Holiday shopping preferences 20 nov 2013

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Holiday shopping preferences 20 nov 2013

  1. 1. Holiday Shopping Preferences 2013 Rusty Warner, SVP Marketing November 20, 2013
  2. 2. Introductions Rusty Warner Senior Vice President of Marketing SDL Campaign Management & Analytics @rustywarner
  3. 3. Agenda • About SDL & Customer Experience Management • Survey Background and Methodology • Holiday Shopping Preferences – Researching Gift Purchases – Online Shopping Trends – In-Store Shopping Behavior – High Customer Expectations • Key Findings & Recommendations Q&
  4. 4. Optimizing CXM for the World’s Top Brands
  5. 5. Optimizing CXM for the World’s Top Brands
  6. 6. Defining Global Customer Experience Management CXM is a strategy and practice for managing customer experiences online and offline to acquire, retain, and turn customers into satisfied, loyal brand advocates and ambassadors.
  7. 7. Three Business Requirements for Global CXM Understand your audiences’ interests and motivations Align your organization across channels, markets, languages and teams
  8. 8. SDL Global CXM capabilities
  9. 9. Your Partner in Global CXM  Publicly traded company, long-term stability and $430M annual revenues  2,700+ employees, 70 offices, 38 countries  1,500+ enterprise customers and partners  Innovative technology and services for enriching global customer experiences  Award-winning technology and services  Serving 76 of the top 100 global brands (Source: Interbrand 2012)
  10. 10. Why Focus on CXM? • Priority: 50% of CEOs now rate Customer Experience Management as their number one strategic investment. (Gartner) • Profitability: 76% of consumers would pay 5% more for a better experience, 53% would pay 10% more and 10% would pay 25% more. (Accenture) • Loyalty: Customer experience (CX) is a more powerful customer loyalty driver than price-value perception. (Forrester) • Equity: Over a 6 year period, CX leaders outperformed the S&P 500 index by 28%. Those who had poor CX performance lagged behind the index by almost 20%. (Watermark Investment Consulting) • Consistency: In the UK, a £100 investment in the National Consumer Satisfaction Index fund in 2007 would have by June 2011 returned £159 while the same investment in the FTSE 100 would have returned just £94. (SynGro) • Efficiency: A one point increase in customer satisfaction (CSAT) has been proven to improve cash flow by 4% in major organizations. (Journal of Marketing)
  11. 11. About the Survey
  12. 12. Methodology • Survey – Focused on consumer behavior and expectations during the 2013 holiday shopping season – Deployed in the United States, United Kingdom and Australia – Conducted by third parties on behalf of SDL – Respondents not aware the survey was conducted for SDL • Key Themes – “Showrooming” is still relevant with broad implications for retailers – Social media remains an unused tool for researching products – There is no clear shift from 2012 for online and in-store preferences – Shoppers want to avoid crowds during the holiday season – Consumers are using all channels in their interactions with retailers – It’s all about a positive customer experience
  13. 13. Survey Respondents – Geographies Number of Respondents by Geography 1,000 1,039 AUS UK US 2,000
  14. 14. Survey Respondents – Demographics AUS UK US
  15. 15. Making a List...
  16. 16. Consumer Showrooming Habits Top Resources Shoppers Use to Research Products
  17. 17. Catalogs Are Alive and Well Percentage of shoppers who use catalogs to research products
  18. 18. Mobile is Good for Research Percentage of shoppers who use mobile for research
  19. 19. Social Media Not as Popular for Research Percentage of global shoppers who use social media channels to research products
  20. 20. Online Shopping Trends
  21. 21. The Online versus In-store Battle Continues Online In-store
  22. 22. Top Reasons to Shop Online Top Reasons Shoppers Prefer Online over In-Store 1. Finding Products Online is Easier: 40% 2. Finding the Best Deal Available: 39% 3. Avoiding Holiday Crowds: 34% 4. Taking Advantage of Online Discounts: 25% 5. Convenience of Shopping from Home: 24% 6. Convenience of Shopping 7x24: 19%
  23. 23. Most Consumers Shop on Their Own Time Shoppers who aren’t shopping online during work Believe it or not, only 1/3 of US shoppers admitted to shopping online while working and it is less in the UK and Australia with only 27% admitting to shopping online during working hours.
  24. 24. Mobile is Good for Researching; Not For Purchasing Shoppers who won’t use a smartphone or tablet this year or won’t use it more than last year
  25. 25. In-Store Shopping Behavior
  26. 26. Top Reasons to Shop In-Store Top Reasons Shoppers Prefer In-Store over Online 1. Evaluating Products in Person: 43% 2. Finding the Best Deal Available: 36% 3. No Shipping Costs: 35% 4. Taking advantage of In-Store Discounts: 35% 5. Convenient Store Location Near Home, Work or School: 28% 6. Unique Products Only Available In-Store: 15%
  27. 27. Product Evaluation Driving In-Store Purchase is Down Percentage of shoppers who shop in-store to evaluate products
  28. 28. Are We Experiencing the End of Black Friday? US Shoppers who aren’t waiting for Black Friday or Cyber Monday
  29. 29. UK and Australian Shoppers Aren’t Waiting Either… Percentage of UK and AUS shoppers who don’t plan shopping around a specific day
  30. 30. High Consumer Expectations
  31. 31. The Ongoing Omni-Channel Trend With this data confirming what smart retailers already know – consumers are coming from all channels – brands can’t focus all of their attention on one channel over the other. Brick and mortar retailers who integrate their stores and ecommerce channels make it possible for a customer to buy online, pick up in-store, order online, deliver at home and a multitude of other possibilities.
  32. 32. Consumers Expect Consistency Shoppers who expect a consistent experience from mobile to laptop to in-store
  33. 33. The Importance of a Positive Customer Experience Shoppers who are willing to pay more for a better customer experience Sixty percent of consumers surveyed would be willing to pay more for a product if the brand delivered a positive customer experience.
  34. 34. Quality, Price & Experience Drive Loyalty Shoppers who aren’t loyal to a brand
  35. 35. Key Findings & Recommendations
  36. 36. Key Findings & Recommendations Omni-Channel is the Norm • Retailers must recognize that consumers are using multiple channels to interact with brands, find the best products, the best deals and prices, regardless of when they start searching for holiday-related bargains.
  37. 37. Key Findings & Recommendations Consistency is Critical • Consumers across the globe shop when, where, and how they want – and they want the experience to be the same whether they are online, on their smartphone in a store, reading Facebook…the list just goes on.
  38. 38. Key Findings & Recommendations Prioritize Profitable Preferences • Be prepared to kick-off coordinated, cross-channel marketing campaigns this holiday season. • Recognize how many channels you are planning to leverage this season. Of those channels, prioritize which channel will be used most to reach profitable customers.
  39. 39. Key Findings & Recommendations Mobile Enables Research and Showrooming • If you’re considering expanding mobile as a channel, take into consideration the role that research and showrooming may have on your campaign.
  40. 40. Key Findings & Recommendations Social Campaigns Must Be Engaging • Consider how you’re using social media to engage your consumers. If you’re using social media, build a campaign that enhances other nonsocial media campaigns.
  41. 41. Summary • In-store is still the front runner when it comes to researching products • Catalogs still play a big role in the shopping and researching process • Mobile offers consumers an easy way to research products so determine a strategy that will help you drive mobile purchases • Social might not be the place for research, but it is still a critical way to build loyalty and to reach customers • Create consistency across online and offline channels – consumers are active across all channels • Consumers will pay more when there is a positive customer experience • Black Friday and Cyber Monday are not as important to consumers as overall positive experiences
  42. 42. When Should Brands Start Holiday Promotions? Shopper preferences for retailers to start holiday promotions Nearly 50% of global consumers say that November is the right month to start holiday promotions.
  43. 43. Copyright © 2008-2013 SDL plc. All rights reserved. All company names, brand names, trademarks, service marks, images and logos are the property of their respective owners. This presentation and its content are SDL confidential unless otherwise specified, and may not be copied, used or distributed except as authorised by SDL.

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