eMarketer Webinar: How Marketers Are Meeting the Challenges of Always-On Shopping
description
Transcript of eMarketer Webinar: How Marketers Are Meeting the Challenges of Always-On Shopping
©2014 eMarketer Inc.
January 23, 2014
How Marketers Are
Meeting the Challenges
of Always-On Shopping
Sponsored by
Presented by:
Noah Elkin &
Yoram Wurmser
eMarketer, Inc.
©2014 eMarketer Inc.
Agenda
Reaching consumers across blurring lines
The state of always-on shopping
Marketing to the “always shopping” consumer
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Marketing Across
Blurring Lines
©2014 eMarketer Inc.
We’ve
reached a
new
inflection
point ….
5 hours 16 minutes
43.6% of daily media time
4 hours 31 minutes
37.4% of daily media time
Digital’s
advance is
helping blur
the lines
between
everywhere
and nowhere
Source: eMarketer, July 2013
©2014 eMarketer Inc.
… and it’s driven by mobile
2 hours 21 minutes
19.4% of daily
media time
2 hours 19 minutes
19.2% of daily
media time
Source: eMarketer, July 2013
©2014 eMarketer Inc.
In a digital landscape defined by an
ever-expanding number of screens …
Smartphones
Phablet Phablets Social Machines Social Machines
Wearable Technology
Wearable Technology
Connected Consoles
Connected Consoles Ambient
Surfaces
Ambient SurfacesConnected Cars
Connected Cars
©2014 eMarketer Inc.
… mobile
devices
have moved
to the
center
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
One result: As marketers and retailers, we
must operate in a world of blurring lines
©2014 eMarketer Inc.
What Are the 5 Primary
Implications of Blurring
Lines?
©2014 eMarketer Inc.
1. The notion of the consumer is shifting
©2014 eMarketer Inc.
1. The notion of the consumer is shifting
©2014 eMarketer Inc.
2. “Mobile” isn’t necessarily on-the-go
©2014 eMarketer Inc.
3. Online is a persistent state
It’s no longer a distinct condition
characterized by sitting in front of a PC
©2014 eMarketer Inc.
4. Today’s path to purchase is a lot less
linear …
… and a lot more like an infinite loop
©2014 eMarketer Inc.
5. “Everywhere commerce” adds up: 2014
global B2C ecommerce will top $1.4 trillion
The US represents the single largest
ecommerce market, with nearly
one-third of global sales in 2014
©2014 eMarketer Inc.
The State of Always-On
Shopping
©2014 eMarketer Inc.
Keep in mind: We’re still scratching the
surface of the ecommerce opportunity
©2014 eMarketer Inc.
Smartphones play a key role in driving
always-on commerce …
Smartphones serve as the fulcrum
between digital and physical retail
©2014 eMarketer Inc.
… even if tablets generate far higher
on-device sales
Tablets will
account for
two-thirds of
US retail
mcommerce
sales in 2014
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
The reality of
multi-device
shopping:
Consumers
are always in
consideration
mode
©2014 eMarketer Inc.
Even if consumers aren’t consciously
shopping, they are still shopping
“Smartphone use is more or less
continuous. [It] doesn’t say anything
about whether the use has anything to
do with shopping, but it does mean that
[it has] a large part of the consumer’s
mind share during that shopping
mission. The shopping trip starts earlier
and ends later than it used to.”
—Nick Hodson, partner at Booz & Co.
©2014 eMarketer Inc.
In other words …
… shopping is about state of mind as much as
intent and physical location
©2014 eMarketer Inc.
Marketing to the
“Always Shopping”
Consumer
©2014 eMarketer Inc.
Research starts anywhere
“Webrooming”
is a
mainstream
activity, often
used to
narrow down
purchase
options before
visiting a
physical store
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Marketers can help their own cause by
facilitating the research process
Tools such
as a wish list
can help
retain
shoppers as
they move
from one
screen to
another
©2014 eMarketer Inc.
Part of being in consideration mode
means staying attuned to ads and offers
©2014 eMarketer Inc.
The always-
on shopper
is also the
anywhere
shopper
Location
targeting is a
key mobile
marketing
opportunity
©2014 eMarketer Inc.
Rain = bad hair = opportunity for Pantene
©2014 eMarketer Inc.
More relevant information makes for more
effective location-based ads
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Keep in mind: Purchase decisions are
often made before entering the store
Location-
based ads
may lose
effectiveness
once a
customer is
in a
brick-and-
mortar
setting
©2014 eMarketer Inc.
Research continues in-store: Is this a
threat or opportunity for retailers?
40% of US adults showroom, but only a
small percentage actually buy from an online
competitor while in-store
©2014 eMarketer Inc.
Some retailers
have tried to
embrace
showrooming
Best Buy has
made efforts to
use it as an
opportunity to
attract eyeballs
and dollars in
its stores
©2014 eMarketer Inc.
Think of mobile as a potentially valuable
tool for keeping purchases in-store
“Mobile is kind of this seamless glue.
The purchase process and
consideration have become more
meandering, and we’re using mobile as
the thing that jumps into those places.
The big thing is not to think of mobile
as just shopping on the go. Mobile is a
tool for in-store.”
—Johnna Marcus, director of mobile and digital
store marketing
Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
Some
improvements
are as simple
as integrating
coupons and
loyalty
programs
Sephora’s app
lets customers
ditch plastic
loyalty cards
and have a more
personalized
experience
©2014 eMarketer Inc.
Retailers are
taking steps
to improve on
the in-store
experience
Lowe’s is
thinking about
how its
customers shop
and where to
address their
pain points
©2014 eMarketer Inc.
Others aim for deeper integrations of the
mobile, social and in-store experience
Example: Cartwheel by Target
©2014 eMarketer Inc.
Apple’s iBeacon technology gives retailers
multiple in-store engagement options
These include everything from micro-location
marketing to scan-and-click checkout
Image courtesy of AppleInsider Twitter Hashtag – #eMwebinar
©2014 eMarketer Inc.
… and can let
consumers
check out
anywhere
Walmart is
rolling out an
app feature that
lets shoppers
scan items for
purchase as
they browse the
store
©2014 eMarketer Inc.
Even at checkout, consumers still want
choices on fulfillment
Toys R Us lets online buyers pick up in-store —
but the opportunities are wider
©2014 eMarketer Inc.
Takeaways
2014 will be the year retailers reckon fully with
a world of “always engaged” consumers.
Consumers’ research about product decisions
now extends along a seamless continuum from
home to work to store.
– This means tailoring messages to reach users who may
raise their hand at any point in the purchase process.
The key to connecting with always-on
shoppers lies in offering multiple options, from
purchase to pickup to payment.
– Retailers should focus on customer pain points and
how smartphones can address them, especially
in-store.
Market trends
Source: Cross Section of Digital River client traffic representing a variety of products and services 2014 figures are projections
COMMERCE TRAFFIC AGGRESSIVELY CHANGING LANES
2012 Actual
2014 Projected
EVOLUTION OF CONSUMPTION
ADAPTIVE BUSINESS MODELS
TRANSFORMATIVE EXPERIENCES
COMMERCE-AS-A-SERVICE
Marketing Services
SITE OPTIMIZATION
SITE SEARCH EMAIL AFFILIATE DISPLAY ANALYTICS
Commerce Experience
Commerce Business
Infrastructure
Payments
SHOPPING CART CATALOG WCMS
SEARCHAN-DIZING
MERCHANDISING& PROMO
LOCALI- ZATION
RECOMMENDATION & PERSONALIZATION A/B TESTING PRICING
ADMIN TOOLS
COMPLIANCE ORDER
MANAGEMENT FRAUD
LOCAL ENTITIES
MOR/ SOR
INTEGRATION SERVICES
BUSINESS INTELLIGENCE TAX
CLOUD ENABLEMENT
CUSTOMER SERVICE
SINGLE CONNECTION TO PAYMENTS GRID
PSP SERVICES
GATEWAY SERVICES
IN-COUNTRY MERCHANT
FULL-SERVICE ACQUIRING
COMMERCE-AS-A-SERVICE TOOLKIT FOR TODAY TO FUTURE PROOF COMMERCE FOR TOMORROW
ENTER SPOTIFY
From a Swedish startup to a disruptive force in entertainment worldwide, Spotify has relied on Digital River since 2007 to process 100% of transactions and expand subscriptions to 50 countries across the globe and counting…
FREEMIUM/ PREMIUM
IN APP/ MOBILE
SUBSCRIPTIONS/ REOCCURING BILLING
LOCAL/ GLOBAL
EMBRACING DISRUPTIVE BUSINESS MODELS
JOIN US… @DIGITALRIVERINC WWW.DIGITALRIVER.COM/OUR-EXPERTISE/EVENTS/
©2014 eMarketer Inc.
You will receive an email tomorrow with a link to
view the deck and webinar recording.
Noah Elkin
Q&A Session
How Marketers Are
Meeting the Challenge
of Always-On Shopping
Around 200 eMarketer reports are published
each year. Here are some recent ones you
may be interested in:
Key Digital Trends for 2014
Digital Ad Spending by Industry: Forecasts and Key
Trends
Cross-Platform Attribution: A Status Report on
Overcoming Select Attribution Challenges
The State of Omnichannel Retail: Retailers Playing
Catch-Up with Consumers
Tablets and Apparel: Fashioning a Role in Mobile
Commerce
The Luxury Consumer: Shoppers Lead Brands to
Digital Channels
Learn more about digital
marketing with an eMarketer
corporate subscription
To learn more: www.emarketer.com/corporate
800-405-0844 or [email protected]
Sponsored by
Yoram Wurmser