A Multi-Dimensional View of the Digitally Engaged Consumer

Single-source methodology harnessing insights of today’s ‘new’ consumer

A Multi-Dimensional View of the Digitally Engaged Consumer

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Maria Domoslawska VP, Global Strategy & Research Research Now

Heather Dougherty Director of Research

Experian Marketing Services

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Agenda

1. Who we are

2. Background and methodology

3. Context

4. Findings

5. Segments

6. Conclusions

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Who we are…

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Experian Hitwise

million internet users 25

million online businesses 1+

Helping companies understand online consumer behavior

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Research Now

Global leader in digital data collection and online sampling

Largest online panel in the industry

− Over 6.8 million panel members

− Covering 38 countries

− #1 in customer satisfaction

− 5 years consecutively

Over 1,200 research professionals dedicated

to providing superior client service

25 Offices Worldwide:

− North America: Dallas, New York, Los Angeles, San Francisco,

Chicago, Seattle, Toronto …

− EMEA: London, Paris, Frankfurt, Hamburg, Athens, Madrid…

− Asia-Pacific: Sydney, Auckland, Shanghai, Singapore, New Delhi …

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Research Now New Media Solutions

Research Now is leading the way in social, mobile and digital behavioral data collection to power your insights.

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Context

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Daily Visits to Retail 500 (USA)

Cyber Monday is a peak day for online retail traffic

Thanksgiving

Black Friday

Cyber Monday Historically the highest traffic in online retail category is during the week of and after Thanksgiving

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“Retailers are trying to lure shoppers away

from the Internet, where they have increasingly been

shopping to avoid Black Friday madness, and back to the

stores.

The bait is technological tools that will make

shopping a little more sane and give shoppers an edge over their competition. Those with smartphones are expected to get better planning tools, prices and parking spots.”

Source: http://topics.nytimes.com/top/reference/timestopics/subjects/r/retail_stores_and_trade/black_friday/index.html

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Total Respondents = 5826

Survey fielding

Nov 19-21, 2012

Behavioral tracking

Nov 19-30, 2012

A single-source methodology

The study: holiday shopping

Sample Behavioral: 1150 Sample Size: 5826 Sample Size: 5826 Store visits: 800

Web-based Surveys Web-behavioral Data Mobile Survey & Behavioral Data GPS Data

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Background & Methodology

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Our respondents

56.7%

43.3%

17.7% 19.1%

20.3%

16.7%

20.9%

22.1%

17.7%

17.1%

9.3%

18-24

18.3%

6.2%

25-34

$25-49.9K $50-74.9K

35-44 45-54 55-64 65+

$100-149.9K $75-99.9K >$150K

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Our respondents

< High School Graduate

$25- $49.9

20.9%

$50- $74.9

22.1%

$75-

$99.9K

17.7%

$100- $149.9

17.7%

10.1% 28.7% 37.1% 21.7%

27.2% 25.8% 22.9% 13.4%

2.3%

High School Graduate

Some College or Technical School

College or Technical School Graduate

Graduate School

Less than once a month

Once a month 2-3 times a month More than 3 times a month

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PC

Vs.

Demographic Differences between

Mobile

Older Younger

More Male More Female

Less Affluent More Affluent

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Key Findings

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Typical holiday shopping periods

39% said that they will shop during the next two weeks

Q2. When do you typically do the majority of your holiday purchasing?

Last Minute

5% After Christmas/Holiday Season

1% Before Thanksgiving

10%

Black Friday (day after Thanksgiving)

14%

Weekend after Thanksgiving

8%

Cyber Monday (Monday after Thanksgiving)

7%

Early to mid-December

55%

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Q3. Regarding the upcoming sales on Black Friday (day after Thanksgiving) and Cyber Monday (Monday after Thanksgiving), which of the following best describes your plans as of right now. I am planning to shop:(n=5829)

Preferred sales

70% will shop during the next week off- or online

I don't care about these specific sales and I avoid

shopping during that time

28%

I don't care about these specific sales, but I plan to shop during that time

9%

I don't know yet during which sale I will shop

15%

Don't know/ Prefer not to answer

2%

Both Black Friday and Cyber Monday sales

29%

Cyber Monday sales only

11%

Black Friday sales only

6%

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Multi Channel Shopping

46% 4% Q4. Which way do you plan to do your holiday shopping this year? (n= 5826)

50%

Intent

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Which way… And when exactly?

Black Friday shopping only holds its brick-and-mortar reign, while only digital shopping is intended for Cyber Monday in nearly the same proportion

Q.4. Which way do you plan to do your holiday shopping this year? Please put approximate percent for each of the following : n=5826

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Where was the traffic?

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3389 3316 3789

4969 5404

3885

4593

5757

3221 3098 2930 2710

0

7000

11/19 11/20 11/21 11/22 11/23 11/24 11/25 11/26 11/27 11/28 11/29 11/30

242 247 256

136

207

167 144 153 144

202

254 245

0

300

11/19 11/20 11/21 11/22 11/23 11/24 11/25 11/26 11/27 11/28 11/29 11/30

Tota

l #

of

Vis

its

Traffic

Store Visits GPS Sample = 800

376

281 279

456

701 745

921

543 547 475

204 223

0

1000

11/19 11/20 11/21 11/22 11/23 11/24 11/25 11/26 11/27 11/28 11/29 11/30

Tota

l #

of

Vis

its

Mobile Websites Sample = 1150

PC Websites Sample = 5826 T

ota

l #

of

Vis

its

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Store Visits

30

70%

64%

47%

41%

35% 33%

24% 23% 22% 22% 21% 21% 20% 18%

10% 10% 9% 8% 7% 3%

9%

Planned and actual store visits during the two weeks What respondents said and did ranked differently

2 7 11 3 5 15 16 10 1

Q8. Which of the following store locations are you planning to visit in the next few weeks? Please check all that apply. (n=5829)

Top 10 store visitation ranking

GPS Store visitation

0

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Website Visits

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Site Visit Plans for Holiday Shopping

76%

62%

57%

51%

35%

29% 25% 24%

21% 20% 18% 17% 17% 16%

14% 12% 11%

8% 3% 2%

Mobile Site Visitation

Top 10 site visitation ranking

1

1

2

4

4

5

3

2

5

13

6

14

8

3

9

18

7

6

10

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Q7. Which of the following retail websites are you planning to visit in the next few weeks? Please check all that apply (n=5829)

PC Site Visitation

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Big retailers continue to attract traffic on Thanksgiving

Higher site traffic on Thanksgiving

Higher site traffic on Cyber Monday

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How do consumers search when they shop?

68% of the searches that

mention a product name were branded

(e.g. iPad, Kindle Fire)

9% of searches are for a retailer mentioned Black Friday or Cyber Monday

Product 40%

Retailer 58%

Promotions 2%

Types of research-related

searches

83% of the searches for a retailer were navigational (e.g. Amazon, Walmart)

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What does retailer research help with?

More expensive items are the most researched between different retailers

Q5. How often do you typically do the following starting your holiday shopping for a larger price item ($100 or more)? (n=5829)

Compare prices online between different retailers

I get information printed ads and flyers in my area

I ask friends and family

I browse online without a plan

I got to the store and ask for help/ideas

I look for specialty online blogs

I use the mobile app of the retails store

Retailer 58%

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When searching for products…

Product 40%

Q6. In the upcoming weeks, while looking for ideas/products/gifts, how likely are you to visit websites or physical store locations for the following categories? (n=5829)

…consumers will most likely visit department and apparel stores…

….followed by more niche product retailers

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Smartphone apps

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Top 20 Apps Usage during Black Friday and Cyber Monday weeks

Period: Nov 19-30, 2012.

The Facebook app was used 11,004 hrs during the 12-day period (11/19-11/30) by 719 user averaging to 1.275 hrs per day (76.5 minutes).

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The Shrewd Shopper Carries a Smartphone

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A wide range of retailer apps

Focus to drive traffic back to stores

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Retail Apps Installed

Respondents claimed they had their apps installed but only a handful used them

Q9. Which of the following retail apps do you currently have installed on your phone? (n=5829)

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At Walmart In-Store App Usage

Share of Time

Texting 18.8%

Internet 8.2%

Email 9.3%

Social 8.4% Phone/

voicemail 11.5%

Games 8.1%

Utilities 15.3%

Music 6.7%

Retail 0.8%

Other 12.9%

Source: Passive data for 63 panelists, 69 hours of usage

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Segments

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Mosaic® USA Segments In

co

me

Age

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Affluent HHs less interested in early sales

Early Shoppers: Flourishing Families

& Pastoral Pride

Black Friday: Suburban Style &

Family Union

Cyber Monday: Promising Families &

Young City Solos

Dec: Power Elite & Booming with Confidence

Weekend: Thriving Boomers

& Middle-Class Melting Pot

When do you typically do the majority of your holiday purchasing?

Q2. When do you typically do the majority of your holiday purchasing?

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Income is a major driver of timing In

co

me

Early shoppers

Prefers to shop later

Avoids busy shopping days

Shops throughout holiday

Shops holiday weekend

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Opportunities with Power Elite

Highly affluent audience with significant discretionary spend Enjoys trying new products & technology, likes prestige & high

value and is motivated by status and ‘premium offers’

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Plans to shop, but uncertain of which sales

Which of the following best describes your plans as of right now? Don't know but plan to shop

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75

100

125

Group F: Promising Families Young couples with children

in starter homes living child-centered lifestyles

Group L: Blue Sky Boomers Lower & middle-class baby boomers-aged HHs living in

small towns

Group H: Middle-class Melting Pot

Mid-scale, middle-aged & established couples living in suburban & fringe homes

Q. Regarding the upcoming sales on Black Friday and Cyber Monday, which of the following best describes your plans as of right now?

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Opportunities with Middle Class Melting Pot

Active digital audience with money to spend

Focus on the quality of your brand & product, provide rewards & service features and be cautious with the use of their personal info

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Conclusions

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Key takeaways

Technology fuels new methodologies allowing

brands to get closer to consumers to better understand their mind sets, aspirations and actual behaviors.

There is no average customer. Using behavioural

and research survey based data you can gain a true understanding

of who your customers are, where they are and

when they are likely to be there.

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Key takeaways

The path to purchase is undergoing an evolution in all

aspects of customer experience. It is crucial for Brands to

stay on top of trends to track emerging touch points.

Customer Satisfaction ≠ Customer Loyalty Consumers are distracted and brands need to catch the limited moments of opportunity to provide value and help manage their

Customer Experience.

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Thanks you!

Maria Domoslawska [email protected]

Research Now

Heather Dougherty [email protected]

Experian Marketing Services