E tail boston benchmarking report!


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E tail boston benchmarking report!

  1. 1. The 2013 Technology &Retailer Spending OutlookBenchmarking Study, Vol. 4 Compiled at the 2012 eTail Boston event
  2. 2. The 2013 Technology & Retailer Spending Outlook Benchmarking Study *Table of Contents eTail, now in its 15th year, presents senior-level case studies, panels, workshops and roundtable discussions covering the challenges faced in all aspects of multi-channel retail. Sessions are geared to cover a pervasive array of information on key areas including Pre-Holiday Results, Post-Holiday Results, Technology Spending,Primary ResearchMethodology .....................2 International Expansion and Growth, Online Advertising, Content Management, Online Advertising Vehicles, Social Media, Mobile Shopping, User ExperienceComplete Survey Results ....3 Optimization, Search, Email Marketing, Personalization, Analytics, Customer LoyaltySummary of Conclusions....7 and Engagement and many more.State of The Industry eTail is focused on providing detailed tactics and innovative strategies during ourAnd Technology annual conferences. Gathering insight from our attendee base not only enriches theSpending .........................10 conference experience, but provides an additional level of benchmarking that mayAbout eTail ......................12 not be obtained during regular conference sessions. During Q2 2012, eTail fielded over 100 retailer surveys in order to uncoverTable of Figures technology spending habits from a number of verticals, including but not limited to; apparel, sporting goods, consumer electronics, travel and hospitality, mass marketChart One..........................3 retailers, as well as specialty/niche. Where are retailers spending, and why? What areChart Two..........................4 their plans for technology spending in the next 3, 6 and 12 months? What insight can be gleaned from the research results?Chart Three .......................5Chart Four .........................6 This survey marks the third year of uncovering “from-the-trenches” ideas about technology spending. We hope that you are able to benchmark your external solutions against your peers, and look forward to seeing you at our 2013 conferences for results gathering from your fellow retailers. * Primary Research Methodology The purpose of this study is to ascertain the technology spending habits, industry trends and future outlook from a sample of cross-industry, cross-vertical retail executives. Respondents were anonymous, and responses were gathered during the eTail East conference in August of 2012. * General Research Findings Twice every year, the organizers of the eTail conference spend 3-6 months (continuously) conducting phone and email surveys with executive-level retailers from top industry brands. Based on our findings, the majority of retailers in 2013 will be focused on: • Cross-Channel Optimization • Conversion Optimization • Email • Personalization • Content Management • SEO, SEM • Usability/Testing/User • Web Analytics • Mobile Experience Enhancements • CRM systems • Social Media2 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  3. 3. Complete Survey Results And Spending Outlook The charts below outline where respondents are planning to spend externally in terms of solutions. On a percentage basis, I am planning/evaluating budget 1 spend externally in these areas in the next 3 months: ““It was another great 60show...thank you! Inprior years I came aspresident & CEO of 50 48%Ritz Interactive, Inc. SEO, SEM, Site Search 40a mature company,and found the show 30extremely importantin helping build our 20business. This year Icame as president andCEO of a startup 10company, MailPix, Inc.,and continue to find 0the show critical in thebuilding of my new I 13% Attribution Modeling I 18% Tabletsbusiness.” I 13% Online Video I 18% Merchandising andFred H. Lerner, MailPix.com, VisualizationPresident & CEO I 48% SEO, SEM, Site Search I 32% Multi-Channel Initiatives I 25% Content Management I 25% Personalization (website) I 9% Fraud, Privacy, Site Security & Logistics I 34% Social Media & Social * Engagement I 14% CRM Systems, Customer Segmentation, Loyalty I 25% Web Analytics/DataPoint to note: ManagementIn Q4 2012, I 14% eCommerce Platformrespondents will Replacement or I 30% Usability/Testing/Userspend the least Enhancement Experienceamount of budget on I 32% Email I 9% Payment Processingpayment processing,fraud, privacy and I 32% Mobile I 11% Global Solutionslogistics solutions.3 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  4. 4. Survey Results On a percentage basis, I am planning/evaluating budget 2 spend externally in these areas in the next 6 months: 29% *Point to note:Over the next six • • Online Video SEO, SEM, Site Searchmonths, respondentswill spend the least • CRM Systems, Customeramount of budget on Segmentation, Loyaltyglobal solutions. I 20% Attribution Modeling I 29% Online Video I 29% SEO, SEM, Site Search I 25% Content Management “ I 16% Fraud, Privacy, Site Security & Logistics I 29% CRM Systems, Customer Segmentation, Loyalty“[We] are still talkingabout the conference I 21% eCommerce Platform Replacement orand how much we Enhancementlearned. The show is I 18% Emaildefinitely first class I 21% Mobileand well organized. I 21% TabletsWe look forward to I 18% Merchandising andattending again.” Visualization 10 20 30David Jones, E-Commerce I 21% Multi-Channel InitiativesDirect Marketing Architect, I 23% Personalization (website)The Little Tikes Company I 21% Social Media & Social Engagement I 27% Web Analytics/Data Management I 23% Usability/Testing/User Experience I 14% Payment Processing I 11% Global Solutions4 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  5. 5. Survey Results On a percentage basis, I am planning/evaluating budget 3 spend externally in these areas in the next 12 months: “"This was my first timeattending eTail. I wasvery inspired by the 30%conference as a whole CRM Systems, Customerand was particularly Segmentation, Loyaltyimpressed by the cutting 30edge information andtrends that guest 20speakers so willinglyshared. I am looking 10forward to next yearand learning even 0more!"Dana Stringam, Founder & CEO,Micronutrient.com I 18% Attribution Modeling I 23% Tablets I 27% Online Video I 21% Merchandising and Visualization I 11% SEO, SEM, Site Search I 18% Multi-Channel Initiatives I 18% Content Management I 27% Personalization (website) I 14% Fraud, Privacy, Site * Security & Logistics I 27% Social Media & Social Engagement I 30% CRM Systems, CustomerPoint to note: Segmentation, Loyalty I 23% Web Analytics/DataIn the next year, Managementrespondents will I 20% eCommerce Platformspend the least Replacement or I 25% Usability/Testing/Useramount of budget Enhancement Experienceon SEO, SEM and I 16% Email I 16% Payment Processingsite search. I 14% Mobile I 16% Global Solutions5 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  6. 6. Survey Results On a percentage basis, I AM NOT planning/evaluating 4 budget spend at all in these areas: ““Attending the eTail 57%West Conference is • Fraud, Privacy, Site Security & Logisticssomething I look • Payment Processingforward to every year… • Global Solutions 60This convention givesus a great chance tonetwork with others in 50our industry and helpMyBinding.com to 40innovate and discovernew options for e- 30commerce technology.Attending this 20conference is a terrificopportunity for us, it’salways exciting to meet 10others in this industryand get new ideas . 0Going to Palm Desert ispart of our strategy to I 48% Attribution Modeling I 38% Tabletsstay competitive and I 30% Online Video I 41% Merchandising andgrow as a company.” I 13% SEO, SEM, Site Search VisualizationJeff McRitchie, Vice President of I 27% Multi-Channel Initiatives I 30% Content ManagementMarketing for MyBinding.com I 21% Personalization (website) I 57% Fraud, Privacy, Site Security & Logistics I 16% Social Media & Social Engagement I 27% CRM Systems, Customer Segmentation, Loyalty I 21% Web Analytics/Data Management I 45% eCommerce Platform Replacement or I 18% Usability/Testing/User Enhancement Experience I 34% Email I 57% Payment Processing I 32% Mobile I 57% Global Solutions6 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  7. 7. Summary Of Conclusions When asked the following survey questions, our respondents answered as follows: Is there a specific time of year when you evaluate external solutions? We received a variety of answers, including every six months and during Q4. Additionally, many retailers do not have a specific time of the year in which they evaluate external solutions. The top areas retailers are most likely to spend on “ solutions within the next 3 months are:Guy Kawasakis Social Mediakeynote and slide show Emailwas both entertaining, Mobilevalidating and inspiringfor how to approachany position held in a The top areas retailers are most likely to spend oncompany wanting to solutions within the next 6 months are:move forward.Remembering to keep Online SEO, SEMserving others first and Video and site searchempowering those CRM Systems,around you with Customer Segmentation,permission to be their Loyalty Programsbest and do their bestwas the gist I cameaway with and hope to The top areas retailers are most likely to spend oncarry forward. solutions within the next 12 months are:David MacMahan, DivvyMaster CRM Systems, Customer Online Video Segmentation, Loyalty Programs Personalization Social Media & Social Engagement The top areas retailers are least likely to spend or allocate budget are: Fraud, Privacy, Site eCommerce Platform Payment Security & Logistics Replacement or Processing Enhancement Global Solutions7 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  8. 8. Summary Of Conclusions When Asked, “ What do you see as the biggest growth 5 area in the next year?” respondents answered as follows: 62% Mobile ““I look forward to the I 62% MobileEtail West Conference I 27% Socialevery year as a chance I 25% Tabletsto network with mypeers, stay up to datewith emergingtechnologies, andshare ideas and bestpractices with the best When asked, “How are you using social media?”and brightest in online 6 respondents answered as follows:retail. Can’t wait fornext year!” 76%Dave Haber, Sr. Director,Marketing Communications &Social Media, Ice Engagement I 76% Engagement I 51% PR I 47% Customer Service I 42% Sales8 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  9. 9. Summary Of Conclusions When asked, “Where are you focusing your mobile efforts/resources?” the majority of respondents answered as follows: • Website, app support • Design/Responsive design “ • Paid Search • Commerce • Research • General optimization“This is one of thebest ecommerceconferences When asked, “What are your top priorities in termsavailable, both in of technology enhancements?” the top answers wereterms of value as wellas the networking as follows:and learningopportunities thatcome from its more Cross-channelmanageable size and optimizationregional approach.” SocialDonnamarie Mazzola, BrandMarketing Manager, VoiceSystems Engineering, Inc. Email SEO Mobile SEM Platform Content Personalization Management Check-out Better use of data9 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  10. 10. State Of The Industry And Technology Spending In Retail And E-Commerce Online ad sales in the United States totaled $31.74 billion in 2011, up 21.9% from $26.04 billion in 2010, according to the Interactive Advertising Bureau’s Internet Advertising Revenue Report, released today. Last year was the first time online ad sales topped $30 billion. The trade group says the jump in spending from 2010 to 2011 marks a return to growth rates not seen since the 2006-2007 measurement period, before the economic recession. Retail marketers accounted for the single * largest chunk of online ad spending in 2011... Retail marketers accounted for the single largest chunk of online ad spending in 2011 when they spent $7.1 billion on online ads, 22.4% of the total. Retailers’ spending on web ads was up 29.1% from $5.5 billion in 2010, according to the IAB “ report, which is prepared by consulting firm PricewaterhouseCoopers from sales information provided by advertising companies and publicly available data.“Etail Palm Springs Online advertisers spent $14.8 billion on paid search ads, accounting for approximately 46.6% of 2011 total online ad revenue. Spending on other adwas an excellent formats, in descending order of total spending was display/banner ads, $6.8 billionevent and very well and 21.4% of revenue; classifieds and directories, $2.6 billion and 8.2% of revenue;organized. I go to digital video, $1.8 billion and 5.7% of revenue; mobile, $1.6 billion and 5.0% of revenue; lead generation, $1.5 billion and 4.7% of revenue; rich media, $1.3 billionmany conferences and 4.1% of revenue; sponsorship, $1.1 billion and 3.5% of revenue; and e-mail,and it was well ran $0.2 billion and 0.6% of revenue.with a lot of vibe and Taken From Internet Retailerenergy. The audiencewas always engaged Online retail spending for the fourth quarter of 2011 increased 14 percent,and the presentations year-over-year, to $49.7 billion, according to comScore, which measures digital data. This growth rate represents the ninth consecutive quarter of positive year-over-yearwere excellent.” growth and fifth consecutive quarter of double-digit growth rates. For the entireJodie Solomon, Director of 2011 year, U.S. retail e-commerce spending reached a record $161.5 billion, aAdvertising Sales, Mobile 13-percent increase from 2010.Marketer Other highlights from Q4 2011 include: • The top-performing online product categories were: Digital Content & Subscriptions, Jewelry & Watches, Consumer Electronics, Toys & Hobbies, and Computer Software. Each category grew at least 18 percent vs. year ago. • Ten individual days in Q4 surpassed $1 billion in online spending, led by Cyber Monday (Nov. 28) at $1.25 billion. Monday, Dec. 5 ranked second at $1.17 billion, followed by Green Monday (Dec. 12) at $1.13 billion. • 52 percent of e-commerce transactions included free shipping, representing an all-time high. The previous high was Q4 2010 at 49 percent. • Smartphones and tablets played a growing role in online shopping, with consumes increasingly using smartphones to check prices and product features while physically in a retail store. Taken From Forbes10 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  11. 11. State Of The Industry And Technology Spending In Retail And E-Commerce Forty-seven percent of executives said they will be investing primarily in calendar year 2012 in analytical tools to improve company growth, expansion and planning. The survey, conducted in May and June by audit, tax, and advisory firm KPMG LLP, showed that 72 percent of the retailers said they have a great deal of cash on their “ balance sheets. 72 percent of the retailers said they have a *“ETail West 2012 was asuper show for us. great deal of cash on their balance sheets.3 reasons for classifyingthis show as “super show” – Fifty-six percent of them said they only expect a modest improvement in the economy, revenue, and hiring in 2012.• Number of retail attendees was 30%-40% The outlook beyond 2012 does not appear promising either: 40 percent of the higher than any other survey respondents said they dont expect a full economic recovery until 2013-2014 or later. And of the 100 retail executives, 23 percent said headcount would never etail show that we have return to pre-recession levels. attended (and we have done “all etail shows” Taken From Reuters since Feb 2007!)• It’s difficult to beat etail Most retailers are planning to increase spending on e-commerce technology this in terms of the “quality”. year, Forrester Research Inc. says in a new report, 2011 Online Retail Technology All top tier retailers were Investment Outlook. 62% of retailers in the study, which was conducted in there and many were in December, say they will spend more on e-commerce technology this year, and serious “buying mode”. 54% say they will change their e-commerce technology system within the next 12 to 36 months or are already embarked on a replatforming project.• The organization of this show was immaculate – 62% of retailers in the study, which was * WBR team was always present when you conducted in December, say they will spend needed them and they were always trying to more on e-commerce technology this year help you have a successful show. That’s a The sharpest increases in priorities were in back-end integration, including order big factor – “organizers management and inventory systems, cited by 63.5%, up from 31.6% a year want you to succeed.” earlier; mobile sites, cited by 52.4%, up from 18.8%; and mobile apps, at 44.4%, up from 15.1%. (Respondents could list multiple priorities.) In a sign of theUdayan Bose | Founder & CEO | growing importance of e-commerce, 59% of final decisions on e-commerce techNetElixir Inc. spending are made by either CEOs or e-commerce directors, rather than operations, marketing or financial officers. Taken From Internet Retailer11 The 2013 Technology & Retailer Spending Outlook Benchmarking Study
  12. 12. About eTail eTail 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 every facet of the industry. It is the premier multi-channel and online retail conference dedicated to supporting the growth of the retail industry through high-level networking and extensive thought leadership. WBR, the creator of the eTail conference series, is an independent research organization, devoting 100% of its resources towards executing industry-leading conferences eTail is Made by Retail for Retailers. The event content, format and speaker faculty were put 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-channel executives. eTail responds to the immediate needs of the industry, helping attendees capitalize 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 the online retailing channel. The result is a dynamic and competitive selling environment that will challenge every online seller to satisfy and thrill online shoppers – before another retailer does. If you haven’t already,please visit www.etailwest.com for details on the next 2013 conference. Remember to join the eTail community and receive additional free content on Linkedin, Facebook, YouTube, Twitter and The eTail Blog. * For further information, contact: Lori Hawthorne, Executive Director, eTail Conference Series Email: lori.hawthorne@wbresearch.com Twitter: @eTail_Events Facebook: http://www.facebook.com/pages/Etail/169797459705058?sk The eTail Blog: http://www.theetailblog.com12 The 2013 Technology & Retailer Spending Outlook Benchmarking Study