Holiday Shopping Preferences 2013

Rusty Warner, SVP Marketing

November 20, 2013

Introductions

Rusty Warner

Senior Vice President of Marketing

SDL Campaign Management & Analytics

@rustywarner

• About SDL & Customer Experience Management

• Survey Background and Methodology

• Holiday Shopping Preferences

–Researching Gift Purchases

–Online Shopping Trends

– In-Store Shopping Behavior

–High Customer Expectations

• Key Findings & Recommendations

Agenda

Q&

Optimizing CXM for the World’s Top Brands

Optimizing CXM for the World’s Top Brands

Defining Global Customer Experience Management

CXM is a strategy and practice for managing customer experiences

online and offline to acquire, retain, and turn customers into

satisfied, loyal brand advocates and ambassadors.

Three Business Requirements for Global CXM

Align your

organization across

channels, markets,

languages and teams

Understand your

audiences’

interests and

motivations

SDL Global CXM capabilities

Your Partner in Global CXM

Publicly traded company, long-term

stability and $430M annual revenues

2,700+ employees, 70 offices, 38 countries

1,500+ enterprise customers and partners

Innovative technology and services for

enriching global customer experiences

Award-winning technology and services

Serving 76 of the top 100 global brands (Source: Interbrand 2012)

• Priority: 50% of CEOs now rate Customer Experience Management as their

number one strategic investment. (Gartner)

• Profitability: 76% of consumers would pay 5% more for a better experience,

53% would pay 10% more and 10% would pay 25% more. (Accenture)

• Loyalty: Customer experience (CX) is a more powerful customer loyalty driver

than price-value perception. (Forrester)

• Equity: Over a 6 year period, CX leaders outperformed the S&P 500 index by

28%. Those who had poor CX performance lagged behind the index by almost

20%. (Watermark Investment Consulting)

• Consistency: In the UK, a £100 investment in the National Consumer

Satisfaction Index fund in 2007 would have by June 2011 returned £159 while

the same investment in the FTSE 100 would have returned just £94. (SynGro)

• Efficiency: A one point increase in customer satisfaction (CSAT) has been

proven to improve cash flow by 4% in major organizations. (Journal of

Marketing)

Why Focus on CXM?

About the Survey

• Survey

– Focused on consumer behavior and expectations during the 2013 holiday

shopping season

– Deployed in the United States, United Kingdom and Australia

– Conducted by third parties on behalf of SDL

– Respondents not aware the survey was conducted for SDL

• Key Themes

– “Showrooming” is still relevant with broad implications for retailers

– Social media remains an unused tool for researching products

– There is no clear shift from 2012 for online and in-store preferences

– Shoppers want to avoid crowds during the holiday season

– Consumers are using all channels in their interactions with retailers

– It’s all about a positive customer experience

Methodology

Survey Respondents – Geographies

Number of Respondents by Geography

AUS

UK

US

1,039 1,000

2,000

Survey Respondents – Demographics

AUS

US

UK

Making a List...

Consumer Showrooming Habits

Top Resources Shoppers Use to Research

Products

Catalogs Are Alive and Well

Percentage of shoppers who use

catalogs to research products

Mobile is Good for Research

Percentage of shoppers who use

mobile for research

Social Media Not as Popular for Research

Percentage of global shoppers who use

social media channels to research products

Online Shopping Trends

The Online versus In-store Battle Continues

Online In-store

Top Reasons to Shop Online

Top Reasons Shoppers Prefer Online over In-Store

1. Finding Products Online is Easier: 40%

2. Finding the Best Deal Available: 39%

3. Avoiding Holiday Crowds: 34%

4. Taking Advantage of Online Discounts: 25%

5. Convenience of Shopping from Home: 24%

6. Convenience of Shopping 7x24: 19%

Most Consumers Shop on Their Own Time

Shoppers who aren’t shopping online

during work

Believe it or not, only 1/3 of US

shoppers admitted to shopping

online while working and it is less

in the UK and Australia with only

27% admitting to shopping online

during working hours.

Mobile is Good for Researching; Not For Purchasing

Shoppers who won’t use a

smartphone or tablet this year or

won’t use it more than last year

In-Store Shopping Behavior

Top Reasons to Shop In-Store

Top Reasons Shoppers Prefer In-Store over Online

1. Evaluating Products in Person: 43%

2. Finding the Best Deal Available: 36%

3. No Shipping Costs: 35%

4. Taking advantage of In-Store Discounts: 35%

5. Convenient Store Location Near Home, Work or School: 28%

6. Unique Products Only Available In-Store: 15%

Product Evaluation Driving In-Store Purchase is Down

Percentage of shoppers who shop

in-store to evaluate products

Are We Experiencing the End of Black Friday?

US Shoppers who aren’t waiting for

Black Friday or Cyber Monday

UK and Australian Shoppers Aren’t Waiting Either…

Percentage of UK and AUS

shoppers who don’t plan shopping

around a specific day

High Consumer Expectations

The Ongoing Omni-Channel Trend

With this data confirming what

smart retailers already know –

consumers are coming from

all channels – brands can’t

focus all of their attention on

one channel over the other.

Brick and mortar retailers who

integrate their stores and e-

commerce channels make it

possible for a customer to buy

online, pick up in-store, order

online, deliver at home and a

multitude of other possibilities.

Consumers Expect Consistency

Shoppers who expect a consistent

experience from mobile to laptop to

in-store

The Importance of a Positive Customer Experience

Shoppers who are willing to pay

more for a better customer

experience

Sixty percent of consumers

surveyed would be willing to

pay more for a product if the

brand delivered a positive

customer experience.

Quality, Price & Experience Drive Loyalty

Shoppers who aren’t loyal to a brand

Key Findings &

Recommendations

Omni-Channel is the Norm

• Retailers must recognize that consumers are using multiple channels

to interact with brands, find the best products, the best deals and

prices, regardless of when they start searching for holiday-related

bargains.

Key Findings & Recommendations

Consistency is Critical

• Consumers across the globe shop when, where, and how they want –

and they want the experience to be the same whether they are online,

on their smartphone in a store, reading Facebook…the list just goes on.

Key Findings & Recommendations

Key Findings & Recommendations

Prioritize Profitable Preferences

• Be prepared to kick-off coordinated, cross-channel marketing

campaigns this holiday season.

• Recognize how many channels you are planning to leverage this

season. Of those channels, prioritize which channel will be used

most to reach profitable customers.

Key Findings & Recommendations

Mobile Enables Research and Showrooming

• If you’re considering expanding mobile as a channel, take into

consideration the role that research and showrooming may have on

your campaign.

Key Findings & Recommendations

Social Campaigns Must Be Engaging

• Consider how you’re using social media to engage your consumers. If

you’re using social media, build a campaign that enhances other non-

social media campaigns.

• In-store is still the front runner when it comes to researching products

• Catalogs still play a big role in the shopping and researching process

• Mobile offers consumers an easy way to research products so

determine a strategy that will help you drive mobile purchases

• Social might not be the place for research, but it is still a critical way to

build loyalty and to reach customers

• Create consistency across online and offline channels – consumers

are active across all channels

• Consumers will pay more when there is a positive customer experience

• Black Friday and Cyber Monday are not as important to consumers as

overall positive experiences

Summary

When Should Brands Start Holiday Promotions?

Shopper preferences for retailers to start

holiday promotions

Nearly 50% of global

consumers say that

November is the right

month to start holiday

promotions.

Copyright © 2008-2013 SDL plc. All rights reserved. All company names, brand names, trademarks,

service marks, images and logos are the property of their respective owners.

This presentation and its content are SDL confidential unless otherwise specified, and may not be

copied, used or distributed except as authorised by SDL.