8 Key Trends for Retail E-commerce
in 2013Presented by James Gurd
Owner, Digital Juggler
Thursday 17th January, 2013MetaKinetic, Wokingham
18.00 – 20.00
In association with
8 Key Trends for 2013
4 for Mobile 1. Responsive design vs. Device Detection 2. Mobile showrooming 3. Mobile marketing budgets increase 4. In-store Wifi ubiquity
4 general trends 5. Delivery/Returns battleground 6. Attribution modeling improves 7. Content gets an ROI 8. Subscription & rental e-commerce growth
“2013 will see a greater shift in focus towards mobile & customer – understanding that user
experience drives ROI and that not being mobile friendly in a multi-device world is like
waving a white flag”
Part 1 – Mobile Trends
Why does mobile matter?
Multiple uses for mobile
Mobile search
Local information
In-store price comparison
Mobile payment
Check-ins
Social sharing
Device fragmentation
There are >6,500 different models of mobile device
Feature phone
Smartphone
Tablet
Variety of screen resolution is increasing e.g. iPad Mini
“Not having a mobile strategy is like closing your site for business one day a week”
More mobile devices being shipped than PCs
Mobile growth is global
http://www.thinkwithgoogle.com/mobileplanet/en/
The Internet can help save the high street – The Endless Aisle
80% UK shoppers have reserved products online for in-store collection in 2012 (up from 74% in 2011)
44% shoppers always research online before buying offline
43% use mobiles on the move to compare prices/read reviews (up from 19% in 2011)
Useful reading: Econsultancy’s guide
http://bit.ly/10bwkmu
Always on commerce:
Store finders
Vouchers
Buy & collect
Local search
Click to call
In-store WiFi
QR codes
Kiosks & Tablets
Pop-up shops
Interactive mirrors
Trend 1 – Responsive Design vs. Device Detection
What are the benefits of responsive design? Tailor content layout based on device type Reduce complexity of scrolling for visitor Improved user experience
What are the benefits of device detection? Customise the type of content shown based on the
device type Focus features/functionality based on likely intentions
of visitors Remove page elements that don’t work on specific
devices Add elements to take advantage of device capabilities
e.g. touch-friendly CSS for touch screen For GPS enabled handsets, can pick up user location
via GPS instead of asking people to fill out forms
In 2013 more e-commerce retailers will use responsive design (using either CSS or JavaScript) or device detection to tailor page content based on resolution of browsing device.
Obvious, right?So why aren’t these well-known brands doing it?How their sites look on a small tablet (480x640)
Drag picture to placeholder or click icon to add
Drag picture to placeholder or click icon to addDrag picture to placeholder or click icon to add
Drag picture to placeholder or click icon to add
Example: benefit of responsive design
Example: benefit of responsive design
http://mattkersley.com/responsive/
Example: device detection to improve targeting
Promoting relevant apps
Detect model and OS of phone
Make smarter choices for targeting services & content
If visitor is using an iPhone, don’t offer Android version of app – promote the iOS version.
Trend 2 – Mobile showrooming
Why?
People are used to using their mobile phones to find more information
Can enable social sharing and voting
In-store WiFi is making web-based interaction more comfortable
Not everyone wants to buy in-store and carry out – arranging home delivery can be more convenient
In 2013 more shoppers will use stores to ‘try on’ merchandise, then turn to their mobile to shop around online or access more information before committing to a purchase.
What will we see more of?
The much maligned QR code
Interactive mirrors
Interactive content from product Suppliers
Augmented reality
NFC tags – when will Apple join the party?
Brands experimenting with ways to increase in-store engagement and use the store environment to drive sales offline and online.
“27% showrooming shoppers will likely make a purchase online using their smartphone or tablet while they are still
out shopping”
Accenture Holiday Shopping Survey, October 2012
Further reading: http://bit.ly/V6domW
Example: Interactive mirrors
Interactive mirror at Republic’s Westfield Stratford City store.
Sportsgirl, Australian retailer, providing interactive mirror for multi-channel shoppers
Trend 3 – Mobile marketing budget increases
Why?
More and more online shoppers are using multiple devices
Mobile is a key touch point in the buying cycle even if it’s not the last click
Mobile is essential for multi-channel retail
Geotargeting can drive local conversion
Mobile search is a big growth area + retargeting
In 2013 a greater % of the marketing budget will be invested in mobile marketing campaigns. Q4 2012 – mobile drove 20% of clicks and 15% paid search spend (spend up on Google & Bing).
Trend 4 – In-store Wifi & Enhanced Services
Why?
More and more online shoppers are using mobile devices in-store
43% in UK said they used mobile for price comparison and product reviews (up from 19% in 2011)
Can be used to capture valuable customer data
74% happy for retailer to send promotion text or email while using in-store WiFi (OnDevice Research)
3G connections can be unreliable – WiFi enhances experience
Useful reading – Econsultancy blog on in-store WiFi
http://bit.ly/VBe5A0
In 2013 more retailers will use technology, such as WiFi, to enhance the in-store customer experience and increase the opportunity for data collection and targeting.
Example: mCasino from Groupe Casino
Making shopping easier
App for use in local grocery stores
Pushes deals & promotions
App knows product availability based on which store the customer is in
Link with loyalty cards to personalise promotions
The app is able to collect customer data – frequency, purchase history, repeat items etc.
Part 2 – General Trends
Trend 5 – Delivery battleground
Why?
“The great online delivery scandal” – IoS
Several issues/opportunities to address: Extended returns period – not just statutory Payment-on-dispatch Online order tracking Text status updates Alternative delivery methods Free returns Easy customer service support – web / phone /
In 2013 more ecommerce retailers will focus on improving their end-to-end order management process to increase customer satisfaction with delivery and after-sale care.
Did your Christmas gift order arrive on time?59% said they would not shop with a retailer again if they failed to deliver on time.
Survey of 1,000 UK consumers
Example: Wiggle making life easy for returns
365 day returns policy for unused/undamaged items
Return via Collect+
Generate and print online returns label
Online FAQ that is referenced in the dispatch note
If faulty, refund up to £25 carriage, if over this arrange for collection via Customer Services.
One step further: Zappos
Free returns for all domestic orders (US)
Pre-paid UPS domestic or USPS domestic label
365 day returns policy
Self-service online
If you order on 29/02 in a leap year, you have until 29/02 of the next leap year!
Credit automatically to card you paid on
The flowers story: http://bit.ly/10uT9BN
The good: House of Fraser
Buy online, collect in store.
Clear communication: Order confirmation
email Dispatch confirmation
email Order ready
confirmation email Order collection
confirmation text
Returns via store or post
In-store staff understand the policy
The good: Maximuscle
Text message confirmation day before delivery
Can re-arrange delivery via text reply
Text confirmation of new delivery date + online order tracking reference
1hr delivery window – excellent
Provides name of carrier
Even includes the name of your driver!
The bad: Maillife
Inaccurate online order tracking
No link to courier live delivery information
Bare minimum 7 days ‘cooling off’ period
Up to 28 days for ‘unsatisfactory’ goods
Only standard delivery option – up to 7 working days
Account log-in doesn’t always work – cookie issue
Smaller businesses can compete: Accessories Online
Trend 6 – Attribution modelling
Why?
At basic level multi-channel funnels are easy to identify using basic analytics tools
What is missing is intelligent modelling to predict the impact of changes to the marketing mix
Data interrogation will enable retailers to assess impact of changes to marketing focus
Attribution analysts will be worth their weight in gold
Added value in multi-channel environment – impact of offline / online marketing on each other
In 2013 more retailers will use analytics tools to understand channel interaction to help them improve the efficiency of marketing investment & campaign planning.
The basics – assisted conversions
Drilling down into the data
What questions can it answer?
The enticing….
How does changing my keyword targeting via PPC affect my overall ROI?
What is the best way to use retargeting to support my SEM?
Which email segments are contributing the most to my social media channels?
The downright adrenaline pumping….
How does my offline PR drive online activity?
How is my digital marketing affecting local stores?
Does social media contribute to lifetime value & ROI?
What content is contributing to my KPIs?
Trend 7 – Content Marketing quality not quantity
Why?
Brands are built around content – content communicates values, personality etc
Content is the glue between people and products
Major impact for SEO – Panda update started the ball rolling for ‘thin’ content to be down graded
“In 2013, I predict that marketers will be forced to go outside of their comfort zone to find scalable ways to produce content that can fuel their marketing programs. Some may try outsourcing content creation outside of their marketing teams. Some may go outside their organization's walls to find content to curate. Others may attempt to crowdsource content creation among their user base.”
Pawan Deshpande, Founder & CEO, Curata
In 2013 marketers will spend more time & effort integrating content into their overall marketing plan, with a focus on quality rather than quantity.
Create a bespoke content marketing plan aligned with overall marketing plan. Create content in-house or outsource to specialists.Example – Red Bull
Build from scratch
Tap into customer demand.Use established networks like Quora, LinkedIn, Twitter, Facebook etc.Example: Volvohttp://bit.ly/XHZYye
Crowdsource
“As the demand for more quality content becomes primary to all corporate social, SEO, and demand-generation objectives, CMOs will start to look at the "build vs. buy" scenario of content marketing”
Joe Pulizzi, Founder, Content Marketing World
Buy-in
Tap into existing content pool, buying talent and/or content assets that are ready to use.Example – Google & Zagat
Further reading from Econsultancy: http://bit.ly/W2OKit
Right down to the microcopy
Tweekscycles – Cove STD Frameset
Crumpler – The Gimp 13” Laptop Wrap
Trend 8 – Alternative commerce models
This is already happening – unsurprisingly the US is leading…
Taps into people’s interests & passions and removes the need to make buying decisions
Using expert knowledge to deliver relevant products
Example - Birchbox: Beauty and lifestyle products Free shipping on each order Loyalty scheme with points for each purchase made Website is also provides standard e-commerce shop
In 2013 more websites will spring up that create communities by offering alternative e-commerce models. Two key models are subscription & rental commerce.
Other examples
Shoedazzle.com
Create your fashion profile
Each month celebrity stylists help choose your collection
You can choose which products to receive
No commitment & free two-way delivery/returns.
Other examples
Dollarshaveclub.com
Helping you manage the cost of shaving
Pay a monthly fee
Can upgrade/downgrade at any time to different razors
Handle is free, you pay for the blades
Other examples
The Thing Quarterly
Selling unique content
Object based periodical
Produced by artists, writers, musicians or filmmakers
The object is hand-wrapped and delivered to subscribers
Examples from the UK
Able & Cole
Sign-up and select a food box
Pay a monthly fee
USP – fresh food from local family farms
Don’t have to be in – they will leave in a safe spot
Green angle – boxes are re-used
Examples from the UK
Graze
Sign-up and select a food box
Weekly deliveries
First box half price to encourage sign-up
Health & nutrition based food
All boxes fit through normal sized letterboxes!
And a New Year bonus!
Already popular in the US and likely to spread
Tapping into the innate desire to be part of your local community
Creating a retail proposition by aggregating the brand power of local businesses
Example – Scoutmob in the US: Mobile app for iOS & Android Local mobile deals Local curated content
Also likes of Giltcity.com – taking LBS to next level, more than just a check-in like Foursquare, Gowalla etc
Trend 9 – Local curated commerce
We will see more websites catering for local audiences with relevant products, offers & content – acting as aggregators for local brands.
Scoutmob
For crystal ball addicts…
E-commerce Predictions for 2013 - Shipwire
Master list of 2013 predictions from industry sources - Econsultancy
Digital Marketing & Ecommerce Trends 2013 – CEO, Econsultancy
Top mobile commerce prediction for 2013 – Mobile Commerce Daily
14 predictions for digital marketing in 2013 – Mindshare
4 best practices for digital marketers in 2013 – Mashable
the end…
Thank YouE: [email protected]
M: +44 (0) 7794 539 399W: digitaljuggler.com
T: @jamesgurd
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