2012 07 ijl2012_seminar_diamond-club-brunch


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A summary of Digital Trends for an invited audience at the International Jewellery Trade Show, London, September 2012.

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2012 07 ijl2012_seminar_diamond-club-brunch

  1. 1. Digital Trends For Retailers Diamond Club Business Brunch IJL – 3 September, 2012 Eddie Prentice – Digital Marketer
  2. 2. Digital Trends Agenda • Mobile • Social • eCommerce • Conclusions Eddie.Prentice@btconnect.com
  3. 3. Mobile Eddie.Prentice@btconnect.com
  4. 4. Current Mobile Technology • 2G = voice and text • 3G = 2G plus internet services • 4G = faster and better coverage than 3G (not yet launched in UK) Eddie.Prentice@btconnect.com Current mobile technology is know as “third generation” (3G) Roll-out of 4G services is coming soon! Enabled by the release of SPECTRUM. Expected to reach the UK in 2013.
  5. 5. Mobile Network Operators There are 4 UK mobile network operators (MNOs): • Vodafone • Telefonica O2 (known as O2) • Hutchison 3G (known as Three) • Everything Everywhere (Orange and T-Mobile networks that merged in 2010) These four MNOs each have different spectrum holdings that were allocated to them at previous auctions. Many more mobile service providers in the UK Virgin Mobile, Tesco Mobile and TalkTalk offer mobile service packages through the four networks but do not have spectrum holdings. Eddie.Prentice@btconnect.com
  6. 6. About Spectrum • Spectrum refers to the range of frequencies in which a signal can be transmitted • Spectrum between frequencies 300MHz and 3GHz is the “sweet-spot” for mobile operators – Suitable for mobile communications and broadband • Spectrum is allocated by means of licences, overseen by Ofcom, the competition authority Eddie.Prentice@btconnect.com
  7. 7. Spectrum Why Is It Important? Releasing Spectrum for 4G services will mean • Faster and better coverage capabilities than 3G • Enhanced internet services for users • Continued growth of the smartphone market
  8. 8. Mobile Facts Eddie.Prentice@btconnect.com
  9. 9. Mobile Facts 26 million smartphone users in the UK Source: Comscore April 2012 69% of smartphone owners currently own their first smartphone Source: Our Mobile Planet May 2012 Eddie.Prentice@btconnect.com
  10. 10. Mobile Usage Its Not About Phone Calls • A third of smartphone owners prefer using it for Web browsing or e-mail even when they are near PCs. • Over the past two years, iPhone users have spent 45 percent more time e-mailing on their smartphones and 15 percent less time e-mailing on their PCs. • More than 60 percent of smartphone users would consider buying goods with it or have already done so. • As more products are distributed over mobile channels, greater competition will raise the importance of design, ease of use, and new mobile payment options. Source: McKinsey Research Eddie.Prentice@btconnect.com
  11. 11. Mobile Site Design Basics Eddie.Prentice@btconnect.com
  12. 12. Mobile Sites Home Page & Navigation Standard e-commerce websites can afford to dedicate a lot of space to – graphics – merchandising – large product photos – navigational features Eddie.Prentice@btconnect.com Mobile screens are much smaller and need a different approach.
  13. 13. Mobile Site Design Basics • Minimise menu and navigational items • Vertical lists work better than horizontal menu bars • Links/buttons should be large enough and widely enough spaced to view and click on or touch. • Search box is very important given a more limited link navigation – Enable filtering of results – Include price in results • Minimise form filing Eddie.Prentice@btconnect.com
  14. 14. Sign In Keep it Simple Eddie.Prentice@btconnect.com
  15. 15. Navigation Use Expanding Lists Eddie.Prentice@btconnect.com Marks & Spencer
  16. 16. Mobile Site Home Page & Navigation Regular site Mobile site Mobile sites view better and download faster
  17. 17. Amazon $1billion in Mobile Sales Eddie.Prentice@btconnect.com
  18. 18. Mobile Touchscreens Design Tips • The size of links. Links need to be big enough for users to click? • Space between links & action buttons. Allow enough space to allow users to easily click. • Font sizes. Make it easy to read on a small screen. • Icons. Don’t take up too much room - may be confusing for users who do not understand their meaning. Make icons easy to understand or include text descriptors • Use single pages rather than multiple tabs. Easier to scroll down a long web page than open multiple tabs. Eddie.Prentice@btconnect.com
  19. 19. Mobile Site or App Eddie.Prentice@btconnect.com
  20. 20. Mobile Site or App? • Customers are not using these channels in a mutually exclusive manner • It’s not an ‘either / or’ choice • Heavy app users are also the most frequent mobile internet users • Mobile apps and mobile web will continue to co-exist going forward. • The best strategy is not “either/or …” but “both” Eddie.Prentice@btconnect.com
  21. 21. Links of London iPhone App Eddie.Prentice@btconnect.com
  22. 22. Links Of London iPhone App Eddie.Prentice@btconnect.com
  23. 23. Not Just About Online Sales Store Locator
  24. 24. Tiffany & Co One App Not Enough Tiffany has an App to promote the brand and one specifically called Engagement Ring Finder Eddie.Prentice@btconnect.com
  25. 25. De Beers Bridal App Single theme: Bridal - Focus on customer needs rather than product Good use of action phrases – Useful navigation options Eddie.Prentice@btconnect.com
  26. 26. M&S Checkout • Mobile users do not want to invest time in entering lots of personal details. • Make registration optional • Minimise form fill – Add shortcuts (postcode lookup) – Pre-populate billing address • PayPal payment option may avert security concerns Eddie.Prentice@btconnect.com On entering Checkout, users forced to register. NOT best practice
  27. 27. M&S Checkout Users forced to put in too much detail, including date of birth Eddie.Prentice@btconnect.com
  28. 28. Debenhams Checkout Debenhams offers a much slicker checkout process – Allows guest registration – Postcode finder – Assumes same address for billing & delivery – Pages short and quick to load Eddie.Prentice@btconnect.com
  29. 29. Topshop Checkout • Very fast Checkout • Guest registration • Only requires delivery address & card details • Short pages (quick to load) • Pulls up numerical keypad to enter phone number Eddie.Prentice@btconnect.com
  30. 30. Mobile Conclusions Eddie.Prentice@btconnect.com
  31. 31. Mobile Commerce Challenges Expressed reasons for lack of progress with mobile commerce: – Lack of internal knowledge and skills – Lack of time – No internal buy-in – No specific budget for mobile – High cost of implementation – Inability to integrate with internal systems – Fear of ever changing landscapey Eddie.Prentice@btconnect.com
  32. 32. What should you do now? 1. Plan ahead – start researching: – Monitor what the big retailers are doing – Download competitor Apps – Visit competitor websites 2. Feel the experience as a mobile consumer: – Use Facebook / Twitter – Make online purchases from your mobile – Download a QR code scanner 3. Start talking to suppliers so you know the issues and the costs. You’ve got time to deal with this but the sooner you start the better prepared you’ll be. Eddie.Prentice@btconnect.com
  33. 33. Social Media Eddie.Prentice@btconnect.com
  34. 34. Social Media What’s the Point? Grow customer engagement and build brand loyalty • Personalise your brand • Enable customers to identify with your brand Eddie.Prentice@btconnect.com
  35. 35. Social Media UK Statistics • 31.5 million Facebook users in UK (over 50% of UK population) • 97% students use Facebook • Facebook accounts for 16% of all time spent online in the UK • 45% students use Twitter • 25% of consumers have a Twitter account Eddie.Prentice@btconnect.com
  36. 36. Social Media Brand Engagement By Age Source: Fishburn Hedges, via Econsultancy, May 2012 Eddie.Prentice@btconnect.com
  37. 37. Facebook Eddie.Prentice@btconnect.com
  38. 38. Facebook Fans Top 20 Source: eDigitalResearch Aug 2012 Eddie.Prentice@btconnect.com
  39. 39. Facebook Timeline • On 30th March 2012, Facebook switched all existing brand pages to its new ‘Timeline’ format • Replaced the Wall with a more visually appealing format. • In the past, the emphasis for Facebook marketers was on custom apps and landing pages, which could easily be set as the default landing page for any or all visitors. • The new Timeline format means that pages are now limited to a maximum of 12 apps. Eddie.Prentice@btconnect.com
  40. 40. Facebook Two Main Images 2. Profile Picture 1. Cover Photo 1. Cover Photo Chose a unique, custom image which represents your brand 2. Profile Picture Clear identifiable image that is recognisably your brand such as your logo. It will be used across Facebook as a thumbnail image.
  41. 41. Facebook Apps Apps - Up to 12 apps allowed. - The first four are always visible, so place your most important content here. - Other apps can be accessed using the drop-down button at the right of the page (3 further Apps for Links Facebook page).
  42. 42. Facebook Timeline - You can extend your timeline to cover your entire history - Page managers can add ‘Milestones’, depicting significant events - Assign any date to pieces of content you upload, add pictures, video and text from the past - The purpose is to present your brand identity clearly to new visitors
  43. 43. Facebook Best Practice • Try and post every day – don’t forget weekends. This is an active time for many Facebook users • Focus on engagement, not sales – ask questions, offer tips, share interesting content links, respond to questions • You can sell but get the balance right e.g. 5 posts, one sales message and 4 helpful content posts (80/20 rule) • Have calls to action – tell them to like, comment, watch (and why). • Make it entertaining or fun
  44. 44. Like Our Page Hint Hint Click on Red Bull App
  45. 45. Like Our Page Hint Hint Arrows in graphic point towards Like button. No need to be subtle.
  46. 46. Liked “Now Watch This”
  47. 47. Liked? Now Share
  48. 48. Welcome to Topshop
  49. 49. Sign Up To Style Notes
  50. 50. Sign Up To Style Notes
  51. 51. Facebook Engagement Tips • Shorter posts (less than 80 characters) get higher engagement rates than posts longer posts. • Brands that posted (or scheduled posts) outside of business hours showed engagement rates. • Engagement rates tend to be higher on Thursdays and Fridays compared with other days of the week. • Engagement rates 18 percent below average on Saturdays. • Fans are more likely to engage with “events” and “winning” than with “contests” and “promotions.” • Posts that end with a question result in higher engagement rates than those that don’t. • Avoid the question “Why?” - “Where?”, “When?”, “Would?” and “Should?”, result in higher engagement. Source: Facebook Blog
  52. 52. Twitter Eddie.Prentice@btconnect.com
  53. 53. Brands Followed For Offers, Discounts & Updates Why do you follow brands on Twitter? Eddie.Prentice@btconnect.com Source: Econsultancy
  54. 54. Twitter Followers Top 20 Source: eDigitalResearch Aug 2012 Harrods & Selfridges in top 5 yet not in top 20 on Facebook. Eddie.Prentice@btconnect.com
  55. 55. Twitter Responding to Negative Comments How to deal with the negatives? • Respond quickly • Apologize / empathize • Make it easy to communicate (move it public to private - DM, Email, Phone) • Be human – no corporate speak • Put things right – whatever it takes • Offer an incentive to buy again
  56. 56. Instagram Eddie.Prentice@btconnect.com
  57. 57. Instagram Brand Uptake Luxury brands are leading the charge on Instagram - Burberry, Tiffany & Co., Hermès, Gucci, and Armani use Instagram's visual format to drive product engagement. Eddie.Prentice@btconnect.com
  58. 58. ASOS on Instagram - Posts images of latest ranges and behind the scenes views - Asks followers to post images of themselves sporting a particular look
  59. 59. Selfridges on Instagram - Posts images of products and displays from its stores - Asks questions about its followers fashion preferences
  60. 60. Tiffany on Instagram Attracted 118,000 followers by posting images of its products and New York stores.
  61. 61. Burberry on Instagram - Originally showcased products but now photos around London - Now using Instagram to position Burberry as a cosmopolitan, British brand - Also, featured behind the scenes look at launch of new range, presented as an invitation i.e. building network with exclusive content - Now over 500,000 followers
  62. 62. Pinterest – The virtual Pinboard Eddie.Prentice@btconnect.com
  63. 63. Pinterest John Lewis • Features a wealth of John Lewis products – why not just visit website? • Misses the point of Pinterest – identification with the brand, not product promotion • Result: just 486 followers Eddie.Prentice@btconnect.com
  64. 64. Pinterest Links of London “Regularly liking and pinning other users’ images gains extra exposure for your brand account and is invaluable for building a bigger following.” – Econsultancy, July 2012 Links of London: “0 Likes” “227 Followers” Eddie.Prentice@btconnect.com
  65. 65. Pinterest Kate Spade Kate Spade re-pins and likes others content. 79,364 followers – has become a reference point for trends and styles, doing things “colourfully” Eddie.Prentice@btconnect.com
  66. 66. Pinterest Fears & Khan Antiques/design gallery – not a big brand like John Lewis yet more followers and many more “Likes” Eddie.Prentice@btconnect.com
  67. 67. Pinterest Ikea If you are going to show your own products, make sure you provide links back to your website. Ikea’s “True Blue” Pinboard is very eye catching, showcases their products with great images but then no link to website! This space can be used for a website link Eddie.Prentice@btconnect.com
  68. 68. Pinterest 9 Tips for Marketers 1. Don’t just blow your own trumpet - completely misses the point of social media. 2. Let others contribute - allow other users to pin content to some of your boards. They will share the board with others. Be selective to avoid spammers. 3. Update your boards on a regular basis – to keep customers engaged you have to give them new content on a regular basis. 4. Use eye-catching images (or don’t bother) – large, hi-res, colourful. You want to inspire others. 5. Add links to your images - when you do pin your own product make sure to link back to your e-commerce site. 6. Be wary of copyright infringement - If in doubt don’t pin it. Credit images – you are unlikely to get sued if you send traffic to the copyright owner 7. Don’t include prices or logos – these images won’t get repinned. Just link back to your website. 8. Make pins and pinboards searchable - use keywords in the descriptions so users can find them when searching the site. 9. Add a Pinterest share tab to your website Eddie.Prentice@btconnect.com Ref: www.econsultancy.com
  69. 69. Virgin Atlantic Consistent Customer Experience
  70. 70. Reviews & Ratings Eddie.Prentice@btconnect.com
  71. 71. Ratings & Reviews No Longer Optional The views of your peers carry greater weight than the message of the brand
  72. 72. TripAdvisor Reviews
  73. 73. Negative reviews don’t necessarily have more weight than positive reviews. They give authenticity to positives.
  74. 74. Who You Are Makes A Difference Source: Reevoo, June 2011 54.2% of UK consumers say a reputable retailer is important when shopping online
  75. 75. Reviews Still need convincing? • 87.3% of UK consumers sometimes or always read reviews before purchasing. • 86.9% will not purchase a new product before reading the impartial opinions of owners. • 78.2% of UK consumers are more likely to buy products with good reviews • Almost half of UK consumers have written a review. Source: Reevoo, June 2011
  76. 76. Internet “Splinternet” • Explosion of devices and networks has turned the internet in to the “splinternet” • New fragmented reality • More complex to deliver a consistent customer experience Make a plan How? What? Who? Where? Eddie.Prentice@btconnect.com
  77. 77. How? What? Who? Where? Forrester’s “Digital Customer Experience Strategy” Eddie.Prentice@btconnect.com
  78. 78. eCommerce Eddie.Prentice@btconnect.com
  79. 79. eCommerce Why It’s Important? • 20% shoppers spend more than half their income online • 40% of UK consumers shop online at least once a week • 52% research purchases solely online • 40% start their search for all purchases online Source: PricewaterhouseCoopers / Reevo, June 2011
  80. 80. Olympic Ticketing Tickets sold out in spite of the website not because of it
  81. 81. Olympic Ticketing Buyers persevered because there was no alternative. This is not the real world. Website usability is critical.
  82. 82. Mega Drop-down Menus Most major retailers now have Mega drop-downs
  83. 83. Ernest Jones Mega Drop-down Menu
  84. 84. Mega Drop-downs Pros and Cons Pros • Reach lower levels of navigation with fewer clicks • Offer different paths to the same product/brand • Filter the customer’s product selection, saving clicks • Merchandising - offer the most popular at top and on the left • Works well with horizontal navigation bars Cons • Drop-downs can be very difficult to use on mobile devices • "Paradox of Choice" - slows the process with greater complexity • Technical issues - code that behaves differently depending on browser • Can be difficult for visitors to scan and make sense of it
  85. 85. Mega Drop-downs Tips • Use headings • Use columns • Showcase your best sellers • Keep it short - don’t extend off page of small screen • Add a drop shadow or border to make it stand out on page • Test it in a range of browsers • Consider using the full width of the page • Use images and icons • Speed - Comes up instantly on hover and disappears when mouse is moved away Ideas for improving mega drop-down usability
  86. 86. Mega Drop-downs M&S M&S has many best practice features of a mega-drop-down
  87. 87. Abandoned Shopping Carts Reasons Source: Comscore / Entrepreneur.com Shipping related issues figure in 3 of top 5 reasons people abandon shopping carts
  88. 88. Shipping Time Cart Abandonment Source: Comscore / Entrepreneur.com The longer the delivery time the higher the abandonment rate
  89. 89. Checkout What Shoppers Want Source: Comscore / Entrepreneur.com The top 2 options people want to see at Checkout relate to shipping & delivery date
  90. 90. Checkout “NO” to account creation ASOS reduced cart abandonment by 50% when they took the account registration process out of their Checkout
  91. 91. ASOS First Checkout Page Before & After Form improved for existing and new customers OLD NEW
  92. 92. ASOS Checkout Good Practice Visible FREE returns and FREE next day delivery Products images reassures correct product has been selected Transparent delivery costs Visible and reassuring payment button at top and bottom Easy to see “Change Details”
  93. 93. Trust symbol Progress Indicator Useful Information specific to the field Clear primary call to action
  94. 94. Manual address entry option - postcode doesn’t always work Manual Address Entry
  95. 95. Tailored Payment Fields depending upon your chosen card Clicking on radio button amends field options
  96. 96. Ability to confirm or edit your order before placing it
  97. 97. Conversion Rate Eddie.Prentice@btconnect.com
  98. 98. Conversion Rate by Device Source: Monetate Aug2012 Eddie.Prentice@btconnect.com Tablets convert better than smartphones
  99. 99. Conversion Rate by Traffic Source Source: Monetate Aug2012 Search is second only to Email in terms of sales conversion
  100. 100. Conclusions Eddie.Prentice@btconnect.com
  101. 101. Mobile is changing the digital marketing game but it isn’t changing the rules If you haven’t already done so ... ... start thinking now about integrating a mobile strategy in to your marketing plans … Eddie.Prentice@btconnect.com
  102. 102. Conclusion Plan It Don’t Leave to Chance 1. Mobile - Research your competitors - Feel the experience as a mobile consumer - Start talking to suppliers so you know the issues and the costs 2. Social - How? What? Who? Where? 3. eCommerce - Reviews & ratings no longer optional
  103. 103. IJL Seminar – 3 September, 2012 Eddie Prentice – Digital Marketer Email: eddie.prentice@btconnect.com Digital Trends For Retailers Diamond Club Business Brunch