2015 UPS Pulse of the Online Shopper™ sheet...are shopping at small, local and global retailers...
Transcript of 2015 UPS Pulse of the Online Shopper™ sheet...are shopping at small, local and global retailers...
A Customer Experience Study Conducted by comScore
2015 UPS Pulse of the Online Shopper™
IntroductionThe retail industry is quickly changing, and consumers are leading the charge. Today’s shoppers are more empowered than ever, raising expectations for retailers. Shoppers are shifting between multiple channels to research products and make purchases, and all channels are important, including the store. They are shopping at small, local and global retailers and are seeking value at every stage of the online shopping experience, looking for perks and deals.
Now in its fourth year, the 2015 UPS Pulse of the Online Shopper™ Study reveals changes in consumer shopping preferences and behaviors and provides insight into how retailers can evolve to meet new demands.
Study findings reveal trends that will continue to shape the future of retail, including the rise of alternative delivery options, the role of social media in driving purchasing decisions, the continued evolution of omnichannel and the changing role of the store.
TABLE OF CONTENTS
3-5 State of Online Shopping
6-7 Channel Shifts
8-9 Mobile
10 Social Media
11 Free Shipping
12-13 Alternate Delivery
14 Returns
15 Role of the Store
16 What’s Next in Retail
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INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
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Tablet Smartphone Physical Store
SATISFACTION WITH SHOPPING CHANNELS
84% 74% 65% 62%
Desktop/Laptop
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
State of Online ShoppingSatisfaction with the overall online shopping experience is highat 83%, but satisfaction levels drop when consumers are asked
about shopping in store and on a smartphone.
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
REASONS FOR SHOPPING AT SMALL VS. LARGE RETAILERS
REASONS TO SHOP FROM INTERNATIONAL RETAILERS
State of Online ShoppingConsumers shop at small, local and international retailers as well as larger retailers and have different reasons for shopping at one versus another. More than half of them shop
at small retailers because they offer unique products. Better prices, unique or hard-to-find items are the top reasons for purchasing from international retailers.
They offer unique product
I couldn’t find what I needed from traditional sources
I want to support the community or small businesses
I like to try new retailers
They feature a broader assortment
They provide innovative shopping experiences
The price is better internationally
The brands or products I like are not available in the U.S.
I wanted something unique not found in stores in the U.S.
The quality is better internationally
I like the status that comes with shopping internationally
I want to purchase products found while traveling or living abroad
40%have purchased from an
international online retailer
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61%
49%43%
35%20%
11%10%
49%40%
29%26%
24%
93%buy at small retailers
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State of Online ShoppingDesktops and laptops dominate as the preferred channel for researching and
purchasing products online. At the same time, consumers are increasingly using smartphones for online shopping.
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
DEVICES USED FOR RESEARCH AND PURCHASE IN LAST 3 MONTHS
PROJECTED SHOPPING FREQUENCY COMPARED TO PAST YEAR
Research Purchase
Same
More
Less
91%
91%
41%
30%
32%
26%
Tablet
Smartphone
Desktop/Laptop
73%
10%
17%
68%
22%
10%
65%
30%
5%
67%
24%
9%
SmartphoneIn Store Desktop/LaptopTablet
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INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
RESEARCH & PURCHASE METHOD
SingleChannel
Search in store,buy in store
Omnichannel
42%
64%
36%
14%
7% 7%
8%
22%Search online,
buy online
Search online,buy in store
Research online and in store, buy online
Research online and in store, buy in store
Search in store,buy online
Channel ShiftsConsumers continue to cross channels when
researching and purchasing items.
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INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
REASONS FOR PURCHASING ONLINE AFTER RESEARCHING IN STORE
Channel ShiftsConsumers search extensively for the best prices and product selection—the top
two reasons for purchasing items online after researching them in store.
57%
49%
46% 45%
40%
39%
33%The price was better online
with a different retailer
The selection was better online with the
same retailer
The selection was better online with a different retailer
I wanted to do additional research before purchasing
The store didn’t have the size/color/model I wanted
I wanted to go to the store to touch and feel the product before purchasing online
I was not ready to purchase the day I visited the store
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MobileOnline shoppers are experiencing barriers to shopping on their mobile
devices, leading them to use their desktop and/or laptop.
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
REASONS FOR SHOPPING ON DESKTOP/LAPTOP VS. MOBILE DEVICE
vs.
Easier to use a keyboard and mouse vs. a touch
screen or keypad
51%
Can’t get a clear or large enough image of the product
on my mobile device
38%
Product information cannot be easily viewed on my
mobile device
32%
Concerns about giving my credit card information over
a mobile connection
32%Hard to compare products
on my mobile device
30%
Difficult to quickly/easily find the product on retailer’s
mobile site or app
23%
Takes me too long to buy on my mobile device
21%
Checking out via mobile devices is too difficult
20%
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INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
SMARTPHONE USAGE IN STORE
Look up product reviews
Read product details
Compare prices at other online or physical stores
Search for specific products and alternatives
Search for a different online retailer
Look for other locations for the same retailer
Place an order to be shipped to you
Check in-stock status at another location or on the retailer’s website
Contact friends/family to request feedback on a product
Scan a QR or barcode
Upload a picture of a product
Share an image of a product you would like a retailer to locate
30%
29%
29%
23%
23%
22%
22%
22%
21%
19%
18%
18%
MobileWhen shopping in store, consumers use their smartphones as a research
tool and confidence booster for making purchasing decisions.
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INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
SOCIAL MEDIA INFLUENCE
Social MediaSocial media has a growing influence on purchasing decisions,
and Facebook is the most influential channel.
I follow retailers on this site
YOUTUBE
This site influences my purchase decisions
23%
11%
8%
5%
7%
8%
7%8%
7%
5%
report social networking sites influence purchasing
decisions
25%
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
DAYS WILLING TO WAIT FOR PURCHASES
Free ShippingWhen paying for shipping, online shoppers expect to receive
their items faster than if the shipping was free.
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Paying for Shipping
Shoppers are willing to wait an average of 6 days for paid shipping and 8 days for
free shipping
When shipping is free, 85% of shoppers are willing to wait 5 days or more for their delivery, while 66% will wait that long when they have to pay for shipping
Free Shipping
3DAYS
2DAYS
1DAY
4DAYS
5DAYS
6DAYS
7DAYS
8-10DAYS
16%7%
28%
2%2%
21%
9%9% 6% 4%4%
21%
3%1%
29%20%
11+DAYS
6%12%
Alternate DeliveryCompared to last year, consumers are more open to having packages
delivered to locations other than their homes.
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
PREFERRED DELIVERY LOCATION 2014 VS. 2015 INTEREST IN SHIPPING TO ALTERNATE LOCATION WITH EXTENDED HOURS
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To my home/residence
Retailer’s store Another retail location such as a grocery store or convenience store
Friend or family member
Packagedelivery locker
Another authorized pickup location
My workplace
8% 4% 3%
2%
74%
5%4%
5%
7%
6% 4%
6% 5%
67%
52%
24%24%
YES
NONOTSURE
20152014
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
APPEALING DELIVERY SERVICE OPTIONS WHEN NOT HOME TO SIGN FOR A PACKAGE
Alternate DeliveryWhen not at home to sign for a package, consumers are becoming
more open to alternate delivery service options.
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If out of town, tell the carrier to hold the package until I will be
home to receive it
Instruct the carrier to leave package with a neighbor, at the backdoor, in the
garage, on the porch/patio, etc.
Ship to a carrier’s location(e.g., The UPS Store®) near my home
for pickup at my convenience
Ship to another location, such as my office or another address
of my choice
Ship to a local retail location authorized to hold packages for
pickup at my convenience
Leave package at a delivery locker near my home for pickup at my
convenience
51%
36%
50%
32%
36%
27%
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
PREFERRED METHOD OF RETURN VS. MOST OFTEN SELECTED
NEW PURCHASES MADE WHILE RETURNING ITEMS
ReturnsShoppers prefer to return items to a store even though more consumers
have shipped items back to retailers versus returning them to a store. Shoppers have made more new purchases when returning an item to
a store than they have when processing an online return.
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Ship an item back to the retailer
Return an item to store
Made new purchase in store
Made new purchase online
Returned an item using this format
Prefer to return items in this format
69%
70% 42%52%
61%
39%
41%SHIP
45%
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
Role of the StoreThe store continues to play a critical role in the online shopping experience.
Nearly half of consumers have selected ship-to-store for pickup and 45% of those have made additional purchases while in store.
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SHIP-TO-STORE HABITS
of those made additional purchases while in store
of these users expect to select this option more in the next year
48%have shipped
to store for pickup
INTRODUCTION STATE OF ONLINE CHANNEL MOBILE SOCIAL FREE ALTERNATE RETURNS ROLE OF WHAT’S NEXT SHOPPING SHIFTS MEDIA SHIPPING DELIVERY THE STORE IN RETAIL
What’s Next in RetailMobile and in-store technologies are changing the face of retail, and online shoppers
are embracing these new shopping conveniences and capabilities.
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WILLINGNESS TO USE NEW SHOPPING CAPABILITIES
Electronic receipts sent to you via email or text
The ablity to track your driver using GPS
Roaming checkout from an associate with a phone or tablet
Electronic shelf labels you can scan to learn more about the product, check
availability, or make a purchase
comScore, Inc. surveyed 5,118 online shoppers in January 2015. Respondents had to make at least 2 purchases in a typical 3-month period.
METHODOLOGY
A touch screen or voice-activated digital sign to receive information, make a purchase or arrange delivery
Curbside pickups and returns
Mobile checkout with your own phone or tablet while in store
The ability to purchase items for same day delivery
41% 27%
33%
33% 33%
29%
27%38%