e-Retail Industry + Landscape


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This e-Retail Insights paper provides a high level overview of the US e-Retail Landscape. Featured insights include the role of search in consumer purchase behavior, trends in smartphone + tablet usage and the valuable intelligence that can be leveraged from your website. View additional Levelwing retail industry insights + case studies: http://ow.ly/gNHY6

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e-Retail Industry + Landscape

  2. 2. 2WHY DO I CARE?Glad you asked…In this report you will find a high-level overview of the eRetail landscape. It is important that we keep a pulse on theindustry and CONSUMER BEHAVIORS in order to identify OPPORTUNITIES that transform our businesses.At Levelwing, we specialize in analyzing the paths that contribute to meaningful BUSINESS OUTCOMES. Thesepaths are illuminated through the analysis of data collected via website analytics, customer relationship databases,consumer research, phone call logs and even recruitment application databases (yes, we actually enjoy workingwith the HR folks in addition to the marketing teams).Our team of analysts, statisticians and strategists are obsessed with data and more importantly are experts atTRANSLATING THE DATA INTO A MEANINGFUL STORY that has real business applications and implications.Please enjoy some of the insights contained within.
  4. 4. 4eRETAIL INDUSTRY TRENDS 56% of U. S. online ad pper will spend average US sho e more price -conscious ults say the y are The than they w $419 onlin a year ago ere 2% boost from this h oliday season, a 1 N Retail Onli orth American Techn last year ne Benchm o ark Recont graphics act Survey, Q3 2012 12 (US). tail Forecast, 20 line Holiday Re Forreste r Research On Cross-channel* sales will By 2016, $327 b i l l i o n w i l l be account for $1.660 trillio n spent online in t he US, 9% of of total US retail sales by 2 016. overall US retail sales. Forrester Research US Cross-Channel Retail Fo recast, 2011 To o 2016 st, 2011 T 2016, June 2012 arch Onlin e Retail Foreca Forrester ReseNot only are shoppers spending more money online than last year, they are increasingly more price-consciousand using online research methods before making purchases, both online and offline.*The volume of sales that happen in physical stores as a result of web research
  5. 5. 5WEB-INFLUENCED SPENDING 4000 3500 3000 (In billions) 2500 2000 1500 $1,552 $1,660 1000 $1,320 $1,429 $1,103 $1,206 500 0 2011 2012 2013 2014 2015 2016 Online retail sales Web-influenced offline spending Non-web-influenced offline retail salesU.S. shoppers are increasingly using web shopping research (e.g., using a store locator, reading customerreviews) and ultimately converting offline. Web-influenced offline spending is projected to increase to $1.660trillion; 44% of total US retail sales. Web properties play an essential role in the research phase for consumerswho purchase both online and offline, emphasizing the importance of optimizing digital assets to meet theneeds of these research-seeking consumers.Source: Forrester Research Web-Influenced Retail Sales Forecast, 2011 To 2016 (US)
  6. 6. 6SEARCH ENGINE RESULTS FOR PRODUCTS SEARCH ENGINE RESULTS PAGE FOR ‘LAPTOP’ Retailers (both online and with brick-and-mortarstores) make up the majority of search engine resultspages for product searches across multiplecategories.In addition to PAID SEARCH PLACEMENTS andORGANIC SEARCH RESULTS consumers are oftenseeing a GOOGLE SHOPPING sponsored box in thesearch engine results page for their product search.Google Shopping product highlights are based onproduct listing ads and allow consumers to easilycompare and purchase products. *paid placements are paid advertising available through search engines, organic search results are the listings that are free and do not require a hard media investment
  8. 8. 8REASONS FOR BRAND ENGAGEMENT 54% Receive deals, discounts, or special promotions Get free samples Earn customer loyalty points or rewards Learn about the latest product or service offerings I just like them (i.e., favorite brands) and like being associated with Gain access to exclusive content or events not available to other I want to show my support for their mission or cause So I can share interesting content with my family or friends 0% 10% 20% 30% 40% 50% 60%U.S. online consumers like to interact or keep in touch with the brands they like or purchase regularly in orderto get deals, discounts, or special promotions. The second and third most popular reasons consumersinteract with brands online are to receive free samples and earn customer loyalty rewards. Aligning withconsumer expectations allows brands to better retain customers, keeping them brand loyal.Source: North American Technographics Consumer Deep Dive: Investigating The Customer Life Cycle, Q2 2012
  9. 9. 9BRAND ENGAGEMENT METHOD OF INTERACTION Follow the brand on Twitter Become a fan of the brand on Facebook 53% Browse the brands website Join the brands mailing list Visit the brands physical store or location Join the brands customer loyalty program 60% Join the brands email list 0% 10% 20% 30% 40% 50% 60% 70%Of the 54% of U.S. online consumers engaging with brands to receive deals, discounts, and specialpromotions, 60% join the brand’s email list and 53% browse the brand’s website. These interaction habitsindicate the need for visibility on each of these platforms during this critical purchase consideration period.Source: North American Technographics Consumer Deep Dive: Investigating The Customer Life Cycle, Q2 2012
  10. 10. 10SMARTPHONE + TABLET USAGE More than 110 MILLION Americans own a smartphone and 78 MILLION Americans own a tabletAs smartphone and tablet ownership increases so does the necessity of having a mobile website forconsumers using these devices for product research and purchase.Source: comScore, June 2012; Pew Research Center, ”25% of American Adults Own Tablet Computers”, October 2012
  11. 11. 11MOBILE + TABLET AS RESEARCH TOOL 31% 41% of US mobile of U.S. tablet owners research owners products for researched a purchase on product in the their phone past monthThe average revenue generated from a purchase made on a mobile phone is $70.00 and shoppers usingthe iPad have a 5.2% conversion rate to e-purchase, the highest of any device. Ensuring mobile sites areoptimized for easy purchase is critical to online revenue streams.Sources: North American Technographics Online Benchmark Survey (Part 1), Q2 2012; IBM Coremetrics Benchmark Reports:Springmetrics, August 2012; Google/OTX Consumer Pulse Check, Q4 2010
  12. 12. 12INCENTIVES INCREASE SALESFIFTY-SEVEN PERCENT of US online adults say they shop more with retailers that offer free shipping thanwith retailers that don’t, and 27% have BOUGHT ADDITIONAL UNPLANNED ITEMS to meet free shippingthresholds. Offering a free shipping incentive can help increase sales + overall revenue.Source: North American Technographics Retail Online Benchmark Recontact Survey, Q3 2012 (US)
  13. 13. 13REASONS FOR SWITCHING RETAILERS 85% Had a lower price 61% Had lower shipping costs Had a product in stock Offered coupons and promotions Had a better-quality product Had additional items I intended to purchase in stock Had product reviews Had more product information 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%The top two reasons U.S. online consumers switch retailers are for lower prices and lower shipping costs.This further illuminates the opportunity for increasing sales by incentivizing online purchasing.Source: North American Technographics Retail Online Benchmark Recontact Survey, Q3 2012
  14. 14. 14DATA CAPTUREData capture of information input on a consumer website allows organizations tonot only develop comprehensive prospect and customer profiling from previouspurchases but ultimately assign true ROI to marketing initiatives. Non e-commerce sites that have on-site key performance indicators can be matchedback to in-store purchases with the use of custom databases and sales data.
  15. 15. 15OPERATIONAL EFFICIENCYEffectively tracking, collecting and analyzing data capturedby on-site widgets can reveal business-changing insights.Intelligent analytics can uncover purchase behavior,including trends in product category searches and spikesin particular SKU searches based on the data consumersinput into these data captures.Using historical data, past trends and predictive analyticscan determine future demand, ultimately leading toOPERATIONAL EFFICIENCY.
  16. 16. 16LIKE WHAT YOU SEE? WANT TO SEE MORE?This is just the beginning of what we can tap into, imagine what we could do with the data you have internally…At Levelwing, we specialize in interpreting your data and providing you with applications (and not just graphs) thatcan impact your MARKETING, MERCHANDISING, INVENTORY or even TALENT RECRUITMENT. We help companiesutilize data to OPERATE WITH GREATER CLARITY + PROFITABILITY.Bottom line, we move your business forward by helping you make sense of your data so that you can ACHIEVEWHAT COULD BE.For additional information, please contact:CHAD ETHRIDGE LUKE FROSTBusiness Analyst Business Analystcethridge@levelwing.com lfrost@levelwing.com1+843.628.5887 1+843.647.7314
  17. 17. 17THANK YOUWant to learn more about Levelwing? Just keep reading.
  18. 18. 18WHO IS LEVELWING?
  19. 19. 19WE ARE LEVELWINGGLOBAL REACH We currently serve clients throughout NorthAmerica, Europe, China and JapanUNIQUE APPROACH Levelwing is the leader in businessintelligence and marketing solutions with data mining + analytics atthe coreFULLY INTEGRATED We employ a matrix organization of marketers,analytics design experts, statisticians, researchers and creativesMEASURED SUCCESS Levelwing has experienced 10 consecutiveyears of growth with industry leading client satisfaction results
  20. 20. 20OUR BELIEFS The Right Data Changes Everything Marketing Budgets Should Be Smaller, Not Larger Accountability is Essential Success Should Pay For Itself Leverage Existing Demand First
  21. 21. 21 SOME OF OUR PARTNERS“Some of the most innovative and strategic minds in the industry” - Novartis“Some of the most sophisticated things I’ve seen being done with analytics and ROI measurement” - Adobe