LINDA: Welcome to the 2012 DMA presentation “Today’s Tablets Mean Bigger Consumer Engagement”. My name is Linda Brown, and I am the Consumer Insights Manager at Wolverine World Wide. Here with me today is one of our valued partners, Joaquin Ruiz, the CEO and founder of Catalog Spree. We are here to share with you our experience in the new digital catalog space. We hope to inform you about the acceleration in digital space, the rise in importance of tablet-based marketing, provide some details on how to move into this growing channel and if we’re lucky, inspire you to engage in the unique opportunity. For the sake of time, we’d ask that you save your questions until the end.
LINDA:You may never have heard of Wolverine World Wide, but we are now the largest manufacturer of non-athletic footwear in the world since our recent acquisition of 4 amazing brands: Sperry Top Sider, Saucony, Stride-Rite Childrens Group, and KedsWe have over 500 retail stores around the world, with thousands under brand license. We also manage 56 eCommerce sites plus 17 mobile sites in 8 countries.My role revolves around the consumer database, direct to consumer marketing and consumer insights through research.
JOAQUINCatalog Spree: The Personalized Digital MallCatalog Spree drives quality customers to over 150 retail partnersWith the best user experience and most active user base, Catalog Spree is the category leaderCatalog Spree is available on the iPad and the WebWeb: browser experience on Andriod, IE 9, Firefox, Chrome and SafariiOS: for iPadWhen I refer to the market: Mobile = Smartphone + Tablet
JOAQUINDisparity between the distribution service (like the internet, mail, roads to stores) and the best tool/device (computer, digital appliance/device)Tale of 4 Segments: Music, Books, Retail, News/MagazinesDisruptive opportunitiesDistribution (print, mail, internet) and devices (dedicated & mobile devices)Internet alone had massive impact: NewsInternet alone had little impact: books
JOAQUINLinda:What is the source of this chart???
JOAQUIN And, NPD says that tablet shipments will increase to 416M by 2017Yankee Group: Tablet Sales will surpass PCs by 2015TODAY (from eMarketer)69.6 million U.S. tablet users 115.8 million U.S. smartphone users
BEHAVIOURS ARE CHANGINGLeft and right charts introduce labels
JOAQUINWeb: SEM, SEO, e-commerce site, affiliates, etcEngage: off-line, vs online, vs socialOff-line, in-store, and online (social, web, mobile) channels
Not since the dot-com boom has a consumer trend single-handedly turned the retail industry upside down. As shoppers become more comfortable with smartphones and tablets, they are demanding their favorite retailers do the same by adding mobile-centric solutions that will personalize and improve the shopping experience. NRF Stores, Nov 2011
Catalog Spree: Building a Digital Mall for catalog lovers on the web and on the iPadHave your own store but participate in the mall
JOAQUINSource!Have a title for each of the charts to explain. Day of week / timeRelative usage by hours and day of the week.
LINDA“pop” after 2011 holidays when so many tablets came in market, then still growing – especially in Europe. Until now the proportionate value to the business is nearly equal each period. Europe overtaking US could be that the consumer in the EU is actually a bit younger than the consumer in the US by brand strength.
LINDA Tablets generally have higher conversion rates than smartphones and therefore drive a proportionately greater amount of revenue. (interpreted another way, smartphones generally have higher traffic volumes than tablets).
LINDA+ / - Awareness: exclusivity vs. quantity+ / - User experience: can be subpar when home grown, unless done well on user design+/ - One of a crowd: lost or halo effect.
Sample of a contest app that scores big points on simplicity, acquisition, and surprise & delight. You couldn’t pay for that kind of copy.
LINDAClose to home in the shoe business, here is a sample of Crocs App – still feels like a catalog. Easy to view. Cheerful representation of the brand that is easily updated. Email signup is a win.And it’s fully shoppable.
LINDAIKEA AppWins on ease of use, although the book is so big. Needs interspersed table of contentsCan interact with the catalog even when downloading… original version took 20 minutes to load, but now you can view while downloading.Allows for favorite, but takes a while to get through everything… just like their normal catalog. It’s an immersion experience!Went shopping, and the thing I wanted wasn’t on their web site This happens often, driving people to the stores instead of shopping online. Lost sale! Missed opportunity.
LINDADicks Considered a periodical.Takes20 minutes to download. Built in Adobe Publishing Suite and have to get it off the Newstand.Includes an education and entertainment and ads in ads.So much to do… is this the future of interaction? Is all this too much? Does shop seamlessly.
LINDAOur goals are to prospect for new consumers, participate in this growing space, and position our brands among some of the best catalogers.The aggregation app helped us overcome our challenges of relatively low awareness and limited in-house capabilities to build an app with a worthwhile experience.Invest without over-investing. Cost are similar to other affiliate programs, but they vary a bit from vendor to vendor.
LINDAWhy use more than 1 vendor? - No vendor is the same, review your options. - Reporting and transparency is very mixed. New discipline getting weak reports --- Catalog Spree is best to date. - One of the key reasons to be on all vendors ---- increased exposure… it’s certain that these different vendors do not reach the same type of consumer – and you don’t want to assume who captures those most likely to respond to your offerings.It’s also likely that only a couple will survive as the “big dog” – you want to be on that one when it breaks out.And finally this is a vendor relationship – be sure to follow and own your own project. Babysit them to assure you win.
LINDAThe advantage of an aggregation app is that you can leverage what you already have. Leverage your assets to provide a unified point of view.Meet expectations before you exceed them.>>> brings back to the IKEA app – you spend the time browsing, but then you can’t buy?Don’t overcomplicate things. >>> risk with the Dick’s catalog. Is it simply to much?Make it easy to use.>>> this is what you need to dig in with your vendor on. Use the app, push them to make the user experience friendly.
LINDAMerrell = classic catalog design. Copy heavy, product oriented.HP = derived look book with product as focus, but much less dense & little copySebago = full on lifestyle look book.
LINDASome details her on the page processing systems and requirements for these systems. Not everything is apples to apples. For example, our catalog has a fold-out center – which isn’t directly translatable to the digital catalog format.You’re sending single pages to allow for the tablet flip to go from a landscape spread to portrait.Even a slight variation in size (like for our fold out) can cause mild distortion as they force it to same size.
LINDAWe use a GAN feed in some cases sales go through our site and in other cases it’s a shared cart that is processed by our consumer services.GAN:Google Affiliate Network = 3% commission + anything they commission if they sell through your site; has ability to set up different commission structures.GAN is used to send data out to the eCatalog and push the sales to your web site.Do the work up front to assure the feed is going to be successful. After go live, You have to watch your book to assure that the feed is not getting corrupted. Need some data file expertise, but nothing too radical. Coordinate your launch timing online with your launch of the books so that they are aligned.
LINDAThese are some of the key metrics we track for Catalog Spree. Note that it’s very small at this point, but at 100-fold increase, which is not unreasonable in the digital space, we see significant revenue. Further, our latest projections of attribution is at $190K, meaning as it grows, it could provide a dramatic increase in contribution to indirect sales
LINDAB&M – if you have it. That is the full consumer experience, encourage them to take it home in their pocketSocial Media – FB promotionsEmail: ongoing footer and occasionally Internally – someone has to be the champion. The larger your organization, the more difficult it may be to herd cats to execute. I have the advantage of a small team that can set our own priorities. We can dedicate a person to the successful execution in the digital space, but you also have to have all the stakeholders in the know. And, like most things, you have to build the business case. It’s starts small, but you’ll want to show growth in the channel by establishing those base KPIs.
LINDACookie tracking to who sourced from eCatalog and converted later.Social Shopping – Glimpse by The Find prioritizes products by Facebook likes --- and calls out your own friend’s facebook likes.More brands / more creative look & feel
JOAQUINOpen graph integrationUse eCatalog sweepstakes for email growthpromotions
JOAQUINPlatforms: apps, html, social, tablets
Today’s Tablets Mean Bigger Consumer Engagement Connected Customer Strategies Track Linda Brown, Wolverine World Wide Joaquín Ruiz, Catalog Spree
Who is Wolverine World Wide?FOOTWEAR CONSUMER APPARELWHOLESALE DIRECT & ACCESSORIES 2
What is Catalog Spree? iPad and Mobile Web “Digital Mall” Points of View • Digital window shopping • Brand & product discovery • Fun • Customer prospecting • Path-to-purchase funnel • Asset leveragingOver 150 retail brands including: L.L. Bean Nordstrom West Elm Horchow Boston Proper Merrell Bare Necessities Coldwater Creek Woolrich Hanna Andersson 3
Media Disruptions Music Books MagazinesPastPresent 4
A Tidal Wave of Tablets• Tablets growing 19 times faster than PCs.• Tablets growing 60% faster than the smartphone.• By 2016, 126m tablets will be in use by US consumers. 5
Unbelievable (but true) Forecast NPD Group: Tablets to overtake notebooks in 2016 6
Mobile Share of E-commerce Traffic Doubled in Less Than 6 Months Total Web Traffic Mobile Web Traffic100% 8% Dec-11 Apr-12 Dec-11 Apr-1290% 7%80% 6%70%60% 5%50% 4%40% 3%30% 2%20%10% 1% 0% 0% PC Mobile iPad iPhone Other (Android) The iPad alone accounts for half of traffic from mobile devices Source: Catalog Spree Retailer Survey, April 2012 7
Yet Again: Omni-Channel• Be where your customers are... Methods US Online Shoppers Plan to Use to Shop in 2012 and tie it all together % of respondents Discover Nurture Engage Sell Mostly Primarily Mobile, 1 Incent Reward Stores, 12 % % Surprise Re-engage Mostly Online, 42 Link, link, link % Track, track, track Combined, 45%• Build to and measure your company’s Path-to-Purchase Source: PriceGrabber, “2012 Shopping Outlook”• Offline meets Online 8
3 Key Implications to Omnichannel• Highest value retail customers are – iPad owners – Shop in stores – Use catalogs• Design for mobile first… at the very least test on mobile – 40%-60% of retail email opened on smartphone – Optimize “first click”• Leveraging and integrating all your channels is vital to the consumer experience. 9
Regarding Mobile: “Not since the dot-com boom has aconsumer trend single-handedly turned the retail industry upside down… Customers are demanding mobile-centric solutions that personalize and improve the shopping experience.” Source: NRF Stores, Nov 2011 10
Data: Shoppers spend 95+ minutes/month on Catalog Spree • Saturday/Sunday are biggest shopping days • Peak shopping time is between 6-9 PM PST Monday 0:00 1 Sunday 12:00 0.9 Monday 12:00 Sunday, 17% 0.8 Monday, 12% 0.7 Sunday 0:00 Tuesday 0:00 0.6 0.5 0.4 Tuesday, 12% 0.3 Saturday 12:00 0.2 Tuesday 12:00 0.1 0 Saturday, 17% Saturday 0:00 Wednesday 0:00 Wednesday, 13% Friday, 15% Friday 12:00 Wednesday 12:00 Thursday, 14% Friday 0:00 Thursday 0:00 Thursday 12:00 traffic breakdown by day Usage per time and day of the weekSource: Catalog Spree data, April 2012 12
What does mobile mean to WWW? eCommerce Mobile Revenue Share by Period 14% Europe United States 12% 10% 8% 6% 4% 2% 0% P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P11 P12 P13 P1 P2 P3 P4 P5 P6 P7 P8 2011 2012 13
What does mobile mean to WWW?eCommerce Distribution of Mobile Visits & Sales by Device 80% % Visits % Revenue 70% % of eCommerce Business 60% 50% 40% 30% 20% 10% 0% Apple iPad Apple iPhone Droid (Any) Other Apple iPod Touch 14
Community vs. AffinityOwn Apps Aggregation Apps + Drive Community + Drive Affinity + Brand-immersed + Branded experience + Loyalty Builder + Large Distribution – Costly + Easy MultiChannel: – Maintenance Web, App, Own-site Commitment + Ease of social – Platform choice integration ± Awareness + Scaled expense ± User experience ± One of a crowd 15
Design Leverage your assets to provide a unified point of view. Meet expectations before you exceed them. Don’t overcomplicate things. Make it easy to use.http://thoughtleadershipleverage.com/wp-content/uploads/2011/09/leverage11.jpg 22
The Nitty-GrittyPage Processing Systems:Single pages (not spreads) “Design for Mobile”• Deliver hi-res pdf • Landscape to portrait• CMYK or RGB • Fold out spreads to singles• 300 x 300 dpi • Products that cross spreads• Editable to allow search on may need adjusting text functionality. • Avoid distortion by translating to a uniform page size. 24
The Nitty-GrittyData Feed SystemsBefore “go live” After ‘go live’• May use GAN feed • Babysit• May use your own web site for • Changes cause “Item Not sales or separate channel. Available”• Be proactive • Coordinate updates around• Determine all needed fields catalog publishing cycles• Provide test files for review• Confirm meets specifications 25
Beyond Response: KPIsCatalog Spree Calculated KPIs Merrell Spring x100Unique Viewers 2,718 271,800Total View Time 155 hours 15,500View Time per Person 2 min 2 minTime per page 5-6 seconds 5-6 secAvg # Products Zoomed 2.25 2.25% of Zoomed to See More Button 8% 8%Number of Viewers to Website 225 people 22,500Actual Direct Conversion 1 person 100Actual Direct Revenue $125 $12,500Potential 2% Conversion 5 people 500Potential Revenue $625 $62,500Spring ’12 Added Indirect Contribution = $190,000 26
Be the CheerleaderExternal Promotion• Ongoing promotion on all channels: – B&M signs including driver QR codes – Social Media including contests – Emails regularly as primary story – Emails always in footerInternal Promotion• Who owns it?• Small team focus• Report KPIs 27
The Future: WWW Perspective • Cookie tracking • Social Shopping • Use eCatalog sweepstakes for email growth • More brands / more creative look & feel 28
The Future: Spree’s Perspective Electronic Omni-channel: • “Social Shopping” • Tight integration with social and interest networks • Community annotations • Demographic prospecting & VIP services • Targeted recommendations • Targeted promotions • In-store services • Phone-centric offers & updates • HTML5 distribution • More platforms 29
Conclusions• The acceleration of digital space creates opportunity.• The tablet creates a unique marketing opportunity.• Enter the digital catalog space with enthusiasm – Experiment on multiple platforms – Make sure user-experience fits your brand – Set up a data and learning discipline – Use 1 or more of the community apps 30