Always Shopping: Marketers Meet Challenges of On-Demand Commerce

January 23, 2014

How Marketers Are
Meeting the Challenges
of Always-On Shopping
Presented by:
Noah Elkin &
Yoram Wurmser
eMarketer, Inc.

Sponsored by

©2014 eMarketer Inc.

Agenda
 Reaching consumers across blurring lines
 The state of always-on shopping
 Marketing to the “always shopping” consumer

Twitter Hashtag – #eMwebinar

Marketing Across
Blurring Lines


We’ve
reached a
new
inflection
point ….

Digital’s
advance is
helping blur
the lines
between
everywhere
and nowhere

5 hours 16 minutes
43.6% of daily media time

4 hours 31 minutes
37.4% of daily media time
Source: eMarketer, July 2013

… and it’s driven by mobile

2 hours 21 minutes
19.4% of daily
media time

2 hours 19 minutes
19.2% of daily
media time
Source: eMarketer, July 2013

In a digital landscape defined by an
ever-expanding number of screens …

Smartphones

Phablet
Phablets

Wearable
Wearable Technology
Technology

Social Machines
Social Machines

Connected
Consoles
Connected Consoles

Ambient Surfaces
Ambient
Surfaces

Connected Cars
Connected Cars


… mobile
devices
have moved
to the
center


One result: As marketers and retailers, we
must operate in a world of blurring lines


What Are the 5 Primary
Implications of Blurring
Lines?


1. The notion of the consumer is shifting


2. “Mobile” isn’t necessarily on-the-go


3. Online is a persistent state

It’s no longer a distinct condition
characterized by sitting in front of a PC

4. Today’s path to purchase is a lot less
linear …

… and a lot more like an infinite loop

5. “Everywhere commerce” adds up: 2014
global B2C ecommerce will top $1.4 trillion

The US represents the single largest
ecommerce market, with nearly
one-third of global sales in 2014

The State of Always-On
Shopping


Keep in mind: We’re still scratching the
surface of the ecommerce opportunity


Smartphones play a key role in driving
always-on commerce …

Smartphones serve as the fulcrum
between digital and physical retail

… even if tablets generate far higher
on-device sales

Tablets will
account for
two-thirds of
US retail
mcommerce
sales in 2014


The reality of
multi-device
shopping:
Consumers
are always in
consideration
mode


Even if consumers aren’t consciously
shopping, they are still shopping
“Smartphone use is more or less
continuous. [It] doesn’t say anything
about whether the use has anything to
do with shopping, but it does mean that
[it has] a large part of the consumer’s
mind share during that shopping
mission. The shopping trip starts earlier
and ends later than it used to.”
—Nick Hodson, partner at Booz & Co.


In other words …

… shopping is about state of mind as much as
intent and physical location

Marketing to the
“Always Shopping”
Consumer


Research starts anywhere

“Webrooming”
is a
mainstream
activity, often
used to
narrow down
purchase
options before
visiting a
physical store


Marketers can help their own cause by
facilitating the research process

Tools such
as a wish list
can help
retain
shoppers as
they move
from one
screen to
another


Part of being in consideration mode
means staying attuned to ads and offers


The alwayson shopper
is also the
anywhere
shopper

Location
targeting is a
key mobile
marketing
opportunity

Rain = bad hair = opportunity for Pantene


More relevant information makes for more
effective location-based ads


Keep in mind: Purchase decisions are
often made before entering the store
Locationbased ads
may lose
effectiveness
once a
customer is
in a
brick-andmortar
setting


Research continues in-store: Is this a
threat or opportunity for retailers?

40% of US adults showroom, but only a
small percentage actually buy from an online
competitor while in-store

Some retailers
have tried to
embrace
showrooming

Best Buy has
made efforts to
use it as an
opportunity to
attract eyeballs
and dollars in
its stores

Think of mobile as a potentially valuable
tool for keeping purchases in-store
“Mobile is kind of this seamless glue.
The purchase process and
consideration have become more
meandering, and we’re using mobile as
the thing that jumps into those places.
The big thing is not to think of mobile
as just shopping on the go. Mobile is a
tool for in-store.”
—Johnna Marcus, director of mobile and digital
store marketing

Some
improvements
are as simple
as integrating
coupons and
loyalty
programs
Sephora’s app
lets customers
ditch plastic
loyalty cards
and have a more
personalized
experience

Retailers are
taking steps
to improve on
the in-store
experience

Lowe’s is
thinking about
how its
customers shop
and where to
address their
pain points

Others aim for deeper integrations of the
mobile, social and in-store experience
Example: Cartwheel by Target


Apple’s iBeacon technology gives retailers
multiple in-store engagement options
These include everything from micro-location
marketing to scan-and-click checkout


Image courtesy of AppleInsider

… and can let
consumers
check out
anywhere

Walmart is
rolling out an
app feature that
lets shoppers
scan items for
purchase as
they browse the
store

Even at checkout, consumers still want
choices on fulfillment
Toys R Us lets online buyers pick up in-store —
but the opportunities are wider


Takeaways
 2014 will be the year retailers reckon fully with
a world of “always engaged” consumers.
 Consumers’ research about product decisions
now extends along a seamless continuum from
home to work to store.
– This means tailoring messages to reach users who may
raise their hand at any point in the purchase process.
 The key to connecting with always-on
shoppers lies in offering multiple options, from
purchase to pickup to payment.
– Retailers should focus on customer pain points and
how smartphones can address them, especially
in-store.

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2014 figures are projections

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Q&A Session

Learn more about digital
marketing with an eMarketer
corporate subscription

How Marketers Are
Meeting the Challenge
of Always-On Shopping

Around 200 eMarketer reports are published
each year. Here are some recent ones you
may be interested in:
 Key Digital Trends for 2014
 Digital Ad Spending by Industry: Forecasts and Key
Trends
 Cross-Platform Attribution: A Status Report on
Overcoming Select Attribution Challenges

Noah Elkin

Yoram Wurmser

You will receive an email
tomorrow with a link to
view the deck and
webinar recording.
Sponsored by

 The State of Omnichannel Retail: Retailers Playing
Catch-Up with Consumers
 Tablets and Apparel: Fashioning a Role in Mobile
Commerce
 The Luxury Consumer: Shoppers Lead Brands to
Digital Channels
To learn more: www.emarketer.com/corporate
800-405-0844 or webinars@emarketer.com

Always Shopping: Marketers Meet Challenges of On-Demand Commerce

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