emarketer webinar: seven ecommerce trends you need to understand now

© 2016 eMarketer Inc.

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Seven Ecommerce Trends You Need

to Understand Now

Krista Garcia

Analyst

July 28, 2016


1. Mobile Conversions

Climbing


Smartphone mcommerce is growing fast

46.8%

Mcommerce

15.7%

2.6%

74.2%

Ecommerce Total RetailSmartphone Mcommerce

US Retail Sales Growth, 2016


Growth in US

smartphone

mcommerce

accelerated in

2015 and will

continue to

expand

through 2020

#eMwebinar


The number of

US smartphone

buyers

continues to

rise

#eMwebinar


US retail

ecommerce

smartphone

conversion rates

improved 33.4% in

2015

Conversion rates on smartphones

were still one-third what they were

on desktops, but that was up from

one-quarter in 2014

#eMwebinar


Bigger screens =

higher conversion

rates

Phablets’ share of global

smartphone devices will rise

from 29% in Q4 2015 to 59% in

Q2 2017

#eMwebinar


Faster load times = higher conversion rates

Load Time

2.4 seconds

3.3 seconds

4.2 seconds

5.7 seconds

(Source: Soasta, Sept. 2015)

Conversion Rate

1.9% (peak)

1.5%

1.0%

0.6%

#eMwebinar


App search has been enabled by deep links

~50%of the Internet Retailer 100 use deep links

(Source: Pure Oxygen Labs, 2016)

#eMwebinar


2. Stores Still Matter


Brick-and-mortar dominates US sales

92.8%

Retail sales that occur in-store

(Source: eMarketer, June 2016)

#eMwebinar


Stores

generate the

most revenue

for US

multichannel

retailers

20% of revenues come

from ecommerce

#eMwebinar


Stores are

still the focus

of many US

retail execs’

efforts to

enhance the

customer

experience

#eMwebinar


Online retailers get physical

Showrooms Partnerships Stores

Image source: Bonobos Image source: West Elm Image source: GeekWire


3. Mobile Drives In-Store Sales


Mobile influences

45%of all US shopping journeys

(Source: Facebook IQ, Feb. 2016)

#eMwebinar


Nearly all

US adult

smartphone

users have used

location-based

services

#eMwebinar


Proximity

marketing can

drive foot traffic

and sales

#eMwebinar


Personalization

and

understanding

shoppers are

important

Beacons? Not so much

#eMwebinar


Beacons have low adoption among US retailers

Used by 15% (Source: Forbes Insights, Dec. 2015)

23% implemented and satisfied, 22% implemented but

planning a change, 23% had no plans to implement

(Source: Retail Systems Research, Feb. 2016)

20% currently used beacons (or augmented reality) and

17% planned to do so (Source: TimeTrade, April 2016)

#eMwebinar


What are

retailers

focused on?

“[Beacons] are one of the

technologies that will help

advertisers and marketers

understand the customer’s overall

behavior. But other technologies are

also contributing to that holistic

customer view—Wi-Fi data, NFC

data and QR codes.”

—Thomas Walle, CEO and Co-Founder, Unacast

#eMwebinar


4. More Experiences, Less

Stuff


Spending on

services has

been growing

faster than

spending on

goods in the

US

#eMwebinar


Digital spending intention among US internet

users is strongest for services

This trend is more so

for millennials

25% planned to spend

somewhat or much

more digitally on

entertainment, 24% on

airlines and hotels

#eMwebinar


Experiential spending gained steam over the

holidays last year

52%

of US millennials

planned to buy

experiential gifts

(source: PwC, Oct. 2015)

39%

of those 35+ did

(source: PwC, Oct. 2015)

#eMwebinar


The sharing economy isn’t widespread

#eMwebinar


Sharing economy skews young

#eMwebinar


Sharing or selling?

eBay and Etsy, not

Rent the Runway and

Le Tote

#eMwebinar


5. Images Speak Louder

Than Words


Social commerce is practically synonymous with

Pinterest

4.6 times as many Pinterest

users go there to shop

compared to Facebook and

Instagram

#eMwebinar


Pinterest is designed to shop

Image source: Pinterest#eMwebinar


Pinterest sparks discovery

“The discovery is usually led by an idea.

Ideas create intent for us to purchase

products, book a trip for travel or do

something else. We know that in order to

create intent, you must start first with an

idea and move beyond a beautiful photo.”

—Edwin Wong, Head of Partner Marketing

Insights, Pinterest

#eMwebinar


Instagram is less

transactional

Instagram has 34.8 million

more US users than

Pinterest

58.3% of US Instagram

users are female

#eMwebinar


Instagram inspires

Image source: Instagram#eMwebinar


Most US

Snapchat

users are

under 25

Snapchat skews very

young, but will gradually

expand its user base

through 2020


Nordstrom’s “Study Break”

“Our Snapchat Stories were a little bit

informal and natural—it was not a

commercial, it had hand-written text and

it was very different than what

consumers would see on TV or even

YouTube.”

—Bryan Galipeau, Director, Social Media and

Display, Nordstrom

Image source: Fortune#eMwebinar


There’s

no

shortage

of visual

social

platforms

Image source: We Heart ItImage source: Imgur


Influencers in the

Purchase Funnel


Retail is late to influencer marketing

“Retailers have one

specific goal in mind:

Come shop with us

and spend your

money with us.”

—Stacy DeBroff,

Founder and CEO,

Influence Central

“Retailers do have more

emphasis on the middle of

the funnel and the bottom

funnel than other brands

who use our platform. …

Especially if they are

ecommerce, everything has

got to tie back to the sale.”

—Rustin Banks, Co-Founder and

Chief Product Officer,

Tapinfluence

#eMwebinar


Advertising

has a trust

problem

#eMwebinar


Younger US

internet users

are more

swayed by

influencers

But friends and family still

beat all other sources for

influence

#eMwebinar


The value of

influencer

marketing

continues to grow

Food and beverage had high

earned media value

2015 EMV average ($11.20)

grew 63% over 2014

#eMwebinar


7. Ecommerce Is Evolving


Contextual, Connected, Conversational

Image source: Amazon Image source: Pizza HutImage source: Pinterest


Buy buttons at work

Image source: Pinterest Image source: Instagram Image source: Facebook


Social media users haven’t been clamoring for

buy buttons

Less than a fifth of

consumers polled in

November 2015

worldwide were

interested in buy

buttons on select

social media sites

#eMwebinar


Voice search is still emerging

74% of US smartphone

users under 25 have

used digital voice

assistants

#eMwebinar


Convincing consumers to use Facebook

Messenger for commerce will be a challenge

54.7% of US users

would like to see

discounts and

promotional offers

27.7% didn’t want to

receive any

messages

#eMwebinar


Are bots the new apps?

Image source: Wingstop Image source: Kik

“We’ll begin to identify phrases that

identify people’s interest in placing

an order, and then we will be able to

proactively reach out to them. We

will learn as we go so we can learn

and adapt to those phrases.”

—Flynn Dekker, CMO, Wingstop, in

Nation’s Restaurant News


Kik’s Bot

Shop

features

retail

brands

Image source: Kik#eMwebinar


Recap

1. Smartphone conversion rates are improving

2. The store still matters for sales

3. Mobile can bridge online and offline worlds

4. Spending is shifting to experiences over goods

5. Visual commerce’s success varies by platform

6. Influencers can have sales impact, but it’s hard to measure

7. Ecommerce is becoming contextual and conversational

#eMwebinar

Accelerate time to insight

Holistically view customer journeys

See experiences through your

customers’ eyes

Unite teams around the customer

© 2015 IBM

A single place to answer…what is happening and why

Performance Bikes Gains Insight Across

Channels

Leading Consumer Brand Visualizes Entire

Customer Journey

• Single view of journeys enables brand to

personalize content and deliver extraordinary

experiences that meet their business goals

• Understand activities that lead up to

key milestones, and customize content

to increase conversion

• Target look-alikes on third-party sites to

find more high value customers

• Single view of customer journeys across

channels to better personalize and deliver

extraordinary experiences

• Holistic customer understanding of multi-

channel experiences

• Easily connected email and web touchpoints

for a single view

IBM Customer Experience Analytics

Learn more at:

ibm.com/cxanalytics


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Krista Garcia

Seven Ecommerce Trends You

Need to Understand Now

Digital Shopper Marketing Trends in the US: Getting Personal

in the Aisles

The Changing Path to Purchase: What It Means to Add Mobile

to the Mix

Cross-Border Ecommerce 2016: A Country-by-Country Look at

Consumer Behavior and Trends