PRESENTED BY: SPONSORED BY:
PRESENTED BY:PRESENTED BY:PRESENTED BY:PRESENTED BY:
Kelly MooneyPresident & CXO, RESOURCE INTERACTIVE
More thanMore thanMore thanMore than 25% of 25% of 25% of 25% of the search resultsthe search resultsthe search resultsthe search results on on on on Google for the Google for the Google for the Google for the worldworldworldworld’’’’s 20 largest s 20 largest s 20 largest s 20 largest brands, arebrands, arebrands, arebrands, areconsumer generated consumer generated consumer generated consumer generated content.content.content.content.————Nielsen Buzz MetricsNielsen Buzz MetricsNielsen Buzz MetricsNielsen Buzz Metrics
The number of The number of The number of The number of text text text text messagesmessagesmessagesmessages sent and sent and sent and sent and received each day received each day received each day received each day
exceed the exceed the exceed the exceed the population of Earthpopulation of Earthpopulation of Earthpopulation of Earth....
————mmmm----metrics, 2007 Mobile Commerce metrics, 2007 Mobile Commerce metrics, 2007 Mobile Commerce metrics, 2007 Mobile Commerce LandscapeLandscapeLandscapeLandscape
77%77%77%77% of Internet of Internet of Internet of Internet shoppersshoppersshoppersshoppers read read read read online online online online
productproductproductproduct reviews.reviews.reviews.reviews.————JupiterResearchJupiterResearchJupiterResearchJupiterResearch, August 2007, August 2007, August 2007, August 2007
86+ million86+ million86+ million86+ millionsocial network social network social network social network users in the U.S.users in the U.S.users in the U.S.users in the U.S.————eMarketereMarketereMarketereMarketer, 2008, 2008, 2008, 2008
1.4 1.4 1.4 1.4 blogsblogsblogsblogs createdcreatedcreatedcreatedevery second of every every second of every every second of every every second of every
day.day.day.day.————TechnoratiTechnoratiTechnoratiTechnorati 2007200720072007
The average U.S. citizen The average U.S. citizen The average U.S. citizen The average U.S. citizen will spendwill spendwill spendwill spend 5.4 years5.4 years5.4 years5.4 years per per per per
lifetimelifetimelifetimelifetime online.online.online.online.————Nielsen Online Stats, 2007Nielsen Online Stats, 2007Nielsen Online Stats, 2007Nielsen Online Stats, 2007
Over Over Over Over 2.9 million2.9 million2.9 million2.9 milliontwitter users in the twitter users in the twitter users in the twitter users in the U.S.U.S.U.S.U.S.————TwitdirTwitdirTwitdirTwitdir, 2008, 2008, 2008, 2008
86%86%86%86% of the online of the online of the online of the online population are creating, population are creating, population are creating, population are creating, sharing, or influencingsharing, or influencingsharing, or influencingsharing, or influencing
————Resource Resource Resource Resource Interactive,iCitizenInteractive,iCitizenInteractive,iCitizenInteractive,iCitizen Motivational Study, Motivational Study, Motivational Study, Motivational Study, 2007200720072007
Web sales remain too small to matter.
MISCONCEPTION #1MISCONCEPTION #1MISCONCEPTION #1MISCONCEPTION #1
The web remains the fastest-growing channel and is responsible for disproportionate growth.
FACT:FACT:FACT:FACT:
TOTAL SALES (millions)
TOTAL SALES (millions)
TOTAL SALES (millions)
TOTAL SALES (millions)
Retail Growth is Relatively Flat Overall
2007200720072007
2.6%2.6%2.6%2.6%
Total Retail CAGR is projected to be Total Retail CAGR is projected to be Total Retail CAGR is projected to be Total Retail CAGR is projected to be 2.6%2.6%2.6%2.6% fromfromfromfrom 2007200720072007----2012201220122012
2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012
Source: Forrester Research, January 2008
TOTAL SALES (millions)
TOTAL SALES (millions)
TOTAL SALES (millions)
TOTAL SALES (millions)
Online Growing 5x Faster than Offline
2002002002007777
14%14%14%14%
ONLINE Retail CAGR is projected to be ONLINE Retail CAGR is projected to be ONLINE Retail CAGR is projected to be ONLINE Retail CAGR is projected to be 14%14%14%14% fromfromfromfrom 2007200720072007----2012201220122012
2002002002008888
2002002002009999
2012012012010000
2012012012011111
2012012012012222
Source: Forrester Research, January 2008
Source: Internet Retailer, April 2008
2007: Web Fueled Majority of Growth For Some Major Retailers
Web as a % of totalSALESSALESSALESSALES
Web as a % of total salesGROWTHGROWTHGROWTHGROWTH
10%10%10%10%
90%90%90%90%
29%29%29%29%
71%71%71%71%
68%68%68%68%
32%32%32%32%
58%58%58%58%
42%42%42%42%
2012: Web Significant Growth Contributor
43%ONLINEONLINEONLINEONLINE
57%OFFLINEOFFLINEOFFLINEOFFLINE
11%*ONLINEONLINEONLINEONLINE
89%OFFLINEOFFLINEOFFLINEOFFLINE
Source: Forrester US eCommerce Forecast: 2008-2012
*These %s are deflated by large categories with extremely low online penetration—such as autos and food
Web as a % of totalSALESSALESSALESSALES
Web as a % of total salesGROWTHGROWTHGROWTHGROWTH
7%*ONLINEONLINEONLINEONLINE
93%OFFLINEOFFLINEOFFLINEOFFLINE
2012: Web Significant Growth Contributor
43%ONLINEONLINEONLINEONLINE
57%OFFLINEOFFLINEOFFLINEOFFLINE
11%*ONLINEONLINEONLINEONLINE
89%OFFLINEOFFLINEOFFLINEOFFLINE
Source: Forrester US eCommerce Forecast: 2008-2012
*These %s are deflated by large categories with extremely low online penetration—such as autos and food
Web as a % of totalSALESSALESSALESSALES
Web as a % of total salesGROWTHGROWTHGROWTHGROWTH
The web is primarily an e-commerce channel.
MISCONCEPTIONMISCONCEPTIONMISCONCEPTIONMISCONCEPTION #2#2#2#2
The web uniquely catalyzesand impacts cross-channel shopping.
FACT:FACT:FACT:FACT:
Impact of traditional brand communications at the Impact of traditional brand communications at the Impact of traditional brand communications at the Impact of traditional brand communications at the onset of the consumer purchase journey is decreasingonset of the consumer purchase journey is decreasingonset of the consumer purchase journey is decreasingonset of the consumer purchase journey is decreasing
AWARENESSAWARENESSAWARENESSAWARENESS CONSIDERATIONCONSIDERATIONCONSIDERATIONCONSIDERATION TRIALTRIALTRIALTRIAL PURCHASEPURCHASEPURCHASEPURCHASEREPEAT REPEAT REPEAT REPEAT
PURCHASEPURCHASEPURCHASEPURCHASELOYALTYLOYALTYLOYALTYLOYALTY
The Web-Catalyzed Customer JourneyA proliferation of touchpoints - micro-experiences
TOTAL SALES (millions)
TOTAL SALES (millions)
TOTAL SALES (millions)
TOTAL SALES (millions)
2007200720072007
50%50%50%50%
2008200820082008 2009200920092009 2010201020102010 2011201120112011 2012201220122012
48%48%48%48%47%47%47%47%
45%45%45%45%42%42%42%42%
38%38%38%38%
Offline SalesOffline SalesOffline SalesOffline Sales
Offline Sales Offline Sales Offline Sales Offline Sales Influenced by Influenced by Influenced by Influenced by
OnlineOnlineOnlineOnline
Online SalesOnline SalesOnline SalesOnline Sales
The Web is Projected to Influence 50% of Offline Sales by 2012
Jupiter: US Online Retail Forecast, 2007 - 2012
Total Online Total Online Total Online Total Online ImpactImpactImpactImpact
Web Improves Total Customer ExperienceThe web should be the hub for engagement and transactions
WebWebWebWeb----andandandand----Spoke ModelSpoke ModelSpoke ModelSpoke ModelSource: Resource Interactive 2002, rev 2008
WEBWEBWEBWEB
Stores are the most important channel for purchasing.
MISCONCEPTIONMISCONCEPTIONMISCONCEPTIONMISCONCEPTION #3#3#3#3
The web has begun to rival stores for purchase decision-making.
FACT:FACT:FACT:FACT:
Web Rivaling Offline in ImportanceHome electronics buyers rated stores and online equally
Source: Resource Interactive Survey, August 2008Source: Resource Interactive Survey, August 2008Source: Resource Interactive Survey, August 2008Source: Resource Interactive Survey, August 2008
Q: How important were each in helping you Q: How important were each in helping you Q: How important were each in helping you Q: How important were each in helping you make your decision on what to purchase?make your decision on what to purchase?make your decision on what to purchase?make your decision on what to purchase?
Advertising dollars are being judiciously shifted to the web.
MISCONCEPTIONMISCONCEPTIONMISCONCEPTIONMISCONCEPTION #4#4#4#4
Consumers’ diverse activities and time spent online are outpacing Internet advertisingplanning.
FACT:FACT:FACT:FACT:
2007 U.S. AD SPENDING TOTALS BY MEDIUMfor the top 100 National Advertisers
MEDIAADVERTISING SPEND
(Millions)MEDIUM AS A % OF
TOTAL SPEND
Magazine $9,538 9Sunday magazine $755 0.7B-to-B magazine $491 0.5Local magazine $16 0National newspaper $1,063 1Local newspaper $5,328 5.1FSI $818 0.8Network TV $18,029 17.1Spot TV $5,165 4.9Syndicated TV $2,557 2.4Cable TV networks $9,075 8.6Network radio $460 0.4National spot radio $1,015 1Local radio $1,751 1.7Outdoor $1,038 1Direct mail NA NAInternet $4,185 4Measured media $61,283 58.1Unmeasured spending $44,205 41.9Total U.S. spending $105,488 100
Source: Advertising Age, June 2008
Notes: Dollars in millions. Media expenditures by medium from TNS Media Intelligence. *Medium's percentage of all measured and unmeasured advertising.
2007 U.S. AD SPENDING TOTALS BY MEDIUMfor the top 100 National Advertisers
MEDIAADVERTISING SPEND
(Millions)MEDIUM AS A % OF
TOTAL SPEND
Magazine $9,538 9Sunday magazine $755 0.7B-to-B magazine $491 0.5Local magazine $16 0National newspaper $1,063 1Local newspaper $5,328 5.1FSI $818 0.8Network TV $18,029 17.1Spot TV $5,165 4.9Syndicated TV $2,557 2.4Cable TV networks $9,075 8.6Network radio $460 0.4National spot radio $1,015 1Local radio $1,751 1.7Outdoor $1,038 1Direct mail NA NAInternet $4,185 4Measured media $61,283 58.1Unmeasured spending $44,205 41.9Total U.S. spending $105,488 100
2007 U.S. AD SPENDING TOTALS BY MEDIUMfor the top 100 National Advertisers
MEDIAADVERTISING SPEND
(Millions)MEDIUM AS A % OF
TOTAL SPEND
Magazine $9,538 9Sunday magazine $755 0.7B-to-B magazine $491 0.5Local magazine $16 0National newspaper $1,063 1Local newspaper $5,328 5.1FSI $818 0.8Network TV $18,029 17.1Spot TV $5,165 4.9Syndicated TV $2,557 2.4Cable TV networks $9,075 8.6Network radio $460 0.4National spot radio $1,015 1Local radio $1,751 1.7Outdoor $1,038 1Direct mail NA NAInternet $4,185 4Measured media $61,283 58.1Unmeasured spending $44,205 41.9Total U.S. spending $105,488 100
Source: Advertising Age, June 2008
Notes: Dollars in millions. Media expenditures by medium from TNS Media Intelligence. *Medium's percentage of all measured and unmeasured advertising.
2007 U.S. AD SPENDING TOTALS BY MEDIUMfor the top 100 National Advertisers
MEDIAADVERTISING SPEND
(Millions)MEDIUM AS A % OF
TOTAL SPEND
Magazine $9,538 9Sunday magazine $755 0.7B-to-B magazine $491 0.5Local magazine $16 0National newspaper $1,063 1Local newspaper $5,328 5.1FSI $818 0.8Network TV $18,029 17.1Spot TV $5,165 4.9Syndicated TV $2,557 2.4Cable TV networks $9,075 8.6Network radio $460 0.4National spot radio $1,015 1Local radio $1,751 1.7Outdoor $1,038 1Direct mail NA NAInternet $4,185 4Measured media $61,283 58.1Unmeasured spending $44,205 41.9Total U.S. spending $105,488 100
““““InternetInternetInternetInternet”””” includes includes includes includes Display Ads, not Search Display Ads, not Search Display Ads, not Search Display Ads, not Search orororor…………---- Search optimizationSearch optimizationSearch optimizationSearch optimization---- AffiliatesAffiliatesAffiliatesAffiliates---- Social mediaSocial mediaSocial mediaSocial media---- EmailEmailEmailEmail---- EEEE----circularscircularscircularscirculars---- Web siteWeb siteWeb siteWeb site---- InInInIn----store store store store ---- CRMCRMCRMCRM---- MobileMobileMobileMobile
Greatest Disparity Between Time Spent Online and Internet Ad Spending
Source: Forrester Research, January 4, 2008
*Note: consumer media time does not include time spent using a cell phone, watching DVDs or playing video games.
Share of time in a typical week that US adults spend with SelectShare of time in a typical week that US adults spend with SelectShare of time in a typical week that US adults spend with SelectShare of time in a typical week that US adults spend with Select Media* Media* Media* Media* vs. Share of US advertising spending by media, 2007vs. Share of US advertising spending by media, 2007vs. Share of US advertising spending by media, 2007vs. Share of US advertising spending by media, 2007
Reduced advertising spend where customers weren’t paying attention
COSTCOSTCOSTCOST
PROFITPROFITPROFITPROFIT
18%18%18%18%
40%40%40%40%
Gap Makes Data-Smart Spending Move
Source: Advertising Age, May 2008
GM Makes Spending Shift
Source: Advertising Age, May 2008
Re-assessed Ad Spending to Align with Consumers
$200M Online Spending in 2007 - Gaming- Search- Internet applications
50%50%50%50%
GM Makes Spending Shift - $3 Billion
Source: Advertising Age, May 2008
Shifting 50% of Ad Spending Online in Next 3 Years
Differentiation should be less of a priority online than it is in other channels.
MISCONCEPTION #5MISCONCEPTION #5MISCONCEPTION #5MISCONCEPTION #5
Appealing yet still emerging features can unlock new differentiated, growth potential.
FACT:FACT:FACT:FACT:
Understand Consumer Attitudes About Shopping Experiences
: QualitativelyQualitativelyQualitativelyQualitatively tested the relative appealappealappealappeal of 23 micro- experiences
: Online bulletin boards with 40+ respondents (18-26 and 27-45); 4 days
: Made apparel or HE purchase online within past 3 months
: Participants engaged with existing digital experiences and viewed new concepts
: QuantitativelyQuantitativelyQuantitativelyQuantitatively tested the relative importanceimportanceimportanceimportance of 30 micro-experiences
: Survey with 2000+ respondents, ages 18+
: Made apparel or HE purchase in the past year
: Respondents rated tools based on descriptions provided in survey
EASE AND EFFICIENCYEASE AND EFFICIENCYEASE AND EFFICIENCYEASE AND EFFICIENCY• Visual Search• Single Page/Multi-store Checkout• Mobile
DIALOGUE AND CUSTOMIZATIONDIALOGUE AND CUSTOMIZATIONDIALOGUE AND CUSTOMIZATIONDIALOGUE AND CUSTOMIZATION• Custom Product• Co-shopping• Relationship Hub
IMMERSION AND PARTICIPATIONIMMERSION AND PARTICIPATIONIMMERSION AND PARTICIPATIONIMMERSION AND PARTICIPATION• Visualization Tools• Video• Extended Content
COMMUNITY AND PORTABILITYCOMMUNITY AND PORTABILITYCOMMUNITY AND PORTABILITYCOMMUNITY AND PORTABILITY• Ratings and Reviews• Shareable Content• Mobile
ONONONON----DEMANDDEMANDDEMANDDEMAND
PERSONALPERSONALPERSONALPERSONAL
ENGAGINGENGAGINGENGAGINGENGAGING
NETWORKEDNETWORKEDNETWORKEDNETWORKED
ONONONON----DEMANDDEMANDDEMANDDEMAND
PERSONALPERSONALPERSONALPERSONAL
ENGAGINGENGAGINGENGAGINGENGAGING
NETWORKEDNETWORKEDNETWORKEDNETWORKED
Top 10 Micro-experiences by Importance
Q: Please indicate how important the ability to do each of the fQ: Please indicate how important the ability to do each of the fQ: Please indicate how important the ability to do each of the fQ: Please indicate how important the ability to do each of the following is or could be to you ollowing is or could be to you ollowing is or could be to you ollowing is or could be to you in helping you during your shopping and purchasing process , evein helping you during your shopping and purchasing process , evein helping you during your shopping and purchasing process , evein helping you during your shopping and purchasing process , even if you have never done n if you have never done n if you have never done n if you have never done them in the past.them in the past.them in the past.them in the past.
Scale: not at all important, slightly important, somewhat importScale: not at all important, slightly important, somewhat importScale: not at all important, slightly important, somewhat importScale: not at all important, slightly important, somewhat important, important, very ant, important, very ant, important, very ant, important, very important, extremely important, absolutely essentialimportant, extremely important, absolutely essentialimportant, extremely important, absolutely essentialimportant, extremely important, absolutely essential
Email sales notification for identified productsEmail sales notification for identified productsEmail sales notification for identified productsEmail sales notification for identified products
Control the product view with zoom & rotateControl the product view with zoom & rotateControl the product view with zoom & rotateControl the product view with zoom & rotate
Asking/posting to community on a retail siteAsking/posting to community on a retail siteAsking/posting to community on a retail siteAsking/posting to community on a retail site
Visit a retail storeVisit a retail storeVisit a retail storeVisit a retail store
Obtain help of a salesperson in storeObtain help of a salesperson in storeObtain help of a salesperson in storeObtain help of a salesperson in store
Access crossAccess crossAccess crossAccess cross----channel inventory visibilitychannel inventory visibilitychannel inventory visibilitychannel inventory visibility
Read ratings and reviews on web siteRead ratings and reviews on web siteRead ratings and reviews on web siteRead ratings and reviews on web site
Checkout anonymouslyCheckout anonymouslyCheckout anonymouslyCheckout anonymously
Buy online, pick up in storeBuy online, pick up in storeBuy online, pick up in storeBuy online, pick up in store
Access to loyalty program/rewards on siteAccess to loyalty program/rewards on siteAccess to loyalty program/rewards on siteAccess to loyalty program/rewards on site
4.74.74.74.7
4.54.54.54.5
4.04.04.04.0
3.53.53.53.5
3.43.43.43.4
3.43.43.43.4
3.33.33.33.3
3.23.23.23.2
3.13.13.13.1
3.03.03.03.0
Source: Resource Interactive Survey + Harris Interactive,Source: Resource Interactive Survey + Harris Interactive,Source: Resource Interactive Survey + Harris Interactive,Source: Resource Interactive Survey + Harris Interactive,August 2008August 2008August 2008August 2008
Importance correlated with feature ubiquity and/or familiarity
Micro-experiences by Consumer Appeal
Source: Resource Interactive Survey + Harris Interactive,August 2008
Q: On a scale from 1Q: On a scale from 1Q: On a scale from 1Q: On a scale from 1----10, how appealing is this feature to you and why?10, how appealing is this feature to you and why?10, how appealing is this feature to you and why?10, how appealing is this feature to you and why?Ratings and reviews Ratings and reviews Ratings and reviews Ratings and reviews
Mobile shopping listMobile shopping listMobile shopping listMobile shopping list
MultiMultiMultiMulti----store checkoutstore checkoutstore checkoutstore checkout
Mobile product comparisonMobile product comparisonMobile product comparisonMobile product comparison
CustomizatioCustomizatioCustomizatioCustomizationnnn
Related contentRelated contentRelated contentRelated content
Visual searchVisual searchVisual searchVisual search
CommunityCommunityCommunityCommunity
Mobile shared shopping listMobile shared shopping listMobile shared shopping listMobile shared shopping list
InInInIn----store mobile promosstore mobile promosstore mobile promosstore mobile promos
Mobile ratings and reviewsMobile ratings and reviewsMobile ratings and reviewsMobile ratings and reviews
Mobile guided shopping (GPS)Mobile guided shopping (GPS)Mobile guided shopping (GPS)Mobile guided shopping (GPS)
Outfitting toolOutfitting toolOutfitting toolOutfitting tool
Shop by outfitShop by outfitShop by outfitShop by outfit
Mobile personal saved contentMobile personal saved contentMobile personal saved contentMobile personal saved content
Access loyalty program onlineAccess loyalty program onlineAccess loyalty program onlineAccess loyalty program online
Video catalog Video catalog Video catalog Video catalog
Product Product Product Product configuratorconfiguratorconfiguratorconfigurator
CoCoCoCo----shopping onlineshopping onlineshopping onlineshopping online
Mobile ask employee/friendMobile ask employee/friendMobile ask employee/friendMobile ask employee/friend
Family/group shopping portalFamily/group shopping portalFamily/group shopping portalFamily/group shopping portal
Mobile shoppingMobile shoppingMobile shoppingMobile shopping
Mobile text promosMobile text promosMobile text promosMobile text promos
Emerging features found appealing, if not (yet) important
MOBILE SHOPPING LIST
“I'm already using post-it notes getting items at the store or recording a recording a recording a recording a memo on the phonememo on the phonememo on the phonememo on the phone as a reminder.”———— Van, 40Van, 40Van, 40Van, 40
“If nothing else, it saves trees!”———— Kevin, 22Kevin, 22Kevin, 22Kevin, 22
Source: Resource Interactive Survey + Harris Interactive,August 2008
FINDINGS: FINDINGS: FINDINGS: FINDINGS: APPEALAPPEALAPPEALAPPEAL
IMPORTANCEIMPORTANCEIMPORTANCEIMPORTANCE
MOBILE SHOPPING LISTA Convenience Tool
•Consumers write their lists Consumers write their lists Consumers write their lists Consumers write their lists on paperon paperon paperon paper
•Consumers use Consumers use Consumers use Consumers use memo/note feature on memo/note feature on memo/note feature on memo/note feature on phonephonephonephone
•Consumers interpreted Consumers interpreted Consumers interpreted Consumers interpreted this feature as being this feature as being this feature as being this feature as being greengreengreengreen
• Who?Who?Who?Who? Retailers selling frequently purchased Retailers selling frequently purchased Retailers selling frequently purchased Retailers selling frequently purchased products or enabling saved lists onlineproducts or enabling saved lists onlineproducts or enabling saved lists onlineproducts or enabling saved lists online
• Increase consumer efficiency by Increase consumer efficiency by Increase consumer efficiency by Increase consumer efficiency by incorporating scanning technologyincorporating scanning technologyincorporating scanning technologyincorporating scanning technology
• Similar appeal across agesSimilar appeal across agesSimilar appeal across agesSimilar appeal across ages
• Fear of data mining or battery Fear of data mining or battery Fear of data mining or battery Fear of data mining or battery drain drain drain drain
• More important toMore important toMore important toMore important to 18181818----24242424
• More important to low income More important to low income More important to low income More important to low income HH HH HH HH
GROWTH GROWTH GROWTH GROWTH
OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:
Source: Resource Interactive Survey + Harris Interactive,August 2008
MULTISTORE CHECKOUT
“…“…“…“…saves time and saves time and saves time and saves time and money.money.money.money. What could be What could be What could be What could be better?better?better?better?””””————KerryannKerryannKerryannKerryann, 36, 36, 36, 36
““““OMG YES! I love this OMG YES! I love this OMG YES! I love this OMG YES! I love this concept! concept! concept! concept! This is perfect This is perfect This is perfect This is perfect for someone with an onfor someone with an onfor someone with an onfor someone with an on----thethethethe----go lifego lifego lifego life....””””————Jessica, 23Jessica, 23Jessica, 23Jessica, 23
““““This is one of the This is one of the This is one of the This is one of the reasons I love Amazon so reasons I love Amazon so reasons I love Amazon so reasons I love Amazon so much, much, much, much, you can you can you can you can comparison shop all at comparison shop all at comparison shop all at comparison shop all at once placeonce placeonce placeonce place....””””————Nicole, 29Nicole, 29Nicole, 29Nicole, 29
Source: Resource Interactive Survey + Harris Interactive,August 2008
FINDINGS: FINDINGS: FINDINGS: FINDINGS: APPEALAPPEALAPPEALAPPEAL
IMPORTANCEIMPORTANCEIMPORTANCEIMPORTANCE
MULTISTORE CHECKOUTThe Virtual Mall
•Customers find tools that Customers find tools that Customers find tools that Customers find tools that save time and/or save save time and/or save save time and/or save save time and/or save money appealing money appealing money appealing money appealing
•Customers are attracted to Customers are attracted to Customers are attracted to Customers are attracted to the idea of reducing the the idea of reducing the the idea of reducing the the idea of reducing the number of times their info is number of times their info is number of times their info is number of times their info is input/savedinput/savedinput/savedinput/saved
• Who?Who?Who?Who? Retailers who aggregate multiple Retailers who aggregate multiple Retailers who aggregate multiple Retailers who aggregate multiple brands for household shopping.brands for household shopping.brands for household shopping.brands for household shopping.
• Accommodate Accommodate Accommodate Accommodate OpenIDOpenIDOpenIDOpenID and explore and explore and explore and explore retailerretailerretailerretailer---- agnostic agnostic agnostic agnostic ““““O.P.E.N. cart.O.P.E.N. cart.O.P.E.N. cart.O.P.E.N. cart.””””
• 27272727----45 slightly more appealing45 slightly more appealing45 slightly more appealing45 slightly more appealing
• Reduces dreaded shipping costsReduces dreaded shipping costsReduces dreaded shipping costsReduces dreaded shipping costs
• Saves time/simplifies transaction Saves time/simplifies transaction Saves time/simplifies transaction Saves time/simplifies transaction
• Similar importance for 18Similar importance for 18Similar importance for 18Similar importance for 18----44 44 44 44
• More important when child in HHMore important when child in HHMore important when child in HHMore important when child in HH
GROWTH GROWTH GROWTH GROWTH
OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:
Source: Resource Interactive Survey + Harris Interactive,August 2008
CUSTOMIZATION
““““Customizing something Customizing something Customizing something Customizing something gives megives megives megives me a very satisfying a very satisfying a very satisfying a very satisfying shopping experience, shopping experience, shopping experience, shopping experience, which leaves me very which leaves me very which leaves me very which leaves me very contentcontentcontentcontent with my purchase.with my purchase.with my purchase.with my purchase.””””————RossyRossyRossyRossy, 25, 25, 25, 25
““““If a clothes store had full If a clothes store had full If a clothes store had full If a clothes store had full customization customization customization customization I would I would I would I would definitely shop theredefinitely shop theredefinitely shop theredefinitely shop there and and and and buy from them if they were buy from them if they were buy from them if they were buy from them if they were able to keep the price able to keep the price able to keep the price able to keep the price pretty competitive.pretty competitive.pretty competitive.pretty competitive.””””————Ryan, 20 Ryan, 20 Ryan, 20 Ryan, 20 Source: Resource Interactive Survey + Harris Interactive,
August 2008
FINDINGS: FINDINGS: FINDINGS: FINDINGS: APPEALAPPEALAPPEALAPPEAL
IMPORTANCEIMPORTANCEIMPORTANCEIMPORTANCE
CUSTOMIZATIONInvested Self-Expression
•Customers desire the ability Customers desire the ability Customers desire the ability Customers desire the ability to express themselvesto express themselvesto express themselvesto express themselves
• Positive reaction was strong Positive reaction was strong Positive reaction was strong Positive reaction was strong even for minimal even for minimal even for minimal even for minimal customization capabilitycustomization capabilitycustomization capabilitycustomization capability
•Customers are willing to Customers are willing to Customers are willing to Customers are willing to pay a pay a pay a pay a smallsmallsmallsmall premium for premium for premium for premium for customizationcustomizationcustomizationcustomization
• Who?Who?Who?Who? Retailers who offer products that Retailers who offer products that Retailers who offer products that Retailers who offer products that propagate a lifestyle.propagate a lifestyle.propagate a lifestyle.propagate a lifestyle.
• Promote customersPromote customersPromote customersPromote customers’’’’ selfselfselfself----expression by selling expression by selling expression by selling expression by selling their cotheir cotheir cotheir co----created products to other customers.created products to other customers.created products to other customers.created products to other customers.
• Appealed more to 18Appealed more to 18Appealed more to 18Appealed more to 18----26262626
• Appeal of personalization and Appeal of personalization and Appeal of personalization and Appeal of personalization and controlcontrolcontrolcontrol
• Importance decreases with ageImportance decreases with ageImportance decreases with ageImportance decreases with age
• More important to HH with More important to HH with More important to HH with More important to HH with children children children children
GROWTH GROWTH GROWTH GROWTH
OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:
Source: Resource Interactive Survey + Harris Interactive,August 2008
OUTFITTING
““““SensationalSensationalSensationalSensational…………This layer your This layer your This layer your This layer your look service sure look service sure look service sure look service sure saved me from saved me from saved me from saved me from a disappointing returna disappointing returna disappointing returna disappointing return....””””————EmeldaEmeldaEmeldaEmelda, 42, 42, 42, 42
““““Yes. Yes. Yes. I love it. Yes. Yes. Yes. I love it. Yes. Yes. Yes. I love it. Yes. Yes. Yes. I love it. I could I could I could I could put outfits together in the put outfits together in the put outfits together in the put outfits together in the comfort of my own homecomfort of my own homecomfort of my own homecomfort of my own homewithout my screaming children without my screaming children without my screaming children without my screaming children asking asking asking asking ‘‘‘‘when are you done?when are you done?when are you done?when are you done?’’’’ ””””————Christina, 28Christina, 28Christina, 28Christina, 28
““““...if there was some way ...if there was some way ...if there was some way ...if there was some way I could I could I could I could load a picture of myself onto the load a picture of myself onto the load a picture of myself onto the load a picture of myself onto the site and use that to put the site and use that to put the site and use that to put the site and use that to put the clothes onclothes onclothes onclothes on that would make it a that would make it a that would make it a that would make it a 10 for me.10 for me.10 for me.10 for me.””””————Samantha, 18Samantha, 18Samantha, 18Samantha, 18
Source: Resource Interactive Survey + Harris Interactive,August 2008
FINDINGS: FINDINGS: FINDINGS: FINDINGS: APPEALAPPEALAPPEALAPPEAL
IMPORTANCEIMPORTANCEIMPORTANCEIMPORTANCE
OUTFITTINGConfidence Booster
•Customers who rated this Customers who rated this Customers who rated this Customers who rated this highly used emphatic highly used emphatic highly used emphatic highly used emphatic languagelanguagelanguagelanguage————lovelovelovelove, , , , sensational, amazing, sensational, amazing, sensational, amazing, sensational, amazing, fantasticfantasticfantasticfantastic
•Customers bring their Customers bring their Customers bring their Customers bring their offline behavior onlineoffline behavior onlineoffline behavior onlineoffline behavior online————outfit shoppers were fans outfit shoppers were fans outfit shoppers were fans outfit shoppers were fans while piece buyers were not while piece buyers were not while piece buyers were not while piece buyers were not convertedconvertedconvertedconverted
• Who?Who?Who?Who? CollectionCollectionCollectionCollection----driven retailers serving driven retailers serving driven retailers serving driven retailers serving outfit purchasers.outfit purchasers.outfit purchasers.outfit purchasers.
• Extend the experience to include Extend the experience to include Extend the experience to include Extend the experience to include ““““how it how it how it how it looks on me.looks on me.looks on me.looks on me.””””
• Appealed more to 27Appealed more to 27Appealed more to 27Appealed more to 27----45 45 45 45
• UserUserUserUser----friendly interface (drag & friendly interface (drag & friendly interface (drag & friendly interface (drag & drop)drop)drop)drop)
• Desire for more realistic Desire for more realistic Desire for more realistic Desire for more realistic shape/size shape/size shape/size shape/size
• Less important to 45+Less important to 45+Less important to 45+Less important to 45+
• More important when child in HH More important when child in HH More important when child in HH More important when child in HH
GROWTH GROWTH GROWTH GROWTH
OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:
Source: Resource Interactive Survey + Harris Interactive,August 2008
CO-SHOPPING
““““Wow. I think this is one of the Wow. I think this is one of the Wow. I think this is one of the Wow. I think this is one of the coolest features yetcoolest features yetcoolest features yetcoolest features yet…………will will will will virtually allow females to bring virtually allow females to bring virtually allow females to bring virtually allow females to bring their best shopping buddy their best shopping buddy their best shopping buddy their best shopping buddy without using gas moneywithout using gas moneywithout using gas moneywithout using gas money....””””————Rachel, 23Rachel, 23Rachel, 23Rachel, 23
““““My mother and I are always My mother and I are always My mother and I are always My mother and I are always cutting and pasting things from cutting and pasting things from cutting and pasting things from cutting and pasting things from sites to each othersites to each othersites to each othersites to each other…………This would This would This would This would be a nice way to shop together be a nice way to shop together be a nice way to shop together be a nice way to shop together from far away.from far away.from far away.from far away.””””————KerryannKerryannKerryannKerryann, 36, 36, 36, 36
GROUP-THINK
““““…………a perfect way to a perfect way to a perfect way to a perfect way to purchase gifts for purchase gifts for purchase gifts for purchase gifts for friends and familyfriends and familyfriends and familyfriends and family....””””————EmeldaEmeldaEmeldaEmelda, 42, 42, 42, 42
Source: Resource Interactive Survey + Harris Interactive,August 2008
FINDINGS: FINDINGS: FINDINGS: FINDINGS: APPEALAPPEALAPPEALAPPEAL
IMPORTANCEIMPORTANCEIMPORTANCEIMPORTANCE
CO-SHOPPINGInstantaneous Advice
•Consumers are Consumers are Consumers are Consumers are alreadyalreadyalreadyalready cocococo----shopping shopping shopping shopping –––– via phone, via phone, via phone, via phone, email, instant messenger, email, instant messenger, email, instant messenger, email, instant messenger, webcamwebcamwebcamwebcam
• Two subsets Two subsets Two subsets Two subsets
• Situational (e.g., group gift Situational (e.g., group gift Situational (e.g., group gift Situational (e.g., group gift giving)giving)giving)giving)
• Social shopping (existing Social shopping (existing Social shopping (existing Social shopping (existing offline behavior ported offline behavior ported offline behavior ported offline behavior ported online)online)online)online)
• Who?Who?Who?Who? Retailers with registry, gift services Retailers with registry, gift services Retailers with registry, gift services Retailers with registry, gift services or those with peeror those with peeror those with peeror those with peer----influenced shoppers.influenced shoppers.influenced shoppers.influenced shoppers.
• Incorporate easy interfaces and tools to Incorporate easy interfaces and tools to Incorporate easy interfaces and tools to Incorporate easy interfaces and tools to increase adoption.increase adoption.increase adoption.increase adoption.
• Similar overall appeal by ageSimilar overall appeal by ageSimilar overall appeal by ageSimilar overall appeal by age
• Opportunity for second opinionOpportunity for second opinionOpportunity for second opinionOpportunity for second opinion
• Fear of complexity (having to Fear of complexity (having to Fear of complexity (having to Fear of complexity (having to learn)learn)learn)learn)
• Importance decreases with ageImportance decreases with ageImportance decreases with ageImportance decreases with age
• More important to lower income More important to lower income More important to lower income More important to lower income HH HH HH HH
GROWTH GROWTH GROWTH GROWTH
OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:
Source: Resource Interactive Survey + Harris Interactive,August 2008
RATINGS & REVIEWS
““““I use it I use it I use it I use it before I buy before I buy before I buy before I buy anything onlineanything onlineanything onlineanything online....””””————Brian, 22Brian, 22Brian, 22Brian, 22
“…“…“…“…because I can because I can because I can because I can never never never never be too informed.be too informed.be too informed.be too informed.””””————NeeVeeNeeVeeNeeVeeNeeVee, 39, 39, 39, 39
““““TheyTheyTheyThey’’’’re almost re almost re almost re almost essential essential essential essential to how I to how I to how I to how I shop.shop.shop.shop.””””————Joe, 23Joe, 23Joe, 23Joe, 23
Source: Resource Interactive Survey + Harris Interactive,August 2008
FINDINGS: FINDINGS: FINDINGS: FINDINGS: APPEALAPPEALAPPEALAPPEAL
IMPORTANCEIMPORTANCEIMPORTANCEIMPORTANCE
RATINGS & REVIEWSExpertise for the Masses
• Established behavior Established behavior Established behavior Established behavior onlineonlineonlineonline————itititit’’’’s extending to s extending to s extending to s extending to offlineofflineofflineoffline
•Heavily relied upon feature, Heavily relied upon feature, Heavily relied upon feature, Heavily relied upon feature, yet not fully trustedyet not fully trustedyet not fully trustedyet not fully trusted
• Who?Who?Who?Who? Retailers who sell products/ categories Retailers who sell products/ categories Retailers who sell products/ categories Retailers who sell products/ categories with objective evaluation criteria.with objective evaluation criteria.with objective evaluation criteria.with objective evaluation criteria.
• Add affinity grouping, tags or experts to Add affinity grouping, tags or experts to Add affinity grouping, tags or experts to Add affinity grouping, tags or experts to support emotional and personal purchases.support emotional and personal purchases.support emotional and personal purchases.support emotional and personal purchases.
• Top in overall appealTop in overall appealTop in overall appealTop in overall appeal
• Has become Has become Has become Has become ““““expectedexpectedexpectedexpected””””////““““a a a a mustmustmustmust””””
• Fear of bias/Fear of bias/Fear of bias/Fear of bias/““““seedingseedingseedingseeding””””
• More important for HE than More important for HE than More important for HE than More important for HE than ApparelApparelApparelApparel
• More important to college grad+More important to college grad+More important to college grad+More important to college grad+
• More important to $75K+ HH More important to $75K+ HH More important to $75K+ HH More important to $75K+ HH
GROWTH GROWTH GROWTH GROWTH
OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:OPPORTUNITY:
Source: Resource Interactive Survey + Harris Interactive,August 2008
Digital Micro-experiences Can Also Be Multipurpose Marketing Tools
Ratings Ratings Ratings Ratings & & & &
ReviewsReviewsReviewsReviews
Ratings Ratings Ratings Ratings & & & &
ReviewsReviewsReviewsReviews
SearchSearchSearchSearchForForForFor
BrandBrandBrandBrand
Ratings and Reviews: Search Results are Critical Point of Interaction and Traffic Driver
Ratings Ratings Ratings Ratings & & & &
ReviewsReviewsReviewsReviews
See AdSee AdSee AdSee Ad
Ratings and Reviews: In-context Advertising
Ratings Ratings Ratings Ratings & & & &
ReviewsReviewsReviewsReviewsViewViewViewViewVideoVideoVideoVideoReviewReviewReviewReview
See AdSee AdSee AdSee Ad
SearchSearchSearchSearchForForForFor
BrandBrandBrandBrand
Ratings and Reviews: Engaging Content and Decision Support
Ratings Ratings Ratings Ratings & & & &
ReviewsReviewsReviewsReviewsPostPostPostPost
ReviewReviewReviewReview
See AdSee AdSee AdSee Ad
SearchSearchSearchSearchForForForFor
BrandBrandBrandBrand
ViewViewViewViewVideoVideoVideoVideoReviewReviewReviewReview
Ratings and Reviews: Opportunity for Re-engagement and Acknowledgement
75% higher likelihood to 75% higher likelihood to 75% higher likelihood to 75% higher likelihood to purchase onlinepurchase onlinepurchase onlinepurchase online
60% higher satisfaction with 60% higher satisfaction with 60% higher satisfaction with 60% higher satisfaction with the multithe multithe multithe multi----channel retailerchannel retailerchannel retailerchannel retailer
42% higher likelihood to 42% higher likelihood to 42% higher likelihood to 42% higher likelihood to purchase offlinepurchase offlinepurchase offlinepurchase offline
High Level of Satisfaction with the Online Shopping Experience Yields Big Returns
Source: Foresee Results, Spring 2008
The web is the fastestThe web is the fastestThe web is the fastestThe web is the fastest----growing channel and is growing channel and is growing channel and is growing channel and is responsible for disproportionate retail growth.responsible for disproportionate retail growth.responsible for disproportionate retail growth.responsible for disproportionate retail growth.
Facts of Growth
1
ConsumersConsumersConsumersConsumers’’’’ diverse activities and time spent online is diverse activities and time spent online is diverse activities and time spent online is diverse activities and time spent online is outpacing Internet advertising planning.outpacing Internet advertising planning.outpacing Internet advertising planning.outpacing Internet advertising planning.
The web uniquely catalyzes crossThe web uniquely catalyzes crossThe web uniquely catalyzes crossThe web uniquely catalyzes cross----channel shopping.channel shopping.channel shopping.channel shopping.
The web has begun to rival stores for purchase The web has begun to rival stores for purchase The web has begun to rival stores for purchase The web has begun to rival stores for purchase decisions.decisions.decisions.decisions.
Appealing yet still emerging features can unlock new, Appealing yet still emerging features can unlock new, Appealing yet still emerging features can unlock new, Appealing yet still emerging features can unlock new, differentiated growth potential.differentiated growth potential.differentiated growth potential.differentiated growth potential.
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5
Rules of the Road
1
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Expand the role of the web to be a strategic growth Expand the role of the web to be a strategic growth Expand the role of the web to be a strategic growth Expand the role of the web to be a strategic growth lever. lever. lever. lever.
Reallocate marketing dollars to activities with proven Reallocate marketing dollars to activities with proven Reallocate marketing dollars to activities with proven Reallocate marketing dollars to activities with proven effectiveness and ROI.effectiveness and ROI.effectiveness and ROI.effectiveness and ROI.
Create relevant and integrated crossCreate relevant and integrated crossCreate relevant and integrated crossCreate relevant and integrated cross----channel experiences.channel experiences.channel experiences.channel experiences.
Map your customersMap your customersMap your customersMap your customers’’’’ purchase journeys to purchase journeys to purchase journeys to purchase journeys to support their needs.support their needs.support their needs.support their needs.
Prioritize and test branded microPrioritize and test branded microPrioritize and test branded microPrioritize and test branded micro----experiences that experiences that experiences that experiences that have high appeal for select customer segments.have high appeal for select customer segments.have high appeal for select customer segments.have high appeal for select customer segments.
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