Mobile Merchandising: one customer, many channels, a

Mobile Merchandising: one customer, many channels, a

merchandising dilemma or opportunity

Presented by Lauren Freedman

October, 2013

- PAGE 2 - the e-tailing group

1 in 3 retailers project mobile will be more

than 10% of their holiday revenues

Q3

e-tailing group/Baynote 2013 Holiday Survey

Are You Prepared?

the e-tailing group - PAGE 3 -

16 years e-commerce consulting

Author, It’s Just Shopping

50+ years traditional retail and catalog

experience

Fortune 500 client projects ranging

from strategic planning, merchandising,

marketing, to technology development

and messaging

Cross-category projects spanning

specialty retail to department stores

Proprietary research studies on

mystery shopping, merchandising,

mobile and consumer behavior

The Voice of Cross-Channel

Merchandising

Straight talk from “in-the-trenches”

online merchandising experts


MOBILE CONSUMER

INSIGHTS-2013

Sponsored by

Create a co-branded thought leadership study that

explores evolving consumer behavior and intent relative to

the mobile channel and mobile devices


1204 consumers completed an online questionnaire

in July, 2013

Q5, 18-20


Consumers spend significant time browsing retail stores

where 63% browse at least once a month

44% are active browsing several times a month

Q2


Almost 1 in 2 consumers are “active” browsing and

researching retail sites via their smartphone at least weekly

1 in 4 embrace everything from opening retail email to purchasing

Q9

Q. How frequently do you typically do each of the

following via your smartphone? Please select one in

each row.

Answer Options Active/At

Least

Weekly Monthly

A few

times a

year Never

Browse retail sites of interest 48% 27% 19% 6%

Research products you intend to purchase from retailer sites 43% 30% 18% 9%

Research and subsequently make a purchase at a local store 30% 34% 22% 14%

Open email from retailers and make a purchase later on via PC or tablet 28% 26% 25% 22%

Open email from retailers and make a purchase on your smartphone 27% 19% 16% 38%

Open email from retailers and make a purchase in store 27% 26% 27% 20%

Make a purchase from a retailer’s site 25% 24% 19% 32%

Purchase product as a result of text messages sent to your smartphone by retailers 22% 14% 15% 49%


Shoppers do their homework checking prices at Amazon, perusing

ratings & coupons to make confident shopping decisions

Q13


The smartphone serves as a valuable tool for the active and

interested as they compare prices on Amazon, check product

ratings, access coupons and more

Answer Options Already do Wish I could do Not interested in doing

Look for competitive pricing at Amazon 59% 16% 25%

Check for product ratings and reviews 57% 15% 28%

Access promotional coupons for redemption at the store 50% 25% 24%

Look on retailer’s website for product or information beyond what they carry in

the store 49% 18% 33%

Look on the retailer’s website for additional products beyond what they carry in

the store 48% 18% 34%

Scan bar codes and compare prices to other retailers 41% 23% 35%

Look for competitive prices on product at retailers online other than Amazon via

Red Laser or other apps 40% 18% 42%

Purchase a product from the retailer’s website because they do not have

inventory at that physical location 40% 23% 38%

Scan bar codes to learn more about a specific product (i.e. product information,

product images, video, etc.) 39% 23% 37%

Check in to receive promotions or reward points from a specific retailer or

marketing efforts such as ShopKick, FourSquare, Belly or other solutions 33% 22% 45%

Make a purchase on your phone from another retailer 32% 19% 49%

Self-checkout 28% 25% 47%

Q. Which describes your use of your smartphone when visiting

a retail store? Please select one in each row.

Q14


Satisfaction is a mixed bag with work to be done from a

retail perspective

Q11


Credit card protection and difficulties in checking out

keep shoppers from buying more via smartphones

1 in 5 shoppers still faces challenges with imagery, finding product,

slow connection speeds and limited product information

Q12


Consumers overwhelmingly desire consistency

across channels

From pricing through promotions and of course free shipping

Q17


What Shoppers Want to Do Via Mobile

Connect to a Store

(find a store, check in-store product availability, reserve a product for store pickup,

read weekly circular)

Visit a Retailer’s Mobile Site including key pages (Home, Category, Product Page,

Search Results, Shopping Cart)

Search for Product

Research a Product

Buy a Product

Seek Customer Service


EG Mobile50

1-800-Flowers CVS Harry & David Omaha Steaks The North Face

Amazon Dell Home Depot Petco Tiffany & Co.

American Eagle

Outfitters

Dick’s Sporting

Goods

HSN Pottery Barn Tiger Direct

American Girl DSW J Crew REI Tory Burch

Bath & Body Works eBags JCPenney Saks Fifth Avenue Toys ‘R Us

Best Buy Estee Lauder L.L. Bean Sears Urban Outfitters

Chico’s FTD Lowes Sephora Victoria’s Secret

Coach Foot Locker Macy’s Staples Walgreen’s

Crate & Barrel Gap Nordstrom Steve Madden Walmart

Crutchfield Golfsmith Office Depot Target Williams-

Sonoma


the e-tailing group 3rd Annual Mobile Customer

Experience Index

Top-6 Performing Websites

(Scoring rounded out of a possible 100)

EG50 MOBILE MERCHANTS 69.73

Toys ‘R Us 83.50

American Eagle Outfitters 82.50

Crate & Barrel 82.25

Nordstrom 80.25

Sephora 80.25

Foot Locker 80.25

Learn from the Leaders


The store locator tops of list of important mcommerce

features

Detailed product information, locating and finding product along with

reviews also merit attention

Q15


Connection to retail clear

In-store pickup: 39%* Store Product Locator: 50%

Subset of EG50


Go the extra mile

Reserve in store: 18% In-Store Pickup: 39%

Subset of EG50

Walmart


Q15-16

Understand what tactics are essential to shoppers


Merchandising matters Home Page Score: 4.46/5.00

Retailers have made investments in the home page experience


The role of search should not be underestimated

Refine Results: 78% Landing Page Sorts: 80%


Product information powerful

Product Page Ranking………………………………………………4.06/5.00


User-generated content sees value pre-store and in-store

Product Reviews: 84%

Ability to Sort Reviews: 52%*

Subset of EG50


Consumer interest in non-store channels suggests

continued growth in PC and mobile channels

Q6

Almost 1 in 3 will be buying more via tablets and smartphones

Based on number who own/use channel


The majority (55%) have made at least one purchase on

their smartphone

Q3

43% have made 2 or more


Clothing, books/magazines, music, tickets, consumer

electronics and gift cards top the list of purchases

Consumption seen across the category spectrum

Q10


Conveniences include coupon code entry,

password and customer service access

Efficient checkout and payment options also essential

Q16


Checkout conveniences critical

Paypal: 96%* One-Click Checkout: 40%

*subset of EG50


Customer service counts

Sufficient Information to Answer Questions: 2.46/3 where 3 is sufficient


IF NOT NOW

IF NOT FOR HOLIDAY, THEN

THERE’S ALWAYS 2014


THE E-TAILING GROUP

773-975-7280

[email protected]

Documents

Mobile Merchandising: one customer, many channels, a