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©
© RevTrax 2014. All trademarks and service marks herein are the property of RevTrax, Forrester, Inc., or their respective clients and may not be used without their prior written consent. All rights reserved.
Stephanie MartoneManager of Strategic Initiatives
RevTrax
@stephmartone, @RevTrax
Adam SilvermanPrincipal Analyst
Forrester Research, Inc.
@AdamKSilverman
©
© RevTrax 2014. All trademarks and service marks herein are the property of RevTrax, Forrester, Inc., or their respective clients and may not be used without their prior written consent. All rights reserved.
RevTrax
To Securely Prove and Optimize Digital Promotion Effectiveness
Prove how and why digital promotions drive
sales … then map your course to
continuously improve digital marketing
Turn online promotions into
secure learning and optimization
tools
Measure online to in-store channel
effectiveness
Playing to Win the Retail Holiday
Season: Strategies to Increase
In-store Traffic and Sales
Adam Silverman, Principal Analyst
October 8th, 2014
© 2014 Forrester Research, Inc. Reproduction Prohibited 5
“The pace of change is accelerating
faster than anticipated a year ago.”
— Blake Nordstrom, president of Nordstrom
April 2014
© 2014 Forrester Research, Inc. Reproduction Prohibited 7
Firms are NOT set up for success
74%…of businesses think they have a digital
strategy.
34%…of executives think their firm has the right
strategy.
16%…of executives believe their firm has the skills
and resources necessary to deliver.
Source: Forrester / Russell Reynolds 2014 Digital Business Online Survey
Footfall to European retail outlets in decline:
Germany: -6.4%
Italy: -6.2%
UK: -2.9%
Spain: -3.1%
Source: Forrester; “While Retail Footfall decreases, digital influence on Consumer shopping Behavior increases” 2/26/14
© 2014 Forrester Research, Inc. Reproduction Prohibited 10
Agenda
› How customer behavior continues to evolve…quickly
› The retail response – today and in the future
› Recommendations for Holiday 2014
© 2014 Forrester Research, Inc. Reproduction Prohibited 11
This year, 52% of all US retail sales will either be influenced by or occur online
73% - expect to click and collect
86% - expect to return online orders in the store
89% - expect to view the in-store inventory of
products online
A commissioned Forrester study with Purolator, May 2014
Customers have high expectations
when it comes to channel integration
14
19%
70%
An Engaging Brand Is
Important To Me
The Store Associate
Is The Best Resource
For Information
Source: NA Technographics Customer Lifecycle Buy Phase Q1 2012 and NA Technographics Customer Lifecycle Discover Phase Q3 2102
Younger shoppers check price in-aisle
Source: Forrester’s North American Consumer Technographics Retail Survey, 2014. Base: 5007 US online Adults (18+). Image source: https://www.flickr.com/photos/kdinuraj/
Percent of US online consumers who have price checked on their
mobile phone while in store in the past 3 months
Golden Generation (70+)………….….9%
Older Boomers (59-69)…………….….9%
Younger Boomers (49-58)………..….16%
Gen X (35-48)…………………………28%
Gen Y/Millennials (26-34)……..……..33%
Gen Z/Young Millennials (18-25)…....30%
Total U.S……………………………….23%
© 2014 Forrester Research, Inc. Reproduction Prohibited 17
Agenda
›How customer behavior continues to evolve…quickly
› The retail response – today and in the future
›Recommendations for Holiday 2014
© 2014 Forrester Research, Inc. Reproduction Prohibited 20
75% of customers are likely to visit a
store if in-store inventory is marked
available online . . .
. . . however, more than one-third of
customers are unlikely to visit a store if
they can’t check inventory online.
66% of luxury shoppers more likely to
shop or interact with sales
associates who are equipped with
mobile devices
Source: North American Technographics Retail Survey 2013
© 2014 Forrester Research, Inc. Reproduction Prohibited 26
The Store As A Platform
Analytics
OMS
POS
CRM
Ops Source - https://www.flickr.com/photos/statefarm/
© 2014 Forrester Research, Inc. Reproduction Prohibited 27
Location Context Grows In
Importance
Source: https://www.flickr.com/photos/pr9000/
Source: Mirande Prynne, “Variable price tags being tested on high street,” The Telegraph, October 22, 2013
(http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10395403/Variable-price-tags-being-tested-on-high-street.html)
Image source: B&Q Googe+ (https://plus.google.com/112415411810890959234/about)
The store becomes personal
Data will need to transform into insights.
Image source: Bizj (http://media.bizj.us/view/img/849021/retailnext-kinetic-heat-map*304.png)
© 2014 Forrester Research, Inc. Reproduction Prohibited 33
Agenda
›How customer behavior continues to evolve…quickly
›The retail response – today and in the future
› Recommendations for Holiday 2014
2014 Holiday Best Practices
1. Pay attention to price
2. Channel integration is expected
3. The store experience matters
4. Think mobile first now
5. Win on key days
6. Use data to capture behavior and measure
performance
© 2014 Forrester Research, Inc. Reproduction Prohibited 35
1. Pay Attention to PriceDynamic Pricing Exists – Have A Strategy
› This doesn’t mean you should promote yourself
to zero margin.
› Customers not likely to pay significantly more for
an item in store
› Get help here – find a pricing vendor who can
help you monitor your offering
Source: USA today, 9/28/13
© 2014 Forrester Research, Inc. Reproduction Prohibited 36
The store “premium” isn’t large
How much more would you consider paying to purchase a product in a physical store rather than buying
it online so that you could have the product immediately rather than wait for it to be shipped to you?
52%
18%
6%
4%
4%
3%
1-5% higher in store
6-10% higher in store
11-15% higher in store
16-20% higher in store
21-25% higher in store
More than 25% higher in store
Source: Forrester Life Cycle Survey, Q1 2013
© 2014 Forrester Research, Inc. Reproduction Prohibited 37
2. Channel Integration Is ExpectedThe experience must tie together many different touchpoints
› Enable your associates and customers to see
inventory in your stores. (Easier said than done)
› Establish processes to handle online orders that
need to be returned in-stores
Source: USA today, 9/28/13
© 2014 Forrester Research, Inc. Reproduction Prohibited 38
3. The Store Experience MattersFocus on service and engagement
› Use mPOS technology to ‘line bust’
› Focus on convenience over experimental
technology
› Train associates to engage with customers who
are using digital devices
Source: USA today, 9/28/13
© 2014 Forrester Research, Inc. Reproduction Prohibited 40
4. Think Mobile NowThe future is here NOW
› Expect more customers to use mobile phones in
all locations to find the best prices and deals
› Use opt-methods of tracking customer behavior
across channels
› Focus on your mobile experience; both from an
influence and transactional perspective
Source: USA today, 9/28/13
© 2014 Forrester Research, Inc. Reproduction Prohibited 41
Mobile is a bigger part of holiday shopping
% of online buyers who shopped on a mobile device
Thanksgiving CyberMonday
18% 21%
34%
2011 2012 2013
23%
38%
2012 2013
Source: Bizrate Insights/Forrester Holiday Flash Survey, 2013
© 2014 Forrester Research, Inc. Reproduction Prohibited 42
Mobile buying is growing during key time periods
In a retail store, 3%
Home, 76%
Elsewhere, 22%
Where the mobile device was used
(CyberMonday)
Source: Bizrate Insights/Forrester Holiday Flash Survey, 2013
16%
17%
26%
45%
53%
75%
Locat retail stores
General storeinformation
Read product/storereviews
Price checks
Browse or researchproducts
Make purchases
For which of the following did you use your
mobile device today (CyberMonday)?
© 2014 Forrester Research, Inc. Reproduction Prohibited 43
5. Win On Key DaysThis DOES NOT mean you must offer margin busting deals
› This season is SHORT – just 28 days between
Thanksgiving and Christmas
› Buy into holiday “door busters”
› Test offers to determine the best margin
producing AND new customer acquisition
campaign
Source: USA today, 9/28/13
© 2013 Forrester Research, Inc. Reproduction Prohibited
Growth On Key Holiday Sales Dates Continues To Outpace Overall Holiday Growth
© 2014 Forrester Research, Inc. Reproduction Prohibited 45
6. Leverage DataLeverage new in-store tools to drive conversion
› In-store analytics growing in popularity, although
riddled with privacy concerns
› Leverage programs that can track customer
behavior in all touch points and help with
marketing attribution
› Ensure you understand different segment
behavior during holidays vs non holiday periodsSource: USA today, 9/28/13