e tail 2013 report

2013 Retail TechnologySpending Report

Compiled at the 2013 eTail Palm Springs event

Brought to you by

2013 Retail TechnologySpending ReporteTail now in its 15th year presents senior-level case studies panels workshops androundtable discussions covering the challenges faced in all aspects of multi-channel andonline retail

eTail is focused on providing detailed tactics and innovative strategies during our annualconferences Gathering insight from our attendee base not only enriches the conferenceexperience but provides an additional level of benchmarking that may not be obtainedduring regular conference sessions

During Q1 2013 eTail fielded over 100 retailer surveys in order to uncover technologyspending habits from a number of verticals including but not limited to apparel sportinggoods consumer electronics travel and hospitality mass market retailers as well asspecialtyniche Where are retailers spending and why What insight can be gleaned fromthe research results Wersquove revamped our past surveys and partnered with ATampT in orderto provide deeper insight into these trends

The purpose of this study is to ascertain the technology spending habitsindustry trends and gain a future outlook from a sample of cross-industrycross-vertical retail executives Respondents were anonymous and responseswere gathered during the eTail West conference in February of 2013

Twice every year the organizers of the eTail conference spend 6-9 months(continuously) conducting phone and email surveys with executive-levelretailers from top industry brands Based on our findings the majority ofretailers in 2013 will be focused on

bull Cross-Channel Optimization

bull Data and Business Intelligence

bull Omnichannel Commerce

bull Personalization

bull UsabilityTestingUserExperience Enhancements

bull Conversion Optimization

bull Email

bull SEO SEM

bull Mobile

bull Social Media

2

General Research Findings

Primary Research Methodology

Table of Contents

Introduction 2

Primary ResearchMethodology 2

General Research Findings2

Complete Survey Results 3

Summary or Conclusions 9

Additional Survey Questions 10

Technology SpendingReference Articles 11

About eTail 12

About ATampT 12

2013 Retail Technology Spending Report

The charts below outline where respondents are

spending externally in terms of solutions in the

next 12 months

Complete Survey Results

On a percentage basis survey respondents are planning to spendbudget in each area in the next 12 months1

3

Merchandising andVisualization

Multi-Channel Initiatives

Personalization (website)

Web AnalyticsDataManagement

UsabilityTestingUser Experience

Global Solutions

SEM

SEO

Display advertising

Email

Mobile (apps)

Mobile (site design)

Social Media (paid advertising)

Social Engagement (earned)

Online Video

Content ManagementeCommerce Platform

CRM SystemsCustomer Segmentation

Loyalty Programs

58 4 33

55 9 35

49 13 36

40 5 47

63 7 24

67 5 20

45 5 43

25 16 52

60 10 27

60 11 23

60 8 26

43 23 28

66 4 28

53 13 28

57 6 32

32 23 38

54 41

of respondents planningto spend MORE in the next 12months

of respondents planningto spend LESS in the next 12months

of respondents planningto spend THE SAMEAMOUNT in the next 12months


Attendees were asked what their spending decisions

are based upon They responded as follows

60 Display advertising

51 SEM

51 Email

49 SEO

43 Social Media (paid advertising)

40 Personalization (website)

31 Online Video

31 Web AnalyticsData Management

27 UsabilityTestingUser Experience

25 CRM Systems CustomerSegmentation Loyalty Programs

25 Multi-Channel Initiatives

24 Content ManagementeCommerce Platform

24 Merchandising and Visualization

23 Social Engagement (earned)

19 Moble (site design)

15 Mobile (apps)

15 Global Solutions

of attendees said their DisplayAdvertising spending decisionsare based upon an ROI Analysis

60

50

40

30

20

10

0


60

4

Percentage of Spending Decisions That Are Based Upon An ROI Analysis2


3

5


36 Global Solutions



31 Online Video





24 Merchandising and Visulization

21 SEO


19 Email

19 Mobile (apps)

17 SEM



of attendees said that their ContentManagementeCommerce Platformand Global technology spendingdecisions are based upon aManagement Decision

36

Percentage Of Spending Decisions Based Upon A ManagementDecision


40

30

20

10

0


6


11 Mobile (apps)


4 SEO

4 Online Video






2 SEM




2 Global Solutions

of attendees said their Mobile(site design) technology spendingis based upon Time to Market13

Percentage Of Spending Decisions Based Upon Time To Market4

15

10

5

0



Percentage Of Spending Decisions Based Upon Ease Of Execution5

15 Content ManagementeCommerce Plate


11 Email


9 Online Video


9 Mobile (apps)





5 Global Solutions



2 SEM

2 SEO


of attendees said their ContentManagementeCommercePlatform spending decisions arebased upon Ease Of Execution

15

7

16

14

12

10

8

6

4

2

0



6 Percentage Of Spending Decisions Based Upon CompetitivePressures

23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions


of attendees said their Mobile(apps) spending decisions are basedupon Competitive Pressures23

8

25

20

15

10

5

0


The 2013 Technology amp Retailer Spending Outlook Benchmarking Study

Summary Of Conclusions Over 60 of respondents are planning to spend more in the next 12 months in the areas

of SEO SEM personalization mobile (site design) and social engagement (earned)

The majority of respondents are planning to spend less in the next 12 months on CRMsystems display advertising and social media (paid advertising)

The majority of respondents are spending the same amount year over year onmerchandising and global solutions

60 of survey respondents base their spending decisions for display advertising on an ROIAnalysis Overall our attendees tend to make their spending decisions in the majority ofcategories based upon an ROI Analysis except int the area of mobile site design Spendingis this area is NOT based upon ROI Analysis

Less than 36 of survey respondents made overall spending decisions based upon amanagement decision

Less than 13 of survey respondents made overall spending decisions based upon time tomarket 12 stated that mobile site design decisions are made based upon time to market

Almost 25 of respondents make spending decisions for mobile apps based uponcompetitive pressures Comparatively only 2 of web analyticsdata management solutiondecisions are made based upon competitive pressures

15 of content management solutions are made based upon ease of execution This is thehighest percentage of respondents stating that ease of execution was the primary reasonwhy they purchased certain content management solutions

Personalization


Email

9

The top areas retailers are most likely to spend budget on within the next 12 months are

Display advertising


Global Solutions

ROI Analysis

Management Decision

Competitive Pressures

The top areas retailers are least likely to spend budget on within the next 12 months are

The top influencers as for why retailers chose to spendnot spend their budget within thenext 12 months are


2

3

When asked the following survey questions ourrespondents answered as follows

Additional Survey Questions

What do you see as the biggest growth area in the next year 1The overwhelming majority of those surveyed answered that mobilewould see the most growth This was also a trend noted by eTail conferencepresenters as mobile was the mostly consistently referenced growth area

What of your budget do you spend on search (SEM) andsocial media

4When asked ldquoWhat are your top four priorities in terms oftechnology enhancementsrdquo the top answers were as follows

When asked ldquoHow are you using social mediardquo respondentsanswered as follows

On average respondents indicated that they spend more on search andare less likely to spend on social media

Engagement was the reason noted by survey respondents In contrast generatingsales is the least likely reason they are using social media

Commerce

Social

Branding


Mobile

CRM

Video

Speed

The 2013 Technology amp Retailer Spending Outlook Benchmarking Study10

76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales

Technology SpendingReference ArticlesThe practice of ldquoshowroomingrdquo or viewing an item in a retail store and then buying it online has brought the e-commerce threat directly to bricks-and-mortar retailers

Mobile raises the showrooming threat to a new level since price comparisons are available to shoppersimmediately as they make decisions and browse e-commerce websites in stores

In a new report from BI Intelligence we analyze mobile showroomings influence on retail examine the variousdifferent types of consumer behavior that make up showrooming look at what the big retailers are doing tocombat showrooming and identify the five broad strategies that will help brick-and-mor ter retailers win businessfrom showroomers

Heres a brief overview of the impact of showrooming

It has a massive impact on every day sales Deloitte Digital believes smartphones influenced $159 billion in USstore sales over the course of 2012 or 5 of the total and will influence $689 billion of store sales in 2016

Holiday season sales are particularly impacted by showrooming IDC a global market intelligence firm predictedthat smartphone use influenced between $700 million and $17 billion in US holiday season retail sales in 2012Fifty-nine million US shoppers will use their smartphones to showroom in 2013

Specific retailers such as JC Penney suffer more from the practice A recent study revealed that JC Penney mdashwhich just announced a disastrous 32 decline in same-store sales for the fourth quarter of 2012 mdash is at riskfrom showrooming because showroomers visited its locations 14 more frequently than the average USshopper did in January 2013 Other chains like PetSmart and Kohls had even worse results

Dramatic responses underscore the threat US electronics retailer Best Buy announced last month that startingMarch 3 2013 its stores would match the prices of 19 major online competitors including Apple Amazon andBuycom Target also has a price-matching policy in effect

Taken From Business Insider

Retailers are spending or planning to spend on tablets and mobile devices for their employees and on tools appsand services that consumers can use within stores If you are a small retailer look for ways you can leverage yourcustomer relationships to keep in conversations

The smallest retailers are showing the greatest desire to purchase POS hardware (25 percent) and software (29percent) for the coming year As with the past couple of years mobile looms large as nearly one-third of retailers (allsizes) are looking to adopt tablets or non-rugged handhelds in the next 12 months

Even grocery and food stores are getting into the mix 38 percent of them plan to purchase tablets in the next 12months

Taken From Forbes

11 The 2013 Technology amp Retailer Spending Outlook Benchmarking Study

About eTaileTail is a conference series held bi-annually in the United States as well as internationallyoffering best practices and tactical strategies presented by retail innovators from everyfacet of the industry It is the premier multi-channel and online retail conference dedicatedto supporting the growth of the retail industry through high-level networking andextensive thought leadership

WBR the creator of the eTail conference series is an independent research organizationdevoting 100 of its resources towards executing industry-leading conferences

eTail is Made by Retail for Retailers The event content format and speaker faculty wereput together by not only months of research with retailers from every part of the industrybut also steered by our retail Advisory Board of leading e-commerce and multi-channelexecutives eTail responds to the immediate needs of the industry helping attendeescapitalize on every single growth opportunity

As many retailers have learned the eCommerce industry never allows for complacencyTrends have been combining to create an explosion of innovation and investment in theonline retailing channel The result is a dynamic and competitive selling environment thatwill challenge every online seller to satisfy and thrill online shoppers ndash before anotherretailer does

If you havenrsquot alreadyplease visit wwwetaileastcom for details on the next 2013conference Remember to join the eTail community and receive additional free content onLinkedin Facebook YouTube Twitter and The eTail Blog

About ATampT wwwATTcomecommerce

With the growth of video personalization social networks eCommerce eLearning andmobile users managing online interactions requires high performance and scale ATampTenables enterprises to effectively manage package and distribute their online contentacross a wide range of networks to the computer the television and mobile computingdevices turning browsers into buyers


Why should you

attend eTailRetailers have to be smarter about their businesses considering todayrsquos competitivelandscape And thatrsquos why eTail is here the leading practicioners conference for theonline and multi-channel industry eTail delivers the conference experience you arelooking for to ensure your business is positioned for growth

1 Group Learning And Retailer Networking Stay At The ForefrontThe ldquoX Factorrdquo to every conference experience is about your retail peers interactingmeeting you on a daily basis eTail attendees come to the event to not only learn- butto meet each other To figure out a way around an issue theyrsquove been struggling withMany attendees say these interactions are the most valuable at an event- which iswhy we have peer to peer networking every day of the conference

2 Multiple Options To Fit Your NeedsThere are a lot of conferences out there Thatrsquos why we dont just rely upon ourexperience to build the content We contact almost every single past attendee andask the difficult questions What they like What they donrsquot What content matters Withdiverse content curated by retailers you can be assured to have detailed actionableinsights that you can immediately take back to your peers Or you can bring them withyou- there is something for everyone

3 Practical Sessions That Provide Focused TacticsIn order for you to justify your registration we have to make sure we deliver contentthat you need So we keep the topics specific Speakers focus on the business caseand core concepts and provide real-life case studies and the data to back them up

Itrsquos easy to secure your spot at our next conference Simply visit our websitewwwetaileastcom or call 18884826012

CLICK HERE to view the eTail East Conference Agenda


2013 Retail TechnologySpending ReporteTail now in its 15th year presents senior-level case studies panels workshops androundtable discussions covering the challenges faced in all aspects of multi-channel andonline retail

eTail is focused on providing detailed tactics and innovative strategies during our annualconferences Gathering insight from our attendee base not only enriches the conferenceexperience but provides an additional level of benchmarking that may not be obtainedduring regular conference sessions

During Q1 2013 eTail fielded over 100 retailer surveys in order to uncover technologyspending habits from a number of verticals including but not limited to apparel sportinggoods consumer electronics travel and hospitality mass market retailers as well asspecialtyniche Where are retailers spending and why What insight can be gleaned fromthe research results Wersquove revamped our past surveys and partnered with ATampT in orderto provide deeper insight into these trends

The purpose of this study is to ascertain the technology spending habitsindustry trends and gain a future outlook from a sample of cross-industrycross-vertical retail executives Respondents were anonymous and responseswere gathered during the eTail West conference in February of 2013

Twice every year the organizers of the eTail conference spend 6-9 months(continuously) conducting phone and email surveys with executive-levelretailers from top industry brands Based on our findings the majority ofretailers in 2013 will be focused on

bull Cross-Channel Optimization

bull Data and Business Intelligence

bull Omnichannel Commerce

bull Personalization

bull UsabilityTestingUserExperience Enhancements

bull Conversion Optimization

bull Email

bull SEO SEM

bull Mobile

bull Social Media

2

General Research Findings

Primary Research Methodology

Table of Contents

Introduction 2

Primary ResearchMethodology 2

General Research Findings2

Complete Survey Results 3

Summary or Conclusions 9

Additional Survey Questions 10

Technology SpendingReference Articles 11

About eTail 12

About ATampT 12




next 12 months



3






Global Solutions

SEM

SEO

Display advertising

Email

Mobile (apps)




Online Video



Loyalty Programs

58 4 33

55 9 35

49 13 36

40 5 47

63 7 24

67 5 20

45 5 43

25 16 52

60 10 27

60 11 23

60 8 26

43 23 28

66 4 28

53 13 28

57 6 32

32 23 38

54 41








51 SEM

51 Email

49 SEO



31 Online Video









15 Mobile (apps)

15 Global Solutions


60

50

40

30

20

10

0


60

4



3

5


36 Global Solutions



31 Online Video






21 SEO


19 Email

19 Mobile (apps)

17 SEM




36



40

30

20

10

0


6


11 Mobile (apps)


4 SEO

4 Online Video






2 SEM




2 Global Solutions



15

10

5

0






11 Email


9 Online Video


9 Mobile (apps)





5 Global Solutions



2 SEM

2 SEO



15

7

16

14

12

10

8

6

4

2

0




23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions



8

25

20

15

10

5

0












Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you










next 12 months



3






Global Solutions

SEM

SEO

Display advertising

Email

Mobile (apps)




Online Video



Loyalty Programs

58 4 33

55 9 35

49 13 36

40 5 47

63 7 24

67 5 20

45 5 43

25 16 52

60 10 27

60 11 23

60 8 26

43 23 28

66 4 28

53 13 28

57 6 32

32 23 38

54 41








51 SEM

51 Email

49 SEO



31 Online Video









15 Mobile (apps)

15 Global Solutions


60

50

40

30

20

10

0


60

4



3

5


36 Global Solutions



31 Online Video






21 SEO


19 Email

19 Mobile (apps)

17 SEM




36



40

30

20

10

0


6


11 Mobile (apps)


4 SEO

4 Online Video






2 SEM




2 Global Solutions



15

10

5

0






11 Email


9 Online Video


9 Mobile (apps)





5 Global Solutions



2 SEM

2 SEO



15

7

16

14

12

10

8

6

4

2

0




23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions



8

25

20

15

10

5

0












Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you











51 SEM

51 Email

49 SEO



31 Online Video









15 Mobile (apps)

15 Global Solutions


60

50

40

30

20

10

0


60

4



3

5


36 Global Solutions



31 Online Video






21 SEO


19 Email

19 Mobile (apps)

17 SEM




36



40

30

20

10

0


6


11 Mobile (apps)


4 SEO

4 Online Video






2 SEM




2 Global Solutions



15

10

5

0






11 Email


9 Online Video


9 Mobile (apps)





5 Global Solutions



2 SEM

2 SEO



15

7

16

14

12

10

8

6

4

2

0




23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions



8

25

20

15

10

5

0












Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you








3

5


36 Global Solutions



31 Online Video






21 SEO


19 Email

19 Mobile (apps)

17 SEM




36



40

30

20

10

0


6


11 Mobile (apps)


4 SEO

4 Online Video






2 SEM




2 Global Solutions



15

10

5

0






11 Email


9 Online Video


9 Mobile (apps)





5 Global Solutions



2 SEM

2 SEO



15

7

16

14

12

10

8

6

4

2

0




23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions



8

25

20

15

10

5

0












Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you








6


11 Mobile (apps)


4 SEO

4 Online Video






2 SEM




2 Global Solutions



15

10

5

0






11 Email


9 Online Video


9 Mobile (apps)





5 Global Solutions



2 SEM

2 SEO



15

7

16

14

12

10

8

6

4

2

0




23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions



8

25

20

15

10

5

0












Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you











11 Email


9 Online Video


9 Mobile (apps)





5 Global Solutions



2 SEM

2 SEO



15

7

16

14

12

10

8

6

4

2

0




23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions



8

25

20

15

10

5

0












Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you









23 Mobile (apps)




11 Online Video



10 SEM




6 SEO

6 Email



4 Global Solutions



8

25

20

15

10

5

0












Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you

















Personalization


Email

9


Display advertising


Global Solutions

ROI Analysis

Management Decision





2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you








2

3









Commerce

Social

Branding


Mobile

CRM

Video

Speed


76 Engagement

34 PR

30 Advertising

29 Customer Service

20 Sales













Taken From Forbes










Why should you




















Taken From Forbes










Why should you
















Why should you








e tail 2013 report

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