Jeff SmithEVP Global Solutions MarketingJuly 29, 2014
DIGITAL AT THE HEART OF THE RETAIL EXPERIENCE
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TOPICS FOR TODAY
Digital is becoming fundamental to the consumer experience for any (and every) retailer
Retailers are pushing the envelope when it comes to incorporating digital
There is a significant opportunity to improve the use of digital, particularly in marketing
DIGITAL IS BECOMING FUNDAMENTALTO THE CONSUMER EXPERIENCE
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CONSUMER USE OF DIGITAL IS PERVASIVE
Source: Nielsen Cross-Platform Report, eMarketer
TV
Mobile
Online
RadioPrint
2013
11:09
4:31
2:21
2:19
1:260:32
2010
9:36
4:24
0:24
2:22
1:360:50
Hours spent consuming media by the average American every day
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WHEN IT COMES TO RETAILING, THE DIGITAL STORY STARTED AWAY FROM THE STOREPercent of adults that purchased items online
Source: Nielsen Scarborough USA + Release 2 2009-2013, Adults 18+
2009 2010 2011 2012 2013
52%54%
56%
59%
62%
+19%
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… BUT MOBILE HAS BROUGHT DIGITAL INTO THE STORE IN A BIG WAY
Source: Nielsen Performance Management Practice
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DIGITAL IS CHANGING THE RELATIONSHIP WITH CONSUMERS
Source: Nielsen Performance Management Practice, Nielsen Scarborough
of U.S. adults share their opinions about products & services by posting reviews/ratings online
of U.S. adults went online to see consumer reviews on their computers in the past month
Shoppers are having real-time digital conversations with retailers and manufacturers… and about them
26% 18% 28%
More likely to say social media is very important for finding out about products and services
35%
More likely to say social media is very important for showing support for their favorite companies or brands
Mobile shoppers are more likely than other consumers to use social media
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RETAILERS AND MANUFACTURERS ARE BECOMING CONTENT PRODUCERS ONLINE
Source: Content Marketing Institute
Percent of B2C marketers using content marketing
10% do NOT use
content marketing
90%DO use content
marketing
Change in amount of B2C content creation
(last 12 months)
Significantlymore
More
Same amount
40%
21%
4%Less
32%
Unsure 3%
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WHAT DO CONSUMERS WANT FROM RETAILERS IN A DIGITAL WORLD?PERSONALIZATION: YOU’VE GOT MY DATA: USE IT TO MY ADVANTAGE, AND TO MAKE ME FEEL GOOD—AND KEEP IT SECURE
I CAN TALK TO ANYONE, ANYWHERE, ANYTIME: IF YOU WANT TO BE THE ONE I’M TALKING TO, YOU MUST BE ABSOLUTELY CREDIBLE
I LIVE IN A FAST-PACED WORLD: I KEEP UP, AND I EXPECT YOU TO KEEP UP, TOO
I INTERACT WITH YOU THROUGH MANY DIFFERENT CHANNELS: MAKE SURE WHAT I FIND IS CONSISTENT ACROSS ALL OF THEM
I AM ALWAYS ON: MAKE SURE YOU ARE ALWAYS ON ALSO
RECOGNIZE I HAVE CHOICES. I SEEK VALUE, I SEEK IT NOW, AND I’M PREPARED TO GO ELSEWHERE TO GET IT
Source: Nielsen, “The Future of Retailing and the Rise of Digital”
RETAILERS ARE PUSHING THE ENVELOPE WHEN IT COMES TO DIGITAL
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TARGET TAKES YOU FROM SHOPPING ONLINETO SHOPPING IN-STORE
Source: Target
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WALMART IS PRICE MATCHING POST-SALE
Source: Walmart
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TESCO & PEAPOD EXPERIMENT WITH VIRTUAL STORES IN SUBWAYS
Tesco / Home plus in Seoul
Peapod in Chicago
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WHOLE FOODS IS PUBLISHING ONLINE
Source: Whole Foods
THERE IS A SIGNIFICANT OPPORTUNITY TO IMPROVE THE USE OF DIGITAL, PARTICULARLY IN MARKETING
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WE EVALUATE MARKETING EFFECTIVENESSON 3 DIMENSIONS
REACTIONHow did it change
behavior?
RESONANCEHow did it
change attitudes?
REACHWhat audience
did I reach?
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WHEN IT COMES TO DIGITAL REACH, WE SEE A BIG OPPORTUNITY FOR IMPROVEMENT
Based on 11,300 retailer campaigns, digital advertising hits its target audience…
78%
51%
55%
32%
22%
49%
45%
68%
F18-49
F25-54
M18-49
100%
P18-49
On-target Off-target
Source: Nielsen Online Campaign Ratings data
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WHEN IT COMES TO DIGITAL RESONANCE, RETAILERS LAG BEHIND OTHER VERTICALS
Source: Nielsen Online Brand Effect data
Awareness
Attitu
des
Favo
rabilit
y
Purchase
Intent
Preference
Retail Norm All Verticals Norm
Bran
d Li
ft %
Opportunity to adopt digital brand advertising effectiveness best practices to drive brand lift
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MEASURE ROI FOR MORE EFFECTIVE ADVERTISING SPEND
Source: Nielsen Buyer Insights data
Retailers can demonstrate the combined online and offline sales impact of digital campaign exposure
+25% lift in Total Sales
+11% lift in Dollars spent per Buyer
+13% lift in percentage of target audience to make purchase
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RETAILERS CAN DO MORE WITH MOBILE MARKETING
Source: Nielsen The Mobile Tipping Point Study 2014; Nielsen Scarborough Mobile Insights Study
Mobile as a percent of digital ad spend remains relatively low …
… yet consumers are open to mobile advertising
Accurate, consistent measurement is key to making this a success
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THE FUTURE OF RETAIL HAS DIGITAL AT ITS HEART
• Mobile is core to the retail experience
• Digital shopping may have less to do with home delivery and more to do with transforming the customer experience
• The evolving consumer relationship – personal, direct, and immediate
• Digital marketing as a foundation and an opportunity
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