IBM 2013 improving holiday readiness presentation
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This document summarizes a presentation about key online shopping trends and best practices for the 2013 holiday season. It discusses trends from 2012 including earlier and longer promotions, growing mobile commerce especially on tablets, and the continued importance of email marketing. It also notes some challenges like signs of promotional fatigue. The presentation recommends focusing on the mobile experience across all channels, understanding the full customer journey, and leveraging smartphones to enhance the cross-channel experience.
![Promotions were lackluster
“[Decide.com] looked at more than 500
doorbusters advertised in Black Friday circulars
by big-box and department stores …and found
that nearly one-third of the products had been
sold at lower prices this year.”
#SmarterCommerce @smulpuru @jay_henderson
10](https://image.slidesharecdn.com/ibm2013improvingholidayreadinesspresentation-130729084255-phpapp01/85/IBM-2013-improving-holiday-readiness-presentation-10-320.jpg)
![© 2013 Forrester Research, Inc. Reproduction Prohibited 16
Email continues to be a big driver of
holiday traffic
5%
6%
8%
9%
8%
46%
39%
4%
6%
7%
11%
9%
44%
41%
Retailer's social
presence
Deals or shopping
website
Other email
Someone told me
about it
Through search
engines
Via email from the
retailer
I visited the retail site
directly
3%
7%
9%
10%
10%
39%
44%
3%
6%
7%
11%
10%
39%
44%
Retailer's social
presence
Deals or shopping
website
Other email
Someone told me
about it
Through search
engines
Via email from the
retailer
I visited the retail site
directly
4%
6%
8%
9%
11%
37%
44%
4%
6%
8%
10%
11%
37%
43%
Retailer's social
presence
Deals or shopping
website
Other email
Someone told me
about it
Through search
engines
Via email from the
retailer
I visited the retail site
directly
How did you learn about these special deals [from today’s purchase]?
Pre-Thanksgiving Thanksgiving
Weekend
Cyber Monday
Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011 and Q4 2012
2011 2012
#SmarterCommerce @smulpuru @jay_henderson](https://image.slidesharecdn.com/ibm2013improvingholidayreadinesspresentation-130729084255-phpapp01/85/IBM-2013-improving-holiday-readiness-presentation-16-320.jpg)
IBM 2013 improving holiday readiness presentation
- 1. © 2013 IBM Corporation Improving 2013 Holiday Readiness: Key Online Shopping Trends and Best Practices IBM Enterprise Marketing Management
- 2. © 2013 IBM Corporation© 2013 IBM Corporation Sucharita Mulpuru Principal Analyst Forrester @smulpuru Jay Henderson Strategy Director, Enterprise Marketing Management @jay_henderson Today’s presenters © 2013 IBM Corporation 2
- 3. © 2013 IBM Corporation© 2013 IBM Corporation Agenda Holiday 2012 refresher Things to keep in mind for 2013 Q&A © 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson 3
- 4. © 2013 IBM Corporation© 2013 IBM Corporation Agenda Holiday 2012 refresher Things to keep in mind for 2013 Q&A © 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson 4
- 5. Last year was a bit of a yawner #SmarterCommerce @smulpuru @jay_henderson 5
- 6. © 2013 Forrester Research, Inc. Reproduction Prohibited 6 30%29%29%29%30%32% 201220112010200920082007 Source: Forrester Research 15% year- over-year growth in 2012 over 2011 Online sales are disproportionately critical for web retailers November-December online sales as a % of total online sales for the year #SmarterCommerce @smulpuru @jay_henderson
- 7. There don’t appear to be many new shoppers shopping online at this time Pre-Thanksgiving Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011 and Q4 2012 Thanksgiving Weekend Cyber Monday 66% 78% 65% 76% I shopped in stores less because I shopped online instead I shopped online instead of in stores for this purchase because there were better deals online 72% 73% 70% 71% 77% 81% 76% 81% 2011 2012 #SmarterCommerce @smulpuru @jay_henderson 7
- 8. © 2013 IBM Corporation© 2013 IBM Corporation In 2012… Monday after Cyber Mon Green Monday Free Shipping Friday Tues after Cyber Mon Last chance shopping Pre-Thanksgiving Promotion Cyber Monday Promotions launched earlier, buying started sooner, peaks were higher, and deals lasted longer Source: IBM Digital Analytics Benchmark #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 8
- 9. Shoppers may be showing signs of promotional fatigue, especially pre-holiday Pre-Thanksgiving Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011 and Q4 2012 Thanksgiving Weekend Cyber Monday Which of the following best characterizes your feelings about online deals, promotions, and specials around the holidays? 6% 15% 23% 17% 16% 19% 15% 12% Deals are so frequently offered that it is easy to always buy with a sale or promotion Taking advantage of deals is even more important to me now than in previous years I love deals! The more, the merrier I will only buy if I have a deal, sale or promotion 6% 15% 23% 21% 7% 13% 22% 20% 5% 16% 23% 22% 5% 15% 24% 21% 2011 2012 #SmarterCommerce @smulpuru @jay_henderson 9
- 10. Promotions were lackluster “[Decide.com] looked at more than 500 doorbusters advertised in Black Friday circulars by big-box and department stores …and found that nearly one-third of the products had been sold at lower prices this year.” #SmarterCommerce @smulpuru @jay_henderson 10
- 11. © 2013 IBM Corporation Bright Spots? #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 11
- 12. © 2013 IBM Corporation© 2013 IBM Corporation© 2013 IBM Corporation 12 Is Cyber Monday obsolete? #SmarterCommerce @smulpuru @jay_henderson
- 13. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 13 Not yet…. 2012 biggest online shopping day 30.3% year over year ever Source: IBM Digital Analytics Benchmark
- 14. © 2013 IBM Corporation© 2013 IBM Corporation Online sales growth was fueled by a strong holiday weekend Nov 1 Nov 8 Nov 15 Nov 22 Nov 29 US Daily Sales November 1 - 30 2011 2012 Thanksgiving day sales up: 17.4% Black Friday sales up: 20.7% Cyber Monday sales up: 30.3% Cyber Monday Source: IBM Digital Analytics Benchmark #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 14
- 15. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 15 …But promotions were consistent…. 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Marketing Driven Site Traffic Current Period (2013/12) Prior Period (2011/12) consistently driving ~30% of traffic Source: IBM Digital Analytics Benchmark
- 16. © 2013 Forrester Research, Inc. Reproduction Prohibited 16 Email continues to be a big driver of holiday traffic 5% 6% 8% 9% 8% 46% 39% 4% 6% 7% 11% 9% 44% 41% Retailer's social presence Deals or shopping website Other email Someone told me about it Through search engines Via email from the retailer I visited the retail site directly 3% 7% 9% 10% 10% 39% 44% 3% 6% 7% 11% 10% 39% 44% Retailer's social presence Deals or shopping website Other email Someone told me about it Through search engines Via email from the retailer I visited the retail site directly 4% 6% 8% 9% 11% 37% 44% 4% 6% 8% 10% 11% 37% 43% Retailer's social presence Deals or shopping website Other email Someone told me about it Through search engines Via email from the retailer I visited the retail site directly How did you learn about these special deals [from today’s purchase]? Pre-Thanksgiving Thanksgiving Weekend Cyber Monday Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011 and Q4 2012 2011 2012 #SmarterCommerce @smulpuru @jay_henderson
- 17. © 2013 IBM Corporation© 2013 IBM Corporation Online shopping is upwardly mobile 17 #SmarterCommerce @smulpuru @jay_henderson
- 18. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 18 over 15%of all online sales come from mobile devices1 Mobile (including tablet) continues to increase dramatically… Sales, traffic, and even email over 25% of all site traffic comes from mobile devices2 47% of all emailis opened on mobile devices (more than apps or web)3 Sources: 1 IBM Digital Analytics Benchmark (consistently Nov 2012 – March 2013) 2 IBM Digital Analytics Benchmark (as of March 2013) 3 Email Optimization benchmark
- 19. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson 19 Is mobile really on the move? …the rise of couch commerce… © 2013 IBM Corporation
- 20. © 2013 IBM Corporation© 2013 IBM Corporation iPad now consistently leads all devices with more overall traffic & more growth 4.07% 5.16% 4.30% 6.09% 8.21% 8.82% Android iPhone iPad US Mobile Traffic by Device December 2011 vs December 2012 Dec-12 Dec-11 Source: IBM Digital Analytics Benchmark #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 20
- 21. © 2013 IBM Corporation© 2013 IBM Corporation Tablets consistently drive higher conversion 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Conversion % by Mobile Device More pronounced during heavy shopping periods Black Friday, 2012, iPad conversion rate was 4.4% iPhone & Android conversion rates were 1.7% Source: IBM Digital Analytics Benchmark #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 21
- 22. © 2013 IBM Corporation© 2013 IBM Corporation Social is a tough nut to crack #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 22
- 23. © 2013 IBM Corporation© 2013 IBM Corporation Social…. has yet to make a significant impact on “same session” traffic or sales 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar % sales from social % traffic from social Source: IBM Digital Analytics Benchmark #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 23
- 24. © 2013 IBM Corporation© 2013 IBM Corporation Agenda Holiday 2012 refresher Things to keep in mind for 2013 Q&A © 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson 24
- 25. 1. Traditional web marketing still matters a lot #SmarterCommerce @smulpuru @jay_henderson 25
- 27. © 2012 Forrester Research, Inc. Reproduction Prohibited 2. Smartphone revenue is growing but is only part of the picture #SmarterCommerce @smulpuru @jay_henderson 27
- 28. Mobile open-rate figures vs focus on customized content #SmarterCommerce @smulpuru @jay_henderson 28
- 29. © 2013 IBM Corporation© 2013 IBM Corporation Richest experience; links and images on by default. Rich graphics; user may need to side-scroll to view full message. Shows text part of HTML as well as URLs for links and images. HTML supported, but images-off under default settings. BlackberryAndroidiPhone Windows Mobile 6 Rendering can vary wildly across devices #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 29
- 30. © 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 30 Understand the customer experience across websites and mobile Capture and replay customer interactions Discover “why” mobile customers succeed or fail Automatically detect customer struggles, obstacles or issues Drill down into actual user behavior, complete with gestures Native Apps Hybrid Apps HTML5 Mobile Site Cover all mobile channels
- 31. © 2012 Forrester Research, Inc. Reproduction Prohibited The phone supports the cross-channel experience Activity On smartphones On tablets Read emails from retailers 65 % (1) 65% (2) Locate retail stores/store hours/directions 55 % (2) 51 % (5) Receive texts with special offers from retailers 53 % (3) 36 % (10) Browse or research products 50 % (4) 68 % (1) Identify where products are sold (online, store, etc.) 40 % (5) 51 % (5) Compare prices while shopping online 40 % (6) 62 % (3) Read product or store reviews 39 % (7) 54 % (4) "Check in" via Yelp, Foursquare, Facebook Places, etc. 36 % (8) 29% (11) Compare prices while in a retail store 35 % (9) 26% (12) Scan QR codes 34% (10) 12% (14) Place orders for digital media (e.g. books, music, apps) 24% (12) 42 % (8) Gather product/style advice and information from retailers 25% (11) 41 % (9) Place orders for physical goods (e.g. apparel, electronics) 24% (12 44 % (7) Review store layout 11 % (14) 21% (13) Source: Forrester-Bizrate Insights Flash Survey, Q2 2013 Base: recent online shoppers with mobile devices #SmarterCommerce @smulpuru @jay_henderson 31
- 32. Tactic Key facts Endless aisle Also called “web enabled POS”; provides ability to capture store out-of-stocks Ship from store Fulfilling web orders from stores, particularly slow- moving or aged inventory In-store pickup (including ship to store) Enabling shoppers to pick up web orders at local stores either immediately or after shipping products from DCs; consumers select this to avoid paying freight Inventory visibility across channels Enabling “know before you go” features in which customers can check in-store availability of items Same-day delivery Providing shoppers with delivery of packages to their homes or offices; transfers the value chain to retailers from shoppers 3. Omnichannel is a big investment area: it all comes down to real-time inventory lookup #SmarterCommerce @smulpuru @jay_henderson 32
- 33. © 2013 Forrester Research, Inc. Reproduction Prohibited 33 Caveat: don’t overhype same-day delivery #SmarterCommerce @smulpuru @jay_henderson
- 34. © 2013 Forrester Research, Inc. Reproduction Prohibited 34 A number of omnichannel efforts are less discussed but should be prioritized › E-receipts in stores/email collection in stores › Scheduling store visits › Mobile self-checkout and m-pos (QSRs have the best business case) › Texting from stores #SmarterCommerce @smulpuru @jay_henderson
- 35. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 35 To deal with omnichanel retail, marketer’s need to create a “system of engagement” across channels customer System of engagement: Coordinates all decisions across all channels to create an engaging relationship with each customer and prospect ad social search display ad Web mobile email ATM/kiosk phone branch POS mail
- 36. 4. Personalization is an opportunity #SmarterCommerce @smulpuru @jay_henderson 36
- 37. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 37 Personalization: Lots of different ways to treat different people differently
- 38. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 38 Identity Information that sits in a typical customer database: • Demographics • Psychographics • Account details • Purchase history • etc. Personalization: Lots of different ways to treat different people differently Types of information that can be used for personalization:
- 39. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 39 Behavior Information about what the person is doing during the moment of interaction: • Where a person has been on a Web site during this visit • Location as identified by a mobile device • Reason for calling as explained to a call center agent • Products about to be purchased in a store Identity Information that sits in a typical customer database: • Demographics • Psychographics • Account details • Purchase history • etc. Personalization: Lots of different ways to treat different people differently Types of information that can be used for personalization:
- 40. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 40 Behavior Information about what the person is doing during the moment of interaction: • Where a person has been on a Web site during this visit • Location as identified by a mobile device • Reason for calling as explained to a call center agent • Products about to be purchased in a store Identity Information that sits in a typical customer database: • Demographics • Psychographics • Account details • Purchase history • etc. Product recommendation engines Online behavioral advertising SEMDisplay adsSPAM Pre-calculated offers Personalized email Personalization: Lots of different ways to treat different people differently Types of information that can be used for personalization:
- 41. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 41 Behavior Information about what the person is doing during the moment of interaction: • Where a person has been on a Web site during this visit • Location as identified by a mobile device • Reason for calling as explained to a call center agent • Products about to be purchased in a store Identity Information that sits in a typical customer database: • Demographics • Psychographics • Account details • Purchase history • etc. Product recommendation engines Online behavioral advertising SEMDisplay adsSPAM Pre-calculated offers Personalized email Most personalization approaches use more of one than the other Personalization: Lots of different ways to treat different people differently Types of information that can be used for personalization:
- 42. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 42 Personalization: Lots of different ways to treat different people differently Behavior Information about what the person is doing during the moment of interaction: • Where a person has been on a Web site during this visit • Location as identified by a mobile device • Reason for calling as explained to a call center agent • Products about to be purchased in a store Identity Information that sits in a typical customer database: • Demographics • Psychographics • Account details • Purchase history • etc. Product recommendation engines Online behavioral advertising SEMDisplay adsSPAM Pre-calculated offers Personalized email Best option: use both fully Types of information that can be used for personalization: Most personalization approaches use more of one than the other
- 43. © 2012 Forrester Research, Inc. Reproduction Prohibited 39% 70% 73% 81% 84% Getting offers from retailers and brands Inspiration on what to buy Entertaining myself Enjoying what others share Discover new products, styles, ideas 26% 17% 61% 72% 24% 5. Social can come alive during the holidays Source: Forrester-Bizrate Insights Flash Survey, Q3 2012 Base: 4,700 recent online buyers with Facebook accounts Base: 1,200 recent online buyers who have visited Pinterest #SmarterCommerce @smulpuru @jay_henderson 43
- 44. © 2012 Forrester Research, Inc. Reproduction Prohibited “History” of image-rich/sharing sites Several attempts at outfitting and rich sharing have been tried without much success to date 1st dot-com boom (late 90s) Retailers and brands (early 2000s) Style CSEs (2004) Social commerce players (2009) Photo sites #SmarterCommerce @smulpuru @jay_henderson 44
- 45. © 2013 IBM Corporation© 2013 IBM Corporation 6. Benchmark yourself relative to your peers IBM Digital Analytics Benchmark • Over 1,300 online brands • Aggregate index – Compare against industry – Compare against peers • Geographic coverage – US, UK, AU, Euro • Industry specific – Retail – Content – Financial Services – Travel • Segment specific – Apparel – Department Stores – Health and Beauty – And 12 others. . . #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 45
- 46. 7. The “fringes” have great ideas #SmarterCommerce @smulpuru @jay_henderson 46
- 47. “Mystery bag” shopping is the Black Friday of Japan #SmarterCommerce @smulpuru @jay_henderson 47
- 48. Swapping is a crucial component of this #SmarterCommerce @smulpuru @jay_henderson 48
- 49. We’re not done innovating in payments #SmarterCommerce @smulpuru @jay_henderson 49
- 50. A preference center can make a difference when there’s overemail in Q4 #SmarterCommerce @smulpuru @jay_henderson 50
- 51. © 2013 Forrester Research, Inc. Reproduction Prohibited 51 Promote your app in mobile search #SmarterCommerce @smulpuru @jay_henderson
- 52. © 2013 IBM Corporation© 2013 IBM Corporation #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 52 http://ibm.co/1bKCL4h More benchmark analysis & best practices from IBM
- 53. © 2013 IBM Corporation© 2013 IBM Corporation Questions? Suchirita Mulpuru Principal Analyst Forrester @smulpuru Jay Henderson Strategy Director, IBM, Enterprise Marketing @jay_henderson http://ibm.co/1bKCL4h #SmarterCommerce @smulpuru @jay_henderson © 2013 IBM Corporation 53