Post on 22-Dec-2015
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The ROI of Christmas PresentCapturing your fair share of consumer holiday spending
during these challenging times
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METHODOLOGY & DEMOGRAPHICS
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Online questionnaire completed September-October 2009by 1,020 adults (49% male / 51% female) who have shopped
online four times or more in the last year, spending $500+
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Demographics
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Under $25,000
$25,000-$35,000
$35,001-$50,000
$50,001-$75,000
$75,001-$100,000
More than $100,000
Prefer not to respond
4%
6%
12%
23%
21%
30%
4%
Which of the following best represents your combined annual household income before
taxes?
High school graduate
Some college, but no degree
College graduate
Some graduate school
Post-graduate degree
8%
21%
37%
8%
26%
What is the highest level of education thatyou have completed to date?
None
1
2
3
4 or more
66%
13%
14%
4%
3%
How many children 18 years of age or younger do you have living at home with you?
25-34
35-44
45-54
55-64
65+
16%
24%
24%
20%
16%
What is your age?
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Topline Findings
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• Cautious shoppers project behavior consistent with last year; spending is flat
• Purchasing gifts online is part of the customer consciousness where the web will garner more holiday buying than other channels as well as increased share-of- wallet
• Securing hard to find product, convenience, and customer service can trigger full price purchasing
• Free shipping and free returns are top influencers in terms of merchant selection
• Profitably maintaining in-stock status will be integral to success and averting abandonment to competitors
• One stop gift centers and wishlists support consumers’ desire for convenience
• Email is desired on a weekly basis with favored offers including free shipping, sales, and coupons
• Mobile and social usage show promising signs of influencing shoppers this holiday season
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Despite economic uncertainty the good news is that overall holiday spending should equal last year
6
Q6
Spending significantly more Spending somewhat more Spending about the same Spending somewhat less Spending significantly less
2%4%
46%
33%
15%
1%3%
44%
36%
16%
How do you see the current economic climate impacting your overall holiday spending; will you be spending more, less or about the same amount than last year on holiday gifts?
2009 2008
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48% intend to purchase between 6-15 gifts,on par with last year (47%)
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1-5 6-10 11-15 16-20 More than 21
18%
27%
21%
16%18%18%
26%
21%
17%18%
14%16%
17%
13%
40%
How many gifts do you intend to purchaseover the holiday season? (Select one)
2009 2008 2007Q4
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Holiday budgets see little change with 43%planning to spend $301-$800 on
family and friends, as they did last year
8
Q5
Under $100 $100-$300 $301-$500 $501-$800 $801-$1,000 $1,001-$2,500 $2,501 or more
5%
13%
23%
20%
16% 17%
6%5%
11%
22% 21%
18% 18%
5%
12%
21%23%
18%
12% 11%
3%
In which range does your total holiday budget for friends and family fall?
2009 2008 2007
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88% of shoppers are willing to pay full pricefor the right products and good service
9
Q7
Hard to find product that a friend or family member has requested
Run out of time and just have to get people taken care of on my shopping list
Excellent customer experience coupled with the right products
Hot product that is likely in limited supply
Will not pay full price
57%
28%
28%
26%
12%
What will it take for you to pay full price for gifts this holiday season? Check all that apply.
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71% expect to complete most of their holiday shopping in November through early December
14
Q8
October or earlier
November before Thanksgiving (11/26)
The week after Thanksgiving
Early December (12/1-12/15)
Mid December
Weekend before Christmas
A few days before Christmas
Christmas Eve (12/24)
7%
23%
14%
34%
15%
3%
3%
1%
When do you expect to completemost of your holiday purchases?
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55% of surveyed shoppers plan to do theirholiday shopping online this year, up from 49% LY
17
Q12
On the Internet In stores Via catalogs Via TV or Other
55%
37%
7%
1%
49%
44%
6%
1%
22%
70%
5%3%
What percent of your overall holiday gift buying will you do in each of the following ways? If you will not be shopping in any one of these channels, please enter 0. (Must total 100%)
2009 2008 2007
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The online channel also continues to gainshare-of-wallet as 26% vs. 21% last year
plan to purchase more gifts via the Internet
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Q11
Significantly more Somewhat more About the same Somewhat less Significantly less
8%
18%
66%
5% 3%4%
17%
70%
5% 4%3%
14%
74%
4% 5%
Do you plan to purchase more gifts online this yearthan you purchased online last year?
2009 2008 2007
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Books, clothing, music, gift certificates, toys, andconsumer electronics are the top product categories
shoppers are likely to purchase online
19
Q15
Books/Magazines
Clothing and accessories (men’s, women’s, kid’s)
Music/DVD/Videos
Gift Card/Certificates
Toys, Video games
Consumer electronics
Food
Computer hardware and software
Crafts/Hobbies
Gifts and collectable/Flowers
Jewelry/watches
Health and beauty items
Tickets (movies, concerts, theatre)
Sporting goods
Pet supplies
Furniture, home and garden
Don't know/unsure
Luxury Items
55%
52%
46%
41%
37%
37%
27%
23%
21%
18%
18%
17%
17%
15%
12%
10%
10%
6%
58%
53%
49%
46%
44%
36%
29%
26%
23%
21%
18%
18%
18%
14%
13%
10%
10%
0%
In which categories will you likely purchase gifts online?Select all that apply.
20082009
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Gift cards/certificates continue to be a good solution for 78%of shoppers vs. 76% LY; accounting for a varied percent
of online holiday purchases
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Q16
None 1%-10% 11%-25% 26%-50% 51%-75% 76%-99% All
22%
30%
26%
14%
5%
2%1%
24%
29%
26%
16%
4%
1%0%
What percent of your online holiday purchases will be spent on gift cards/certificates? (select one)
2009 2008
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The primary reasons for shopping online are stillconvenience and savings, but shoppers are also ratingtools like wish lists and reviews increasingly important
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Q17
Saving time
Locating hard to find products
Avoid the crowds at the mall
Saving money
Greater selection
Shipping ease
Save on gas by not driving to the store
Finding more personalized gifts
Ability to purchase from recipients pre-established wish list
Online peer recommendations or reviews
85%
82%
82%
78%
77%
76%
60%
50%
40%
38%
88%
84%
83%
80%
83%
81%
74%
50%
37%
32%
Rate the reasons you buy gifts online from 1-5 with "5" being the most important reason and "1" the least important. (TOP 2 - VERY TO SOMEWHAT IMPORTANT)
20082009
Think Holistically with Promotional OffersOptimize tactics from outlets to GWPS and contests
and integrate into the overall experience
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While high shipping charges remain the #1 reasonshoppers will not buy more online,
the store experience and in-stock status gain ground
28
Q13
Shipping charges are too high
Being in the stores is part of the holiday season and puts me in the spirit
I find it easier to research and compare products in physical stores than online and employees are available if I need assistance
I am not sure what I want to buy and browsing online is too difficult
I buy last minute so the web is not ideal for my shopping behavior
The products I want are typically not in-stock online
The sites do not give enough product information to make me feel comfortable buying online
Shopping in a store provides social opportunities (i.e. the ability to ask others around me for their opinion, etc.)
I prefer to pay cash
I don’t like giving my credit card information to retailers/brands online
I find it easier and more convenient to shop in a store during the holidays
62%
20%
16%
14%
13%
13%
10%
10%
8%
7%
7%
78%
16%
10%
12%
14%
7%
12%
6%
10%
10%
5%
Why don't you to plan to buy more online this holiday season?Check all that apply.
2008
2009
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Some shoppers remain loyal but most will be lost tocompetitors’ websites or retail stores when they encounter
out of stock products this holiday season
29
Q22
Go to a competitor's website for the same/similar product
Check back later to see if it's in stock
Sign up for an alert to be notified when the product is back in stock
Buy an alternative/substitute product on that site
Go to the merchant's retail location to see if they have it there
Go to a competitor's retail location to find the product
70%
49%
41%
37%
37%
30%
When you do encounter products out of stock this holiday season, what will typically be your course of action? Check all that apply.
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merchandising > inventory/backorders Feature: sign up for back-in stock e-mails
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Researching gifts online continues to be animportant activity for 3 out of 4 shoppers
31
Q9
Yes No Don't know/Unsure
73%
7%
20%
72%
6%
22%
Do you plan to research any products online prior to purchasing them as gifts?
2009 2008
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60% of shoppers are either undecided or plan topick up holiday gifts purchased online in-store,
as this is often a last minute convenience
32
Q14
Yes No Don't know/Unsure
18%
40%42%
16%
38%
46%
9%
44%47%
Do you intend to make any purchases onlinefor pickup in-store?
2009 2008 2007
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Flexibility Extends Customer AppealVisual prompting and usability impact performance
Multiple ship to Shop and hold
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Influencers center on promotions per this summary of “top 2” feature ratings for importance when
buying gifts online
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Q19-21
TOP 2 - VERY TO SOMEWHAT IMPORTANT 2009 2008 2007 TOOL SET
Free Shipping w ith Purchase 91% 95% 87% Promotional
Free Returns 81% 82% NA Promotional
Sales and Specials 79% 83% 76% Promotional
Coupons and/or Rebates available for $ or % off 72% 74% 76% Promotional
Accessible contact information (phone, email) 70% 81% 76% Customer Service
% off Products or Categories 70% 72% NA Promotional
Perpetual Shopping Cart 66% 72% 69% Customer Service
800 or toll-free telephone # 65% 75% 77% Customer Service
Deals that are available for a limited time only 63% 62% 57% Promotional
Free Gift w ith Purchase offer 57% 58% 62% Promotional
Buy More, Save More 52% 48% na Promotional
Gift Center 49% 30% 31% Gifting
Wish List 48% 35% 31% Gifting
Gift Certificate/Gift Card availability 46% 55% 47% Gifting
Click to Chat (live text chat help available) 45% 48% NA Customer Service
Click to Call (live phone help available) 41% 44% NA Customer Service
Gift Suggestions for when I don’t know what to buy 37% 35% 30% Gifting
Gift Wrap/Box services 36% 29% 20% Gifting
Ability to Store Addresses of friends and family to access when sending gifts
34% 34% 27% Gifting
Multiple Ship-to Addresses can be sent in a single checkout 31% 53% 41% Gifting
Ability to Hold Gifts to ship later 27% 37% 30% Gifting
Option to include a Gift Message in the shopping cart 26% 55% 39% Gifting
Features rated 1-5 as the most important or influential when buying gifts online. (1 = most and 5 = least)
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Free shipping (91%) and free returns (81%) are thepromotional features with the highest “top 2” ratings
for their influence in making a purchase
35
Q21
Free Shipping with Purchase
Free Returns
Sales and Specials
Coupons and/or Rebates available for $ or % off
% off Products or Categories
Deals that are available for a limited time only
Free Gift with Purchase offer
Buy More, Save More
91%
81%
79%
72%
70%
63%
57%
52%
95%
82%
83%
74%
72%
62%
58%
48%
Now, thinking about a website's promotional features, rate each feature from 1-5 with "5" being the most influential in making a purchase and "1" the least influential when buying gifts online.
TOP 2 - VERY TO SOMEWHAT IMPORTANT
2008 2009
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Among gifting tools, gift centers (49% vs. 30%) andwish lists (48% vs. 35%) see the greatest “top 2” rating increase
for their importance when buying gifts online
38
Q19
Gift Center that aggregates all of a site’s gift offering and service
Wish List to find out what others say they want
Gift Certificate/Gift Card availability
Gift Suggestions for when I don’t know what to buy
Gift Wrap/Box services
Ability to Store Addresses of friends and family to access when sending gifts
Multiple Ship-to Addresses can be sent in a single checkout
Ability to Hold Gifts to ship later
Option to include a Gift Message in the shopping cart
49%
48%
46%
37%
36%
34%
31%
27%
26%
30%
35%
55%
35%
29%
34%
53%
37%
55%
Thinking about a website's gifting tools, rate each feature from 1-5 with "5" being the most im-portant and "1" the least important when buying gifts online (TOP 2 – VERY TO SOMEWHAT IM-
PORTANT).
2008 2009
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30% have shopped online using someone’swish list 4 or more times vs. 24% LY
40
Q18
Never Once Twice Three times Four or more times
34%
10%
17%
9%
30%
39%
9%
18%
10%
24%
44%
13%
18%
9%
16%
How many times have you shopped online from someone else's wish list? (select one)
2009 2008 2007
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Facilitate Consumer Participationmore consumers conveniently shop online
from someone else’s wish list 3 or more times: 34% ty vs. 25% ly
Source: EG Mindset of a Multi-channel Customer Survey, 2008
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Customer assistance “top 2 ratings” for importance whenbuying gifts online find that accessible contact information
(ideally toll free) and access to one’s cart at all timessmooth shopping experiences
42
Q20
Accessible contact information (phone, email)
Perpetual Shopping Cart (ability to add an item to your cart or view cart contents without leaving the page that you are on)
800 or toll-free telephone #
Click to Chat (live text chat help available)
Click to Call (live phone help available)
70%
66%
65%
45%
41%
81%
72%
75%
48%
44%
Thinking about a website's customer assistance, rate each feature from 1-5 with "5" being the most important and "1" the least important when buying gifts online.
(TOP 2 – VERY TO SOMEWHAT IMPORTANT)
2008 2009
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Keep Customers Informed Along the Way 89% of EG100 merchants include holiday shipping deadlines onsite
Source: the e-tailing group 12th Annual Mystery Shopping Study, 4Q 2008
44
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43% of shoppers who have opted in prefer toreceive emails on a weekly basis
46
Q23 Daily 2-6 times per week Weekly Twice a month Monthly Quarterly Seasonally
9%11%
43%
19%
11%
2%
5%
What is the ideal frequency you would like to receive email from retailers with whom you have opted in?
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Free shipping (91%) and sales/markdowns (89%) are thetypes of email content that shoppers will be most likely
to respond to from their favorite retailers
47
Q24
Free shipping offers
Sales and markdowns
Coupons
Members-only or loyalty/rewards program offers
Gift-with-purchase
In-store promotions
New or hot products
Friends and family promotions
91%
89%
69%
53%
52%
44%
39%
34%
Please rank the types of email content that you would be most likely to respond to from your favorite retailers this holiday season where "8" is most desirable and "1" is least desirable. Check
all that apply. (TOP 3 RANKING)
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1 in 3 shoppers plans to use a mobile phone for shoppingrelated purposes this holiday season, primarily to look up
merchant (18%) or competitive (18%) pricing
49
Q25
I don't look at mobile messaging
Look up competitive prices
Look up online price
Evaluate shipping costs
Access retailer information (locations, hours, etc.)
Get a merchant’s current coupons
Look up peer recommendations/reviews
67%
18%
18%
12%
11%
9%
7%
While shopping in stores, how likely would you be to use yourmobile phone this holiday season to do any of the following?
Check all that apply.
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Extend AccessibilityTest tools to better meet the needs of today’s mobile consumer
50
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This holiday season social networking sites willinfluence shopping behavior for 37% of online shoppers vs.
24% LY, but less than 1 in 5 will make a purchase as a result
51
Q26
I never consider these sites when it comes to shopping
I will spend significant time on these sites but rarely or never make a purchase as a result
I will spend limited time on these sites and sometimes make a purchase as a result
I will spend limited time on these sites but rarely or never make a purchase as a result
I will spend significant time on these sites and sometimes make a purchase as a result
63%
11%
9%
9%
8%
76%
5%
6%
9%
4%
From a purchasing perspective this holiday season, which of the following best describes the likeli -hood of social networking sites (i.e. Facebook, Twitter, You Tube) to influence your shopping behav -
ior?
2008 2009
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More of the same is foreseen post-holiday too with 50%likely to spend the same as last year; although 20% vs. 15% LY
do plan to spend more, taking advantage of the sales
53
Q27
I expect to spend significantly more taking advantage of all of the sales
I expect to spend somewhat more taking advantage of some of the sales
I will likely spend the same as last year
I will be spending somewhat less as my overall spending for the year will be cutback
I will be spending significantly less as my overall spending for the year will be down
7%
13%
50%
14%
16%
4%
11%
49%
21%
15%
Which of one the following best describes your likely post-holiday and New Year’s shopping behavior?
2008 2009
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39% plan to redeem holiday gift cards throughout the year vs. 55% LY; due to economic uncertainties many more are unsureor do not expect to receive gift cards this year (23% vs. 4% LY)
55
Q28
Immediately
December during the holiday season or between Christmas and New Year’s Eve
Early January
Throughout the year
Unsure or do not expect to receive any gift cards over the holidays
10%
10%
18%
39%
23%
10%
10%
21%
55%
4%
When do you intend to spend the gift cardsyou receive over the holidays?
2008 2009
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EG Checklist for Pre/Post Holiday Shopping1. Review your current 4Q plan in light of early season indicators and revisit
to ensure performance remains on track to achieve plan
2. Reinforce time and money-savings as part of all holiday messaging
3. Ensure that you tout hard to find products, broad selections and unique gift ideas that are sure to inspire shoppers
4. Modify strategies ensuring that gifting receives extensive visibility in onsite locations as well as post-order communication
5. Monitor email performance and have handy a series of backup promotions that can be utilized should results not be forthcoming
6. Set your free or conditional shipping strategy but follow competitive landscape and industry and adjust to achieve desired results
7. Ensure that exemplary customer service is in place to best support your brand value proposition
8. Be ready to deploy post Christmas promotions to take advantage of gift cards received and sale shopper desires