Berkshire Digital - The Future of Ecommerce: 2013 and beyond


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James Gurd of Digital Juggler presented to Berkshire Digital on 17th January on the Future of Ecommerce. Sponsored by Cranberry Panda, the event was a great success. The accompanying podcast can be downloaded by visiting

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Berkshire Digital - The Future of Ecommerce: 2013 and beyond

  1. 1. In association with 8 Key Trends for Retail E-commerce in 2013 Presented by James Gurd Owner, Digital Juggler Thursday 17th January, 2013
  2. 2. 8 Key Trends for 2013 “2013 will see a greater shift in focus towards mobile & customer – understanding that user experience drives ROI and that not being mobile friendly in a multi-device world is like waving a white flag” 4 for Mobile  1. Responsive design vs. Device Detection  2. Mobile showrooming  3. Mobile marketing budgets increase  4. In-store Wifi ubiquity 4 general trends  5. Delivery/Returns battleground  6. Attribution modeling improves  7. Content gets an ROI  8. Subscription & rental e-commerce growth
  3. 3. Part 1 –Mobile Trends
  4. 4. Why does mobilematter? “Not having a mobile strategy is like closing your site for business one day a week” Multiple uses for mobile Device fragmentation Mobile search  There are >6,500 different models of mobile device Local information  Feature phone In-store price comparison  Smartphone  Tablet Mobile payment  Variety of screen resolution is Check-ins increasing e.g. iPad Mini Social sharing
  5. 5. More mobile devices beingshipped than PCs
  6. 6. Mobile growth is global
  7. 7. The Internet can help save thehigh street – The Endless Aisle 80% UK shoppers have reserved  Always on commerce: products online for in-store collection in 2012 (up from 74% in 2011)  Store finders  Vouchers 44% shoppers always research online before buying offline  Buy & collect  Local search 43% use mobiles on the move to compare prices/read reviews (up  Click to call from 19% in 2011)  In-store WiFi Useful reading: Econsultancy‟s guide  QR codes  Kiosks & Tablets  Pop-up shops  Interactive mirrors
  8. 8. Trend 1 – Responsive Design vs.Device DetectionIn 2013 more e-commerce retailers will use responsive design (using eitherCSS or JavaScript) or device detection to tailor page content based onresolution of browsing device. What are the benefits of responsive design?  Tailor content layout based on device type  Reduce complexity of scrolling for visitor  Improved user experience What are the benefits of device detection?  Customise the type of content shown based on the device type  Focus features/functionality based on likely intentions of visitors  Remove page elements that don‟t work on specific devices  Add elements to take advantage of device capabilities e.g. touch-friendly CSS for touch screen  For GPS enabled handsets, can pick up user location via GPS instead of asking people to fill out forms
  9. 9. Obvious, right?So why aren‟t these well-known brands doing it?How their sites look on a small tablet (480x640)
  10. 10. Example: benefit ofresponsive design
  11. 11. Example: benefit of responsive design
  12. 12. Example: device detection toimprove targeting Promoting relevant apps Detect model and OS of phone Make smarter choices for targeting services & content If visitor is using an iPhone, don‟t offer Android version of app – promote the iOS version.
  13. 13. Trend 2 – Mobile showroomingIn 2013 more shoppers will use stores to „try on‟ merchandise, then turn totheir mobile to shop around online or access more information beforecommitting to a purchase.Why? People are used to using their mobile phones to find more information Can enable social sharing and voting In-store WiFi is making web-based interaction more comfortable Not everyone wants to buy in-store and carry out – arranging home delivery can be more convenient
  14. 14. What will we see more of?Brands experimenting with ways to increase in-store engagement and usethe store environment to drive sales offline and online. The much maligned QR code Interactive mirrors Interactive content from product Suppliers Augmented reality NFC tags – when will Apple join the party? “27% showrooming shoppers will likely make a purchase online using their smartphone or tablet while they are still out shopping” Accenture Holiday Shopping Survey, October 2012 Further reading:
  15. 15. Example: Interactive mirrors  Sportsgirl, Australian retailer, providing interactive mirror for multi-channel shoppers Interactive mirror at Republic‟s Westfield Stratford City store.
  16. 16. Trend 3 – Mobile marketing budgetincreasesIn 2013 a greater % of the marketing budget will be invested in mobilemarketing campaigns. Q4 2012 – mobile drove 20% of clicks and 15% paidsearch spend (spend up on Google & Bing).Why? More and more online shoppers are using multiple devices Mobile is a key touch point in the buying cycle even if it‟s not the last click Mobile is essential for multi-channel retail Geotargeting can drive local conversion Mobile search is a big growth area + retargeting
  17. 17. Trend 4 – In-store Wifi & EnhancedServicesIn 2013 more retailers will use technology, such as WiFi, to enhance the in-store customer experience and increase the opportunity for data collectionand targeting.Why? More and more online shoppers are using mobile devices in-store 43% in UK said they used mobile for price comparison and product reviews (up from 19% in 2011) Can be used to capture valuable customer data 74% happy for retailer to send promotion text or email while using in-store WiFi (OnDevice Research) 3G connections can be unreliable – WiFi enhances experience Useful reading – Econsultancy blog on in-store WiFi
  18. 18. Example: mCasino fromGroupe Casino Making shopping easier  App for use in local grocery stores  Pushes deals & promotions  App knows product availability based on which store the customer is in  Link with loyalty cards to personalise promotions  The app is able to collect customer data – frequency, purchase history, repeat items etc.
  19. 19. Part 2 –General Trends
  20. 20. Trend 5 – Delivery battlegroundIn 2013 more ecommerce retailers will focus on improving their end-to-endorder management process to increase customer satisfaction with deliveryand after-sale care.Why? “The great online delivery scandal” – IoS Several issues/opportunities to address:  Extended returns period – not just statutory  Payment-on-dispatch  Online order tracking  Text status updates  Alternative delivery methods  Free returns  Easy customer service support – web / phone / email
  21. 21. Did your Christmas gift order arrive on time?59% said they would not shop with a retailer again if they failed todeliver on time. Survey of 1,000 UK consumers
  22. 22. Example: Wiggle making lifeeasy for returns 365 day returns policy for unused/undamaged items Return via Collect+ Generate and print online returns label Online FAQ that is referenced in the dispatch note If faulty, refund up to £25 carriage, if over this arrange for collection via Customer Services.
  23. 23. One step further: Zappos Free returns for all domestic orders (US) Pre-paid UPS domestic or USPS domestic label 365 day returns policy Self-service online If you order on 29/02 in a leap year, you have until 29/02 of the next leap year! Credit automatically to card you paid on The flowers story:
  24. 24. The good: House of Fraser Buy online, collect in store. Clear communication:  Order confirmation email  Dispatch confirmation email  Order ready confirmation email  Order collection confirmation text Returns via store or post In-store staff understand the policy
  25. 25. The good: Maximuscle Text message confirmation day before delivery Can re-arrange delivery via text reply Text confirmation of new delivery date + online order tracking reference 1hr delivery window – excellent Provides name of carrier Even includes the name of your driver!
  26. 26. The bad: Maillife Inaccurate online order tracking No link to courier live delivery information Bare minimum 7 days „cooling off‟ period Up to 28 days for „unsatisfactory‟ goods Only standard delivery option – up to 7 working days Account log-in doesn‟t always work – cookie issue
  27. 27. Smaller businesses cancompete: Accessories Online
  28. 28. Trend 6 – Attribution modellingIn 2013 more retailers will use analytics tools to understand channelinteraction to help them improve the efficiency of marketing investment &campaign planning.Why? At basic level multi-channel funnels are easy to identify using basic analytics tools What is missing is intelligent modelling to predict the impact of changes to the marketing mix Data interrogation will enable retailers to assess impact of changes to marketing focus Attribution analysts will be worth their weight in gold Added value in multi-channel environment – impact of offline / online marketing on each other
  29. 29. The basics – assistedconversions
  30. 30. Drilling down into the data
  31. 31. What questions can it answer?The enticing…. How does changing my keyword targeting via PPC affect my overall ROI? What is the best way to use retargeting to support my SEM? Which email segments are contributing the most to my social media channels?The downright adrenaline pumping…. How does my offline PR drive online activity? How is my digital marketing affecting local stores? Does social media contribute to lifetime value & ROI? What content is contributing to my KPIs?
  32. 32. Trend 7 – Content Marketing qualitynot quantityIn 2013 marketers will spend more time & effort integrating content intotheir overall marketing plan, with a focus on quality rather than quantity.Why? Brands are built around content – content communicates values, personality etc Content is the glue between people and products Major impact for SEO – Panda update started the ball rolling for „thin‟ content to be down graded“In 2013, I predict that marketers will be forced to go outside oftheir comfort zone to find scalable ways to produce content thatcan fuel their marketing programs. Some may try outsourcingcontent creation outside of their marketing teams. Some may gooutside their organizations walls to find content to curate.Others may attempt to crowdsource content creation amongtheir user base.”Pawan Deshpande, Founder & CEO, Curata
  33. 33. Build from scratch Create a bespoke content marketing plan aligned with overall marketing plan. Create content in- house or outsource to specialists. Example – Red Bull Crowdsource Tap into customer demand. Use established networks like Quora, LinkedIn, Twitter, Faceboo k etc.“As the demand for more Example: Volvo content becomesprimary to all corporatesocial, SEO, and demand-generation Buy-inobjectives, CMOs will startto look at the "build vs. buy" Tap into existing content pool,scenario of content buying talent and/or contentmarketing” assets that are ready to use. Joe Pulizzi, Example – Google & Zagat Founder, Content Marketing World Further reading from Econsultancy:
  34. 34. Right down to the microcopyTweekscycles – Cove STD Frameset Crumpler – The Gimp 13” Laptop Wrap
  35. 35. Trend 8 – Alternative commercemodelsIn 2013 more websites will spring up that create communities by offeringalternative e-commerce models. Two key models are subscription & rentalcommerce. This is already happening – unsurprisingly the US is leading… Taps into people‟s interests & passions and removes the need to make buying decisions Using expert knowledge to deliver relevant products Example - Birchbox:  Beauty and lifestyle products  Free shipping on each order  Loyalty scheme with points for each purchase made  Website is also provides standard e-commerce shop
  36. 36. Other  Create your fashion profile  Each month celebrity stylists help choose your collection  You can choose which products to receive  No commitment & free two-way delivery/returns.
  37. 37. Other  Helping you manage the cost of shaving  Pay a monthly fee  Can upgrade/downgrade at any time to different razors  Handle is free, you pay for the blades
  38. 38. Other examplesThe Thing Quarterly  Selling unique content  Object based periodical  Produced by artists, writers, musicians or filmmakers  The object is hand-wrapped and delivered to subscribers
  39. 39. Examples from the UKAble & Cole  Sign-up and select a food box  Pay a monthly fee  USP – fresh food from local family farms  Don‟t have to be in – they will leave in a safe spot  Green angle – boxes are re- used
  40. 40. Examples from the UKGraze  Sign-up and select a food box  Weekly deliveries  First box half price to encourage sign-up  Health & nutrition based food  All boxes fit through normal sized letterboxes!
  41. 41. And a New Year bonus!Trend 9 – Local curated commerceWe will see more websites catering for local audiences with relevantproducts, offers & content – acting as aggregators for local brands. Already popular in the US and likely to spread Tapping into the innate desire to be part of your local community Creating a retail proposition by aggregating the brand power of local businesses Example – Scoutmob in the US:  Mobile app for iOS & Android  Local mobile deals  Local curated content Also likes of – taking LBS to next level, more than just a check-in like Foursquare, Gowalla etc
  42. 42. Scoutmob
  43. 43. For crystal ball addicts… E-commerce Predictions for 2013 - Shipwire Master list of 2013 predictions from industry sources - Econsultancy Digital Marketing & Ecommerce Trends 2013 – CEO, Econsultancy Top mobile commerce prediction for 2013 – Mobile Commerce Daily 14 predictions for digital marketing in 2013 – Mindshare 4 best practices for digital marketers in 2013 – Mashable
  44. 44. the end… Thank You E: M: +44 (0) 7794 539 399 W: T: @jamesgurdKeep an eye out for #ecomchat – weekly industry ecommerce chat – new topic every week