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eMarketer Webinar: Key Trends in Ecommerce

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Online shopping is more prevalent than ever, but it’s not just about online sales anymore. Are you on top of the latest trends to maximize success selling to online, offline and multichannel shoppers? Topics in this webinar include: How is mobile changing the path to purchase? Why is locally relevant information so important in ecommerce? How are innovative retailers dealing with fulfillment challenges? How can you create personalized offers without seeming creepy?

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eMarketer Webinar: Key Trends in Ecommerce

  1. 1. © 2015 eMarketer Inc. Made possible by Key Trends in Ecommerce Yory Wurmser Retail Analyst January 22, 2015
  2. 2. © 2015 eMarketer Inc. Agenda  Ecommerce forecast overview  Mobile’s impact on the path to purchase  How is ecommerce integrating with the physical world?  Why is flexibility important for etailers?  How can you personalize ecommerce without seeming creepy? Twitter – #eMwebinar
  3. 3. © 2015 eMarketer Inc. Ecommerce Overview
  4. 4. © 2015 eMarketer Inc. 2015 will be a strong year for US total retail and ecommerce sales 14.2% 4.3% Total Retail Ecommerce
  5. 5. © 2015 eMarketer Inc. Despite a thriving ecommerce market, the US lags other countries in some key metrics US 2015 ecommerce sales: $349.1b 2015 sales growth: 14.2% % of total retail: 7.1% Digital buyer penetration*: 64.9% *of population UK $93.9b 14.5% 14.4% 74.3% China $562.7b 32.0% 12.0% 31.8% Twitter – #eMwebinar
  6. 6. © 2015 eMarketer Inc. China is the global leader in ecommerce sales; it will account for 35.4% of worldwide ecommerce sales in 2015 Twitter – #eMwebinar
  7. 7. © 2015 eMarketer Inc. Mobile: The New Shopping Hub
  8. 8. © 2015 eMarketer Inc. Purchases made directly from mobile devices will remain small: 1.6% of total US retail in 2015  Mcommerce will grow 32.2% year over year in 2015  Mcommerce will account for 22% of ecommerce sales in 2015 $4.560 trillion in offline retail sales $76.79 billion in mcommerce sales $272.77 billion in other ecommerce sales Twitter – #eMwebinar
  9. 9. © 2015 eMarketer Inc. The indirect effect of digital is huge; the majority of ALL US retail sales are digitally influenced  Ecommerce will influence 55.6% of total retail sales in 2015 Twitter – #eMwebinar
  10. 10. © 2015 eMarketer Inc. A quarter of all US retail sales are influenced by mobile* $1 trillion + of retail sales are influenced by mobile *Deloitte, New Digital Divide 2014 **Deloitte figures projected onto eMarketer retail estimates ** Twitter – #eMwebinar
  11. 11. © 2015 eMarketer Inc. Majority of US consumers will shop with their mobile devices in 2015  166.3 million mobile shoppers  81.2% of digital shoppers  65.4% of US population ages 18 and older Increase in mobile shoppers: +20.4M in 12 mo. Twitter – #eMwebinar
  12. 12. © 2015 eMarketer Inc. Smartphone shoppers continue to outnumber tablet shoppers in the US 121.0 million145.3 million
  13. 13. © 2015 eMarketer Inc. But US tablet owners are far more likely than US smartphone owners to buy via their device  Average revenue per smartphone visit is roughly one-third that of a tablet visit* *Bloomreach, June 2014 Twitter – #eMwebinar
  14. 14. © 2015 eMarketer Inc. Tablet and smartphone shopping differ Tablets  At home  Extended research  General buying Smartphones  Everywhere  Quick research  Last-minute buying
  15. 15. © 2015 eMarketer Inc. The result: far more tablet sales 68% of revenue from US mobile sales in 2015 will be on tablets
  16. 16. © 2015 eMarketer Inc. Mobile devices have pulled even with PCs as search tools for shoppers  42% of US mobile users cite mobile devices as their most important media for finding information while shopping Twitter – #eMwebinar
  17. 17. © 2015 eMarketer Inc. Smartphones have tools for all types of shopping During holiday 2014 alone:  39% of US smartphone owners planned to look up items on search engines  38% expected to take a picture of a gift to text to a friend  Only 14% thought they would use the phone to make a purchase Data from Placecast, Nov. 2014 Source: Victorinox via Royaldesign.com
  18. 18. © 2015 eMarketer Inc. A smartphone can’t open a bottle of wine, but it can tell you all about it Images from Google Play
  19. 19. © 2015 eMarketer Inc. Mobile Is Changing the Path to Purchase
  20. 20. © 2015 eMarketer Inc. Ecommerce and physical shopping are less distinct than they once were Then Now
  21. 21. © 2015 eMarketer Inc. Consumers don’t distinguish ecommerce from brick and mortar; it’s all just shopping
  22. 22. © 2015 eMarketer Inc. Transformed path to purchase has 3 major attributes:  Omnichannel  Consumer-defined  Individual Twitter – #eMwebinar
  23. 23. © 2015 eMarketer Inc. … And each attribute has an implication for ecommerce Path to Purchase  Omnichannel  Consumer-defined  individual Implications for Ecommerce  Integration with physical world  Channel flexibility  Personalization Twitter – #eMwebinar
  24. 24. © 2015 eMarketer Inc. 1. Integration with the Physical World
  25. 25. © 2015 eMarketer Inc. More than 80% of US shoppers want the ability to check for nearby product availability
  26. 26. © 2015 eMarketer Inc. Google is trying to serve location searches with Local Inventory Ads (LIAs)  Real-time synchronization of inventory still elusive  Advanced retailers update inventory feed several times a day Image source: Google
  27. 27. © 2015 eMarketer Inc. LIAs still account for a small minority of product listing ads, but some big brands are using them Twitter – #eMwebinar
  28. 28. © 2015 eMarketer Inc. Etailers also working to create tools to directly link physical objects with mcommerce sites Beacons Visual Search Image source: Amazon
  29. 29. © 2015 eMarketer Inc. Beacons: Deployments are growing larger, but some obstacles remain Image source: Estimote
  30. 30. © 2015 eMarketer Inc. A majority of US smartphone owners are aware of in-store beacons
  31. 31. © 2015 eMarketer Inc. Visual search: Still early days but starting to power retailer apps, including Neiman Marcus’ “ From the moment of your inspiration of seeing something that you like on someone walking down the street with a great bag, or in a magazine, or wherever, you can take a picture of it on our app, and [get] immediate gratification.” —Wanda Gierhart, CMO at Neiman Marcus Image source: Estimote Image source: iTunes
  32. 32. © 2015 eMarketer Inc. Current applications of visual search:  Niche retail sectors: Identifying wine labels or spare parts limits the library of images that a search tool needs to identify  Discovery engine: For products based on styles or designs, a product similar to what a consumer seeks may suffice  General search: There are no consistently reliable general visual search tools today, although several aspire to become one Twitter – #eMwebinar
  33. 33. © 2015 eMarketer Inc. Channel Flexibility
  34. 34. © 2015 eMarketer Inc. Consumers want flexibility “ One of the things we’re always trying to do at Barnes & Noble is serve our customers in ways in which they want to be served, in ways in which they’d like to consume content. In the book world we’re used to dealing with not just channels but formats, so the point is: We want to mix and match those channels and formats so that we can find the right customer experience where someone’s going to go, ‘Oh, that’s perfect.’ —Jaime Carey, chief merchandising officer at Barnes & Noble
  35. 35. © 2015 eMarketer Inc. In-store pickup: Customers can fulfill online orders themselves  40% of in-store pickups lead to additional in-store purchases (Source: Shopatron)  10% of Target’s online orders are for in-store pickup Image source: Target.com Twitter – #eMwebinar
  36. 36. © 2015 eMarketer Inc. Size of click and collect in the UK points to possibilities for in-store pickup in the US
  37. 37. © 2015 eMarketer Inc. Amazon experimenting with new channels to approximate real-world shopping  Amazon locker  Pop-up store in San Francisco  Refitted food truck selling Kindles  Same-day delivery Source: @emilysteel, twitter via HuffingtonPost
  38. 38. © 2015 eMarketer Inc. Flexibility extends to fulfillment: More delivery options  Value of same-day delivery shipments in the US will increase sixfold in 2015 to more than $620 million Twitter – #eMwebinar
  39. 39. © 2015 eMarketer Inc. Online pure plays open physical stores “[Shoppers] buy almost 75% more if they come in through the guide shop. The reason is they’re getting a human experience. The world has become lonelier through technology and through urbanization. Having a great human one-to-one experience is unique these days. And for me, it builds enormous loyalty if I like the people that I’ve transacted with.” —Andy Dunn, CEO and founder of Bonobos
  40. 40. © 2015 eMarketer Inc. 3. Personalization
  41. 41. © 2015 eMarketer Inc. Personalization is both more important and more attainable “ The smartphone is just not going to work the same way as your stores. You can show me thousands of products in your store. You can only show me five on the phone. —Nicolas Franchet, head of retail and ecommerce global vertical strategy at Facebook “ We have more data to work with and more tools that know how to take advantage of that data. We can do more, so there’s really no excuse to just use a generic approach.” —Kevin Lindsay, director of product marketing at Adobe
  42. 42. © 2015 eMarketer Inc. Consumers rely on site recommendations  50% of US smartphone users listen to personalized website recommendations Twitter – #eMwebinar
  43. 43. © 2015 eMarketer Inc. A majority of US consumers value privacy over relevance
  44. 44. © 2015 eMarketer Inc. How can you balance relevance with privacy?  Add a human touch  Focus on loyal customers  Use relevant data Twitter – #eMwebinar
  45. 45. © 2015 eMarketer Inc. Human touch puts personalization in the context of a conversation “ You’re going to see a lot more brands bring more of their brand into the online experience in very visceral ways. We’re going to see more chat … and assisted purchasing with a real human who can help you figure out what’s best for you through the computer interface.” —David Edelman, partner and global co-leader of the digital marketing and sales practice at McKinsey & Company
  46. 46. © 2015 eMarketer Inc. Sears offers personalized advice from online associates  Open to all members of the Shop Your Way loyalty program  Members can earn commissions from sales by becoming a personal shopper for friends Source: www.sears.com
  47. 47. © 2015 eMarketer Inc. User-generated content also humanizes ecommerce Source: www.urbanoutfitters.com
  48. 48. © 2015 eMarketer Inc. Loyal customers generally trust the retailer already “ If someone is already part of your loyalty program, I think that person is going to be much more open and receptive to much more personalized information than someone who’s more of an anonymous guest.” —Mike McMurray, VP of business operations at Point Inside
  49. 49. © 2015 eMarketer Inc. Receiving personalized product and service experiences is the top benefit of joining a loyalty program
  50. 50. © 2015 eMarketer Inc. Use data discreetly to minimize privacy intrusions “ People don’t need to know we’re sending them a message because of where they actually are. We just need to get them the right messages at the right time in the right place, so it feels magical.” —Jennifer Kasper, group vice president for digital/new media and multicultural marketing at Macy’s
  51. 51. © 2015 eMarketer Inc. Takeaways  Ecommerce continues to grow rapidly in the US but innovations in other countries point to areas of future growth  Although mobile commerce directly generates only 1.6% of total US retail sales, it influences up to a quarter of all sales  The path to purchase is no longer linear  Ecommerce is becoming more connected to the physical world through local inventory information, beacons and visual search  Consumers expect flexibility in all types of channels: sales, fulfillment and consumption  Personalization is important but needs to be weighed against privacy concerns. Retailers can find the balance by adding a human touch, focusing on loyal customers and by being discreet Twitter – #eMwebinar
  52. 52. Data-Driven Marketing and the Digital Enterprise Marc Schroeder
  53. 53. INTEGRATED MARKETING CLOUD Digital Marketing Campaign Management Marketing Operations Marketing Analytics Customer Data Management 33% OF THE FORTUNE 500 WORK WITH THE TERADATA MARKETING CLOUD
  54. 54. Looking ahead to 2017 Digital represents a third of total marketing spend 4 billion smartphones are internet enabled worldwide Mobile commerce reaches $1 trillion Today’s major social networks have all monetized their user bases Several social networks that haven’t been created yet have 100+ million users Big data is a $50B market in the U.S. alone
  55. 55. Connect with customers Anticipate Needs Consistently deliver on quality Relationship- based channels Predictive analytics Multichannel metrics Data-DrivenMarketing Data-Driven Marketing Drives Better Experiences BrandLoyalty
  56. 56. A Data-Driven Marketing Approach conversion path customer behavior affinity purchase response mobile/web social customer attribution spend process segmentatio n decision offer governance preference compliance delivery demand responsive
  57. 57. THOSE WHO RIDE THE WAVE AND INNOVATE ALONG THE WAY WHO WILL DOMINATE THE DIGITAL AGE?
  58. 58. © 2015 Teradata Thank You! marketing.teradata.com
  59. 59. © 2015 eMarketer Inc. Learn more about digital marketing with an eMarketer corporate subscription Around 200 eMarketer reports are published each year. Here are some recent reports you may be interested in: Q&A Session Made possible by You will receive an email tomorrow with a link to view the deck and webinar recording. To learn more: www.emarketer.com/products 800-405-0844 or webinars@emarketer.com Yory Wurmser Key Trends in Ecommerce  Omnichannel Trends 2015: Mobile is the New Retail Hub  Worldwide Retail Ecommerce Sales: eMarketer’s Estimates and Forecast, 2013-2018  Visual Search & Recognition: On the Cusp of a New Era in Retail  Product Listing Ads Google Dives into Comparison Shopping

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