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Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

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View this presentation to get an in-depth look at the latest trends and best practices for maximizing the continued growth in online retail holiday shopping. To learn more, download the NEW report: Seventh Annual Online Retail Holiday Readiness Report at: https://ibm.biz/BdFBUY
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Prepare for a Profitable Holiday Season Key Online Shopping Trends and Best Practices
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Page 1: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

1 © 2014 IBM Corporation

Prepare for a Profitable

Holiday Season

Key Online Shopping Trends

and Best Practices

Page 2: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

2 © 2014 IBM Corporation

Today’s presenters

Sucharita Mulpuru Principal Analyst

Forrester

@smulpuru

Jay Henderson Strategy Director,

IBM ExperienceOne

@jay_henderson

#SmarterCommerce @smulpuru @jay_henderson

Page 3: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

3 © 2014 IBM Corporation

Agenda

› Online Shopping Trends

› Holiday Opportunities

› Mobile’s Steady March to Ubiquity

› The State of Mobile Commerce

› Creating an Action Plan

#SmarterCommerce @smulpuru @jay_henderson

3

Page 4: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

4 © 2014 IBM Corporation

Compare performance against industry peers with

IBM Digital Analytics Benchmark

IBM Digital Analytics Benchmark

Over 3,000 sites participated

Aggregate index

• Compare against industry

• Compare against peers

Geographic coverage

• US, UK, AU, Europe, World Wide

Industry specific

• Retail, Content, Financial Services, Travel

Segment specific

• Apparel, Department Stores, Health and Beauty,

and 12 others. . .

Free Resources

US holiday retail & sub-verticals

UK Mega Monday & Cyber Monday

AU Click Frenzy

www.ibm.com/benchmark

#SmarterCommerce @smulpuru @jay_henderson

Page 5: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

5 © 2014 IBM Corporation

Reasonable and steady growth for online sales

15.10%

9.74% 10.34% 9.50%

Q2 2013 Q3 2013 Q4 2013 Q1 2014

U.S. Online Retail Sales Growth by Quarter

Dec 2013

Average Oder Value

$122.46

up 13.0% over 2 years

#SmarterCommerce @smulpuru @jay_henderson

Source: IBM Digital Analytics Benchmark

Page 6: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

6 © 2014 IBM Corporation

Capturing - and keeping - consumer attention continues to be difficult

#SmarterCommerce @smulpuru @jay_henderson

Session length down

November 2013 ‘time on site’ was 7:39

Predicted to be 7:12 by Nov 2014

Cart abandonment remains high

Consistently ~70%

Bounce rate in 2011 was floating between

28 – 29%

Q1 2014 it’s risen slightly to ~33%

Pages per view declined from 9 to about 7

over the last 2 years

Source: IBM Digital Analytics Benchmark

Page 7: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

7 © 2014 IBM Corporation

11/01/13 11/08/13 11/15/13 11/22/13 11/29/13 12/06/13 12/13/13 12/20/13 12/27/13

Day

US Retail Daily Sales 2013 November 1st to December 31st 2013

Thanksgiving 19.7% YoY

Black Friday 18.9% YoY

Cyber Monday 20.6% YoY

Boxing Day 8.6% YoY

Early promotions

The 2013 shopping season started earlier and key days still

performed strong

Dramatic spike Thanksgiving Day, starting at 5 PM PST, as retailers began Black Friday promotions early

Thanksgiving continues its growth year over year, but Black Friday still delivers considerably higher sales

Cyber Monday continues to be the biggest online shopping day of the year

#SmarterCommerce @smulpuru @jay_henderson

Source: IBM Digital Analytics Benchmark

Page 8: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

8 © 2014 IBM Corporation

Similar postcards from around the globe….

• Online sales increased 31.6%

Australia’s Click Frenzy – November 19 – 20, 2013

• Online sales increased 16.3%

UK Cyber Monday- December 2, 2013

If you use this

chart…would

explain that BF in

the UK was

adopted for the first

time in 2013 and it

outpaced their

‘Cyber Monday’

which gained

greater consensus

from retailers over

other ‘Mega

Mondays’ seen in

previous years.

#SmarterCommerce @smulpuru @jay_henderson

Source: IBM Digital Analytics Benchmark

Page 9: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

9 © 2014 IBM Corporation

Agenda

› Online Shopping Trends

› Holiday Opportunities

› Mobile’s Steady March to Ubiquity

› The State of Mobile Commerce

› Creating an Action Plan

#SmarterCommerce @smulpuru @jay_henderson

9

Page 10: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 10

The myth of holiday shopping is that it’s about gifts

Who were you shopping for today?

Pre-Thanksgiving Thanksgiving CyberMonday CyberWeek

Base: online consumers who purchased online during the given timeframe

Source: Bizrate Insights/Forrester Holiday Flash Survey, 2013

56%

42%

8%

4%

Myself

Gifts for others

Non-gifts forothers

Business

53%

52%

7%

3%

49%

57%

6%

4%

44%

56%

7%

4%

#SmarterCommerce @smulpuru @jay_henderson

Page 11: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 11

Retailers pushed hard at the last minute

#SmarterCommerce @smulpuru @jay_henderson

Page 12: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 12

Web shoppers continue to abandon stores during key time periods

Pre-Thanksgiving Thanksgiving CyberMonday CyberWeek

Base: online consumers who purchased online during the given timeframe

Source: Bizrate Insights/Forrester Holiday Flash Survey, 2013

69%

83%

I shopped in storesless because Ishopped online

instead

I prefer to shop onlinerather than go tocrowded stores

during Thanksgivingweekend

79%

87%

75%

82%

65%

81%

% agreeing with statement

#SmarterCommerce @smulpuru @jay_henderson

Page 13: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 13

Email still matters

4%

6%

8%

11%

9%

44%

41%

4%

5%

9%

11%

8%

43%

43%

Retailer's socialpresence

Deals or shoppingwebsite

Other email

Someone told meabout it

Through searchengines

Via email from theretailer

I visited the retail sitedirectly

3%

6%

8%

11%

10%

39%

44%

4%

6%

9%

10%

9%

40%

43%

Retailer's socialpresence

Deals or shoppingwebsite

Other email

Someone told meabout it

Through searchengines

Via email from theretailer

I visited the retail sitedirectly

4%

6%

9%

10%

11%

37%

43%

2%

5%

8%

10%

11%

33%

43%

Retailer's socialpresence

Deals or shoppingwebsite

Other email

Someone told meabout it

Through searchengines

Via email from theretailer

I visited the retail sitedirectly

How did you learn about these special deals [from today’s purchase]?

Pre-Thanksgiving Thanksgiving Weekend

Cyber Monday

2012 2013

3%

7%

9%

9%

13%

34%

45%

4%

8%

10%

12%

12%

35%

45%

Cyber Week

Source: Bizrate Insights/Forrester Holiday Flash Survey, 2012 and 2013

#SmarterCommerce @smulpuru @jay_henderson

Page 14: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 14

Shipping clubs picked up a lot of steam “Are you a member of a shipping club or program (i.e.

Amazon Prime, Shoprunner or Williams-Sonoma Reserve)?”

Source: Bizrate Insights/Forrester Research Holiday Flash Surveys, Q4 2010, Q4 2011, Q4 2012, Q4 2013

N: 809 shipping club members

“How does your membership in a shipping club or

program affect your shopping frequency?”

67%

29%

4%

I shop more (or plan toshop more) with the

retailer(s) whoseshipping club I have

joined

The shipping club hasnot changed my

shopping behavior withthat retailer

I shop less with theretailer after joining the

shipping club

9%

12% 14%

21%

2010 2011 2012 2013

#SmarterCommerce @smulpuru @jay_henderson

Page 15: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

15 © 2014 IBM Corporation

Agenda

› Online Shopping Trends

› Holiday Opportunities

› Mobile’s Steady March to Ubiquity

› The State of Mobile Commerce

› Creating an Action Plan

#SmarterCommerce @smulpuru @jay_henderson

15

Page 16: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

16 © 2014 IBM Corporation

First, some definitions (for the slides today)

Phablets, yes

200MM smartphone subscribers

Mini tablets, yes

100MM tablet owners

Tablet Smartphone

MO

BIL

E

#SmarterCommerce @smulpuru @jay_henderson

Page 17: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

17 © 2014 IBM Corporation

Mobile shopping soars

As a percentage of all online traffic and sales, Thanksgiving saw the

highest rates at at 42.6% and 25.8%, respectively

However, Cyber Monday saw the most growth year over year with

increases of 44.9% and 55.4% for percentage traffic and sales,

respectively

17

0%

10%

20%

30%

40%

50%

Thanksgiving Black Friday Cyber Monday

Mobile Performance 2013

Mobile % of Sales Mobile % of Site Traffic

Mobile % of Traffic and Sales

IBM Digital Analytics Benchmark

FYI: Christmas

Day stats were the

highest of the

holiday season:

Mobile % traffic

was 48.1%; mobile

% of sales was

28.9%

#SmarterCommerce @smulpuru @jay_henderson

Source: IBM Digital Analytics Benchmark

Page 18: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

18 © 2014 IBM Corporation

mobile sales

FORECAST

43% Nov 2014

34% Nov 2013

mobile traffic

17% Nov 2013

FORECAST

20% Nov 2014

Mobile continues its steady march to ubiquity….

Source: IBM Digital Analytics Benchmark

#SmarterCommerce @smulpuru @jay_henderson

Page 19: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

19 © 2014 IBM Corporation

0%

10%

20%

30%

40%

50%

AU Click Frenzy US Cyber Monday UK Cyber Monday

Mobile % of Traffic and Sales

Mobile % of Sales Mobile % of Site Traffic

Online Retail 2013

IBM Digital Analytics Benchmark

UK outpaced US and Australia in mobile percentage traffic and

sales at 44.3% and 33.2%, respectively

#SmarterCommerce @smulpuru @jay_henderson

Source: IBM Digital Analytics Benchmark

Page 20: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

20 © 2014 IBM Corporation

Mobile is not all thumbs, fingers too.

Smartphones to Browse, Tablets to Buy

Smartphones Tablets

Performance by Device Type November-December 2013

Source: IBM Digital Analytics Benchmark

#SmarterCommerce @smulpuru @jay_henderson

Page 21: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

21 © 2014 IBM Corporation

Smartphone to brows, tablets to buy….

0%

10%

20%

30%

AU Click Frenzy US Cyber Monday UK Cyber Monday

Mobile % of Sales by Device Type

Smartphone Tablet

Online Retail 2013 IBM Digital Analytics Benchmark IBM Digital Analytics

Benchmark

0%

10%

20%

30%

AU Click Frenzy US Cyber Monday UK Cyber Monday

Mobile % of Traffic by Device Type

Smartphone Tablet

Online Retail 2013

IBM Digital Analytics

Benchmark

Unlike US and UK,

traffic from tablets kept

pace with smartphones

in Australia

Tablets consistently

drove more sales

transactions than

smartphones

#SmarterCommerce @smulpuru @jay_henderson

Source: IBM Digital Analytics Benchmark

Page 22: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

22 © 2014 IBM Corporation

iOS outpaces Android in most key metrics….

Average Order Value

Average Page Views

Average Session Length

Conversion Rate

% of Online Sales

% of Online Site Traffic

Performance by Mobile OS November-December 2013

Android iOS

IBM Digital Analytics Benchmark

10.8% 24.5%

2.8% 14.3%

1.2% 2.1%

4:56 4:49

5.7 6.4

$87.25 $116.13

• Android 50.6%

• iOS 43.8%

Source: IBM Digital Analytics Benchmark and Kantar Worldpanel, “Smartphone OS Sales Sales,” January 27, 2014

Performance by Mobile OS November-December 2013

Mobile OS Market Share Q4 2013

Android iOS

despite smaller market share

#SmarterCommerce @smulpuru @jay_henderson

Page 23: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

23 © 2014 IBM Corporation

Agenda

› Online Shopping Trends

› Holiday Opportunities

› Mobile’s Steady March to Ubiquity

› The State of Mobile Commerce

› Creating an Action Plan

#SmarterCommerce @smulpuru @jay_henderson

23

Page 24: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2013 Forrester Research, Inc. Reproduction Prohibited 24

A few questions

› How big is m-commerce now?

› What are shoppers doing on different devices?

› What is important to know about retail apps?

#SmarterCommerce @smulpuru @jay_henderson

Page 25: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 25

How much will phones generate in commerce?

$16 $26

$32 $37 $42 $46

2013 2014 (F) 2015 (F) 2016 (F) 2017 (F) 2018 (F)

Source: Forrester’s Smartphone Commerce Forecast (do not distribute)

US Smartphone Commerce $B

(Physical goods and media)

#SmarterCommerce @smulpuru @jay_henderson

Page 26: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 26

Other m-commerce categories make the figure even higher

$16 $26

$32 $37 $42 $46 $12

$17

$21

$26

$31 $36

2013 2014 (F) 2015 (F) 2016 (F) 2017 (F) 2018 (F)

Source: Forrester’s Smartphone Commerce Forecast (do not distribute)

US Smartphone Commerce $B

Travel and other

services

#SmarterCommerce @smulpuru @jay_henderson

Page 27: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 27

How this fares relative to the overall retail pie

Source: Forrester Forecasts; only includes physical goods and media categories

$50 $82 $113 $148 $183 $222

2013 2014 (F) 2015 (F) 2016 (F) 2017 (F) 2018 (F)

Phone and tablet commerce ($B)

#SmarterCommerce @smulpuru @jay_henderson

Page 28: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 28

How this fares relative to the overall retail pie

Source: Forrester Forecasts; only includes physical goods and media categories

$50 $82 $113 $148 $183 $222

$213 $212 $212 $207 $202 $192

2013 2014 (F) 2015 (F) 2016 (F) 2017 (F) 2018 (F)

Other eCommerce($B)

#SmarterCommerce @smulpuru @jay_henderson

Page 29: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 29

How this fares relative to the overall retail pie

Source: Forrester Forecasts; only includes physical goods and media categories

$50 $82 $113 $148 $183 $222 $213 $212 $212 $207 $202 $192

$2,080 $2,136 $2,197 $2,259 $2,322 $2,389

2013 2014 (F) 2015 (F) 2016 (F) 2017 (F) 2018 (F)

Non eCommerce/mobile sales ($B)

#SmarterCommerce @smulpuru @jay_henderson

Page 30: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 30

A few questions

› How big is m-commerce now?

› What are shoppers doing on different devices?

› What is important to know about retail apps?

#SmarterCommerce @smulpuru @jay_henderson

Page 31: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 31

Mobile devices are used everywhere “Where do you use each of the following devices to access the Internet?”

Source: The State of Consumers and Technology, Benchmark 2013, US

#SmarterCommerce @smulpuru @jay_henderson

Page 32: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 32

Time on tablets is cannibalistic of PCs

With the addition of your iPad/tablet to the devices that

you already use to go online, do you spend more, less, or

the same amount of time online?

More time online Less time on PCs

With the addition of your iPad/tablet to the

devices that you already use to go online, how

is your desktop computer/laptop usage

affected?

49% 46%

2011 2014

47% 48%

2011 2014

Source: Bizrate Insights/Forrester Mobile Commerce Studies

#SmarterCommerce @smulpuru @jay_henderson

Page 33: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 33

This applies to phones too

Since getting your smartphone/small screen mobile

device, do you spend more, less, or the same total amount

of time online (including using your computer and other

devices you access to go online)?

More time online Less time on PCs

If you own both a smartphone/small screen

mobile device and a desktop computer/laptop,

then has the smartphone/small screen mobile

device decreased the amount of time you use

your desktop computer/laptop?

40% 47%

2011 2014

41% 49%

2011 2014

Source: Bizrate Insights/Forrester Mobile Commerce Studies

#SmarterCommerce @smulpuru @jay_henderson

Page 34: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 34

Top shopping activities on phones vs tablets

1 Read emails from retailers Browse or research products

2 Receive texts with special offers

from retailers Read emails from retailers

3 Locate retail

stores/hours/directions

Compare prices while shopping

online

4 Browse or research products Read product or store reviews

5 Download or redeem coupons Identify where products are sold

Source: Bizrate Insights/Forrester Mobile Commerce Studies

Please note which of the following you do with your mobile device(s) with

respect to any online retailer.

#SmarterCommerce @smulpuru @jay_henderson

Page 35: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 35

Source: A commissioned study conducted by Forrester Consulting on behalf of VISA, September 2013

26%

42%

54%

Email message from aretailer

I search for somethingspecific on a retailer's site

I search for somethingspecific using a search

engine

38%

60%

69%

Where the shopping journey starts on different devices

Base: 1003 smartphone shoppers (research or purchase)

27%

51%

57%

Search is important on all devices

#SmarterCommerce @smulpuru @jay_henderson

Page 36: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 36

Email is also essential

81% of web buyers read

emails on phones because

the phone is always with

them; 48% like that the

phone has no email login

67% of web buyers say that

they were inspired to buy

something after opening an

email on a mobile phone 22%

37%

75%

Tablet

Smartphone

Desktop

I read promotional emails from

[merchant X] on my…

Source: Bizrate Insights Industry Hot Topic Q4, 2013

#SmarterCommerce @smulpuru @jay_henderson

Page 37: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 37

A few questions

› How big is m-commerce now?

› What are shoppers doing on different devices?

› What is important to know about retail apps?

#SmarterCommerce @smulpuru @jay_henderson

Page 38: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 38

These are the most common retail apps

42%

8%

15%

33%

I have notdownloaded an

app

Fashion trendsor tech reviews

Comparisonshopping

Retailer-specific apps

2011 2012 2013 2014

41%

7%

15%

36%

37%

7%

16%

40%

33%

9%

14%

45%

Which of the following types of online shopping apps, if any, have you

downloaded to your smartphone/small screen mobile device?

Source: Bizrate Insights/Forrester Mobile Commerce Studies

#SmarterCommerce @smulpuru @jay_henderson

Page 39: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 39

Shoppers discover phone apps mainly through word of mouth

How do you learn about the apps that you install on your device?

14%

6%

11%

20%

21%

25%

59%

I don't install apps

Sign in a retail store

Retailer websites

An ad on TV/radio/print

The app store

Social media (e.g. Facebook)

Word of mouth (e.g. friends,family, colleagues)

12%

6%

11%

21%

26%

25%

55%

Base: recent online buyers who own smartphones or tablets

Source: Bizrate Insights/Forrester Mobile Commerce Studies

#SmarterCommerce @smulpuru @jay_henderson

Page 40: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 40

How do you learn about the apps that you install

on your device?

› “My husband does it”

› “My children”

› “What I need at a particular time”

› “I ask teenagers”

Source: Bizrate Insights/Forrester Mobile Commerce Studies

#SmarterCommerce @smulpuru @jay_henderson

Page 41: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited 41

Few customers say they need a retailer’s app

If you have interacted with [MerchantName] on a mobile device,

then which experience do you prefer?

37 %

7 %

6 %

19 %

30 %

Accessing the standard website (i.e. the sameview you would see on your computer)

Using the mobile version of the site (i.e. the sitemay have less content but is optimized to…

Using an app (if this retailer has one availablefor download)

I don't have a preference

I have never interacted with [Merchant] from amobile device

Source: Bizrate Insights/Forrester Mobile Commerce Studies

#SmarterCommerce @smulpuru @jay_henderson

Page 42: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

© 2014 Forrester Research, Inc. Reproduction Prohibited

Yet, more than 40% of mobile phone transactions happen on apps

“Thinking of the last time you bought something on

your smartphone, how did you complete your

transaction?”

59%

41%

On a smartphonethrough a website

On a smartphonethrough anapplication

Source: A commissioned study conducted by Forrester Consulting on behalf of Amazon.com, January 2013

Base: 528 mobile phone buyers Base: 311 tablet and PC buyers

(of non-phone buyers)

“Thinking of the last time you bought something on

your [tablet or PC], how did you complete your

transaction?”

4%

14%

83%

On a tablet throughan application

On a tablet througha website

On a computer

Source: A commissioned study conducted by Forrester Consulting on behalf of VISA, September 2013

#SmarterCommerce @smulpuru @jay_henderson

Page 43: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

43 © 2014 IBM Corporation

Agenda

› Online Shopping Trends

› Holiday Opportunities

› Mobile’s Steady March to Ubiquity

› The State of Mobile Commerce

› Creating an Action Plan

#SmarterCommerce @smulpuru @jay_henderson

43

Page 44: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

44 © 2014 IBM Corporation

The mobile strategy you didn’t know you had:

mobile email and mobile websites

The email you imagine in your head

#SmarterCommerce @smulpuru @jay_henderson

Page 45: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

45 © 2014 IBM Corporation

The bleak (or euphoric) reality, mandates optimizing emails to

render across mobile devices

Blackberry Android iPhone Windows Mobile 6

#SmarterCommerce @smulpuru @jay_henderson

50% of emails are opened on mobile devices

Source: IBM Email Benchmark, Six months December 2013 – May 2014

Page 46: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

46 © 2014 IBM Corporation

Understand the mobile customer experience

Make it easy….start with digital analytics

Analyze your mobile traffic

Tealeaf Mobile

Heatmaps, Link Analytics,

and Gestures

IBM Digital Analytics

Device Stream

#SmarterCommerce @smulpuru @jay_henderson

Explore the customer’s mobile

experience

Understand the “why” behind mobile

Page 47: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

47 © 2014 IBM Corporation

Rich Push Notifications

Mobile Web Notifications

Native Simple Push and SMS

Messaging

iOS and Android Wallets

Multiple opportunities for engaging customers in mobile

#SmarterCommerce @smulpuru @jay_henderson

Page 48: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

48 © 2014 IBM Corporation

Broadcast Narrowcast 1:1 Cast

message all app users message some app

users based on rules &

segments

message individual users

Use multiple levels of messaging specificity and targeting

#SmarterCommerce @smulpuru @jay_henderson

Page 49: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

49 © 2014 IBM Corporation

Event-based triggers connect with your consumers in the most

opportune moments

#SmarterCommerce @smulpuru @jay_henderson

Page 50: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

50 © 2014 IBM Corporation

Arrival & Departure

Deliver content when customers

approach or leave your (or your

competitors) retails location.

Location Segments Deliver relevant content or

simply drive customers to your

stores using location data.

Indoor Messaging Use iBeacons, Wifi positioning,

LED, or any other technology to

identify customer location and

deliver relevant content.

Location is a key piece of context to drive relevant engagement

#SmarterCommerce @smulpuru @jay_henderson

Page 51: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

51 © 2014 IBM Corporation

Understand Engage

Optimize

Leaders are shifting to continuous customer engagement

#SmarterCommerce @smulpuru @jay_henderson

Page 52: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

52 © 2014 IBM Corporation

Understand and engage customers across channels

Better coordinate

ACROSS channels

Be more effective

WITHIN each channel

#SmarterCommerce @smulpuru @jay_henderson

Page 53: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

53 © 2014 IBM Corporation

Digital Marketers

Merchandisers Marketers eCommerce Professionals

Customer Service

Understand and engage customers across departments

#SmarterCommerce @smulpuru @jay_henderson

Page 54: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

54 © 2014 IBM Corporation

Additional holiday benchmark analysis & best practice guides

www.ibm.com/benchmark

#SmarterCommerce @smulpuru @jay_henderson

Get a copy of the NEW Online Retail Holiday Readiness report at:

https://ibm.biz/BdFBUY

Page 55: Prepare for a Profitable 2014 Holiday Season: Key Online Shopping Trends and Best Practices

55 © 2014 IBM Corporation

Questions?

Sucharita Mulpuru Principal Analyst

Forrester

@smulpuru

Jay Henderson Strategy Director,

IBM ExperienceOne

@jay_henderson

www.ibm.com/benchmark

#SmarterCommerce @smulpuru @jay_henderson


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