van, 40

“If nothing else, it saves trees!”———— Kevin, 22Kevin, 22Kevin, 22Kevin, 22


FINDINGS: FINDINGS: FINDINGS: FINDINGS: APPEALAPPEALAPPEALAPPEAL

IMPORTANCEIMPORTANCEIMPORTANCEIMPORTANCE

MOBILE SHOPPING LISTA Convenience Tool

•Consumers write their lists Consumers write their lists Consumers write their lists Consumers write their lists on paperon paperon paperon paper

•Consumers use Consumers use Consumers use Consumers use memo/note feature on memo/note feature on memo/note feature on memo/note feature on phonephonephonephone

•Consumers interpreted Consumers interpreted Consumers interpreted Consumers interpreted this feature as being this feature as being this feature as being this feature as being greengreengreengreen

• Who?Who?Who?Who? Retailers selling frequently purchased Retailers selling frequently purchased Retailers selling frequently purchased Retailers selling frequently purchased products or enabling saved lists onlineproducts or enabling saved lists onlineproducts or enabling saved lists onlineproducts or enabling saved lists online

• Increase consumer efficiency by Increase consumer efficiency by Increase consumer efficiency by Increase consumer efficiency by incorporating scanning technologyincorporating scanning technologyincorporating scanning technologyincorporating scanning technology

• Similar appeal across agesSimilar appeal across agesSimilar appeal across agesSimilar appeal across ages

• Fear of data mining or battery Fear of data mining or battery Fear of data mining or battery Fear of data mining or battery drain drain drain drain

• More important toMore important toMore important toMore important to 18181818----24242424

• More important to low income More important to low income More important to low income More important to low income HH HH HH HH

GROWTH GROWTH GROWTH GROWTH

OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:


MULTISTORE CHECKOUT

“…“…“…“…saves time and saves time and saves time and saves time and money.money.money.money. What could be What could be What could be What could be better?better?better?better?””””————KerryannKerryannKerryannKerryann, 36, 36, 36, 36

““““OMG YES! I love this OMG YES! I love this OMG YES! I love this OMG YES! I love this concept! concept! concept! concept! This is perfect This is perfect This is perfect This is perfect for someone with an onfor someone with an onfor someone with an onfor someone with an on----thethethethe----go lifego lifego lifego life....””””————Jessica, 23Jessica, 23Jessica, 23Jessica, 23

““““This is one of the This is one of the This is one of the This is one of the reasons I love Amazon so reasons I love Amazon so reasons I love Amazon so reasons I love Amazon so much, much, much, much, you can you can you can you can comparison shop all at comparison shop all at comparison shop all at comparison shop all at once placeonce placeonce placeonce place....””””————Nicole, 29Nicole, 29Nicole, 29Nicole, 29




MULTISTORE CHECKOUTThe Virtual Mall

•Customers find tools that Customers find tools that Customers find tools that Customers find tools that save time and/or save save time and/or save save time and/or save save time and/or save money appealing money appealing money appealing money appealing

•Customers are attracted to Customers are attracted to Customers are attracted to Customers are attracted to the idea of reducing the the idea of reducing the the idea of reducing the the idea of reducing the number of times their info is number of times their info is number of times their info is number of times their info is input/savedinput/savedinput/savedinput/saved

• Who?Who?Who?Who? Retailers who aggregate multiple Retailers who aggregate multiple Retailers who aggregate multiple Retailers who aggregate multiple brands for household shopping.brands for household shopping.brands for household shopping.brands for household shopping.

• Accommodate Accommodate Accommodate Accommodate OpenIDOpenIDOpenIDOpenID and explore and explore and explore and explore retailerretailerretailerretailer---- agnostic agnostic agnostic agnostic ““““O.P.E.N. cart.O.P.E.N. cart.O.P.E.N. cart.O.P.E.N. cart.””””

• 27272727----45 slightly more appealing45 slightly more appealing45 slightly more appealing45 slightly more appealing

• Reduces dreaded shipping costsReduces dreaded shipping costsReduces dreaded shipping costsReduces dreaded shipping costs

• Saves time/simplifies transaction Saves time/simplifies transaction Saves time/simplifies transaction Saves time/simplifies transaction

• Similar importance for 18Similar importance for 18Similar importance for 18Similar importance for 18----44 44 44 44

• More important when child in HHMore important when child in HHMore important when child in HHMore important when child in HH




CUSTOMIZATION

““““Customizing something Customizing something Customizing something Customizing something gives megives megives megives me a very satisfying a very satisfying a very satisfying a very satisfying shopping experience, shopping experience, shopping experience, shopping experience, which leaves me very which leaves me very which leaves me very which leaves me very contentcontentcontentcontent with my purchase.with my purchase.with my purchase.with my purchase.””””————RossyRossyRossyRossy, 25, 25, 25, 25

““““If a clothes store had full If a clothes store had full If a clothes store had full If a clothes store had full customization customization customization customization I would I would I would I would definitely shop theredefinitely shop theredefinitely shop theredefinitely shop there and and and and buy from them if they were buy from them if they were buy from them if they were buy from them if they were able to keep the price able to keep the price able to keep the price able to keep the price pretty competitive.pretty competitive.pretty competitive.pretty competitive.””””————Ryan, 20 Ryan, 20 Ryan, 20 Ryan, 20 Source: Resource Interactive Survey + Harris Interactive,

August 2008



CUSTOMIZATIONInvested Self-Expression

•Customers desire the ability Customers desire the ability Customers desire the ability Customers desire the ability to express themselvesto express themselvesto express themselvesto express themselves

• Positive reaction was strong Positive reaction was strong Positive reaction was strong Positive reaction was strong even for minimal even for minimal even for minimal even for minimal customization capabilitycustomization capabilitycustomization capabilitycustomization capability

•Customers are willing to Customers are willing to Customers are willing to Customers are willing to pay a pay a pay a pay a smallsmallsmallsmall premium for premium for premium for premium for customizationcustomizationcustomizationcustomization

• Who?Who?Who?Who? Retailers who offer products that Retailers who offer products that Retailers who offer products that Retailers who offer products that propagate a lifestyle.propagate a lifestyle.propagate a lifestyle.propagate a lifestyle.

• Promote customersPromote customersPromote customersPromote customers’’’’ selfselfselfself----expression by selling expression by selling expression by selling expression by selling their cotheir cotheir cotheir co----created products to other customers.created products to other customers.created products to other customers.created products to other customers.

• Appealed more to 18Appealed more to 18Appealed more to 18Appealed more to 18----26262626

• Appeal of personalization and Appeal of personalization and Appeal of personalization and Appeal of personalization and controlcontrolcontrolcontrol

• Importance decreases with ageImportance decreases with ageImportance decreases with ageImportance decreases with age

• More important to HH with More important to HH with More important to HH with More important to HH with children children children children




OUTFITTING

““““SensationalSensationalSensationalSensational…………This layer your This layer your This layer your This layer your look service sure look service sure look service sure look service sure saved me from saved me from saved me from saved me from a disappointing returna disappointing returna disappointing returna disappointing return....””””————EmeldaEmeldaEmeldaEmelda, 42, 42, 42, 42

““““Yes. Yes. Yes. I love it. Yes. Yes. Yes. I love it. Yes. Yes. Yes. I love it. Yes. Yes. Yes. I love it. I could I could I could I could put outfits together in the put outfits together in the put outfits together in the put outfits together in the comfort of my own homecomfort of my own homecomfort of my own homecomfort of my own homewithout my screaming children without my screaming children without my screaming children without my screaming children asking asking asking asking ‘‘‘‘when are you done?when are you done?when are you done?when are you done?’’’’ ””””————Christina, 28Christina, 28Christina, 28Christina, 28

““““...if there was some way ...if there was some way ...if there was some way ...if there was some way I could I could I could I could load a picture of myself onto the load a picture of myself onto the load a picture of myself onto the load a picture of myself onto the site and use that to put the site and use that to put the site and use that to put the site and use that to put the clothes onclothes onclothes onclothes on that would make it a that would make it a that would make it a that would make it a 10 for me.10 for me.10 for me.10 for me.””””————Samantha, 18Samantha, 18Samantha, 18Samantha, 18




OUTFITTINGConfidence Booster

•Customers who rated this Customers who rated this Customers who rated this Customers who rated this highly used emphatic highly used emphatic highly used emphatic highly used emphatic languagelanguagelanguagelanguage————lovelovelovelove, , , , sensational, amazing, sensational, amazing, sensational, amazing, sensational, amazing, fantasticfantasticfantasticfantastic

•Customers bring their Customers bring their Customers bring their Customers bring their offline behavior onlineoffline behavior onlineoffline behavior onlineoffline behavior online————outfit shoppers were fans outfit shoppers were fans outfit shoppers were fans outfit shoppers were fans while piece buyers were not while piece buyers were not while piece buyers were not while piece buyers were not convertedconvertedconvertedconverted

• Who?Who?Who?Who? CollectionCollectionCollectionCollection----driven retailers serving driven retailers serving driven retailers serving driven retailers serving outfit purchasers.outfit purchasers.outfit purchasers.outfit purchasers.

• Extend the experience to include Extend the experience to include Extend the experience to include Extend the experience to include ““““how it how it how it how it looks on me.looks on me.looks on me.looks on me.””””

• Appealed more to 27Appealed more to 27Appealed more to 27Appealed more to 27----45 45 45 45

• UserUserUserUser----friendly interface (drag & friendly interface (drag & friendly interface (drag & friendly interface (drag & drop)drop)drop)drop)

• Desire for more realistic Desire for more realistic Desire for more realistic Desire for more realistic shape/size shape/size shape/size shape/size

• Less important to 45+Less important to 45+Less important to 45+Less important to 45+

• More important when child in HH More important when child in HH More important when child in HH More important when child in HH




CO-SHOPPING

““““Wow. I think this is one of the Wow. I think this is one of the Wow. I think this is one of the Wow. I think this is one of the coolest features yetcoolest features yetcoolest features yetcoolest features yet…………will will will will virtually allow females to bring virtually allow females to bring virtually allow females to bring virtually allow females to bring their best shopping buddy their best shopping buddy their best shopping buddy their best shopping buddy without using gas moneywithout using gas moneywithout using gas moneywithout using gas money....””””————Rachel, 23Rachel, 23Rachel, 23Rachel, 23

““““My mother and I are always My mother and I are always My mother and I are always My mother and I are always cutting and pasting things from cutting and pasting things from cutting and pasting things from cutting and pasting things from sites to each othersites to each othersites to each othersites to each other…………This would This would This would This would be a nice way to shop together be a nice way to shop together be a nice way to shop together be a nice way to shop together from far away.from far away.from far away.from far away.””””————KerryannKerryannKerryannKerryann, 36, 36, 36, 36

GROUP-THINK

““““…………a perfect way to a perfect way to a perfect way to a perfect way to purchase gifts for purchase gifts for purchase gifts for purchase gifts for friends and familyfriends and familyfriends and familyfriends and family....””””————EmeldaEmeldaEmeldaEmelda, 42, 42, 42, 42




CO-SHOPPINGInstantaneous Advice

•Consumers are Consumers are Consumers are Consumers are alreadyalreadyalreadyalready cocococo----shopping shopping shopping shopping –––– via phone, via phone, via phone, via phone, email, instant messenger, email, instant messenger, email, instant messenger, email, instant messenger, webcamwebcamwebcamwebcam

• Two subsets Two subsets Two subsets Two subsets

• Situational (e.g., group gift Situational (e.g., group gift Situational (e.g., group gift Situational (e.g., group gift giving)giving)giving)giving)

• Social shopping (existing Social shopping (existing Social shopping (existing Social shopping (existing offline behavior ported offline behavior ported offline behavior ported offline behavior ported online)online)online)online)

• Who?Who?Who?Who? Retailers with registry, gift services Retailers with registry, gift services Retailers with registry, gift services Retailers with registry, gift services or those with peeror those with peeror those with peeror those with peer----influenced shoppers.influenced shoppers.influenced shoppers.influenced shoppers.

• Incorporate easy interfaces and tools to Incorporate easy interfaces and tools to Incorporate easy interfaces and tools to Incorporate easy interfaces and tools to increase adoption.increase adoption.increase adoption.increase adoption.

• Similar overall appeal by ageSimilar overall appeal by ageSimilar overall appeal by ageSimilar overall appeal by age

• Opportunity for second opinionOpportunity for second opinionOpportunity for second opinionOpportunity for second opinion

• Fear of complexity (having to Fear of complexity (having to Fear of complexity (having to Fear of complexity (having to learn)learn)learn)learn)

• Importance decreases with ageImportance decreases with ageImportance decreases with ageImportance decreases with age

• More important to lower income More important to lower income More important to lower income More important to lower income HH HH HH HH




RATINGS & REVIEWS

““““I use it I use it I use it I use it before I buy before I buy before I buy before I buy anything onlineanything onlineanything onlineanything online....””””————Brian, 22Brian, 22Brian, 22Brian, 22

“…“…“…“…because I can because I can because I can because I can never never never never be too informed.be too informed.be too informed.be too informed.””””————NeeVeeNeeVeeNeeVeeNeeVee, 39, 39, 39, 39

““““TheyTheyTheyThey’’’’re almost re almost re almost re almost essential essential essential essential to how I to how I to how I to how I shop.shop.shop.shop.””””————Joe, 23Joe, 23Joe, 23Joe, 23




RATINGS & REVIEWSExpertise for the Masses

• Established behavior Established behavior Established behavior Established behavior onlineonlineonlineonline————itititit’’’’s extending to s extending to s extending to s extending to offlineofflineofflineoffline

•Heavily relied upon feature, Heavily relied upon feature, Heavily relied upon feature, Heavily relied upon feature, yet not fully trustedyet not fully trustedyet not fully trustedyet not fully trusted

• Who?Who?Who?Who? Retailers who sell products/ categories Retailers who sell products/ categories Retailers who sell products/ categories Retailers who sell products/ categories with objective evaluation criteria.with objective evaluation criteria.with objective evaluation criteria.with objective evaluation criteria.

• Add affinity grouping, tags or experts to Add affinity grouping, tags or experts to Add affinity grouping, tags or experts to Add affinity grouping, tags or experts to support emotional and personal purchases.support emotional and personal purchases.support emotional and personal purchases.support emotional and personal purchases.

• Top in overall appealTop in overall appealTop in overall appealTop in overall appeal

• Has become Has become Has become Has become ““““expectedexpectedexpectedexpected””””////““““a a a a mustmustmustmust””””

• Fear of bias/Fear of bias/Fear of bias/Fear of bias/““““seedingseedingseedingseeding””””

• More important for HE than More important for HE than More important for HE than More important for HE than ApparelApparelApparelApparel

• More important to college grad+More important to college grad+More important to college grad+More important to college grad+

• More important to $75K+ HH More important to $75K+ HH More important to $75K+ HH More important to $75K+ HH




Digital Micro-experiences Can Also Be Multipurpose Marketing Tools

Ratings Ratings Ratings Ratings & & & &

ReviewsReviewsReviewsReviews



SearchSearchSearchSearchForForForFor

BrandBrandBrandBrand

Ratings and Reviews: Search Results are Critical Point of Interaction and Traffic Driver



See AdSee AdSee AdSee Ad

Ratings and Reviews: In-context Advertising


ReviewsReviewsReviewsReviewsViewViewViewViewVideoVideoVideoVideoReviewReviewReviewReview




Ratings and Reviews: Engaging Content and Decision Support


ReviewsReviewsReviewsReviewsPostPostPostPost

ReviewReviewReviewReview




ViewViewViewViewVideoVideoVideoVideoReviewReviewReviewReview

Ratings and Reviews: Opportunity for Re-engagement and Acknowledgement

75% higher likelihood to 75% higher likelihood to 75% higher likelihood to 75% higher likelihood to purchase onlinepurchase onlinepurchase onlinepurchase online

60% higher satisfaction with 60% higher satisfaction with 60% higher satisfaction with 60% higher satisfaction with the multithe multithe multithe multi----channel retailerchannel retailerchannel retailerchannel retailer

42% higher likelihood to 42% higher likelihood to 42% higher likelihood to 42% higher likelihood to purchase offlinepurchase offlinepurchase offlinepurchase offline

High Level of Satisfaction with the Online Shopping Experience Yields Big Returns

Source: Foresee Results, Spring 2008

The web is the fastestThe web is the fastestThe web is the fastestThe web is the fastest----growing channel and is growing channel and is growing channel and is growing channel and is responsible for disproportionate retail growth.responsible for disproportionate retail growth.responsible for disproportionate retail growth.responsible for disproportionate retail growth.

Facts of Growth

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ConsumersConsumersConsumersConsumers’’’’ diverse activities and time spent online is diverse activities and time spent online is diverse activities and time spent online is diverse activities and time spent online is outpacing Internet advertising planning.outpacing Internet advertising planning.outpacing Internet advertising planning.outpacing Internet advertising planning.

The web uniquely catalyzes crossThe web uniquely catalyzes crossThe web uniquely catalyzes crossThe web uniquely catalyzes cross----channel shopping.channel shopping.channel shopping.channel shopping.

The web has begun to rival stores for purchase The web has begun to rival stores for purchase The web has begun to rival stores for purchase The web has begun to rival stores for purchase decisions.decisions.decisions.decisions.

Appealing yet still emerging features can unlock new, Appealing yet still emerging features can unlock new, Appealing yet still emerging features can unlock new, Appealing yet still emerging features can unlock new, differentiated growth potential.differentiated growth potential.differentiated growth potential.differentiated growth potential.

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Rules of the Road

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Expand the role of the web to be a strategic growth Expand the role of the web to be a strategic growth Expand the role of the web to be a strategic growth Expand the role of the web to be a strategic growth lever. lever. lever. lever.

Reallocate marketing dollars to activities with proven Reallocate marketing dollars to activities with proven Reallocate marketing dollars to activities with proven Reallocate marketing dollars to activities with proven effectiveness and ROI.effectiveness and ROI.effectiveness and ROI.effectiveness and ROI.

Create relevant and integrated crossCreate relevant and integrated crossCreate relevant and integrated crossCreate relevant and integrated cross----channel experiences.channel experiences.channel experiences.channel experiences.

Map your customersMap your customersMap your customersMap your customers’’’’ purchase journeys to purchase journeys to purchase journeys to purchase journeys to support their needs.support their needs.support their needs.support their needs.

Prioritize and test branded microPrioritize and test branded microPrioritize and test branded microPrioritize and test branded micro----experiences that experiences that experiences that experiences that have high appeal for select customer segments.have high appeal for select customer segments.have high appeal for select customer segments.have high appeal for select customer segments.

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The Digital Shopping Experience

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Transcript of The Digital Shopping Experience