5 things you need to know about selling to local consumers
Post on 16-Jul-2015
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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 necessity2Forget 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
5Mobile is for doing Commerce — not content — will drive marketing
innovation on mobile
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.
The largest category of commerce is now web-influneced offline sales
$0.00
$450.00
$900.00
$1,350.00
$1,800.00
$2,250.00
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
0
850
1,700
2,550
3,400
4,250
$2,625.00
$2,700.00
$2,775.00
$2,850.00
$2,925.00
$3,000.00
2012 2013 2014
Foot
traffic
(m
illio
ns)
Offlin
e r
eta
il spe
nd
ing (
bill
ions)
Offline retail spending Foot traffic
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
Think consumer — not device — first
A unified experience is no longer an opportunity
— it’s a necessity.
The 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 decisionsSource: 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%
Shoppers 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
ers
on
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 After
Visiting a store
Discovery occurs throughout the shopping experience
When do consumers search for information during the buying process?
Source: Google IPSOS
Stop thinking of mobile as a sales channel
Mobile is the thread that ties the modern
shopping experience together
Mobile 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
0% 25% 50% 75% 100% 125%
18-29 years
30-40 years
50-64 years
65+ years
18-29years
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
The 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%
225%
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 Local
Released Yelp
founded
Yellow Pages
Revenues Peak
$15.3 B
Foursquare
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 Local
Released Yelp
founded
Yellow Pages
Revenues Peak
$15.3 B
Foursquare
founded
GrubHub
IPOs Square nets $1b
valuation
Uber raises
$1.6B
2003 2011 2015
Buy and retrieveFind and discover
Source: Street Fight
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