Holiday recap and 2015 outlook webinar

Holiday Recap and 2015 Outlook

.

February 4, 2015

©2014 IBM Corporation

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Today’s presenters

Sucharita MulpuruPrincipal Analyst

Forrester@smulpuru

Leah PaschallIBM Digital Analytics Benchmark

IBM ExperienceOne@leahpaschall


Agenda

› 2014 Recap

› Key US dates and trends› Mega sale days around the world

› Insights for 2015

3 ©2014 IBM Corporation

Thousands of participants

Aggregate index– Compare against industry– Compare against peers

Geographic coverage– US, UK, France, Germany, Europe,

Australia, World Wide

Industry specific– Retail– Content– Financial Services– Travel

Segment specific– Apparel– Department Stores– Health and Beauty– And 12 others. . .

Compare performance against industry peers withIBM Digital Analytics Benchmark

©2014 IBM Corporation4

www.ibm.com/benchmark New! Real-time interactive

application:– IBM ExperienceOne Benchmark Live

Benchmark Reporting– Reports pulled on key dates and within key date

ranges for intra-day, DtD, WtW and YtY comparisons

– Key Messages, Graphs and Tables included in outputs including Press Alerts, Releases and Reports

US Retail & Retail sub-verticals– Black Friday, Cyber Monday and Recap reports

UK Retail– Recap report with UK Black Friday and UK Cyber

Monday highlights

Other Geography Reporting– AU Nov 19-20 Click Frenzy– 2014 Holiday Mobile report featuring US, UK,

Germany, France and AU – coming soon!

Wide range of free holiday benchmark resources available


© 2015 Forrester Research, Inc. Reproduction Prohibited 6

Cyber Monday was a blockbuster…again

“Cyber Monday, today, will be my biggest online shopping period of the year”

Source: Forrester/Bizrate Insights (Connexity) Holiday Flash Study 2010, 2014

Online Sales over the Holiday Weekend

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14.3% YoY increase in online retail sales on Thanksgiving with 32.3% mobile sales

9.5% YoY increase in online retail sales on Black Friday with 27.9% mobile sales

8.5% YoY increase in online retail sales On Cyber Monday with 22% mobile sales

Cyber Monday continues

to outpace Thanksgiving and

Black Friday in online retail

sales, however, Thanksgiving

had the highest mobile

percentage of sales and traffic.©2014 IBM Corporation


Though it’s still no Singles DayEstimated total gross merchandise value

generated online 2014 ($B)

Source: Forrester estimates


Consumers have responded to different promotions over time

Source: Forrester/Bizrate Insights (Connexity) Holiday Flash Study 2010-2014

Cyber Monday 2010

Cyber Monday 2014

Cyber Monday 2010

Cyber Monday 2014

Cyber Monday 2010

Cyber Monday 2014


Mobile is enormous on key dates

Online buyers who used mobile devices to shop

Source: Forrester/Bizrate Insights (Connexity) Holiday Flash Study 2014

Mobile Percentage of Traffic and Sales

• On Thanksgiving, mobile traffic exceeded half of all online traffic at 52.1%, an increase of 22.4% YoY; 1 in 3 purchases were made from a mobile device.

• Cyber Monday continued to see the highest mobile growth YoY with increases of 30.1.% and 27.6% for percentage traffic and sales, respectively.

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0%

10%

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30%

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Thanksgiving Black Friday Cyber Monday

Mobile Performance 2014

Mobile % of Sales Mobile % of Site Traffic

U.S. Retail, Mobile % of Traffic and SalesIBM Digital Analytics Benchmark

©2014 IBM Corporationwww.ibm.com/benchmark

Device Performance

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Mobile continues to grow in double digits, however, desktop is still predominant in key eCommerce metrics.

$99.31

5.86

40.63%

1.17%

9.13%

31.15%

$112.73

7.54

33.64%

3.53%

13.43%

13.40%

$125.12

7.74

32.00%

4.48%

77.33%

54.80%

Average Order Value

Average Page Views

Bounce Rate

Conversion Rate

% of Sales

% of Traffic

November and December 2014U.S. Retail, Performance by Device/Platform

Smartphone Tablet Desktop

IBM Digital Analytics Benchmark


Mobile traffic eclipsed desktop on Thanksgiving

• Mobile traffic exceeded that of desktop for the first time on Thanksgiving and continued to do so on subsequent weekends and during Christmas week.

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0%

10%

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60%

70%

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100%

11/1/2014 11/8/2014 11/15/2014 11/22/2014 11/29/2014 12/6/2014 12/13/2014 12/20/2014 12/27/2014Day

U.S. Retail Daily Traffic and Sales: Desktop and Mobile

Desktop % of Sales Desktop % of Traffic Mobile % of Sales Mobile % of Traffic

November 1st to December 31st 2014 IBM Digital Analytics Benchmark

Mobile traffic % exceeded desktop traffic % for the

first time on Thanksgiving


Sales from smartphones encroaching on tablets

• The margin narrowed significantly throughout the holiday season as percentage sales from smartphones was only slightly lower than that of tablets by Christmas week.

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0%

5%

10%

15%

20%

25%

30%

11/1/2014 11/8/2014 11/15/2014 11/22/2014 11/29/2014 12/6/2014 12/13/2014 12/20/2014 12/27/2014Day

U.S. Retail Daily Sales: Smartphones and Tablets

Smartphones Tablets

November 1st to December 31st 2014 IBM Digital Analytics Benchmark


Mobile os: Android vs iOS

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iOS outpaced Android in most key metrics except average page views per session .

Average Order Value

Average Page Views

Bounce Rate

Conversion Rate

% of Online Sales

% of Online Site Traffic

November and December 2014U.S. Retail, Performance by Mobile OS

Android iOSIBM Digital Analytics Benchmark

14.32% 24.51%

4.87% 14.33%

1.55% 2.05%

40.33% 36.49%

6.60 6.42

$87.26 $116.13


Agenda

› 2014 Recap

› Key US dates and trends

› Mega sale days from around the world› Insights for 2015


UK Cyber Monday and Australia’s Click Frenzy

Online sales increased by 22.6% over 2013 with mobile percent of sales growing by 29.3%, reaching 42.9% of all online sales,

Australia’s Click Frenzy – November 18 – 19, 2014

Online sales increased by 27.7% over 2013 with mobile percent of sales growing by 15.3%, reaching 20.4% of all online sales

UK Cyber Monday- December 1, 2014

©2014 IBM Corporation23 www.ibm.com/benchmark

Mobile Use By Country: Australia, UK and US

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Mobile traffic and sales grew in double digits on mega shopping days in US, UK and Australia.

As a percentage of all online traffic and sales, the UK was highest at 56.2% and 42.9%, respectively.

0%

10%

20%

30%

40%

50%

60%

AU Click Frenzy UK Cyber Monday US Cyber Monday

Mobile Performance 2014

Mobile % of Sales Mobile % of Site Traffic

Mobile % of Traffic and SalesIBM Digital Analytics Benchmark


Mobile Use By Country: Australia, US and UK

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0%

10%

20%

30%


Mobile Percentage of Sales 2014

Tablets Smartphones

AU, UK, USIBM Digital Analytics Benchmark

0%

10%

20%

30%

40%


Mobile Percentage of Traffic 2014

Tablets Smartphones

AU, UK, USIBM Digital Analytics Benchmark


Tablets to buy

Smartphones to browse

www.ibm.com/benchmark

Mobile Use By Country: Australia, US and UK

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iOS led in all three countries for both mobile % of traffic and sales but by a wider margin in Australia than in US or UK

Android, 2.73% Android, 4.37%Android, 10.91%

iOS, 17.47%iOS, 17.39%

iOS, 31.34%

0%

10%

20%

30%

40%

50%

AU Click Frenzy US Cyber Monday UK Cyber Monday

Mobile Percent of Sales by OS 2014 IBM Digital Analytics Benchmark


Agenda

› 2014 Recap

› Key US dates and trends

› Mega sale days from around the world

› Insights for 2015

27 ©2014 IBM Corporation


The onus is on stores to retain traffic and sales

Thanksgiving Weekend Cyber Monday Cyber Week

I prefer to shop online rather than go to crowded stores during the Thanksgiving weekend

85% 80% 78%

I shopped online instead of in stores for this purchase because there were better deals online

70% 77% 66%

Percent of online shoppers agreeing



Package panic does change behavior



What to expect in 2015

› More mobile momentum…but what it means for investment remains TBD

› Lackluster digital wallet numbers

› Continued anemic social marketing performance but with some pockets of intrigue

› Omnichannel standards; Omnichannel 2.0 for leaders


These numbers haven’t changed drastically








NFC is still a work in progress








Social tactics still aren’t that effective for web sales

Top 3 Customer Acquisition Tactics for eCommerce

Source: State of Retailing Online 2014: Marketing








Omnichannel extends beyond inventory

› E-receipts in stores/email collection in stores

› Scheduling store visits

› Monitoring parking lots

› Remote customer service including stores-within-stores

› Store traffic flow and monitoring

› Texting from stores

IBM Digital Analytics Benchmark Hub – www.ibm.com/benchmark

Holiday Reports

Press alerts, press releases and bylines

Blogs

LIVE social feed

Link to product information

Best practice guides

Access to IBM ExperienceOne Benchmark Live

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One stop shop for analysis, product information and best practice guides


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IBM ExperienceOne Benchmark Live gives you instant access to real-time online shopping trends with customizable visuals that you can download and share. In addition, you'll find infographics and year-over-year comparison charts on key shopping days.

IBM ExperienceOne Benchmark Live


Our solutions are flexible, so users can begin anywhere and grow in any direction


Who Should Attend ExperienceOne | Amplify: Executives and practitioners in marketing,

commerce and customer analytics

Why Attend ExperienceOne | Amplify: Network with over 2,800 industry leaders,

executives and practitioners in marketing, commerce and customer analytics.

Discover the latest trends and innovative solutions that demonstrate measurable business results.

Get hands-on with the latest technologies and solutions.

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Anticipate behavior and deliver flawless customer service.

Capitalize on opportunities with mobile, social, cloud and analytics.

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Register by February 28th to save $200 off the standard rate.For more details, visit ibm.com/ibmexperienceone


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Questions?

Sucharita MulpuruPrincipal AnalystForrester

@smulpuru

Leah PaschallIBM Digital Analytics Benchmark LeadIBM ExperienceOne

@leahpaschall

www.ibm.com/benchmark


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