Navigating the New Digital Divide Capitalizing on Digital Influence in Retail

October 25, 2015

Introductions

Tracie Kambies Deloitte Retail Technology Lead

Deloitte Consulting LLP

Tzarni Mangosong Deloitte Oracle Retail Practice Lead

Deloitte Consulting LLP

Digital Divide

What is Digital Influence?

Shopping Journey

Find inspiration

Browse & research

Select & validate

Purchase & pay

Return & service

Digital is more than just eCommerce

$1.70T 49% of In-store sales

$0.97T 28% of In-store sales

$0.30T 5x

Digitally-Influenced Sales

Mobile-Influenced

eCom

Digital and Mobile Influence are growing fast

Digital influence is 49% of in-store retail sales compared to just 14% three years ago

Mobile influence is 28% of in-store retail sales compared to just 5% three years ago

Shopper data for customers overall

Higher Spend Those that use digital during shopping trips spend more

1/3 of shoppers

surveyed

Increased Ease of Experience Digital makes shopping easier in stores

45% of shoppers

surveyed

20% higher rate

Higher Conversion People who use digital while shopping in-store convert at a higher rate

Digital influence will reach 64% in 2015

Higher Spend (~1.6x) Millennial consumers spent more due to their use of digital

Greater Impact of Social Media (~2.5x) Almost half of Millennial consumers accessed social media during their shopping trips

More BOPUS (~1.6x) Millennial shoppers are more likely to purchase their items online prior to picking up in-store

Millennial Non-Millennial

19% 12%

37% 23%

47% 19%

Digital influence will reach 64% in 2015

Consumers’ digital behavior and expectations are evolving faster than retailers are able to deliver, a gap we refer to as the ‘new digital divide.’

Key findings

Measuring channel sales misses larger trend Shopping Journey

Find inspiration

Browse & research

Select & validate

Purchase & pay

Return & service

Only 30% of all consumers get

their initial inspiration from a retailer or brand’s

advertisement

67% of all shoppers browse retailer sites prior

to shopping in stores

67% of all consumers read product reviews

during their shopping journey

13% of consumers used the “buy

online, pick-up in-store’ method to

purchase and pay for their items

67% of all consumers read product reviews

during their shopping journey

Consumers use digital differently by category

Influence on journey changes by category

In-store shopping has digital at its core Consumer Impact

Nearly 80% – interact with brands or products through digital before arriving at the store

34% of shoppers are using digital while in the store

Associate Impact

Shoppers were 29% more likely to make a purchase the same day when they used social

Nearly 50% of consumers who received sales assistance on their last store trip would prefer to perform the same action on their own device

39% of shoppers who experienced personalization1 spent more

Key takeaways Operating the physical and digital businesses separate is inhibiting focus

The digitally-enabled customer experience requires reinvention

There should be no such thing as a digital strategy

Own the core categories

Understand the transformed role of marketing

Develop valuable ecosystems

Thank you. Tracie Kambies Deloitte Retail Technology Lead tkambies@deloitte.com

Tzarni Mangosong Deloitte Oracle Retail Practice Lead tmangosong@deloitte.com