3rd Annual Holiday Survey Results


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Baynote’s Third Annual Holiday Shopping Survey strives to understand the changing behavior of the US consumer and provide insight for retailers so that you can better plan and prepare for great results next holiday season

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3rd Annual Holiday Survey Results

  1. 1. The  Third  Annual  Holiday  Survey   Brought  to  you  by  Baynote  in  coopera8on  with  the  e-­‐tailing  group   1/10/13   Baynote,  Inc.  ©  2013     1  
  2. 2. Table  of  Contents   About  the  Survey   Determining  What  To  Buy   Device  Usage  and  Holiday  Shopping   Privacy  Issues   Key  Takeaways   Legal  Disclaimer   1/10/13   Baynote,  Inc.  ©  2013     2  
  3. 3. About  the  Survey   1/10/13   Baynote,  Inc.  ©  2013     3  
  4. 4. About  the  Survey   Children  <18  years  old   living  at  home   TOTAL  annual   pre-­‐tax  household  income   Less  than  $25,000   6%   $25,000-­‐$49,999   19%   $50,000-­‐$74,999   23%   $75,000-­‐$99,999   18%   14%   Two   Three   Four  or  more   5%   2%   WHO?   30%   HOW?   18%   $150,000-­‐$199,999   3%   $250,000  or  more   3%   18-­‐34   4%   35-­‐44   20%   45-­‐54   Prefer  not  to  respond   20%   55+   1/10/13   Baynote  in  cooperaUon  with  Lauren  Freedman,   President  the  e-­‐tailing  group   Age  Group   7%   $200,000-­‐$249,999   Measure  holiday  shopping  behavior  in  order  to   understand  the  shiOs  in  consumer  influence,  the   role  of  various  devices  and  sites  on  holiday  shopping   and  to  determine  sources  of  privacy  concerns     61%   None   17%   $100,000-­‐$149,999   One   WHAT?   30%   -­‐  -­‐  -­‐  -­‐  -­‐  1,000  respondents  between  Nov.  24  and  Dec.  5,  2012   50%  female/50%  male   Shopped  online  4  or  more  Umes  in  the  past  year   Spent  $250  or  more  online  annually   100%  owned  a  smartphone/55%  owned  tablets   Baynote,  Inc.  ©  2013     4  
  5. 5. About  the  Survey   Percent  of  holiday  shopping  done     online  as  of  survey  date   Majority  (>75%)   25%   Most  (75-­‐50%)   25%   29%   Some  (50-­‐25%)   Very  Li[le  (Less  than  10%)   10+   16%   7-­‐10   18%   1-­‐2   25%   3-­‐6   41%   14%   Limited  (25%-­‐10%)   1/10/13   Total  online  or  in-­‐store  purchases     made  this  season  as  of  survey  date   7%   Baynote,  Inc.  ©  2013     5  
  6. 6. Key  Findings   1/10/13   Baynote,  Inc.  ©  2013     6  
  7. 7. Major  Findings   •  Tablets  are  the  future  and  the  future  is  now   •  Retail  apps  have  room  to  grow,  but  are  sUll  not  widely  used   •  Omni-­‐channel  strategies  are  strong  influencers  on  shopper   behavior  both  in-­‐store  and  online   •  Paper  catalogs  currently  trump  social  for  markeUng   effecUveness   •  Privacy  concerns  are  fading  as  convenience  and  trust  in   ecommerce  rise   1/10/13   Baynote,  Inc.  ©  2013     7  
  8. 8. Other  InteresUng  Findings   •  Age  group  can  determine  the  best  influencers  by  demographic   •  Smartphones  are  finding  their  useful  niche   •  Social  channels  may  play  out,  but  not  unUl  the  age  group     grows  up     1/10/13   Baynote,  Inc.  ©  2013     8  
  9. 9. Determining  What  To  Buy   1/10/13   Baynote,  Inc.  ©  2013     9  
  10. 10. Personal  contact,  deal-­‐seeking  and  search  engines  are  the   top  three  ways  shoppers  figure  out  what  to  buy   When  deciding  what  holiday  gi0(s)  to  purchase,  where  does  your  process  typically  begin?   Percent  of  respondents  who  answered  “always”  or  “frequently”   58%   Ask  the  person  what  they  want   Look  for  discounts  and  then  find  that  product  to  make  the   purchase   42%   Use  a  search  engine  to  browse  for  interesbng  ideas  or  locate   hard-­‐to-­‐find  product   32%   They  send  me  or  I  request  an  email  with  the  items  they  want   29%   Look  through  physical  catalogs   28%   Browse  their  favorite  stores  to  find  interesbng  gies  or  ideas   28%   Look  at  the  person’s  wish  list  on  a  site  they  like   28%   Look  at  Pinterest  to  get  gie  ideas   Look  at  Facebook  or  another  social  sharing  site  to  get  gie  ideas   1/10/13   15%   15%   Baynote,  Inc.  ©  2013     10  
  11. 11. When  checking  prices,  shoppers  seek  stores  they  know,   and  most  know  Amazon.com   Once  you  have  confirmed  the  gi0  you  are  going  to  buy,  how  o0en  is  the  following  behavior   a  part  of  your  buying  process?   Percent  of  respondents  who  answered  “always”  or  “frequently”   I  go  to  Amazon  to  check  their  prices  and  see  if  they  have  it  available   66%   55%   I  check  prices  at  the  stores  where  I  usually  make  purchases   I  use  a  search  engine,  like  Google,  to  see  where  I  can  buy  it   49%   I  go  to  a  store  or  site  that  I  know  carries  the  item  and  buy  it   49%   I  check  for  product  availability  at  local  stores   48%   I  go  to  a  big  box  store,  like  Best  Buy,  Walmart,  or  Target,  that  I  think  will   have  the  product   45%   38%   I  peruse  my  emails  for  bargains  on  these  products   I  use  a  price  comparison  service/app,  like  Google  Products,  Shopzilla,   Nextag  or  PriceGrabber,  to  find  the  best  price   33%   I  go  to  a  local  store  I  frequent  to  make  the  purchase   33%   1/10/13  o  to  the  mall  and  look  around  at  different  stores  to  see  if  IBaynote,  Inc.  ©  2013     I  g  can  find  it   29%   11  
  12. 12. Most  and  Least  EffecUve  MarkeUng  Influencers   While  online  centric  methods   like  ra8ngs  &  reviews,  search   and  email  promo8ons  really   influenced  shopper  purchases,   other  tradi8onal  methods  like   catalogs  were  also  very   effec8ve.   1/10/13   Baynote,  Inc.  ©  2013     12  
  13. 13. Different  tools  work  best  with  different  age  groups;     but  everyone  loves  a  good  catalog   1/10/13   Baynote,  Inc.  ©  2013     13  
  14. 14. Social  exerts  very  liele  influence  on  shoppers  either     in-­‐store  or  online     In-­‐store  Purchases   Online  Purchases   Twi[er   Pinterest   76%   74%   74%   Twi[er   68%   Pinterest   Facebook   66%   Mobile  adverbsing   Mobile  adverbsing   65%   Text  messaging  from  retailers   60%   Facebook   59%   eCommerce  website   61%   Display  adverbsing  for  product  you  previously  viewed   50%   Product  recommendabon  on  ecommerce  website   49%   Google  search  results  that  included  pictured  product   38%   Online  rabngs  and  reviews   33%   Paper  catalog   30%   Email  promobon   29%   58%   Text  messaging  from  retailers   eCommerce  website   Display  adverbsing  for  product  you  previously   Product  recommendabon  on  ecommerce   Google  search  results  that  included  pictured   Online  rabngs  and  reviews   Email  promobon   Paper  catalog   62%   64%   45%   44%   26%   22%   21%   18%   How  o0en  did  the  following  channels  influence  your  online  or  in-­‐store  purchase?   1/10/13   Percent  of  respondents  who  answered  “never”   Baynote,  Inc.  ©  2013     14  
  15. 15. Price,  free  shipping,  availability  and  merchant  reputaUon   influence  final  selecUon  most     What  were  the  most  important  influencers  when  ulDmately  making  the  final  purchase?   Percent  of  respondents  who  answered  “most  important”   Final  price  including  any  promobonal  offers   47%   Free  shipping  without  condibons   38%   Product  in-­‐stock  and  ready  to  ship   35%   Merchant  reputabon   33%   Product  reviews   29%   Return  policy   Ability  to  receive  rewards/loyalty  points   Free  shipping  with  a  threshold  (i.e.  spend  $100  to  receive  free   1/10/13   Baynote,  Inc.  ©  2013     24%   13%   10%   15  
  16. 16. Device  Usage  in  Holiday  Shopping   1/10/13   Baynote,  Inc.  ©  2013     16  
  17. 17. Smartphones  help  shoppers  find  general  info,  product   previews,  prices  and  use  coupons     How  oJen  did  you  use  your  smartphone  during  the  holiday  season  for  any  of  the  following?   Percent  of  respondents  who  answered  “all  the  8me,”  “frequently”  and  “some8mes”   54%   Find  a  store  or  seek  out  store-­‐based  informabon  (hours,   Browse  websites  to  figure  out  what  to  buy  in  advance  of   50%   Compare  prices  before  a  store  visit   49%   Get  coupons  or  offers   46%   Compare  prices  while  in  the  store   46%   Look  at  product  rabngs  before  visibng  the  store   45%   Redeem  coupons  during  a  store  visit   45%   43%   Make  a  purchase  directly  on  the  website   Look  at  product  rabngs  while  in  the  store   Scan  a  barcode  while  in  a  store  to  check  the  price  at  another   Make  a  purchase  using  a  retailer’s  app  (i.e.  Nordstrom,   Use  a  QR  code  in  search  of  more  informabon  (in-­‐store,  via   1/10/13   Baynote,  Inc.  ©  2013     42%   39%   39%   36%   17  
  18. 18. Tablet  usage  consistently    centered  on  browsing,  price   comparison,  making  store  connecUons   How  oJen  did  you  and  involves  pof  the  following  holiday  shopping?   use  your  tablet  for  any   urchasing   Percent  of  respondents  who  answered  “all  the  8me,”  “frequently”  and  “some8mes”   65%   Browse  websites  to  figure  out  what  to  buy  in  advance  of   Compare  prices  before  a  store  visit   62%   60%   Find  a  store  or  seek  out  store-­‐based  informabon  (hours,   Look  at  product  rabngs  before  visibng  the  store   57%   Make  a  purchase  directly  on  the  website   57%   52%   Make  a  purchase  using  a  retailer’s  app  (i.e.  Nordstrom,   Get  coupons  or  offers   51%   Compare  prices  while  in  the  store   47%   Redeem  coupons  during  a  store  visit   47%   Look  at  product  rabngs  while  in  the  store   46%   Scan  a  barcode  while  in  a  store  to  check  the  price  at  another   45%   Use  a  QR  code  in  search  of  more  informabon  (in-­‐store,  via   1/10/13   Baynote,  Inc.  ©  2013     44%   18  
  19. 19. Tablet  usage  is  much  stronger  than  smartphones  from   browsing  to  buying     and  iuse  your  smartphone  or  tablet   How  oJen  did  you  nvolves  purchasing   during  the     holiday  season  for  any  of  the  following?   Browse  websites  to  figure  out  what  to  buy  in  advance  of   Compare  prices  before  a  store  visit   2.87   2.44   Find  a  store  or  seek  out  store-­‐based  informabon  (hours,   2.59   Make  a  purchase  directly  on  the  website   2.71   2.36   Make  a  purchase  using  a  retailer’s  app  (i.e.  Nordstrom,   2.79   2.73   2.26   Look  at  product  rabngs  before  visibng  the  store   2.61   2.15   2.56   2.41   Get  coupons  or  offers   Tablet   Smartphone   2.44   2.41   Compare  prices  while  in  the  store   2.41   2.36   Redeem  coupons  during  a  store  visit   2.4   2.24   Look  at  product  rabngs  while  in  the  store   Scan  a  barcode  while  in  a  store  to  check  the  price  at  another   2.16   Use  a  QR  code  in  search  of  more  informabon  (in-­‐store,  via   1/10/13   2.94   2.54   2.09   Baynote,  Inc.  ©  2013     2.36   2.34   5   4   3   2   1   RATING  AVERAGE  LEGEND   5-­‐POINT  SCALE   ALWAYS   FREQUENTLY   SOMETIMES   ONCE  IN  A  WHILE   NEVER   19  
  20. 20. App  usage  on  smartphones  and  tablets  sUll  the  minority   Percent  of  shoppers  who  made  holiday  gi0  purchases   using  a  retailer-­‐branded  app  on  a  smartphone  or   tablet  this  holiday  season.   Reasons  that  the  772  app  users  surveyed  chose   not  to  purchase  using  an  app  as  the  interface.   Sabsfied  with  web-­‐based  shopping  experience   Yes   23%   53%   Security  concerns   34%   Interface  not  ideal  shopper  experience   No   77%   17%   App  shopping  is  too  slow   17%   Inferior  shopping  experience   Only  1  in  4  holiday  shoppers  used   branded  apps.   1/10/13   Search  funcbonality  not  up  to  par   Forgot  I  ever  downloaded  the  app   Baynote,  Inc.  ©  2013     13%   9%   8%   20  
  21. 21. Privacy  Concerns  While  Holiday  Shopping   1/10/13   Baynote,  Inc.  ©  2013     21  
  22. 22. Privacy  concerns  are  low:  occasional  on  mobile  devices   How  concerned  were  you  with  privacy  while  researching  and  making    holiday  purchases  via  the  following  loca8ons  or  devices?   Smartphone   2.06   Mobile  App   2.02   Twi[er   2.00   Facebook   1.97   Tablet   1.94   Pinterest   1.92   eCommerce  Retail  Website   1.77   Marketplaces  (Etsy,  Ebay,  Fab.com,  etc.)   1.75   1.70   Personal  Computer   1.64   Google   1.58   Amazon   1.49   Store   1/10/13   5   4   3   2   1   RATING  AVERAGE  LEGEND   5-­‐POINT  SCALE   ALWAYS   FREQUENTLY   SOMETIMES   ONCE  IN  A  WHILE   NEVER   Baynote,  Inc.  ©  2013     22  
  23. 23. Order  abandonment  rate  due  to  privacy  concerns  is   insignificant   Did  you  find  yourself  abandoning  a  loca8on  or  device  because  of  privacy   concerns  during  your  holiday  researching  and  purchasing?   Answer Options Store Personal Computer Amazon Google Smartphone Marketplaces (Etsy, eBay, Fab.com, etc.) Mobile App eCommerce Retail Website Tablet Facebook Pinterest Twitter 1/10/13   Baynote,  Inc.  ©  2013     Yes 9% 12% 9% 10% 15% 9% 12% 9% 11% 11% 7% 9% No 86% 84% 81% 71% 65% 62% 52% 49% 44% 44% 34% 31% Do Not Use 5% 4% 10% 19% 20% 29% 36% 42% 45% 45% 59% 60% 23  
  24. 24. Important  Takeaways   1/10/13   Baynote,  Inc.  ©  2013     24  
  25. 25. What  Retailers  Can  Do  Now   •  Customize  promobonal  strategies  by  demographic.    If  a  large  segment  of  your   customers  aren’t  influenced  via  social  then  invest  accordingly.    Likewise,  if  your   demographic  is  in  a  younger  age  group,  keep  an  eye  on  how  your  social  metrics  are   working.   •  Catalogs  are  no  longer  stand  alone  channels.    They  are  an  important  piece  of  your   overall  omni-­‐channel  markeUng  strategy  that  influence  both  in-­‐store  and  online   purchases  across  all  age  groups.   •  Tablets  are  the  future  of  shopping.    Make  sure  your  website  is  opUmized  for  tablet   browsing  and  buying.   1/10/13   Baynote,  Inc.  ©  2013     25  
  26. 26. What  Retailers  Can  Do  Now   •  Strive  to  understand  more  about  the  role  of  customer  loyalty  and  your  brand.    This   will  impact  branded  app  usage.    Apps    may  be  more  suited  to  your  year  round,  loyal   shopper,  not  necessarily  your  holiday  buyer.       •  Conbnue  to  invest  in  on-­‐line  markebng.    Pump  up  your  raUngs  and  reviews  and  make   sure  they  are  visible  and  fresh.    ConUnue  to  invest  in  personalizaUon  within  your   emails  for  offers,  cart  abandonment  and  shipment.    All  of  these  omni-­‐channel   strategies  are  strong  influencers  on  online  and  in-­‐store  shopper  behavior.   •  While  privacy  concerns  are  waning  among  shoppers,  conbnue  to  build  their  trust   through  transacbonal  security  on  your  site.    Also  conUnue  to  invest  in  personalizaUon   technologies  to  build  trust  and  loyalty  within  your  customer  base  and  their  concerns   about  privacy  will  fall  by  the  wayside.     1/10/13   Baynote,  Inc.  ©  2013     26  
  27. 27. Legal  Disclaimer   The  contents  of  this  document  are  copyrighted  by  Baynote,  Inc.         RedistribuUon  or  reproducUon  is  prohibited  without  express,   wrieen  consent  from  Baynote.       For  wrieen  approval  to  redistribute  or  reproduce  content   included  in  this  document,  please  contact   markeUng@baynote.com.   1/10/13   Baynote,  Inc.  ©  2013     27