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The Third Annual Holiday Survey Brought to you by Baynote in coopera8on with the e-‐tailing group
Table of Contents
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About the Survey Determining What To Buy
Device Usage and Holiday Shopping
Privacy Issues
Key Takeaways
Legal Disclaimer
About the Survey
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About the Survey
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WHAT? Measure holiday shopping behavior in order to understand the shiOs in consumer influence, the role of various devices and sites on holiday shopping and to determine sources of privacy concerns
HOW? -‐ 1,000 respondents between Nov. 24 and Dec. 5, 2012 -‐ 50% female/50% male -‐ Shopped online 4 or more Umes in the past year -‐ Spent $250 or more online annually -‐ 100% owned a smartphone/55% owned tablets
WHO? Baynote in cooperaUon with Lauren Freedman, President the e-‐tailing group
30%
20%
20%
30%
18-‐34
35-‐44
45-‐54
55+
Age Group
6%
19%
23%
17%
18%
7%
3%
3%
4%
Less than $25,000
$25,000-‐$49,999
$50,000-‐$74,999
$75,000-‐$99,999
$100,000-‐$149,999
$150,000-‐$199,999
$200,000-‐$249,999
$250,000 or more
Prefer not to respond
TOTAL annual pre-‐tax household income
18%
14%
5%
2%
61%
One
Two
Three
Four or more
None
Children <18 years old living at home
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About the Survey
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25%
25%
29%
14%
7%
Majority (>75%)
Most (75-‐50%)
Some (50-‐25%)
Limited (25%-‐10%)
Very Li[le (Less than 10%)
Percent of holiday shopping done online as of survey date
1-‐2 25%
3-‐6 41%
7-‐10 18%
10+ 16%
Total online or in-‐store purchases made this season as of survey date
Key Findings
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Major Findings
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• Tablets are the future and the future is now • Retail apps have room to grow, but are sUll not widely used • Omni-‐channel strategies are strong influencers on shopper behavior both in-‐store and online • Paper catalogs currently trump social for markeUng effecUveness • Privacy concerns are fading as convenience and trust in ecommerce rise
Other InteresUng Findings
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• Age group can determine the best influencers by demographic • Smartphones are finding their useful niche
• Social channels may play out, but not unUl the age group grows up
Determining What To Buy
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Personal contact, deal-‐seeking and search engines are the top three ways shoppers figure out what to buy
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When deciding what holiday gi0(s) to purchase, where does your process typically begin? Percent of respondents who answered “always” or “frequently”
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58%
42%
32%
29%
28%
28%
28%
15%
15%
Ask the person what they want
Look for discounts and then find that product to make the purchase
Use a search engine to browse for interesbng ideas or locate hard-‐to-‐find product
They send me or I request an email with the items they want
Look through physical catalogs
Browse their favorite stores to find interesbng gies or ideas
Look at the person’s wish list on a site they like
Look at Pinterest to get gie ideas
Look at Facebook or another social sharing site to get gie ideas
When checking prices, shoppers seek stores they know, and most know Amazon.com
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66%
55%
49%
49%
48%
45%
38%
33%
33%
29%
I go to Amazon to check their prices and see if they have it available
I check prices at the stores where I usually make purchases
I use a search engine, like Google, to see where I can buy it
I go to a store or site that I know carries the item and buy it
I check for product availability at local stores
I go to a big box store, like Best Buy, Walmart, or Target, that I think will have the product
I peruse my emails for bargains on these products
I use a price comparison service/app, like Google Products, Shopzilla, Nextag or PriceGrabber, to find the best price
I go to a local store I frequent to make the purchase
I go to the mall and look around at different stores to see if I can find it
Once you have confirmed the gi0 you are going to buy, how o0en is the following behavior a part of your buying process?
Percent of respondents who answered “always” or “frequently”
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While online centric methods like ra8ngs & reviews, search and email promo8ons really influenced shopper purchases, other tradi8onal methods like
catalogs were also very effec8ve.
Most and Least EffecUve MarkeUng Influencers
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Different tools work best with different age groups; but everyone loves a good catalog
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Social exerts very liele influence on shoppers either in-‐store or online
In-‐store Purchases
76%
74%
66%
65%
62%
61%
50%
49%
38%
33%
30%
29%
Twi[er
Mobile adverbsing
Text messaging from retailers
eCommerce website
Display adverbsing for product you previously
Product recommendabon on ecommerce
Google search results that included pictured
Online rabngs and reviews
Email promobon
Paper catalog
74%
68%
64%
60%
59%
58%
45%
44%
26%
22%
21%
18%
Twi[er
Mobile adverbsing
Text messaging from retailers
eCommerce website
Display adverbsing for product you previously viewed
Product recommendabon on ecommerce website
Google search results that included pictured product
Online rabngs and reviews
Paper catalog
Email promobon
Online Purchases
How o0en did the following channels influence your online or in-‐store purchase? Percent of respondents who answered “never”
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Price, free shipping, availability and merchant reputaUon influence final selecUon most
47%
38%
35%
33%
29%
24%
13%
10%
Final price including any promobonal offers
Free shipping without condibons
Product in-‐stock and ready to ship
Merchant reputabon
Product reviews
Return policy
Ability to receive rewards/loyalty points
Free shipping with a threshold (i.e. spend $100 to receive free
What were the most important influencers when ulDmately making the final purchase? Percent of respondents who answered “most important”
Device Usage in Holiday Shopping
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Smartphones help shoppers find general info, product previews, prices and use coupons
How oJen did you use your smartphone during the holiday season for any of the following? Percent of respondents who answered “all the 8me,” “frequently” and “some8mes”
54%
50%
49%
46%
46%
45%
45%
43%
42%
39%
39%
36%
Find a store or seek out store-‐based informabon (hours,
Browse websites to figure out what to buy in advance of
Compare prices before a store visit
Get coupons or offers
Compare prices while in the store
Look at product rabngs before visibng the store
Redeem coupons during a store visit
Make a purchase directly on the website
Look at product rabngs while in the store
Scan a barcode while in a store to check the price at another
Make a purchase using a retailer’s app (i.e. Nordstrom,
Use a QR code in search of more informabon (in-‐store, via
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Tablet usage consistently centered on browsing, price comparison, making store connecUons
and involves purchasing
65%
62%
60%
57%
57%
52%
51%
47%
47%
46%
45%
44%
Browse websites to figure out what to buy in advance of
Compare prices before a store visit
Find a store or seek out store-‐based informabon (hours,
Look at product rabngs before visibng the store
Make a purchase directly on the website
Make a purchase using a retailer’s app (i.e. Nordstrom,
Get coupons or offers
Compare prices while in the store
Redeem coupons during a store visit
Look at product rabngs while in the store
Scan a barcode while in a store to check the price at another
Use a QR code in search of more informabon (in-‐store, via
How oJen did you use your tablet for any of the following holiday shopping? Percent of respondents who answered “all the 8me,” “frequently” and “some8mes”
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Tablet usage is much stronger than smartphones from browsing to buying
and involves purchasing
2.94
2.87
2.79
2.73
2.71
2.61
2.56
2.44
2.41
2.4
2.36
2.34
2.54
2.44
2.59
2.26
2.36
2.15
2.41
2.41
2.36
2.24
2.16
2.09
Browse websites to figure out what to buy in advance of
Compare prices before a store visit
Find a store or seek out store-‐based informabon (hours,
Make a purchase directly on the website
Look at product rabngs before visibng the store
Make a purchase using a retailer’s app (i.e. Nordstrom,
Get coupons or offers
Compare prices while in the store
Redeem coupons during a store visit
Look at product rabngs while in the store
Scan a barcode while in a store to check the price at another
Use a QR code in search of more informabon (in-‐store, via
Tablet Smartphone
RATING AVERAGE LEGEND 5-‐POINT SCALE
5 ALWAYS 4 FREQUENTLY 3 SOMETIMES 2 ONCE IN A WHILE 1 NEVER
How oJen did you use your smartphone or tablet during the holiday season for any of the following?
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App usage on smartphones and tablets sUll the minority
Percent of shoppers who made holiday gi0 purchases using a retailer-‐branded app on a smartphone or
tablet this holiday season.
Yes 23%
No 77%
Only 1 in 4 holiday shoppers used branded apps.
53%
34%
17%
17%
13%
9%
8%
Sabsfied with web-‐based shopping experience
Security concerns
Interface not ideal shopper experience
App shopping is too slow
Inferior shopping experience
Search funcbonality not up to par
Forgot I ever downloaded the app
Reasons that the 772 app users surveyed chose not to purchase using an app as the interface.
Privacy Concerns While Holiday Shopping
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Privacy concerns are low: occasional on mobile devices
RATING AVERAGE LEGEND 5-‐POINT SCALE
5 ALWAYS 4 FREQUENTLY 3 SOMETIMES 2 ONCE IN A WHILE 1 NEVER
How concerned were you with privacy while researching and making holiday purchases via the following loca8ons or devices?
2.06
2.02
2.00
1.97
1.94
1.92
1.77
1.75
1.70
1.64
1.58
1.49
Smartphone
Mobile App
Twi[er
Tablet
eCommerce Retail Website
Marketplaces (Etsy, Ebay, Fab.com, etc.)
Personal Computer
Amazon
Store
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Order abandonment rate due to privacy concerns is insignificant
Did you find yourself abandoning a loca8on or device because of privacy concerns during your holiday researching and purchasing?
Answer Options Yes No Do Not Use Store 9% 86% 5% Personal Computer 12% 84% 4% Amazon 9% 81% 10% Google 10% 71% 19% Smartphone 15% 65% 20% Marketplaces (Etsy, eBay, Fab.com, etc.) 9% 62% 29% Mobile App 12% 52% 36% eCommerce Retail Website 9% 49% 42% Tablet 11% 44% 45% Facebook 11% 44% 45% Pinterest 7% 34% 59% Twitter 9% 31% 60%
Important Takeaways
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What Retailers Can Do Now
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• Customize promobonal strategies by demographic. If a large segment of your customers aren’t influenced via social then invest accordingly. Likewise, if your demographic is in a younger age group, keep an eye on how your social metrics are working.
• Catalogs are no longer stand alone channels. They are an important piece of your overall omni-‐channel markeUng strategy that influence both in-‐store and online purchases across all age groups.
• Tablets are the future of shopping. Make sure your website is opUmized for tablet browsing and buying.
What Retailers Can Do Now
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• Strive to understand more about the role of customer loyalty and your brand. This will impact branded app usage. Apps may be more suited to your year round, loyal shopper, not necessarily your holiday buyer.
• Conbnue to invest in on-‐line markebng. Pump up your raUngs and reviews and make sure they are visible and fresh. ConUnue to invest in personalizaUon within your emails for offers, cart abandonment and shipment. All of these omni-‐channel strategies are strong influencers on online and in-‐store shopper behavior.
• While privacy concerns are waning among shoppers, conbnue to build their trust through transacbonal security on your site. Also conUnue to invest in personalizaUon technologies to build trust and loyalty within your customer base and their concerns about privacy will fall by the wayside.
Legal Disclaimer
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