eCommerce: The Crucible of Customer Engagement
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Transcript of eCommerce: The Crucible of Customer Engagement
eCOMMERCE:
THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014 OCTOBER 28 SAN DIEGO
DMA 28
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
cru·ci·ble
Pot in which substances are heated to
a very high temperature or melted
Difficult test or challenge
Situation that forces people to change
or make difficult decisions
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DATA
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
CREATIVITY
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
CUSTOMER
ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
WHY eCOMMERCE
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
eCOMMERCE IS HUGE
$ 1.5 T $0.9 T
B2C B2B > 30% Intent to Buy Online
Airline TicketsClothing & ShoesHotels & ToursEvent Tickets
BooksElectronic Equipment
Mobile PhonesCosmetics
Sporting GoodsComputer Hardware
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
IT’S GETTING MORE GLOBAL
$1.0 B
#1 for
Browsing
1.2B
PeoplePer day
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
EVERY MAJOR
PLATFORM IS ON BOARD
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
MOBILE & MILLENNIALS
DRIVE THE FUTURE
Mobile commerceGrowing 2X faster
Millennials +56% more likely to
shop online
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
THE PROBLEM WITH eCOMMERCE
•Silo’d into the IT organization
•Focused just on the transaction and only on
the PC-web channel
•Crashed on Thanksgiving and at Christmas
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
CONTINUOUS COMMERCE
THE ENLIGHTENED VIEW:
PHYSICAL STORE
DIGITAL STORE
1. OMNICHANNEL
One Transaction
Lifetime Value
2. RELATIONSHIP
ContinuousCommerce
3. EXPERIENCE
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
WHAT LEADERS ARE DOING
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
FORMER VP, MARKETING,AMERICAS
JOHN MCDONALD
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
TRAINING TO WORK FOR AN AIRLINE
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
THE SELLING CHALLENGE:
GROWING BEYOND LONDON
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
THE OPPORTUNITY:
NORTH AMERICA — INDIA
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
PUTTING THE CUSTOMER AT
THE HEART OF SELLING
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
FROM DATA TO CUSTOMER INSIGHT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
WHO, WHAT, WHERE, WHEN
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
RESULTS
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
£10+million
#01
xoxo
65%
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
60%completion
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
Visit Mum.
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
RYAN CRAVER
SVP OF CORPORATE STRATEGYHUDSON’S BAY COMPANY
@ryanmcraver
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
The “death” of retail has
been driven by headlines
and data showing:
Holiday season Brick &
Mortar traffic has declined
nearly 50% since 2010
Total Retail Foot Traffic
November – December1
0
10
20
30
40
Category 1
2010 2011 2012 2013
Bil
lio
n v
isit
s
RETAIL FOOT TRAFFIC
HAS DECLINED
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
Other
30%41% 15% 8% 7%
37% 11% 4%47% 2%
2010
2014
“EYE SHARE” HAS SHIFTED
DRAMATICALLY
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
MCOMMERCE IS DRIVING ECOMMERCE
US Retail eCommerce Sales1
$0
$175
$350
$525
$700
2012 2013 2014 2015 2016 2017 2018
Tota
l Sal
es (b
illio
ns)
mC
omm
erce as % of R
etail eCom
merce S
alesTraditional mCommerce
1 eMarketer, April 2014. Note: Includes products or services ordered using internet via mobile devices, regardless of the method of payment or fulfillment; excludes travel and event tickets; includes sales on tablets.
‣ eCommerce is expected to
grow 87% from 2013 to 2018
whilst mCommerce is
expected to grow 157%
‣By 2018, mCommerce will
account for 27% of overall US
eCommerce Sales
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
CONTENT IN THE DIGITAL UNIVERSE IS
EXPERIENCING TREMENDOUS GROWTH
‣ Two thirds of total digital
universe is consumed and
created by consumers via
video watching, social
media usage, image
sharing
1 IDC Digital Universe, data as of 5/14. Reference from @KPCB Internet Trends.Note: 1 petabyte = 1mm gigabytes, 1 zetabyte = 1 mm petabytes.
0
3.3
6.5
9.8
13.0
Digital Universe Content1
2005 2016
2013 (+50% Y/Y)
Ze
ta
byte
s o
f D
ata
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
0%
25%
50%
75%
100%
Discovery Trial Purchase Pickup Return
Apparel & Accessories
Computer & Electronics
Fine Jewelry
Health & Beauty & Furniture Furniture
Computer & Electronics
Furniture
Health & Beauty
Furniture
Health & Beauty
Highest In-Store Preference Average In-Store Preference Lowest In-Store Preference
CUSTOMER PREFERENCE FOR IN-STORE
VS. CLICK VARIES BY DEPARTMENT
1 A.T. Kearney Omnichannel Shopping Preferences Study, July 2014. n=2,504 respondents and r=8,518 journeys
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
NO CUSTOMER IS BINARY, 100% BRICK OR
TOUCH/CLICK
‣ Visits mall to shop on
weekends or after
work, browses in-store
‣ Reviews print media to
learn of sales, brands,
and collect coupons
‣ Slow transition to
digital shopping
‣ Visits mall or specific
store to shop, browses
online and in-store
‣ Reviews mix of media,
subscribes to favorite
brands and retailers
‣ Prefers to shop in-
store, when shopping
online keeps it familiar
‣ Visits store to try-on or
see product, browses
mostly online
‣ Uses social sites or
affiliates to browse and
learn of brands/sales
‣ Comfortable to buy
online, mobile next
‣ Visits store just to try-
on or see product,
prefers to shop online
‣ Uses any social site or
affiliate to collect
offers and try new
brands
‣ Seeks best price and
free shipping/returns
Leisure Researched Webroomer Showroomer
CLICK/TOUCHBRICK
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
EMERGING TRENDS
1
2
Social Media > Social Commerce
On-Demand/Instant Gratification Marketplaces
Location Marketing3
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
EMERGING TRENDS
1
2
Social Media > Social Commerce
On-Demand/Instant Gratification Marketplaces
Location Marketing3
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
Use
rs
Time
SOCIAL PLATFORMS CAN BE
GROUPED BY GROWTH RATE
MATURE
ACCELERATED
STEADY
DECLINE
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
Customer Service
Commerce
Pe
rso
na
l S
ha
rin
g
Ne
ws
SOCIAL PLATFORMS CAN BE GROUPED BY
CURRENT USE CASE
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
Customer Service
Commerce
Pe
rso
na
l S
ha
rin
g
Ne
ws
EVENTUALLY ALL PLATFORMS WILL
MONETIZE THROUGH COMMERCE
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
Customer Service
Commerce
Pe
rso
na
l S
ha
rin
g
Ne
ws
EVENTUALLY ALL PLATFORMS WILL
MONETIZE THROUGH COMMERCE
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
EMERGING TRENDS
1
2
Social Media > Social Commerce
On-Demand/Instant Gratification Marketplaces
Location Marketing3
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
QUERYING CUSTOMER SERVICE
‣ Contacting Retailer via Phone, Email or In-Store
‣ 24/7/364 Public Posting via Social Media Channel
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
PEOPLE MOVING
‣ Hailing a Cab ‣ On Demand Cab or Car (via Uber)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
FINDING A PLACE TO STAY
‣ Direct Hotel Booking via Travel Agent, Phone or Website
‣ Booking Short Term Rentals By Couch, Shared Room or Entire Home (via airBnB)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
EATING DINNER
‣ Wait for Check and Checkout at Mercy of Restaurant and Server
‣ Pay and Split Check Whenever Ready (via Cover & OpenTable)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
REQUESTING DELIVERY
‣ On-Demand Retailer Batch Selection with Pre-Selected Delivery Times
‣ Delivery via Parcel Companies in 1 – 5 Days
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
OUTSOURCING CHORES
‣ Packing and Shipping Boxes to Ship
‣ Snap a Photo and Have Courier Pack and Ship (via Shyp)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
PURCHASING LOCAL GOODS
‣ Access to Millions of “Local is Global” Products (via Etsy)
‣ Attending Craft Fairs
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
PERSONAL SHOPPING
‣ Pull Based In-Store Personal Shopping
‣ Initial Stylist Visit with Monthly Push Based Subscription of Product (via Trunk Club, Frank & Oak)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
PERSONAL STYLING
‣ In-Store Visit & Makeover ‣ On-Demand Stylist Visit atLocation of Choice for Beauty (via Glamsquad)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
MALL BROWSING
‣ Visiting Malls ‣ Hundreds of Brands at Fingertips with One Click Checkout (via Spring)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
ADVERTISING PRODUCT
‣ Smarter, Targeted Advertising using Push Notifications (via Beacons)
‣ “Dumb” Advertising
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
EMERGING TRENDS
1
2
Social Media > Social Commerce
On-Demand/Instant Gratification Marketplaces
Location Marketing3
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
MOBILE EMPOWERS
CUSTOMERS IN-STORE
Customers of all ages use smartphone in-store at least sometimes…1
1 Thrive Analytics & Local Search Association, January 2014. N=1,058
97% 91%
81% 69%
Gen X (30-43) Gen Y (18-29)
Older Boomers
& Seniors (54+)
Young Boomers
(44-53)
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
USING MOBILE LOCATION DRIVES
MORE PURPOSED FEET
Banner Ads Category Search Location Push
Conversion rate in low single
percentage
Conversion rate in mid single
percentage
Conversion rate in high single/low
double percentage
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
BEACONS DRIVE 2-3X HIGH
ENGAGEMENT
‣Beacon deployment through 5 major apps
with very distinct audiences in 10 stores
‣ Initial pilot drove 2-3x open and conversion
rates of typical banner campaigns
‣Additional beacon use cases (social,
checkout, etc.) are continually being
evaluated
DMA 2014E-COMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
THE NEW RETAIL
‣ eCommerce continues to evolve and drive sales comps for most retailers.
‣ Each customer bridges offline and online retail in a different way yet customer service expectations remain incredibly high.
‣ Location based marketing is in the early stages with initial tests providing high engagement rates.
DMA 2014eCOMMERCE: THE CRUCIBLE OF CUSTOMER ENGAGEMENT
FIVE BIG TAKEAWAYS ON eCOMMERCE
1. It is an unstoppable global force
2. Put it at the center, not on the side
3. Think Continuous Commerce, not just the transaction
4. Mobile shows the way
5. Bet at least one chapter of your career on eCommerce