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Cotter CunninghamCEO, WhaleShark Media

HOLIDAY SHOPPING 2013: Understanding New Technologies &their Influence on Customer Behavior

I AM…• Cotter Cunningham, CEO of

WhaleShark Media.

• We own and publish coupon Web sites in the US, UK, Germany and France, including the largest coupon site in the world, RetailMeNot.com with 450M+ visits in 2012.

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Who doesn’t hate wearing the same outfit as someone else

to the prom…

OLD WAY–ROLL THE DICE

NEW WAY… Facebook group

“B*tch, don’t steal my dress”

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MOBILE

Data

Shipping

Connections

Internet (Whaa?)

TRENDS TO WATCHTRENDS TO WATCH

RETAIL / TECHRETAIL / TECH

IN 2013IN 2013

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Source: CTIA

320MILLION:U.S. Wireless Subscriber

Connections

> 311MILLION:U.S. Population

WIRELESS PENETRATION EXCEEDED U.S. POPULATION IN 2012

51.9%

3.6% 1.5% -2.1% -13.6% -11.1% -15.4% -20.0% -5.2%

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

Mob

ile (non voice)

Online

TV Radio

Print*

–Maga

zines

–New

spapers

Other

Total

Growth of Average Time Spent per Day with Major Media by US Adults, 2012

Source: eMarketer, Oct 2012

Note: time spent with each medium includes all time spent with that medium, regardless of multitasking; for example, 1 hour of multitasking on a PC while watching TV counted as 1 hour for TV and 1 hour for online; *offline reading only

GROWTH IN TIMESPENT ON MOBILE IS DRAMATICALLY OUTPACINGOTHER MEDIA…

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MOBILEWEB TRAFFIC AVERAGES 14.5% OF ALLWEB TRAFFIC

Desktop

Mobile4.1%

14.5%

Source: Statcounter Global Stats – Dec 2010 to Dec 2012

20

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

14,000,000

16,000,000

18,000,000

Visits

Source: IBM Digital Analytics Benchmark

MOBILES+ TABLETS = 24%

of online shoppingon Black Friday in

2012(vs. 6% two years ago)

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Source: eMarketer

Note: ages 18+Source: SapientNitro, “Holiday Shopping Poll” conducted by GfK Roper as cited in press release, Dec 19, 2012

Ways that US Smartphone Owners Have Used Their Devices While Holiday Shopping, 2011 & 2012

“Today, four in 10 smartphone users search for an item and research prices

while they’re right in the store.”Sucharita Mulpuru | Forrester

“The easier it is to do something,the more people will, uh, do it…”

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Some good:

– Apps

– Coupons

– Loyalty

Some not so good:

– Showrooming

– Channel blur

– Competitive geo-fencing

MOBILE ALLOWS FOR BRICK AND MORTARRETAILERS TO ENGAGE IN NEW WAYS

Consumers using their mobile devices to compare prices while in your store (either store vs store.com, store vs online competitors or both)

SHOWROOMING

“Stopping the trend of showroomingis a major priority for our team…”

-Top 50 U.S. retailer

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• Exclusive products / bundles (difficult comparisons)• Walled gardens (wifi/app with reviews, price comparisons,

etc. controlled by retailer)• Loyalty programs encouraging consumer retention• Engage customers thru third parties (ex: coupon publishers)• Consider mobile/tablet technology as a knowledge center in-

store• Leverage Other Channels!

COMBATING SHOWROOMING

• According to Forrester, the number one way people compare prices isn’t a barcode scanning app – it is searching on Google!

• A few online retailers have dominated #1 slots in SERPs for years, suddenly it matters to bricks and mortar retailers too!

WHY SEO WILL BE HEATING UP EVEN MORE…

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• Consumers in-store have a mobile device and can/will arbitrage your channels (store vs online).

• They are going to increasingly expect roughly similar discounts in your store and your Web site.

• This is going to require coordination and cooperation within retailer channels that may/may not exist today…

CHANNEL BLUR

• The implications are enormous. Your store is no longer “sacred ground” for your brand.

• Are you ready to compete for the customer standing at your checkout? You had better be…

• RMN Geo-Fence: 500 of 500 malls tripped on the first weekend we launched the app

COMPETITIVE GEO-FENCING

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TRENDS TO WATCHTRENDS TO WATCH

RETAIL / TECHRETAIL / TECH

IN 2013IN 2013

Mobile

DATA

Shipping

Connections

Internet (Whaa?)

Source: Wikibon

BIG DATA

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Data

vs.

Privacy Value

vs.

PRIVACY MATTERS

TRENDS TO WATCHTRENDS TO WATCH

RETAIL / TECHRETAIL / TECH

IN 2013IN 2013

MobileDataSHIPPINGConnectionsInternet (Whaa?)

SHIPPING• You Thought Free Shipping was a Pain?

– In 2011, more than half of transactions included free shipping

• In 2013, Immediacy is your New Holiday Nightmare– OLD: Buy online, pick up in store.

– New: eCommerce Distribution Centers are enablingSAME DAY DELIVERY!

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TRENDS TO WATCHTRENDS TO WATCH

RETAIL / TECHRETAIL / TECH

IN 2013IN 2013

MobileDataShippingCONNECTIONSInternet (Whaa?)

FACEBOOK COMMERCE

• 75%: Percentage of Facebook users who have “liked” a brand

• 1,000: Number of diapers P&G sold on its f-store in under an hour

• Social Sales: Shoppers referred from social networks like Facebookand Twitter generated 0.34% of all online sales on Black Friday 2012 — down 35% YoY.

• Mobile transactions accounted for 16% of Black Friday Sales. Social accounted for 0.34%

Source: IBM Digital Analytics Benchmark

HOW DO YOU CONNECT WITH YOUR CUSTOMERS?

PERCEPTION REALITY

?

• Email is still the best. You control it, you can have 100% delivery without paying extra.

• But the potential of tapping into Facebook and the information there is spectacular…

• Influence of big data on emailEMAIL

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TRENDS TO WATCHTRENDS TO WATCH

RETAIL / TECHRETAIL / TECH

IN 2013IN 2013

Mobile

Data

Shipping

Connections

INTERNET (WHAA?)

The Internet isforcing you to innovate(not news to any of you)

WHO ARE YOU?

Com

preh

ensi

ve /

eas

y

Curated / unique

Dead Zone

Impossible?

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As you preparefor Holiday 2013…As you preparefor Holiday 2013…

KEY TAKEAWAY #1 FOR HOLIDAY 2013Mobile • Be where consumers are…

• Train staff and invest in tech to integrate use of mobile at point of sale

• Consider how mobile/tablet can be a knowledge center for staff – Help consumers make the right decision!

KEY TAKEAWAY #2 FOR HOLIDAY 2013Big Data• Focus on actionable data that drives in-store sales NOW!

• Create a targeted shopping experience in your walled garden (reviews, relevant products, sale items)

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KEY TAKEAWAY #3 FOR HOLIDAY 2013Omnichannel• Stop operating in silos!

• Consistent offers online and offline = positive consumer experience

THANKS!THANKS!Cotter CunninghamCEO, WhaleShark Media

cotter@whalesharkmedia.com