CJU 2011: Consumer Shopping Trends, September 22, 2011
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My 2011 Commission Junction University (CJU) presentation on consumer shopping trends, including deeper dives on coupon, daily deal, and social, mobile, and local (SoLoMo) marketing and consumer behavior, shopping and purchase trends.
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CJU 2011: Consumer Shopping Trends, September 22, 2011
- 1. Consumer Shopping Trends What makes them tick? What makes them click? Ronan Vance September 22, 2011
- 2. 2
- 5. 5 Personal Social Immediate Informative Variety Experiential Social Immediate Variety Convenience Transactional Informative The Times They Are A-Changin’ Early 20th Century Late 20th Century Early 21st Century
- 6. Agenda Understanding the Online Shopper Three hot trends that continue in 2011 • Coupons • Daily Deal/Deal of the Day • Social Local Mobile (SoLoMo) What’s Next? 6
- 7. Understanding the Online Consumer 7
- 8. The Online Shopper 8 3.7% 4.3% 5.0% 5.1% 5.3% 5.8% 2005 2006 2007 2008 2009 2010 US Retail Ecommerce Sales as a Percent of Total Retail Sales 2005-2010 Source: U.S. Department of Commerce, Feb 2011 (via eMarketer)
- 9. The Online Shopper 0% 10% 20% 30% 40% I often don't have to pay tax Better variety online Easier to find items online More convenient to shop online I don't want to fight the crowds Free shipping offers Easier to compare prices 24 hour shopping Top Reasons US Shoppers will Shop Online 9 Source: Shop.org, Oct 2010
- 10. Coupons 10
- 11. In response to economic conditions
- 12. 12 28% 22% 36% 55% 44% 59% 15% 16% 26% 26% 32% 40% 0% 10% 20% 30% 40% 50% 60% 70% Using social networks Looking for employment Finding and printing coupons Shopping/researching online Obtaining news and information Price comparison shopping Activities that US Internet Users Are Spending More Time on Now Than Before the Recession, 2009 & 2010 Source: PriceGrabber.com, “US Shopping Behavior in this Economic Climate” 6/1/10 2010 2009
- 13. Part of our culture
- 14. 14
- 15. Maximize Coupon Usage • Give choices • Diversify placement • Remove obstacles • Promote sharing • Go mobile
- 16. Adult Mobile Coupon Users (in US) 19.8 9.5% 35.6 16.5% 2011 2013 2011 2013 16 millions % of adult mobile phone users Source: eMarketer, Aug 2011
- 17. Daily Deals 17
- 18. 18
- 19. 19
- 20. 20
- 22. 22
- 23. 23 Sources: Rice University Survey, June 2011 & Consumersearch.com and The About Group Research, June 2011 of deal buyers spent beyond the deal value 36% of deal buyers for Groupon, LivingSocial, Travelzoo, and BuyWithMe were new customers 77% of daily deal buyers returned to the establishment even without another discount 68% of these new customers became regular customers 20% of deals were unredeemed at the end of the promotion 22%
- 24. 24
- 26. SoLoMo 26
- 27. 27 10% 18% 18% 44% 58% 90% Direct mail Social network presence Email prospecting Organic traffic Affiliate marketing Search engine Marketing Which of the following were your top 3 most effective sources used for acquiring customers Source: Shop.org/Forrester, May 2011
- 28. F-Commerce?
- 29. Impact on Buying Behavior
- 31. SoLoMo Penetration 23.8 38.9 49.4 58.5 65.6 72.8 79.1 0 10 20 30 40 50 60 70 80 90 2009 2010 2011 2012 2103 2014 2015 US Social Mobile Network Users, 2009-2015 (millions) 31 Source: eMarketer, Dec 2010 Note: Mobile phone users who have a profile and access social networks from a browser or installed app at least once a month
- 33. Local • Check in • Find deals 33
- 34. Local • Check in • Find deals • Build loyalty 34
- 35. Local • Check in • Find deals • Build loyalty • Earn rewards 35
- 36. Local • Check in • Find deals • Build loyalty • Earn rewards • Instant gratification 36
- 38. Mobile • Check stock • Compare prices 38
- 39. Mobile • Check stock • Compare prices • Find coupons 39
- 40. Mobile • Check stock • Compare prices • Find coupons • Learn more 40
- 41. Mobile • Check stock • Compare prices • Find coupons • Learn more • Read reviews 41
- 42. Mobile • Check stock • Compare prices • Find coupons • Learn more • Read reviews • Shop online 42
- 43. Mobile • Check stock • Compare prices • Find coupons • Learn more • Read reviews • Shop online • Phone order 43
- 44. 17% 37% 38% 46% 49% 58% 58% 66% Make a purchase Compare features Check availability Look at competitive product/service Read reviews Check for discounts Find the nearest store location Compare prices of a product/service Reasons to Use Smartphones While Shopping by US Smartphone Users 44 Source: Chadwick, Martin, Bailey, March 2011 (via eMarketer)
- 45. What’s Next 45
- 46. What’s Next • Informative • Experiential • Personalized • Social • Immediate 46
- 47. 47
- 48. 48
- 50. 50
Editor's Notes
- Whether you are buying t-shirts, electronics, a vacation, or lingerie, the experience of the consumer has become rather complex over the last 100 years.
- After a healthy 12.6% increase to $176.2 billion in 2010, U.S. online retail sales are expected to reach $278.9 billion in 2015.Online shopping will continue to cannibalize in-store shopping as consumers become more familiar and begin, in many cases, to prefer the convenience of online shopping, Forrester says.Increased Internet connectivity via devices like smartphones, tablets and game consoles will also drive growth, as well as new e-commerce models like flash sales (i.e. Gilt Groupe, Neiman Marcus Mid-Day Dash), daily deals (Groupon, LivingSocial) and digital downloads of media (Netflix, iTunes), all of which have enjoyed rapid adoption in recent years.E-commerce growth in 2010 was driven primarily by existing online shoppers who increased their online spending in traditional categories like books and media, and also began to purchase in less popular categories like furniture and home appliances. Thirty percent of growth was attributed to the 5.5 million consumers who shopped online for the first time in 2010.E-commerce now makes up 8% of total retail sales, says Forrester — 11% if grocery sales are excluded from the equation.More than seven out of 10 internet users are online buyers, and the gap is slowly narrowing. In 2011, 148 million US consumers ages 14 and older will make at least one purchase online, according to eMarketer estimates. From 2010 to 2015, nearly 30 million consumers will join the ranks of online buyers, representing 3.9% CAGR.
- Guided NavigationProduct Ratings and ReviewsFree ShippingSharing via Social NetworkingCategory Content
- http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000807Tough economic times spur usage, but a number of other ways shoppers are savingAccording to comScore, 66% of consumers said they used coupons in July 2010, compared with 59% who said so two years earlier. Also, the percentage of respondents who reported shopping online for deals increased from 24% in 2008 to 32% in 2010. PriceGrabber research provides additional evidence that consumers’ deal-seeking behavior increased during the tough economy. In 2009, 26% of online consumers said they were spending more time finding and printing coupons than before the recession. By 2010, 36% of respondents gave the same response. Deal-seeking
- Experian Simmons, which surveyed online and offline consumers, found that users of print coupons (obtained from newspapers, magazines, mail or other sources) outnumber users of digital coupons (obtained from websites or email) by a margin of almost 3-to-1. As of February 2011, 68% of all US households used print coupons, compared with 22% that used digital coupons. However, Experian Simmons noted that while the percentage of households using print coupons has not changed much since 2005, the percentage of households using digital coupons has risen 83.3%.An analysis by research company Knowledge Networks revealed that digital coupons were more effective than print coupons at inducing consumers to try a product for the first time. Specifically, 46% of digital coupon redeemers were nonbuyers of the product, compared to 34% for print coupons.Digital coupon adoption – demographics?While online coupon adoption rates are high, there are still many internet users who are not digital coupon users. The top reason cited by consumers for not using online coupons—“Never found any online coupons that I wanted”—remained the same in both the 2008 and 2010 surveys conducted by Epsilon Targeting. Similarly, Morpace found that 35% of respondents indicated that coupons did not meet their shopping needs. To Morpace, this finding suggested that “many consumers are not properly educated in regard to online coupon websites or have preconceptions about coupon websites that are not realistic.” Marketers that can teach the uninitiated the value of coupons and help them to find and use online coupons have an opportunity to convert these consumers into customers.
- Mobile Coupons and Online Discount CodesWhile some rural areas struggle just to get the hang of internet-generated coupons, the more savvy shopping meccas are already on to bigger and better things. Coupons that arrive in your mobile inbox are hot right now, giving shoppers a less cluttered way to ask for a discount. Sites like Coupon Sherpa not only share big discounts for travel, jewelry, books and more - they also have their own iPhone app. Just flash your iPhone display to the cashier to redeem dozens of member-only perks or one of hundreds of savings offers that are available to the public. If you're shopping online, keep an eye out for discount codes that can be entered for instant savings, free shipping or add-on gifts. Sites like CouponMountain collect these codes for you, and can save you a lot of money.Did you know that you can text to save? Many companies reward customers with coupons and even gift cards when they text to a special number. Text messaging charges may apply, however, so be familiar with the details of each promotion (and your data plan) before you participate. Read more: http://financialedge.investopedia.com/financial-edge/0111/Biggest-Shopping-Trends-For-2011.aspx#ixzz1VuhF4Z75
- Give consumers the choice of print or digital coupons. While digital coupon usage is growing fast, print coupons still dominate—even among mobile phone users. Epsilon found that shoppers like print coupons because they are ready to use, very convenient and easy to redeem. Diversify the placement of online coupons. There are many online channels for distributing coupons, and the audience on each can be different. For example, coupons on a Facebook page are an obvious choice, but marketers should not ignore niche online communities that might be highly receptive to a brand’s products. Remove obstacles that reduce online coupon usage. The Morpace study found that internet users ages 55 and above had a high rate of digital coupon usage. Yet the older generation tended to be more concerned about privacy and security issues online. Marketers can assuage these concerns by communicating the safety features of online couponing. Make it easy for consumers to share coupons with friends and family. Brands can add functionality that makes it easy to share an offer. Sara Lee went a step further by increasing the value of its Jimmy Dean coupon when users passed it along to three or more friends via email or on a social network. Consider a mobile coupon strategy. Mobile coupons represent a small share of digital coupons, but they have huge potential because they can influence a consumer in the midst of making a purchase decision. Retailers that are experimenting with mobile coupons are gaining valuable experience that can become a competitive advantage.
- Group buying industry in US estimated to grow 138% to $2.7B this yearThe number of group buying/daily deal sites has grown 233% YOY80 percent of deals are offered by as few as 20 sources.70 percent of inventory controlled by 10 sources40 percent controlled by the top two
- Is this a viable business-building strategy?New business or just discounting value to existing customers?Are businesses prepared to handle volume?Is the consumer experience a true reflection of the typical consumer value?Repeat business: do they come back?See original presentation for my data79% Customers that were new$64.30 Average amount spent36% % of Users that spent beyond deal value20% % of Users that became a repeat buyer$70.80 Average amount spent on next visit22% % of Unredeemed deals at end of promotion
- Social is key to deals 52%Consumers share deals from local deal sites 78% forward emails to friends and family
- One reason: Facebook shoppers might abandon fewer shopping carts if they could use Facebook Credits.A company called ShopVisible helps retailers like Incipio set up their Facebook storefronts.Another firm called SortPrice.com says it has set up more than 1,500 Facebook storefronts for its clients. SortPrice charges its retail clients on a subscription basis and include building a Facebook storefronts as a part of a service. It says those retailers have put $3.78 billion worth of merchandise on Facebook – 7.6 million products in 53,000 categories. Read more: http://www.businessinsider.com/facebook-e-commerce-is-real-and-we-have-the-numbers-to-prove-it-2011-3#ixzz1ToxJvQfeFacebook Discovery addresses the top of the funnel – the point when your potential customers are in the market for something or are doing their research, but haven’t committed yet. Discovery features let your customers easily opt in to find out about new and trending products through a daily review published to their newsfeed. Or if they’re considering a product but are on the fence about it, they can receive new reviews in their feed while they’re mulling it over. Your customers can also follow particular reviewers, which allows them to seek out people who are like them and benefit from their purchasing insights.Facebook Community touches the bottom of the hourglass — once your customers have made their purchase and it’s up to you to keep them interested and connected. Customers can use their Facebook credentials to create a profile on your site that displays all their reviews in one place; they can also opt to let other customers ask them questions. Badging lets you automatically reward your top reviewers with custom badges based on your own criteria, such as total number of reviews or “helpful” votes. You can also create a leaderboard of all your top reviewers on your site or within your fan page. Finally, the “Ask a Friend” feature enables your customers to ask their friends to help them choose between products using a newsfeed poll.Facebook has grown from social megaphone to a full-fledged community to a viral marketing channel. Getting involved can help you generate impressions, clicks and enable you to drive product discovery. So we’re proud to bring you Facebook Discovery and Facebook Connect. It’s true social commerce at its best, facilitating the flow information among consumers based on shared interests.
- Community/Social tools have a big impact on buying behavior according to US online buyers. Customer reviews (or user generated product reviews) continue to be the most influential, while surprisingly the Facebook fan page and Facebook newsfeeds are about ½ as influential. The Facebook fan pages that have reviews attached to them are making an impact because it is giving consumers an ability to identify with the brand and the reviewers timeRetailers and consumer products companies could give the small but eager group currently connecting with them on Facebook what they are looking for: access to sales. Even if these online shoppers are not yet able to make purchases directly through Facebook, exclusive offers can engender goodwill, loyalty, sharing and increase the likelihood of taking the “f-commerce” leap when it is offered.
- Facebook Discovery addresses the top of the funnel – the point when your potential customers are in the market for something or are doing their research, but haven’t committed yet. Discovery features let your customers easily opt in to find out about new and trending products through a daily review published to their newsfeed. Or if they’re considering a product but are on the fence about it, they can receive new reviews in their feed while they’re mulling it over. Your customers can also follow particular reviewers, which allows them to seek out people who are like them and benefit from their purchasing insights.Facebook Community touches the bottom of the hourglass — once your customers have made their purchase and it’s up to you to keep them interested and connected. Customers can use their Facebook credentials to create a profile on your site that displays all their reviews in one place; they can also opt to let other customers ask them questions. Badging lets you automatically reward your top reviewers with custom badges based on your own criteria, such as total number of reviews or “helpful” votes. You can also create a leaderboard of all your top reviewers on your site or within your fan page. Finally, the “Ask a Friend” feature enables your customers to ask their friends to help them choose between products using a newsfeed poll.Facebook has grown from social megaphone to a full-fledged community to a viral marketing channel. Getting involved can help you generate impressions, clicks and enable you to drive product discovery. So we’re proud to bring you Facebook Discovery and Facebook Connect. It’s true social commerce at its best, facilitating the flow information among consumers based on shared interests.AWARENESS + CONSIDERATION+INTENTSUPPORT+LOYALTY+ADVOCACY
- Most valuable aspect of “Checking In” to a location with a mobile app (Sep 2010) Deals and promotion 29%Sharing location 17%Association with cool places 14%Scoring points 7%51% DON’T check in
- Most valuable aspect of “Checking In” to a location with a mobile app (Sep 2010) Deals and promotion 29%Sharing location 17%Association with cool places 14%Scoring points 7%51% DON’T check in
- Most valuable aspect of “Checking In” to a location with a mobile app (Sep 2010) Deals and promotion 29%Sharing location 17%Association with cool places 14%Scoring points 7%51% DON’T check in
- Most valuable aspect of “Checking In” to a location with a mobile app (Sep 2010) Deals and promotion 29%Sharing location 17%Association with cool places 14%Scoring points 7%51% DON’T check in
- Most valuable aspect of “Checking In” to a location with a mobile app (Sep 2010) Deals and promotion 29%Sharing location 17%Association with cool places 14%Scoring points 7%51% DON’T check in
- Actions for which US Smartphone users have used QR codes: 53% to a get a coupon or discount23% to make a purchase same as to interact with social media
- Actions for which US Smartphone users have used QR codes: 53% to a get a coupon or discount23% to make a purchase same as to interact with social media
- Actions for which US Smartphone users have used QR codes: 53% to a get a coupon or discount23% to make a purchase same as to interact with social media
- Actions for which US Smartphone users have used QR codes: 53% to a get a coupon or discount23% to make a purchase same as to interact with social media
- Actions for which US Smartphone users have used QR codes: 53% to a get a coupon or discount23% to make a purchase same as to interact with social media
- Actions for which US Smartphone users have used QR codes: 53% to a get a coupon or discount23% to make a purchase same as to interact with social media
- Actions for which US Smartphone users have used QR codes: 53% to a get a coupon or discount23% to make a purchase same as to interact with social media
- Experiential – a richer, more immersive, more interactive retail experience. Zappos example