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2012 07 ijl2012_seminar_diamond-club-brunch

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A summary of Digital Trends for an invited audience at the International Jewellery Trade Show, London, September 2012.

A summary of Digital Trends for an invited audience at the International Jewellery Trade Show, London, September 2012.

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  • 1. Digital Trends For Retailers Diamond Club Business Brunch IJL – 3 September, 2012 Eddie Prentice – Digital Marketer
  • 2. Digital Trends Agenda • Mobile • Social • eCommerce • Conclusions Eddie.Prentice@btconnect.com
  • 3. Mobile Eddie.Prentice@btconnect.com
  • 4. Current Mobile Technology • 2G = voice and text • 3G = 2G plus internet services • 4G = faster and better coverage than 3G (not yet launched in UK) Eddie.Prentice@btconnect.com Current mobile technology is know as “third generation” (3G) Roll-out of 4G services is coming soon! Enabled by the release of SPECTRUM. Expected to reach the UK in 2013.
  • 5. Mobile Network Operators There are 4 UK mobile network operators (MNOs): • Vodafone • Telefonica O2 (known as O2) • Hutchison 3G (known as Three) • Everything Everywhere (Orange and T-Mobile networks that merged in 2010) These four MNOs each have different spectrum holdings that were allocated to them at previous auctions. Many more mobile service providers in the UK Virgin Mobile, Tesco Mobile and TalkTalk offer mobile service packages through the four networks but do not have spectrum holdings. Eddie.Prentice@btconnect.com
  • 6. About Spectrum • Spectrum refers to the range of frequencies in which a signal can be transmitted • Spectrum between frequencies 300MHz and 3GHz is the “sweet-spot” for mobile operators – Suitable for mobile communications and broadband • Spectrum is allocated by means of licences, overseen by Ofcom, the competition authority Eddie.Prentice@btconnect.com
  • 7. Spectrum Why Is It Important? Releasing Spectrum for 4G services will mean • Faster and better coverage capabilities than 3G • Enhanced internet services for users • Continued growth of the smartphone market
  • 8. Mobile Facts Eddie.Prentice@btconnect.com
  • 9. Mobile Facts 26 million smartphone users in the UK Source: Comscore April 2012 69% of smartphone owners currently own their first smartphone Source: Our Mobile Planet May 2012 Eddie.Prentice@btconnect.com
  • 10. Mobile Usage Its Not About Phone Calls • A third of smartphone owners prefer using it for Web browsing or e-mail even when they are near PCs. • Over the past two years, iPhone users have spent 45 percent more time e-mailing on their smartphones and 15 percent less time e-mailing on their PCs. • More than 60 percent of smartphone users would consider buying goods with it or have already done so. • As more products are distributed over mobile channels, greater competition will raise the importance of design, ease of use, and new mobile payment options. Source: McKinsey Research Eddie.Prentice@btconnect.com
  • 11. Mobile Site Design Basics Eddie.Prentice@btconnect.com
  • 12. Mobile Sites Home Page & Navigation Standard e-commerce websites can afford to dedicate a lot of space to – graphics – merchandising – large product photos – navigational features Eddie.Prentice@btconnect.com Mobile screens are much smaller and need a different approach.
  • 13. Mobile Site Design Basics • Minimise menu and navigational items • Vertical lists work better than horizontal menu bars • Links/buttons should be large enough and widely enough spaced to view and click on or touch. • Search box is very important given a more limited link navigation – Enable filtering of results – Include price in results • Minimise form filing Eddie.Prentice@btconnect.com
  • 14. Sign In Keep it Simple Eddie.Prentice@btconnect.com
  • 15. Navigation Use Expanding Lists Eddie.Prentice@btconnect.com Marks & Spencer
  • 16. Mobile Site Home Page & Navigation Regular site Mobile site Mobile sites view better and download faster
  • 17. Amazon $1billion in Mobile Sales Eddie.Prentice@btconnect.com
  • 18. Mobile Touchscreens Design Tips • The size of links. Links need to be big enough for users to click? • Space between links & action buttons. Allow enough space to allow users to easily click. • Font sizes. Make it easy to read on a small screen. • Icons. Don’t take up too much room - may be confusing for users who do not understand their meaning. Make icons easy to understand or include text descriptors • Use single pages rather than multiple tabs. Easier to scroll down a long web page than open multiple tabs. Eddie.Prentice@btconnect.com
  • 19. Mobile Site or App Eddie.Prentice@btconnect.com
  • 20. Mobile Site or App? • Customers are not using these channels in a mutually exclusive manner • It’s not an ‘either / or’ choice • Heavy app users are also the most frequent mobile internet users • Mobile apps and mobile web will continue to co-exist going forward. • The best strategy is not “either/or …” but “both” Eddie.Prentice@btconnect.com
  • 21. Links of London iPhone App Eddie.Prentice@btconnect.com
  • 22. Links Of London iPhone App Eddie.Prentice@btconnect.com
  • 23. Not Just About Online Sales Store Locator
  • 24. Tiffany & Co One App Not Enough Tiffany has an App to promote the brand and one specifically called Engagement Ring Finder Eddie.Prentice@btconnect.com
  • 25. De Beers Bridal App Single theme: Bridal - Focus on customer needs rather than product Good use of action phrases – Useful navigation options Eddie.Prentice@btconnect.com
  • 26. M&S Checkout • Mobile users do not want to invest time in entering lots of personal details. • Make registration optional • Minimise form fill – Add shortcuts (postcode lookup) – Pre-populate billing address • PayPal payment option may avert security concerns Eddie.Prentice@btconnect.com On entering Checkout, users forced to register. NOT best practice
  • 27. M&S Checkout Users forced to put in too much detail, including date of birth Eddie.Prentice@btconnect.com
  • 28. Debenhams Checkout Debenhams offers a much slicker checkout process – Allows guest registration – Postcode finder – Assumes same address for billing & delivery – Pages short and quick to load Eddie.Prentice@btconnect.com
  • 29. Topshop Checkout • Very fast Checkout • Guest registration • Only requires delivery address & card details • Short pages (quick to load) • Pulls up numerical keypad to enter phone number Eddie.Prentice@btconnect.com
  • 30. Mobile Conclusions Eddie.Prentice@btconnect.com
  • 31. Mobile Commerce Challenges Expressed reasons for lack of progress with mobile commerce: – Lack of internal knowledge and skills – Lack of time – No internal buy-in – No specific budget for mobile – High cost of implementation – Inability to integrate with internal systems – Fear of ever changing landscapey Eddie.Prentice@btconnect.com
  • 32. What should you do now? 1. Plan ahead – start researching: – Monitor what the big retailers are doing – Download competitor Apps – Visit competitor websites 2. Feel the experience as a mobile consumer: – Use Facebook / Twitter – Make online purchases from your mobile – Download a QR code scanner 3. Start talking to suppliers so you know the issues and the costs. You’ve got time to deal with this but the sooner you start the better prepared you’ll be. Eddie.Prentice@btconnect.com
  • 33. Social Media Eddie.Prentice@btconnect.com
  • 34. Social Media What’s the Point? Grow customer engagement and build brand loyalty • Personalise your brand • Enable customers to identify with your brand Eddie.Prentice@btconnect.com
  • 35. Social Media UK Statistics • 31.5 million Facebook users in UK (over 50% of UK population) • 97% students use Facebook • Facebook accounts for 16% of all time spent online in the UK • 45% students use Twitter • 25% of consumers have a Twitter account Eddie.Prentice@btconnect.com
  • 36. Social Media Brand Engagement By Age Source: Fishburn Hedges, via Econsultancy, May 2012 Eddie.Prentice@btconnect.com
  • 37. Facebook Eddie.Prentice@btconnect.com
  • 38. Facebook Fans Top 20 Source: eDigitalResearch Aug 2012 Eddie.Prentice@btconnect.com
  • 39. Facebook Timeline • On 30th March 2012, Facebook switched all existing brand pages to its new ‘Timeline’ format • Replaced the Wall with a more visually appealing format. • In the past, the emphasis for Facebook marketers was on custom apps and landing pages, which could easily be set as the default landing page for any or all visitors. • The new Timeline format means that pages are now limited to a maximum of 12 apps. Eddie.Prentice@btconnect.com
  • 40. Facebook Two Main Images 2. Profile Picture 1. Cover Photo 1. Cover Photo Chose a unique, custom image which represents your brand 2. Profile Picture Clear identifiable image that is recognisably your brand such as your logo. It will be used across Facebook as a thumbnail image.
  • 41. Facebook Apps Apps - Up to 12 apps allowed. - The first four are always visible, so place your most important content here. - Other apps can be accessed using the drop-down button at the right of the page (3 further Apps for Links Facebook page).
  • 42. Facebook Timeline - You can extend your timeline to cover your entire history - Page managers can add ‘Milestones’, depicting significant events - Assign any date to pieces of content you upload, add pictures, video and text from the past - The purpose is to present your brand identity clearly to new visitors
  • 43. Facebook Best Practice • Try and post every day – don’t forget weekends. This is an active time for many Facebook users • Focus on engagement, not sales – ask questions, offer tips, share interesting content links, respond to questions • You can sell but get the balance right e.g. 5 posts, one sales message and 4 helpful content posts (80/20 rule) • Have calls to action – tell them to like, comment, watch (and why). • Make it entertaining or fun
  • 44. Like Our Page Hint Hint Click on Red Bull App
  • 45. Like Our Page Hint Hint Arrows in graphic point towards Like button. No need to be subtle.
  • 46. Liked “Now Watch This”
  • 47. Liked? Now Share
  • 48. Welcome to Topshop
  • 49. Sign Up To Style Notes
  • 50. Sign Up To Style Notes
  • 51. Facebook Engagement Tips • Shorter posts (less than 80 characters) get higher engagement rates than posts longer posts. • Brands that posted (or scheduled posts) outside of business hours showed engagement rates. • Engagement rates tend to be higher on Thursdays and Fridays compared with other days of the week. • Engagement rates 18 percent below average on Saturdays. • Fans are more likely to engage with “events” and “winning” than with “contests” and “promotions.” • Posts that end with a question result in higher engagement rates than those that don’t. • Avoid the question “Why?” - “Where?”, “When?”, “Would?” and “Should?”, result in higher engagement. Source: Facebook Blog
  • 52. Twitter Eddie.Prentice@btconnect.com
  • 53. Brands Followed For Offers, Discounts & Updates Why do you follow brands on Twitter? Eddie.Prentice@btconnect.com Source: Econsultancy
  • 54. Twitter Followers Top 20 Source: eDigitalResearch Aug 2012 Harrods & Selfridges in top 5 yet not in top 20 on Facebook. Eddie.Prentice@btconnect.com
  • 55. Twitter Responding to Negative Comments How to deal with the negatives? • Respond quickly • Apologize / empathize • Make it easy to communicate (move it public to private - DM, Email, Phone) • Be human – no corporate speak • Put things right – whatever it takes • Offer an incentive to buy again
  • 56. Instagram Eddie.Prentice@btconnect.com
  • 57. Instagram Brand Uptake Luxury brands are leading the charge on Instagram - Burberry, Tiffany & Co., Hermès, Gucci, and Armani use Instagram's visual format to drive product engagement. Eddie.Prentice@btconnect.com
  • 58. ASOS on Instagram - Posts images of latest ranges and behind the scenes views - Asks followers to post images of themselves sporting a particular look
  • 59. Selfridges on Instagram - Posts images of products and displays from its stores - Asks questions about its followers fashion preferences
  • 60. Tiffany on Instagram Attracted 118,000 followers by posting images of its products and New York stores.
  • 61. Burberry on Instagram - Originally showcased products but now photos around London - Now using Instagram to position Burberry as a cosmopolitan, British brand - Also, featured behind the scenes look at launch of new range, presented as an invitation i.e. building network with exclusive content - Now over 500,000 followers
  • 62. Pinterest – The virtual Pinboard Eddie.Prentice@btconnect.com
  • 63. Pinterest John Lewis • Features a wealth of John Lewis products – why not just visit website? • Misses the point of Pinterest – identification with the brand, not product promotion • Result: just 486 followers Eddie.Prentice@btconnect.com
  • 64. Pinterest Links of London “Regularly liking and pinning other users’ images gains extra exposure for your brand account and is invaluable for building a bigger following.” – Econsultancy, July 2012 Links of London: “0 Likes” “227 Followers” Eddie.Prentice@btconnect.com
  • 65. Pinterest Kate Spade Kate Spade re-pins and likes others content. 79,364 followers – has become a reference point for trends and styles, doing things “colourfully” Eddie.Prentice@btconnect.com
  • 66. Pinterest Fears & Khan Antiques/design gallery – not a big brand like John Lewis yet more followers and many more “Likes” Eddie.Prentice@btconnect.com
  • 67. Pinterest Ikea If you are going to show your own products, make sure you provide links back to your website. Ikea’s “True Blue” Pinboard is very eye catching, showcases their products with great images but then no link to website! This space can be used for a website link Eddie.Prentice@btconnect.com
  • 68. Pinterest 9 Tips for Marketers 1. Don’t just blow your own trumpet - completely misses the point of social media. 2. Let others contribute - allow other users to pin content to some of your boards. They will share the board with others. Be selective to avoid spammers. 3. Update your boards on a regular basis – to keep customers engaged you have to give them new content on a regular basis. 4. Use eye-catching images (or don’t bother) – large, hi-res, colourful. You want to inspire others. 5. Add links to your images - when you do pin your own product make sure to link back to your e-commerce site. 6. Be wary of copyright infringement - If in doubt don’t pin it. Credit images – you are unlikely to get sued if you send traffic to the copyright owner 7. Don’t include prices or logos – these images won’t get repinned. Just link back to your website. 8. Make pins and pinboards searchable - use keywords in the descriptions so users can find them when searching the site. 9. Add a Pinterest share tab to your website Eddie.Prentice@btconnect.com Ref: www.econsultancy.com
  • 69. Virgin Atlantic Consistent Customer Experience
  • 70. Reviews & Ratings Eddie.Prentice@btconnect.com
  • 71. Ratings & Reviews No Longer Optional The views of your peers carry greater weight than the message of the brand
  • 72. TripAdvisor Reviews
  • 73. Negative reviews don’t necessarily have more weight than positive reviews. They give authenticity to positives.
  • 74. Who You Are Makes A Difference Source: Reevoo, June 2011 54.2% of UK consumers say a reputable retailer is important when shopping online
  • 75. Reviews Still need convincing? • 87.3% of UK consumers sometimes or always read reviews before purchasing. • 86.9% will not purchase a new product before reading the impartial opinions of owners. • 78.2% of UK consumers are more likely to buy products with good reviews • Almost half of UK consumers have written a review. Source: Reevoo, June 2011
  • 76. Internet “Splinternet” • Explosion of devices and networks has turned the internet in to the “splinternet” • New fragmented reality • More complex to deliver a consistent customer experience Make a plan How? What? Who? Where? Eddie.Prentice@btconnect.com
  • 77. How? What? Who? Where? Forrester’s “Digital Customer Experience Strategy” Eddie.Prentice@btconnect.com
  • 78. eCommerce Eddie.Prentice@btconnect.com
  • 79. eCommerce Why It’s Important? • 20% shoppers spend more than half their income online • 40% of UK consumers shop online at least once a week • 52% research purchases solely online • 40% start their search for all purchases online Source: PricewaterhouseCoopers / Reevo, June 2011
  • 80. Olympic Ticketing Tickets sold out in spite of the website not because of it
  • 81. Olympic Ticketing Buyers persevered because there was no alternative. This is not the real world. Website usability is critical.
  • 82. Mega Drop-down Menus Most major retailers now have Mega drop-downs
  • 83. Ernest Jones Mega Drop-down Menu
  • 84. Mega Drop-downs Pros and Cons Pros • Reach lower levels of navigation with fewer clicks • Offer different paths to the same product/brand • Filter the customer’s product selection, saving clicks • Merchandising - offer the most popular at top and on the left • Works well with horizontal navigation bars Cons • Drop-downs can be very difficult to use on mobile devices • "Paradox of Choice" - slows the process with greater complexity • Technical issues - code that behaves differently depending on browser • Can be difficult for visitors to scan and make sense of it
  • 85. Mega Drop-downs Tips • Use headings • Use columns • Showcase your best sellers • Keep it short - don’t extend off page of small screen • Add a drop shadow or border to make it stand out on page • Test it in a range of browsers • Consider using the full width of the page • Use images and icons • Speed - Comes up instantly on hover and disappears when mouse is moved away Ideas for improving mega drop-down usability
  • 86. Mega Drop-downs M&S M&S has many best practice features of a mega-drop-down
  • 87. Abandoned Shopping Carts Reasons Source: Comscore / Entrepreneur.com Shipping related issues figure in 3 of top 5 reasons people abandon shopping carts
  • 88. Shipping Time Cart Abandonment Source: Comscore / Entrepreneur.com The longer the delivery time the higher the abandonment rate
  • 89. Checkout What Shoppers Want Source: Comscore / Entrepreneur.com The top 2 options people want to see at Checkout relate to shipping & delivery date
  • 90. Checkout “NO” to account creation ASOS reduced cart abandonment by 50% when they took the account registration process out of their Checkout
  • 91. ASOS First Checkout Page Before & After Form improved for existing and new customers OLD NEW
  • 92. ASOS Checkout Good Practice Visible FREE returns and FREE next day delivery Products images reassures correct product has been selected Transparent delivery costs Visible and reassuring payment button at top and bottom Easy to see “Change Details”
  • 93. Trust symbol Progress Indicator Useful Information specific to the field Clear primary call to action
  • 94. Manual address entry option - postcode doesn’t always work Manual Address Entry
  • 95. Tailored Payment Fields depending upon your chosen card Clicking on radio button amends field options
  • 96. Ability to confirm or edit your order before placing it
  • 97. Conversion Rate Eddie.Prentice@btconnect.com
  • 98. Conversion Rate by Device Source: Monetate Aug2012 Eddie.Prentice@btconnect.com Tablets convert better than smartphones
  • 99. Conversion Rate by Traffic Source Source: Monetate Aug2012 Search is second only to Email in terms of sales conversion
  • 100. Conclusions Eddie.Prentice@btconnect.com
  • 101. Mobile is changing the digital marketing game but it isn’t changing the rules If you haven’t already done so ... ... start thinking now about integrating a mobile strategy in to your marketing plans … Eddie.Prentice@btconnect.com
  • 102. Conclusion Plan It Don’t Leave to Chance 1. Mobile - Research your competitors - Feel the experience as a mobile consumer - Start talking to suppliers so you know the issues and the costs 2. Social - How? What? Who? Where? 3. eCommerce - Reviews & ratings no longer optional
  • 103. IJL Seminar – 3 September, 2012 Eddie Prentice – Digital Marketer Email: eddie.prentice@btconnect.com Digital Trends For Retailers Diamond Club Business Brunch