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Digital Shopping Behavior in an Internet of Everything World
 

Digital Shopping Behavior in an Internet of Everything World

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Cisco Study Overview: Digital Shopping Behavior in an Internet of Everything World

Cisco Study Overview: Digital Shopping Behavior in an Internet of Everything World
Source: Cisco Consulting Services, January 2014

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    Digital Shopping Behavior in an Internet of Everything World Digital Shopping Behavior in an Internet of Everything World Presentation Transcript

    • Internet of Everything 13 January 2014 Cisco Consulting Services 4.0 13 Dec 13 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 1
    • 2014 Edition Web-based survey N = 1,174 Digital Shopping Behavior Survey Margin of error <3% United States, Nov 2013 Representative of the US broadband population by age, income, region Source: Cisco Consulting Services, 2013
    • §  Growth in Connected Consumers: IoE changing expectations on how we will shop §  Trust Barrier for Personal Service: Retailers must offer valued services to get customer private information §  Wake-up Call to Retailers: Brands that mash-up channels win Consumers interest in new IoE Service concepts © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 3
    • DIGITAL MASS ÜBER-DIGITALS 80% 18% Digital Research Browsing Purchase Median Age 40-44 Last Year 11% Smartphone Research Browsing Purchase Median Age 30-34 Source: Cisco Consulting Services Primary Research, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 4
    • SEARCH PC In Store BUY In Store DO IT NOW US 2013 60% 39% Online PC Mobile In Store Online PC 32% 26% 86% 27% 33% Mobile INTERESTED 23% 22% 72% 66% 59% 56% 25% 84% 70% 54% 20% 92% 62% 20% 90% 24% 86% Click ’n Collect Kiosk In Store 12% 35% 47% 28% 40% 68% Source: Cisco Consulting Services, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 5
    • What are the three most important sources of information you use to help make buying decisions? Online reviews retailer website Friends and family Online reviews expert sources 60% Store employees 58% Friends family 52% 49% 44% Online reviews 42% Online Friends reviews family Online experts 29% Online experts Online reviews 46% 43% Friends Online family experts 21% Store Assoc 15% 12% Store Assoc Store Assoc 2010 2012 2013 Source: Cisco Consulting Services, 2010-11-12-13, 2010: n = 1004; 2012: n = 1007; 2013: n = 1,174 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 6
    • Roughly 50% will research a $100 product – More than 75% research when more than $250 DIGITAL MASS ÜBER-DIGITALS 80% 18% 87% 85% 76% 47% 25% 14% >$500 <$500 <$250 <$100 <$50 <$10 86% 84% 80% 54% 28% 17% Source: Cisco Consulting Services Primary Research, 2013, percentage responding “very likely” to research a product online © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 7
    • DIGITAL MASS ÜBER-DIGITALS 81% 18% 32% 24% 51% 49% I prefer to use my own device I prefer to use store devices I prefer to use a store app I prefer to use a browser 51% 18% 64% 58% Source: Cisco Consulting Services Primary Research, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 8
    • Digital Shoppers Want “Safe” Self-Service DIGITAL MASS ÜBER-DIGITALS 81% 18% 64% 22% 11% I prefer to shop on my own, but with help when I need it I prefer to shop on my own I prefer help from store employees all the time 64% 19% 14% Source: Cisco Consulting Services Primary Research, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 9
    • How have your expectations for shopping changed over the past two years DIGITAL MASS ÜBER-DIGITALS 80% 18% 71% 61% 58% 58% 50% Better Values Price Visibility Wider Range Information Access Faster 79% 72% 72% 75% 64% Source: Cisco Consulting Services Primary Research, 2013, percentage responding “very likely” to research a product online © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 10
    • © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Cisco Public Confidential 11 11
    • The Vast Value of the Internet of Everything Internet of Everything Retailing Sense Know Act North America Retail–Unrealized Value at Stake–2013 DATA FUSION RIGHT TIME HYPER-LOCALIZED Source: Cisco Consulting Services, 2014; n = 1,174 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 12
    • Select up to three. DIGITAL MASS ÜBER-DIGITALS 80% 18% 46% 38% 30% 30% Personalized promotions via touch-screen or smartphone Personalized products specifically for me Personalized shopping lists Personalized service 53% 47% 38% 34% Source: Cisco Consulting Services Primary Research, 2014 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 13
    • What if retailers could… DIGITAL MASS CAPTURE DATA ÜBER-DIGITALS TO CREATE Transactions OH inventory on order Improved in-stock 69% 27% 42% 44% 82% 35% Past purchases store location OH inventory Personalized digital offers 77% 38% 39% 37% 37% 74% Store traffic check queue No check-out lines 67% 26% 41% 43% 37% 80% Smartphone in-store location In-store way-finding 57% 20% 37% 33% 38% 71% APPEALING VERY APPEALING Source: Cisco Consulting Services, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 14
    • Financial Hospitals Physicians Institutions/ Banks 56% However: 54% Credit Card Companies 47% Government Agencies 37% How much would you trust these companies-institutions to protect your personal data and use it to provide something that you value? Source: Cisco Consulting Services, 2014; n = 1,174, Percentage answering 7 and above on a 10-point scale 1=not trust at all 10=trust completely National Retail Brands 31% Internet Companies 18%
    • DIGITAL MASS ÜBER-DIGITALS Past Purchasing History with This Brand 57% 59% Basic Information About Me (name, age) 52% 56% Likes and Dislikes (opt-in) 48% 49% Information from Products I am Using 27% TRUST CLIFF 30% Past Purchasing History from Other Brands 24% 29% TRUST CLIFF My Location 20% 29% Source: Cisco Consulting Services, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 16
    • DIGITAL MASS ÜBER-DIGITALS Time Spent in the Store 34% 47% Location in the Store 35% 44% Products You Try – but Don’t Buy 36% 43% The QR Codes or Barcodes You Scan 27% TRUST CLIFF 32% Your Walking Path in the Store 26% 30% TRUST CLIFF None of the Above 25% 13% Source: Cisco Consulting Services, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 17
    • Select up to three. DIGITAL MASS ÜBER-DIGITALS Guaranteed Percentage Savings on Next Purchase 52% 51% Specific Dollar Savings on My Next Purchase 52% 53% World-Class Privacy Policy 31% 39% Ability to Use Loyalty Points at More Than One Retailer 24% 27% TRUST CLIFF Admission into A Club that Receives Priority Service 11% 18% TRUST CLIFF Admission into a Club that Receives Priority Offers 22% 27% Source: Cisco Consulting Services, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 18
    • © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Cisco Public Confidential 19
    • Percentage responding frequently or always 1 2 3 BEST PERSONAL PRICE MOBILE CONCIERGE BEAT THE BUZZER CONNECT THE DOTS 63% 42% 35% 34% Opt-In. Smartphone. Scan. Opt-In. Smartphone. Gamification. Gamification. Calculates all your relevant offers, coupons, loyalty points. Greets, guides, provides. At home or in store. In-store. Smartphone. Interest- and location-based information, offers. PC or smartphone. Collect tokens or QR codes throughout the store. Your Personal Price. Now. Your Retail Remote Control. Special promotion now in limited time. 4 Act now and win!. Act now and win! Source: Cisco Consulting Services, 2013 (U.S. data, n= 1,174), percentage responding frequently or always © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 20
    • Percentage responding frequently or always 1 2 3 BEST PERSONAL PRICE MOBILE CONCIERGE BEAT THE BUZZER CONNECT THE DOTS 63% 42% 35% 34% CONSUMER ELECTRONICS 71% CONSUMER ELECTRONICS 47% GROCERY 4 37% CONSUMER ELECTRONICS 37% ÜBER-DIGITALS 82% 66% 56% 55% Source: Cisco Consulting Services, 2013 (U.S. data, n= 1,174), percentage responding frequently or always © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 21
    • Percentage responding frequently or always 5 6 7 REMOTE CONSULTATION ENDLESS AISLE SOLUTION BUILDER SOCIAL SHOPPING 31% 29% 29% 21% Mobile or fixed screen. Online or in-store. Online or in-store. Smartphone. Social. One-click connect. Fixed screen and smartphone. Fixed screen or smartphone. Post photos. Pin ideas. No appointment. See brand’s entire inventory on desired SKUs. Suggested project shopping lists. Send to professionals, friends. Recipes. Outfits. Whaddaya think? Talk to the brand’s best. What, why and how. 8 Nearby stores. Dot-com. Vendor. Source: Cisco Consulting Services, 2013, percentage responding frequently or always © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 22
    • Percentage responding frequently or always 5 6 7 REMOTE CONSULTATION ENDLESS AISLE SOLUTION BUILDER SOCIAL SHOPPING 31% 29% 29% 21% HOME IMPROVEMENT 39% 32% APPAREL HOME IMPROVEMENT 8 33% HOME IMPROVEMENT 24% ÜBER-DIGITALS 50% 50% 50% 43% Source: Cisco Consulting Services, 2013, percentage responding frequently or always © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 23
    • © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Cisco Public Confidential 24
    • Growth in Connected Consumers: IoE changing expectations on how we will shop Wake-up Call to Retailers: Brands that mash-up channels win Trust Barrier for Personal Service: Retailers must offer valued services to get customer private information Consumer appeal for seven new IoE in-store service concepts © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 25
    • Here’s what I think every business should tell consumers about their data collection programs 1 Exactly what data is being collected. Many may assume that personally identifying information is being collected 2 How the data collection technology works. Boil the complex tech terms down into clear lay terms. Once you know, is there a reason to fear “metadata?” 3 How the data is being secured Show the steps you’re taking to prevent data from being hacked or misused 4 Why the data is being collected Show them the problems being solved, the value being created 5 6 7 8 Michael Nadeau, Publisher, September, 2013 How the data is being analyzed and reported If it’s being analyzed in the aggregate, say so – and explain what that means Who is seeing the data. People might assume that you share their data with other businesses. Be clear about your policies The consumer benefits of data collection. Most important. Shoppers will provide personal information if they feel they’re getting equal value in return It’s Opt-In Give your shoppers the choice Source: Data Informed, September 2013; Cisco Consulting Services, 2013 © 2013 Cisco and/or its affiliates. All rights reserved. Cisco Confidential 27