Lord & Taylor Digital Shopper Perspective

DIGITAL MARKETING SHOPPER TRENDS | AUGUST, 2011

Lord & Taylor

©2011 SCHAWK RETAIL MARKETING. All Rights Reserved

AGENDA

1. L&T Customer

2. Consumer Behavior

3. Trends • Consumer • Retail/eCommerce • Digital Fashion

4. Web Traffic Data

5. Mobile commerce

6. Best In Class

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Lord & Taylor’s Core Customer

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Demographics Segmentation Psychographic Scale

Shopping Attitudes

Apparel Attitudes

Leisure Activities

Females Mall Maniac High Brand Loyalty Spends $$$ on Cosmetics

Fashion Forward

Museums

18-34, 35-49 (primary)

Multi-Channel Needs Approval Frequent Shopper Makes Unique Fashion Statement

Photography

College/Grad School Grad

Status Striver Low Shopper Impulse

Brand Driven Spends more than they can afford

Cooking for fun

Not Married Prefers shopping with friends

Designer label improves image

Reads books

Employed Full/ Part-time

Really enjoys shopping

Quality is very important

Higher Income

Small Family

Source: Simmons, Shopped in the last 3 months


Shopping Behavior – Media Used

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% of Media Used in Planning Shopping

Source: “How America Shops & Spends,” Magrid Associates, November 2010


“The New Female Consumer: The Rise of the Real Mom.” Advertising Age, November 2009. “Living LaVida Rapida.: AOL/OMD Global Moms Study, July 2008

Where Women Shop Online vs. Offline Shopping

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Women Overall Women 18-34 Women 35+

Equal Time for Both

40% 39% 40%

More Online 28% 27% 28%

More Offline 32% 34% 32%

Home Work

Women Overall 59% 40%

Woman 18-24 48% 51%

Woman 35-54 63% 37%

Work vs. Home Shopping



Why Women Shop Online Time Crunch

6

Time saver/convenience

53%

To pass time 40%

I need it now 38%

Most downtime 35%

No time at home 20%



Why Women Shop Online Prompts for Shopping At Work

7

18-34 yr. olds 35-54 yr. olds

Need a specific item 69% 69%

Boredom 60% 33%

Email notifications 40% 37%

Email subscriptions 38% 34%

Online ads that are

relevant

31% 23%


How Women Shop

Purchase Drivers Email Offers 60% (7 out of 10 women sign up for retailer’s email alerts) Television Commercials 35% Online Ads 30% Direct Mail Offers 30% Newspaper Circulars 28% Bargain Hunting Read online circulars 61% Go directly to site for circular 61% Receive circular through email 30%

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How Women Shop

Purchase Influencers

9

Online Coupons 68%

Store Coupons 66%

Consumer Reviews On Retail Sites 61%

Recommendations from family/friends 59%

E-mails from Companies/Brands 45%

Content on Brand/Company Sites 36%

Blog Recommendations 33%

Facebook Post from Friends 19%



When Women Shop Online Day of the Week Time of Day Most women shop between 11am-5pm

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Monday 33%

Tuesday 27%

Wednesday 35%

Thursday 33%

Friday 52%

Saturday 11%

Sunday 7%


Who do Women Shop For Online

Women Moms

Self 74% 70%

Spouse or significant

other

48% 57%

Child 40% 76%

Someone else 22% 20%

Friends 20% 18%

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What do Women Shop For Online

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Clothes 57%

Books & Movies 46%

Electronics 38%

Shoes 35%

Travel 31%

Home Decor 31%


Consumer Digital Behavior Trends

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The Digital Path to Purchase Digital tactics that play a significant role in the path to purchase

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• Electronic CRM • Mobile CRM • Social Media • Advocacy • Product Reviews

Shopper Purchase/Retailer Sales

In-Home

• SEO/SEM • Online Media • Social Networks • Websites • Mobile Sites • Smartphone

Apps • Digital

Promotions

• Digital coupons • Retailer Websites • SEO/SEM • E-Commerce • Shopping Apps

• GPS • Mobile Search • Mobile Sites • Shopping Apps

• QR Codes • Paperless Coupons • Kiosks/Digital

Signage

On-the-Go In-store

Consumer Demand Consumer Loyalty

In-store Marketing Institute 2010


Consumer Digital Behavior Trends At-Home (Desktop/Laptop) Shopper

Printable Web Coupons

Online Circulars

Retailer Websites

Ratings/Reviews

Email

Facebook

0% 50% 100%

% of People Interested in Using

% People Who Have Used

15



Consumer Digital Behavior Trends On-The-Go (Mobile) Shopper

Mobile Search

Mobile Websites

Text Alerts

Retailer Apps

Mobile Phone Shopping List

Mobile Coupons

0% 10% 20% 30% 40% 50%



16



Consumer Digital Behavior Trends In-Store Shopper

In-store Kiosks

TV in-store

Touchscreen Digital Signage

Payment from Cell Phone

0% 10% 20% 30% 40% 50%



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Retail/eCommerce Digital Trends

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Hot Trends for Retail/eCommerce

• eCatalogs (online/tablet, rich media, shop) • Tablet Apps • Product Videos • User Generate Video Product Reviews • Mobile Apps • QR Codes • In-store digital kiosks/tablets • Social Commerce

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Fashion Digital Trends

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Fashion Digital Trends

• eCatalogs (online/tablet, rich media, shop) • Video (Fashion shows, behind the scene, interactive, how-to-video) • Mix & Match apps • Build your look • Four Square Promotions • Blogs

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Web Traffic Data

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Website Traffic

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Website Traffic

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Website Traffic

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Website Traffic

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Mobile Commerce

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M-commerce - Consumer

• Mobile commerce will top $6 billion by the end of 2011 and is expected to reach $31 billion by 2016.

• Worldwide mobile commerce should hit $119 billion in 2015.

• In a one year period worldwide sales for Amazon from mobile was more than $1 billion

• 1-800-Flowers.com tops $1 million in quarterly m-commerce sales – up 9,900% from same quarter in 2010.

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“What Users Want from Mobile – July 2011 (Equation Research)



• 33.3 millions Americans now use their cell phones for shopping-related activities.

• 15% of mobile phone owners research products and compare prices every month.

• 8% of mobile phone owners scan barcodes.

• 7% of mobile adults shop from their phone.

• 30% of adult iPhone owners want to use their phone to pay for purchases in stores.

• 12% of non-iPhone owners want to use their phone to pay for purchases in stores.

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“The 2011 Mobile Consumer Report – Experian Simmons


M-commerce - Consumer Store

% of shoppers who are mobile phone owners interested in making purchases using their phone

Off 5th 35%

Loehmann’s 31%

bebe 29%

Neiman-Marcus 27%

Nordstrom Rack 26%

Nine West 26%

Ralph Lauren 26%

Abercrombie & Fitch 26%

Brooks Brothers 25%

Saks Fifth Avenue 25%

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Type of mobile app downloaded

% Type of mobile app Downloaded

%

Music 97% Utilities 23%

Games 43% News 23%

Entertainment 42% References 21%

Weather 33% Travel 20%

Social Networking 29% Shopping 19%

Sports 26% Finance 19%

Communication 25% Food/Health 9%

20.7 million cell phone owners have downloaded an app in the last month.


M-commerce - Retailer

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“The 2011 eMarketer Mobile Web: Best Practices for Retailers Report

Retailers Diverse Tactics • Text alerts and coupons • Product ratings and reviews • Store locators • Barcode Scans • QR Codes • Location based apps • Social Media feeds


Best In Class

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eCommerce – Best in Class – Overall Design/Content

Pottery Barn • Great layout and design

• Easy to navigate

• Engaging and inspiring content

• Easy to search and drill down to find the right product • Use of video in design and decorating tips • Online catalog

34


eCommerce – Best in Class Product Page

Nordstrom • Alternate product views • Ratings/reviews at the top • Suggested products on the right • Social sharing functionality • Wish list or shopping cart Zappos • Product videos • Ratings/Reviews

35


eCommerce – Best in Class

Target • Awareness of mobile

• Weekly Ad

36


mCommerce – Best In Class

JC Penney • Optimized for mobile browser • Ease of navigation • Offers coupons • Store Ads • Order tracker

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mCommerce – Best In Class

1800flowers.com • Optimized for mobile browser • Ability to sort by price, etc. • Easy to shop and add to cart • Allows consumer to chose delivery date • Integration of email functionality on product page

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Social – Marketing that Inspires Change Jcpenney is donating up to 100,000,000 pennies for after school programs to local communities. As the largest cause marketing initiative jcpenney has ever launched, pennies from heaven will have a prominent role in the Company’s overall back-to-school promotions. Prior to the official launch in stores, customers will be able to collect virtual pennies as part of a fun, interactive experience on jcp.com/pennies. This new microsite serves as a personalized social hub for supporters to learn more about the issue and get involved through various online activities that trigger a donation to afterschool programs. Once users collectively generate 100 million virtual pennies, jcpenney will donate $1 million to the afterschool cause. Elements of the pennies from heaven online challenge include: • sending a “lucky penny” to friends on Facebook using a customized application; • watching the pennies from heaven commercial video; • downloading the pennies from heaven ringtone; • liking jcpenney on Facebook or following jcpenney on Twitter and; • checking into a jcpenney store on Foursquare.

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JC Penney – Pennies from Heaven Challenge

http://www.jcp.com/pennies

http://www.facebook.com/jcp

http://www.twitter.com/jcpenney


Social – Marketing that Inspires Change

40

JC Penney – Pennies from Heaven Challenge

Documents

Lord & Taylor Digital Shopper Perspective