Consumer trends in retail

Rob Weatherhead Digital Operations Director MediaCom @RobWeatherhead

Retail is complex…

65% of

people move between devices while

shopping online

50% of

people research online purchase

offline

Sources: Google/ipsos Sept 2012, Nielsen clickstream studies 2011, Consumer Commerce Barometer Q3 2012

Multi Device Opportunity

63% of shoppers used multiple

devices during online Christmas shopping in 2012

67% of online shoppers feel “having

access to multiple devices makes it easier for me to shop”

More devices means more shopping - people with two or more devices shop in up

to 50% more retail categories

Customer Journey Complexity

Start Purchase 24 hours for 23% of purchasers 19 days for 48% of purchasers 39 days for 71% of purchasers

UK Nielsen Clickstream Study – all verticals

The high street is not dead…

Over 85% of

sales still occur offline (but 2 out of 3 buyers research online)

Sources: Forrester 2012, Consumer Commerce Barometer Q3 2012

Google & M/A/R/C Research

90% of

people use their smartphone for pre-shopping

58% 57%

44% 44% 43%

32% 31% 31% 30%

19%

Google & M/A/R/C Research

84% of

people use their smartphone to help them whilst in store

97% 89% 87% 87% 86% 81% 80%

What are they using it for?

Google & M/A/R/C Research

1 in 3 shoppers

uses their smartphone to find info instead of asking shop staff

Research Online Purchase Offline

Research

Offline Online P

urc

has

e On

line

Digital Convertors Research offline before buying online, often for convenience.

True Onliners Completes all stages of the purchase process online.

Off

line

True Offliner Carries out all steps of the purchase process through offline channels

ROPO Shoppers Researches and compares

prices before buying offline.

GfK Euromonitor 2011

ROPO customers are the biggest segment

Research

Offline Online P

urc

has

e On

line

Digital Convertors Research offline before buying online, often for convenience.

True Onliners Completes all stages of the purchase process online.

Off

line

True Offliner Carries out all steps of the purchase process through offline channels

ROPO Shoppers Researches and compares

prices before buying offline.

GfK Euromonitor 2011

ROPO - 57%

True Offline - 31%

True Online - 8%

Digital Convertors - 4%

ROPO customers are the biggest segment

And they are more valuable

Research Offline Bought Online

0% 10% 20% 30% 40% 50% 60% 70%

I buy online after looking in store

I buy in store after looking online

Food Clothing Electronics Home Improvements Telecomms

ROBO is just as common in some areas

The Retail Revolution – Interone.de

ROBO customers • A bricks and mortar retailer’s nightmare:

– The store takes the costs, the website claims the sale.

• More return rights due to distance selling laws • Drivers of ROBO:

– Complexity drives customers in store – Cheaper due to comparison – Time to make their decision – No sales pressure

Successful retailers will brings the two worlds together

Bringing the best of offline online

Bringing the best of online offline

Try it on for size Feel it/experience it How will it ACTUALLY look Have it now

Range of available options Ease and convenience of purchase Time to browse in comfort Ease of comparison

What about measurement?

The world of direct response advertising has changed…

Offline

Online

Sales DM

SEO

TV

Radio

Press

PPC

Stimulus

The new world is a bit more complicated…

Online

Sales DM

SEO

TV

Radio

Press

PPC

Brand Preference

Offline

Reviews Social Media

Youtube Content

Blogs

So what does this mean for you as retailers?

• You need to work out what this means for your business, there is no one size fits all

• Understand how your customers are using devices and channels and meet their need

• You are on a journey, small steps will get you there and help you learn