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  • 1. 2013 Retail TechnologySpending ReportCompiled at the 2013 eTail Palm Springs eventBrought to you by
  • 2. **2013 Retail TechnologySpending ReporteTail, now in its 15th year, presents senior-level case studies, panels, workshops androundtable discussions covering the challenges faced in all aspects of multi-channel andonline retail.eTail is focused on providing detailed tactics and innovative strategies during our annualconferences. Gathering insight from our attendee base not only enriches the conferenceexperience, but provides an additional level of benchmarking that may not be obtainedduring regular conference sessions.During Q1 2013, eTail fielded over 100 retailer surveys in order to uncover technologyspending habits from a number of verticals, including but not limited to; apparel, sportinggoods, consumer electronics, travel and hospitality, mass market retailers, as well asspecialty/niche. Where are retailers spending, and why? What insight can be gleaned fromthe research results? We’ve revamped our past surveys and partnered with AT&T in orderto provide deeper insight into these trends.The purpose of this study is to ascertain the technology spending habits,industry trends and gain a future outlook from a sample of cross-industry,cross-vertical retail executives. Respondents were anonymous, and responseswere gathered during the eTail West conference in February of 2013.Twice every year, the organizers of the eTail conference spend 6-9 months(continuously) conducting phone and email surveys with executive-levelretailers from top industry brands. Based on our findings, the majority ofretailers in 2013 will be focused on:• Cross-Channel Optimization• Data and Business Intelligence• Omnichannel Commerce• Personalization• Usability/Testing/UserExperience Enhancements• Conversion Optimization• Email• SEO, SEM• Mobile• Social Media2General Research FindingsPrimary Research Methodology*Table of ContentsIntroduction ........................2Primary ResearchMethodology ......................2General Research Findings....2Complete Survey Results ......3Summary or Conclusions......9Additional SurveyQuestions ..........................10Technology SpendingReference Articles ..............11About eTail ........................12About AT&T ......................122013 Retail Technology Spending Report
  • 3. The charts below outline where respondents arespending externally in terms of solutions in thenext 12 months.Complete Survey ResultsOn a percentage basis, survey respondents are planning to spendbudget in each area in the next 12 months:13Merchandising andVisualizationMulti-ChannelInitiativesPersonalization(website)Web Analytics/DataManagementUsability/Testing/User ExperienceGlobal SolutionsSEMSEODisplay advertisingEmailMobile (apps)Mobile (site design)Social Media(paid advertising)Social Engagement(earned)Online VideoContent Management/eCommerce PlatformCRM Systems,Customer Segmentation,Loyalty Programs58% 4% 33%55% 9% 35%49% 13% 36%40% 5% 47%63% 7% 24%67% 5% 20%45% 5% 43%25% 16% 52%60% 10% 27%60% 11% 23%60% 8% 26%43% 23% 28%66% 4% 28%53% 13% 28%57% 6% 32%32% 23% 38%54% 41%I % of respondents planningto spend MORE in the next 12monthsI % of respondents planningto spend LESS in the next 12monthsI % of respondents planningto spend THE SAMEAMOUNT in the next 12months2013 Retail Technology Spending Report
  • 4. Attendees were asked what their spending decisionsare based upon. They responded as follows.I 60% Display advertisingI 51% SEMI 51% EmailI 49% SEOI 43% Social Media (paid advertising)I 40% Personalization (website)I 31% Online VideoI 31% Web Analytics/Data ManagementI 27% Usability/Testing/User ExperienceI 25% CRM Systems, CustomerSegmentation, Loyalty ProgramsI 25% Multi-Channel InitiativesI 24% Content Management/eCommerce PlatformI 24% Merchandising and VisualizationI 23% Social Engagement (earned)I 19% Moble (site design)I 15% Mobile (apps)I 15% Global Solutionsof attendees said their DisplayAdvertising spending decisionsare based upon an ROI Analysis6050403020100Complete Survey Results60%4Percentage of Spending Decisions That Are Based Upon An ROI Analysis22013 Retail Technology Spending Report
  • 5. 35I 36% Content Management/eCommerce PlatformI 36% Global SolutionsI 35% CRM Systems, CustomerSegmentation, Loyalty ProgramsI 32% Moble (site design)I 31% Online VideoI 31% Multi-Channel InitiativesI 30% Social Engagement (earned)I 27% Usability/Testing/User ExperienceI 25% Web Analytics/Data ManagementI 24% Merchandising and VisulizationI 21% SEOI 21% Social Media (paid advertising)I 19% EmailI 19% Mobile (apps)I 17% SEMI 16% Personalization (website)I 15% Display advertisingof attendees said that their ContentManagement/eCommerce Platformand Global technology spendingdecisions are based upon aManagement Decision36%Percentage Of Spending Decisions Based Upon A ManagementDecisionComplete Survey Results4030201002013 Retail Technology Spending Report
  • 6. 6I 13% Moble (site design)I 11% Mobile (apps)I 5% Usability/Testing/User ExperienceI 4% SEOI 4% Online VideoI 4% Content Management/eCommerce PlatformI 4% CRM Systems, CustomerSegmentation, Loyalty ProgramsI 4% Merchandising and VisulizationI 4% Personalization (website)I 4% Web Analytics/Data ManagementI 2% SEMI 2% Social Media (paid advertising)I 2% Social Engagement (earned)I 2% Multi-Channel InitiativesI 2% Global Solutionsof attendees said their Mobile(site design) technology spendingis based upon Time to Market13%Percentage Of Spending Decisions Based Upon Time To Market4151050Complete Survey Results2013 Retail Technology Spending Report
  • 7. Percentage Of Spending Decisions Based Upon Ease Of Execution5I 15% Content Management/eCommerce PlateI 11% Merchandising and VisulizationI 11% EmailI 11% Social Engagement (earned)I 9% Online VideoI 9% Web Analytics/Data ManagementI 9% Mobile (apps)I 7% Personalization (website)I 6% Social Media (paid advertising)I 5% CRM Systems, CustomerSegmentation, Loyalty ProgramsI 5% Usability/Testing/User ExperienceI 5% Global SolutionsI 4% Display advertisingI 3% Multi-Channel InitiativesI 2% SEMI 2% SEOI 2% Moble (site design)of attendees said their ContentManagement/eCommercePlatform spending decisions arebased upon Ease Of Execution15%71614121086420Complete Survey Results2013 Retail Technology Spending Report
  • 8. 6 Percentage Of Spending Decisions Based Upon CompetitivePressuresI 23% Mobile (apps)I 18% Multi-Channel InitiativesI 17% Moble (site design)I 15% Merchandising and VisulizationI 11% Online VideoI 11% CRM Systems, CustomerSegmentation, Loyalty ProgramsI 11% Personalization (website)I 10% SEMI 9% Display advertisingI 9% Social Engagement (earned)I 7% Usability/Testing/User ExperienceI 6% SEOI 6% EmailI 6% Social Media (paid advertising)I 4% Content Management/eCommerce PlatformI 4% Global SolutionsI 2% Web Analytics/Data Managementof attendees said their Mobile(apps) spending decisions are basedupon Competitive Pressures23%82520151050Complete Survey ResultsThe 2013 Technology & Retailer Spending Outlook Benchmarking Study
  • 9. Summary Of ConclusionsI Over 60% of respondents are planning to spend more in the next 12 months, in the areasof SEO, SEM, personalization, mobile (site design), and social engagement (earned).I The majority of respondents are planning to spend less in the next 12 months on CRMsystems, display advertising and social media (paid advertising).I The majority of respondents are spending the same amount year over year onmerchandising and global solutions.I 60% of survey respondents base their spending decisions for display advertising on an ROIAnalysis. Overall, our attendees tend to make their spending decisions in the majority ofcategories based upon an ROI Analysis, except int the area of mobile site design. Spendingis this area is NOT based upon ROI Analysis.I Less than 36% of survey respondents made overall spending decisions based upon amanagement decision.I Less than 13% of survey respondents made overall spending decisions based upon time tomarket. 12% stated that mobile site design decisions are made based upon time to market.I Almost 25% of respondents make spending decisions for mobile apps based uponcompetitive pressures. Comparatively, only 2% of web analytics/data management solutiondecisions are made based upon competitive pressures.I 15% of content management solutions are made based upon ease of execution. This is thehighest percentage of respondents stating that ease of execution was the primary reasonwhy they purchased certain content management solutions.I PersonalizationI Multi-Channel InitiativesI Email9*The top areas retailers are most likely to spend budget on within the next 12 months are:I Display advertisingI Social Media (paid advertising)I Global Solutions*I ROI AnalysisI Management DecisionI Competitive PressuresThe top areas retailers are least likely to spend budget on within the next 12 months are:The top influencers as for why retailers chose to spend/not spend their budget within thenext 12 months are:*The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  • 10. 23When asked the following survey questions, ourrespondents answered as follows:Additional Survey QuestionsWhat do you see as the biggest growth area in the next year?1The overwhelming majority of those surveyed answered that mobilewould see the most growth. This was also a trend noted by eTail conferencepresenters, as mobile was the mostly consistently referenced growth area.What % of your budget do you spend on search (SEM) andsocial media?4When asked, “What are your top four priorities in terms oftechnology enhancements?” the top answers were as follows:When asked, “How are you using social media?” respondentsanswered as follows:On average, respondents indicated that they spend more on search, andare less likely to spend on social media.Engagement was the reason noted by survey respondents. In contrast, generatingsales is the least likely reason they are using social media.I CommerceI SocialI Branding5When asked, “What are your top four priorities in terms oftechnology enhancements?” the top answers were as follows:I MobileI CRMI VideoI SpeedThe 2013 Technology & Retailer Spending Outlook Benchmarking Study10I 76% EngagementI 34% PRI 30% AdvertisingI 29% Customer ServiceI 20% Sales
  • 11. Technology SpendingReference ArticlesThe practice of “showrooming,” or viewing an item in a retail store and then buying it online, has brought the e-commerce threat directly to bricks-and-mortar retailers.Mobile raises the showrooming threat to a new level since price comparisons are available to shoppersimmediately, as they make decisions and browse e-commerce websites in stores.In a new report from BI Intelligence, we analyze mobile showroomings influence on retail, examine the variousdifferent types of consumer behavior that make up showrooming, look at what the big retailers are doing tocombat showrooming, and identify the five broad strategies that will help brick-and-mor ter retailers win businessfrom showroomers.Heres a brief overview of the impact of showrooming:It has a massive impact on every day sales: Deloitte Digital believes smartphones influenced $159 billion in U.S.store sales over the course of 2012 or 5% of the total, and will influence $689 billion of store sales in 2016.Holiday season sales are particularly impacted by showrooming: IDC, a global market intelligence firm, predictedthat smartphone use influenced between $700 million and $1.7 billion in U.S. holiday season retail sales in 2012.Fifty-nine million U.S. shoppers will use their smartphones to showroom in 2013.Specific retailers, such as JC Penney, suffer more from the practice: A recent study revealed that JC Penney —which just announced a disastrous 32% decline in same-store sales for the fourth quarter of 2012 — is at riskfrom showrooming because showroomers visited its locations 14% more frequently than the average U.S.shopper did in January 2013. Other chains like PetSmart and Kohls had even worse results.Dramatic responses underscore the threat: U.S. electronics retailer Best Buy announced last month that startingMarch 3, 2013, its stores would match the prices of 19 major online competitors, including Apple, Amazon, andBuy.com. Target also has a price-matching policy in effect.Taken From Business InsiderRetailers are spending, or planning to spend, on tablets and mobile devices for their employees and on tools, apps,and services that consumers can use within stores. If you are a small retailer, look for ways you can leverage yourcustomer relationships to keep in conversations.The smallest retailers are showing the greatest desire to purchase POS hardware (25 percent) and software (29percent) for the coming year. As with the past couple of years, mobile looms large, as nearly one-third of retailers (allsizes) are looking to adopt tablets or non-rugged handhelds in the next 12 months.Even grocery and food stores are getting into the mix: 38 percent of them plan to purchase tablets in the next 12months.Taken From Forbes11 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  • 12. About eTaileTail is a conference series held bi-annually in the United States, as well as internationally,offering best practices and tactical strategies presented by retail innovators from everyfacet of the industry. It is the premier multi-channel and online retail conference dedicatedto supporting the growth of the retail industry through high-level networking andextensive thought leadership.WBR, the creator of the eTail conference series, is an independent research organization,devoting 100% of its resources towards executing industry-leading conferenceseTail is Made by Retail for Retailers. The event content, format and speaker faculty wereput together by not only months of research with retailers from every part of the industry,but also steered by our retail Advisory Board of leading e-commerce and multi-channelexecutives. eTail responds to the immediate needs of the industry, helping attendeescapitalize on every single growth opportunity.As many retailers have learned, the eCommerce industry never allows for complacency.Trends have been combining to create an explosion of innovation and investment in theonline retailing channel. The result is a dynamic and competitive selling environment thatwill challenge every online seller to satisfy and thrill online shoppers – before anotherretailer does.If you haven’t already,please visit www.etaileast.com for details on the next 2013conference. Remember to join the eTail community and receive additional free content onLinkedin, Facebook, YouTube, Twitter and The eTail Blog.About AT&Twww.ATT.com/ecommerceWith the growth of video, personalization, social networks, eCommerce, eLearning andmobile users, managing online interactions requires high performance and scale. AT&Tenables enterprises to effectively manage, package, and distribute their online contentacross a wide range of networks to the computer, the television, and mobile computingdevices, turning browsers into buyers.12 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  • 13. Why should youattend eTail?Retailers have to be smarter about their businesses considering today’s competitivelandscape. And that’s why eTail is here, the leading practicioners conference for theonline and multi-channel industry. eTail delivers the conference experience you arelooking for, to ensure your business is positioned for growth.1. Group Learning And Retailer Networking Stay At The Forefront.The “X Factor” to every conference experience is about your retail peers interactingmeeting you on a daily basis. eTail attendees come to the event to not only learn- butto meet each other.To figure out a way around an issue they’ve been struggling with.Many attendees say these interactions are the most valuable at an event- which iswhy we have peer to peer networking every day of the conference.2. Multiple Options To Fit Your Needs.There are a lot of conferences out there.That’s why we dont just rely upon ourexperience to build the content. We contact almost every single past attendee andask the difficult questions. What they like. What they don’t. What content matters. Withdiverse content, curated by retailers, you can be assured to have detailed actionableinsights that you can immediately take back to your peers. Or you can bring them withyou- there is something for everyone.3. Practical Sessions That Provide Focused TacticsIn order for you to justify your registration, we have to make sure we deliver contentthat you need. So we keep the topics specific. Speakers focus on the business caseand core concepts, and provide real-life case studies and the data to back them up.It’s easy to secure your spot at our next conference. Simply visit our websitewww.etaileast.com or call 1.888.482.6012.CLICK HERE to view the eTail East Conference Agenda*13 The 2013 Technology & Retailer Spending Outlook Benchmarking Study