5 Things You Need to Know About Selling to Local Consumers
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The document discusses the evolving landscape of consumer shopping, emphasizing the importance of a unified physical and digital experience as consumers increasingly shop across both channels. It highlights the necessity for retailers to adopt omnichannel strategies due to consumer frustrations with inconsistent experiences, poor information availability, and the need for seamless integration of mobile functionality into the shopping journey. Furthermore, it outlines the shift in consumer behavior towards prioritizing commerce and task completion over information gathering in mobile interactions.
5 Things You Need to Know About Selling to Local Consumers
- 1. Things You Need to Know About Selling to Local Consumers www.streetfightmag.com@stevenhjacobs #modernshopper Steven Jacobs | Deputy Editor | Street Fight
- 2. Kill the ecommerce division Consumers now shop at the seam of the physical and digital worlds1 Think consumer — not device — first A unified experience is no longer an opportunity — it’s a necessity2 Forget the funnel The shopping journey can begin and end wherever the consumer choses.3 Stop thinking of mobile as a sales channel Mobile is the thread that ties the modern shopping experience together4 5 Mobile is for doing Commerce — not content — will drive marketing innovation on mobile
- 3. Kill the ecommerce division Consumers now shop at the seam of the physical and digital worlds.
- 4. Mobility has broken down the wall that once separated online and offline commerce. Shoppers now rely on both digital and physical resources to discover, evaluate and buy goods and services. Separating ecommerce and store operations only hampers innovation, keeping the web out of the store and the store out of the web.
- 5. The largest category of commerce is now web-influneced offline sales $0.00 $450.00 $900.00 $1,350.00 $1,800.00 $2,250.00 2012 2013 2014 2015 2016 2017 Non-web-influenced-offline sales Web-influenced offline sales Online sales Source: eMarketer
- 6. Stores have become productive as ecommerce has grown 0 850 1,700 2,550 3,400 4,250 $2,625.00 $2,700.00 $2,775.00 $2,850.00 $2,925.00 $3,000.00 2012 2013 2014 Foottraffic(millions) Offlineretailspending(billions) Offline retail spending Foot traffic Foot traffic is declining — but store spending is slightly up Source: WSJ, eMarketer
- 7. Nearly every consumer is a cross-channel shopper 95% of shoppers said they shop both online and in stores. Source: eBay
- 8. Think consumer — not device — first A unified experience is no longer an opportunity — it’s a necessity.
- 9. The cloud has fundamentally changed what we expect from technology. Consumers now assume that they can do anything anywhere — website, app or store. But it turns out that retailers are dramatically behind demand. Soon, that will become a liability — not just an opportunity.
- 10. Shoppers want digital functionality in stores Halfof holiday shoppers said they were frustrated because their in-store experiences were different from those online. Source: Accenture
- 11. Shoppers avoid stores because of poor information 25% 60% of consumers who avoid stores do so because of limited awareness of nearby stores. of holiday shoppers said they were frustrated with out of stock items 52% of holiday shoppers said they were frustrated with lack of information to make purchasing decisions Source: Google IPSOS
- 12. Retailers trail consumers in omnichannel adoption of retailers offer store inventory search online. 32% Retailers offer…. of retailers said they currently support buy online and pickup in store capability 33% Source: Accenture 71% of consumers said searchable store inventory online was important of consumers said the ability to buy online and pickup in store was important Consumers want…. 50%
- 13. Forget the funnel The shopping journey can begin and end wherever the consumer choses.
- 14. Shoppers view the digital and physical assets of a brand as a means to an end. Marketers should strive to create flexible systems that can adapt to the unique needs of every purchase decision.
- 15. Click-and-Collect (Decide Remotely, Fulfill In-person) Local Commerce (Decide In-person, Fulfill In-person) Ecommerce (Decide Remotely, Fulfill Remotely) Showrooming (Decide In-person, Fulfill Remotely) Remote Remote In-person In-person We discover, buy and fulfill goods and services across the commerce graph Source: Street Fight
- 16. Nearly everyone buys goods or services offline. Nine in ten americans shopped online last year. That’s 90% of all Internet users Two-thirds of consumers said they bought in-store after browsing digitally. 72% of consumers said they bought online after browsing in store. The majority of American shoppers already buy across the graph Source: Pew Internet, Punchtab
- 17. 87% 79% 34% Before While After Visiting a store Discovery occurs throughout the shopping experience When do consumers search for information during the buying process? Source: Google IPSOS
- 18. Stop thinking of mobile as a sales channel Mobile is the thread that ties the modern shopping experience together
- 19. Mobile isn’t a virtual shop in a shopper’s pocket. It’s the thread that ties a brand’s online and in-store assets into a cohesive experience. It’s value is in interpretability: the ability to make two systems — digital and physical — communicate more effectively.
- 20. Mobile is increasing — not decreasing — the amount we shop in stores 0% 25% 50% 75% 100% 125% 18-29 years 30-40 years 50-64 years 65+ years 18-29 years More young shoppers say that mobile has led them to shop in stores more frequently — not less 87% of millennials now shop the same more in stores because of mobile Source: Gallup
- 21. Shoppers use the store and mobile throughout their shopping process 0% 15% 30% 45% 60% Inspiration Research Purchase Post Purchase Percentage of shoppers who search on mobile and used the store during phase of purchase cycle Source: Google IPSOS
- 22. 42% of shoppers use their device for in-store research Mobile is the thread tying together the shopper journey 71% of those shoppers say the device is more important to their experience Source: Google IPSOS
- 23. Mobile is for doing Commerce — not content — will drive marketing innovation on mobile
- 24. The hallmark of the desktop experience — researching multiple sites in multiple taps in multiple windows— does not apply to mobile. Research suggest that mobile consumers want to focus less on search and discovery and more on task completion. That means applications that emphasize features such as commerce, ordering and delivery tend to thrive.
- 25. Mobile behavior is moving from “viewing” to “doing” — That’s good for commerce. 0% 45% 90% 135% 180% 225% Lifestyle & Shopping Utilities & Productivity Messaging Social Health & Fitness Travel Sports News & Magazines Media & Entertainment Games Doing Viewing Growth last year for mobile applications by category Source: Flurry
- 26. In the 2000s, innovation focused on organizing information. Now, it’s shifting to commerce. Google Local Released Yelp founded Yellow Pages Revenues Peak $15.3 B Foursquare founded GrubHub IPOs Square nets $1b valuation Uber raises $1.6B 2003 2011 2015 Buy and retrieveFind and discover Source: Street Fight
- 27. In the 2000s, innovation focused on organizing information. Now, it’s shifting to commerce. Google Local Released Yelp founded Yellow Pages Revenues Peak $15.3 B Foursquare founded GrubHub IPOs Square nets $1b valuation Uber raises $1.6B 2003 2011 2015 Buy and retrieveFind and discover Source: Street Fight
- 28. Steven Jacobs | Deputy Editor | Street Fight Content, research and events for the new local economy www.streetfightmag.com@stevenhjacobs #modernshopper
Editor's Notes
- #3: http://www.emarketer.com/Article/Consumers-Expect-Omnichannel-Experience-This-Holiday-Season/1011521
- #6: http://www.emarketer.com/Article/Consumers-Expect-Omnichannel-Experience-This-Holiday-Season/1011521
- #7: http://www.wsj.com/articles/SB10001424052702304419104579325100372435802 http://www.emarketer.com/Article/Consumers-Expect-Omnichannel-Experience-This-Holiday-Season/1011521
- #8: http://www.ebayenterprise.com/news_events/news_releases/consumers_want_it_all_omni-channel_shopping_activity/
- #11: http://www.accenture.com/us-en/landing-pages/Documents/Seamless/Accenture-hybris-Forrester-new_2014.pdf
- #12: https://think.storage.googleapis.com/docs/how-advertisers-can-extend-their-relevance-with-search_research-studies.pdf
- #13: http://www.accenture.com/us-en/landing-pages/Documents/Seamless/Accenture-hybris-Forrester-new_2014.pdf
- #15: http://www.emarketer.com/Article/Consumers-Expect-Omnichannel-Experience-This-Holiday-Season/1011521
- #17: 72% + Two thirds: http://www.pewinternet.org/files/old-media//Files/Reports/2013/PIP_In_store_mobile_commerce_PDF.pdf 90%: http://marketingland.com/survey-90-shoppers-will-buy-online-holiday-season-105775
- #18: https://think.storage.googleapis.com/docs/how-advertisers-can-extend-their-relevance-with-search_research-studies.pdf
- #20: http://www.emarketer.com/Article/Consumers-Expect-Omnichannel-Experience-This-Holiday-Season/1011521
- #21: http://www.gallup.com/poll/168800/mobile-technology-increasing-retail-shopping.aspx
- #22: https://think.storage.googleapis.com/docs/how-advertisers-can-extend-their-relevance-with-search_research-studies.pdf
- #23: https://think.storage.googleapis.com/docs/how-advertisers-can-extend-their-relevance-with-search_research-studies.pdf
- #26: http://www.flurry.com/blog/flurry-insights/shopping-productivity-and-messaging-give-mobile-another-stunning-growth-year