UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 1
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
2016 UPS How to Click with High-Tech Online Shoppers
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 2
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Introduction High-tech purchaser profiles
INTRODUCTION
2
High-tech online purchasers are plugged in across all stages of the shopping experience – from research and purchase to delivery and returns. They are a distinctive group of shoppers whose shopping preferences and habits differ in many instances from non-high-tech purchasers. In fact, high-tech online purchasers are a lot like the high-tech industry: they are hyper connected across devices and social channels; they are explorers, always seeking more information; and they are convenience-centric.
The 2016 UPS How to Click with High-Tech Online Shoppers study is designed to uncover high-tech online purchasers’ unique preferences and behaviors. For the purposes of this study, a high-tech online purchaser is defined as someone who purchased a computer, consumer electronic device, mobile phone or wearable device online. Findings provide valuable insights for companies to understand what gets high-tech consumers
“charged” and ultimately to deliver a better customer experience.
The study looks at the following factors’ influence on shopper behaviors and purchasing decisions:
› Mobile device and social media usage
› Deals, promotions and recommendations
› Role of the store
› Third-party resources such as marketplaces
› Alternate delivery locations
› Shipping and returns options
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 3
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Introduction High-tech purchaser profiles
HYPER CONNECTEDAlways online, heavy users of mobile and frequent users of social media in the shopping
experience
EXPLORERSOn the hunt for choices,
convenience and deals, and look to multiple sources of information
to guide purchasing decisions
INTRODUCTION
SALE
High-tech purchaser profiles
CONVENIENCE-CENTRICEmbrace the store as part of
the shopping experience, look for easy returns and convenient
delivery options
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 4
Introduction High-tech purchaser profiles
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
High-tech purchasers use mobile devices at every touch point of the shopping experience:
› Researching products
› Checking store inventory
› Using a retailer’s mobile app
› Purchasing products
› Tracking deliveries
Compared to non-high-tech purchasers, high-tech purchasers use smartphones to research (52% vs. 36%) and purchase (42% vs. 27%) more than their counterparts.
More high-tech purchasers made purchases on their smartphones in 2016 (42%) than in 2015 (38%). Not only are they shopping more on mobile devices, they are more satisfied: 73% of high-tech purchasers cite satisfaction with the smartphone shopping experience this year.
Move the needle on mobile
68%
73%
78%
65%
71%
54%
Purchases from smartphone
Purchases from tablet
Recent HT purchaser Non/former HT purchasers
42%32%
27%20%
High-tech purchasers use mobile devices throughout the shopping process
Tracked delivery
Researched products on a mobile device while in store
Located stores or store-related info
Checked store inventory
Used a retailer’s mobile app
Reserved a product for pick-up at a
retail store
28% of high-tech purchasers said they used a retailer’s mobile app weekly compared to just 20% of non-purchasers.
HYPER CONNECTED
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 5
Introduction High-tech purchaser profiles
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
High-tech purchasers are more likely than non-high-tech purchasers to use social media in general. Beyond their personal use of social channels, high-tech purchasers use social media to:
› Follow retailers
› Influence purchase decisions
› Make actual purchases
› Express dissatisfaction
• 28% say they would post a photo on social media when dissatisfied with a brand or product versus 17% of non-high-tech purchasers
In addition to being heavy users of social media, high-tech purchasers also are strongly influenced by reviews. In fact, 61% of high-tech purchasers rate consumer/peer reviews as important in online product selection versus 55% of non-high-tech purchasers.
Social shoppers
66% of high-tech purchasers have one or more memberships in shopping loyalty groups, compared to 50% of non-high-tech purchasers.
Social media use among high-tech purchasers
Use social media in general
Follow retailers’ social media channels
Say social media influences purchase
decisions
Have purchased from social media
in the past year
Recent HT purchaser
Non/former HT purchasers
74%
36%
32%
22%
80%
42%
37%
25%
HYPER CONNECTED
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 6
Introduction High-tech purchaser profiles
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
High-tech purchasers are highly engaged when it comes to online shopping.
• They are increasingly shopping more online versus shoppers that purchase non-high-tech items
› On average, high-tech purchasers have made more online purchases in the past three months (54%) than non-high-tech purchasers (48%)
• They are also planning to shop “more” in the next year online across all devices and “less” in physical stores”
A consistent and connected shopping experience across channels and all digital devices is key for high-tech retailers.
Highly engaged
Recent high-tech purchases by channel
Future shopping plans across multiple channels
Physical store
Planning to shop more on devices:
Online
Recent HT purchaser
PC Smartphone Tablet
Non/former HT purchasers
54%
38%30% 28%27%
20% 20%
49%
51%
2016
2016
2015
2015
46%
HYPER CONNECTED
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 7
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Marketplaces, customer ratings and search engines are the top three information sources that influence high-tech purchasers and non-high-tech purchasers. Using these channels, retailers can conduct broad marketing campaigns that reach both audiences.
Retailers can narrowly target high-tech purchasers through sources that skew much higher for high-tech purchasers than non-high-tech purchasers:
› 12-percentage point difference between the groups’ use of price comparison sites and social media channels
› 13-percentage point difference between the groups’ use of mobile advertising
Look to multiple sources for information
EXPLORERS
Television
Price comparison sites (Shopping.com, PriceGrabber, etc.)
Direct mail/catalogs
Online advertising
Social media
Blogs and news articles
Mobile advertising
Radio
Influence of sources when looking for new products and retailers
Recent HT Purchaser Non/Former HT Purchasers
51%
41%
48%
41%
48%
39%
38%
32%
36%
31%
36%
28%
36%
24%
33%
23%
30%
18%
29%
18%
28%
15%
25%
15%
34%
26%
Marketplaces (Amazon, eBay, Newegg, etc.)
Customer ratings on retail websites
Search engines (Google, Bing, etc.)
Friends/personal network
Email from retailers
+8
+12
+8
+10
+12
+11
+13
+10
Top 5 Influences
Other Key Influences
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 8
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
High-tech purchasers want special offers. Over half of survey respondents say emails offering free shipping or discounts will prompt them to shop with a retailer. High-tech purchasers also are more likely than non-high-tech purchasers to shop with a retailer that provides offers, promotions and recommendations.
The message for high-tech retailers is clear:
› Shoppers want deals
› Shoppers want free shipping
› Shoppers want recommendations that help influence their purchasing decisions
Influenced by deals, promotions and recommendations
Likelihood that actions will prompt you to shop with a retailer
Recent HT Purchaser Non/Former HT Purchasers
Emails offering a discount
Emails offering free shipping
Emails reminding you that you left items in your cart that include an incentive
Store events
Emails with product recommendations based on past purchasing behavior
53%
53%
54%
47%
40%
33%
36%
29%
35%
27%
35%
24%
32%
25%
32%
24%
33%
21%
30%
18%
Nearly two out of three online high-tech orders receive free shipping. Among high-tech purchasers, 46% will add items to a cart that they plan to keep to qualify for free shipping and 36% will select ship-to-store to qualify for free shipping.
30%
20%
EXPLORERS
Direct mail
Text messages with promotions
Emails with product recommendations based on what others have purchased
Emails reminding you that you left items in your cart without purchasing
Ads that follow you around the internet showing you a recently viewed product
Posts on social media
+8
+11
+12
+8
+10
+12
Top 5 Influences
Other Key Influences
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 9
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Stores continue to play a major role in the shopping experience, even among avid online shoppers. In short, high-tech purchasers love to explore in store. Specifically, high-tech purchasers enjoy hunting for and finding great deals in store and say that shopping in-store is still a major part of their shopping experience. They skew higher than non-high-tech purchasers in their appreciation of the in-store experience.
Continue to embrace the store as part of their shopping experience
Agreement with statements about in-store shopping behavior
Recent HT Purchaser Non/Former HT Purchasers
I love the thrill of hunting forand finding great deals
Shopping in-store still is a major part of my shopping routine
Shopping relaxes me
I use store visits to gather new ideas for future in-store purchases
I make less impulse purchases than I used to when I visit brick-and-mortar stores
I use store visits to get ideas for future purchasing that ultimately is done online
I browse less than I used to when visiting brick-and-mortar stores because of research
I do in advance of my visit
I use store visits to tap into the knowledge of the sales associate
48%
43%
46%
45%
40%
33%
37%
31%
36%
30%
36%
26%
34%
27%
29%
19%
High-tech purchasers make an average of 46% of their purchases in store.
CONVENIENCE-CENTRIC
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 10
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
46%
Forty-five percent of all shoppers returned an item that was purchased online in the past year.
High-tech purchasers prefer to return items to the store. Of those shoppers who prefer returning an item in store, 73% made a new purchase while in the store.
When it comes to return preferences, high-tech purchasers want an easy-to-print return label, quick product exchanges and a physical store location nearby.
Preferred methods of returns for high-tech purchasers
Return preferences among high-tech purchasers
20162015
61%Prefer to return an item in store
Made a new purchase in-store
Made a new purchase online
Prefer to ship an item back to retailer
58% 42%
39%
73%
48%
74%
Easy-to-print return label
Quick product exchanges
Proximity of the physical store location
42% 28% 22%
Look for simplified returns process
CONVENIENCE-CENTRIC
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 11
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Conclusion Methodology Explorers Look to multiple sourcesLook for deals
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
High-tech purchasers prefer packages delivered to alternative locations (39%) more than non-high-tech purchasers (31%). Interest in shipping to an alternate location with extended hours is also higher among high-tech purchasers (59%).
The store’s role is shifting for high-tech purchasers, but they are using the store in new ways, such as for online order pick-ups. In fact, high-tech purchasers are more likely than non-high-tech purchasers to have used ship to store (55% vs. 45%).
Among high-tech purchasers who use ship to store, 51% are likely to purchase additional products in store.
Alternate delivery locations
The shifting role of the store among high-tech purchasers
of high-tech purchasers who currently use ship to store, plan to do so more often in the coming year
have shipped to store for pick-up
of high-tech purchasers will choose ship to store or pick up in store to qualify for free shipping
Approximately two in five high-tech purchasers prefer to have packages delivered to places other than their homes, such as: a retailer’s store; a family member or friend; their workplace; another authorized pick-up location; a package delivery locker; or another retail location (grocery store, convenience store, etc.).
20162015
52% 55%
48% 51%
36%45% 50%
39%
have made a new purchase when picking up the purchase in store, for those who have used an in-store pick-up option
CONVENIENCE-CENTRIC
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 12
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Methodology Explorers Look to multiple sourcesLook for deals
Conclusion
Connect with shoppers across channels: Deliver a consistent and seamless experience across all channels and devices, and remember that high-tech consumers are increasingly mobile and social but still highly value the store.
Empower the shopper: Provide convenient resources for consumers to get the detailed product information they crave and offer them choices when it comes to factors like shipping, delivery options and returns.
Look for ways to add value: Consider special deals, promotions and coupons to attract the high-tech purchaser and keep them coming back.
Don’t overlook logistics: Remember that how, when and where consumers receive their products shapes their overall shopping experience and impacts your brand reception.
Embrace new trends: Experiment with new technologies and show high-tech customers that your company is plugged into trends that interest them.
CONCLUSION
High-tech online purchasers have distinctive purchasing behaviors. Here are five top takeaways for retailers looking to drive more business with these customers based on the survey:
UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016 © 2016 United Parcel Service of America, Inc. 13
Introduction High-tech purchaser profiles
Hyper ConnectedMove the needle on mobileSocial shoppersHighly engaged
Convenience-Centric Leverage the store in their experienceWant simple returns Use alternate delivery locations
Conclusion Explorers Look to multiple sourcesLook for deals
Methodology
© 2016 United Parcel Service of America, Inc. UPS How to Click with High-Tech Online Shoppers study: fielded by comScore, February 2016
Conducted by comScore in January and February 2016, the 2016 UPS How to Click with High-Tech Online Shoppers study analyzes data from 5,330 U.S. online shoppers. The data is divided into two key groups:
1.) Recent high-tech purchasers (2,299) who purchased a computer, consumer electronic device, mobile phone or wearable device online within the last 3 months;
2.) Non-high-tech purchasers (3,031) who did not purchase in a high-tech category online in the past 3 months.
METHODOLOGY
13