Create - Day 2 - 12:15 "Attention to Retail: An Exploration Into the Customer Mindset"
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The document discusses the evolving mindset of consumers regarding pricing and the impact of mobile technology on the retail landscape. It highlights that consumers increasingly expect discounts, with many viewing products without discounts as overpriced, and emphasizes the importance of mobile optimization and personalized offers. Retailers are encouraged to understand consumer expectations and adapt their strategies across multiple channels to enhance customer engagement and sales.
Create - Day 2 - 12:15 "Attention to Retail: An Exploration Into the Customer Mindset"
- 1. Attention to Retail October 30th 2015 An Exploration Into the Customer Mindset and how this is changing the retail landscape Severine Philardeau, VP of Retail and Brand Solutions
- 2. A quick word about us…
- 3. The World’s Largest Marketplace For Digital Offers CONSUMERS RETAILERS & BRANDS 3
- 4. Last year, RetailMeNot facilitated $4.4 billion in global sales Source: RetailMeNot data as of June 30, 2015 4
- 6. The leading digital offer marketplace in the UK In the UK we’re VoucherCodes.co.uk
- 7. £523M Facilitated 2014 UK retail sales VoucherCodes.co.uk Statistics & Reach 7.8M Members 3.9M App downloads ~60% Total site traffic is mobile ~7M Monthly visits * As of June 30th, 2015 50K+ Coupons/mon th 3500 Retailers and brands * Q2 2015 Average 400K+ Facebook Fans
- 8. We work with the nation’s leading retailers
- 9. What we’ll talk about today • How consumer perception of the right price is shifting • How mobile is revolutionizing the retail space and creating new shopping behavior • How marketers and brands can take can respond 9
- 11. The perception of the right price is shifting 11
- 12. Leaving 4 out of 5 consumers to think that a product sold without any discount is overpriced Source: CCM Benchmark, 2013
- 13. 54% are likely to switch brands with a digital voucher 1/3 Of consumers will often close a deal with a voucher when they’re undecided Consumers often need a nudge to transact SOURCE: Forrester, The State of Digital vouchers, UK 2015
- 14. © 2015 Forrester Research, Inc. Reproduction Prohibited 14 Vouchers Have Become A Preferred Savings Tool Source: Forrester Consulting, The State of Digital Vouchers, UK, 2015 Which of the types of digital (online or mobile) promotions listed below is most likely to influence your purchase decisions?” 58% 25% 9% 7% 2% Vouchers or vouchercodes Sales Don't know Daily deals Other
- 15. With a halo effect on the brand of UK shoppers have a POSITIVE feeling towards a company that offers digital vouchers 66 % are LIKELY to tell a friend about a brand that offers digital vouchers 62% SOURCE: Forrester, The State of Digital Vouchers, UK 2015
- 16. Mobile is disrupting the industry
- 17. Mobile traffic is taking over 1:55 2:02 2:07 2:10 2:13 0:31 0:53 1:22 1:59 2:26 0:00 0:28 0:57 1:26 1:55 2:24 2:52 2011 2012 2013 2014 2015 Average time spent per day with desktop and mobile (UK) Desktop Mobile +16% +371% Source: eMarketer, UK 2015
- 18. dataSource Marin Software, Mobile Search Advertising Around the Globe, 2014 Annual Report – UK Conversion rates by channel While so far conversion rates are still lagging behind…
- 19. But mobile sales are growing fast Desktop and mobile ecommerce growth in the UK 2013 – 2016 in £ bn Source: Centre for Retail Research, May 2015 £35 £37 £38 £37 £4 £8 £14 £23 2013 2014 2015 2016 (est) Mobile PC (10%) (19%) (28%) (36%)
- 20. Mobile - a discovery tool converting through other channels In-Store Desktop/ Laptop Tablet
- 21. It is only the beginning.. New technologies will broaden what mobile means
- 22. 0 2 4 6 8 10 12 14 Category 1 Category 2 Category 3 Category 4 Series 3 Series 2 Series 1 Sources: Deloitte Digital, Forrester Research (2014), RetailMeNot and The Omnibus Company (April 2013). Omnichannel isn’t the future, it’s right now 40 51Of consumers start the shopping journey in one channel and end it in a different one of consumers are inclined to purchase in-store when offers are available on mobile % % %86 Sources: PWC, Deloitte 2014, RetailMeNot and The Omnibus Company 2013 higher conversion rate among shoppers who use a digital device during their journey
- 23. Offers must be consistent across all channels 34% 54% 74% “Thinking of the last digital voucher, offer or online promotion code you found using your computer/tablet/smartphone, where did you ultimately use that voucher or promotional code?” SOURCE: Forrester, The State of Digital Vouchers, UK 2015
- 24. Consumers think about products & brands, not channels! Consumer seek « the right price »
- 25. What does this mean to brands and retailers?
- 26. Rule #1 – Listen to your customers
- 27. 16%73% Of consumers expect to find the same promotions online as in-store A clear divide between consumers’ expectations and what retailers offer Of retailers offer the same price online and instore Only BUT Source: Forrester on behalf of Accenture and hybris, 2014 – US, UK, France and Germany
- 28. £31£41 More is spent offline when previous product research is done online While Multi-Channel shoppers spend MORE Consumers spend more when they do research and purchase across both channels More is spent online when previous product research is done in-store Source: Forrester on behalf of Accenture and hybris, 2014 – US, UK, France and Germany
- 29. Rule #2 – Mobile ≠ Desktop
- 30. Mobile User Experience ≠ Desktop User Experience Only 25% of EU retail websites are fully optimized for mobile
- 31. Rule #3 – Location matters (go where the consumer is)
- 32. Geo-push: Send offers in a timely manner We have ringfenced all the UK high streets and shopping malls
- 33. Rule #4 – Make it personal (but make it right)
- 34. Consumers now expect you to know what they want
- 35. SOURCE: PwC, The speed of life, US 2012 73% are willing to share personal information depending on the benefits they will get in return Transparency matters
- 36. The golden rules of Retailing 2.0 #1 - Listen to your customers #2 – Mobile ≠ Desktop #3 – Time & Location matter #4 – Make it personal
- 37. Every goal comes with it’s own strategy Acquisition Offer for first-time customers... Basket size Upsell, minimum spent Category push -10% on beauty products Multichannel instore offers, geopush Conversion Free shipping Product discovery Product deals
- 38. Case Study InStore Fashion Objective: Drive footfall and increase revenues Incentive: 2 exclusive multi-channel offers (20% and 30%), both with different thresholds What we’ve done: - Dedicated code alert email, sent to 7.7 million members - Prominent listing on the app (3.9 million downloads) - Vouchercodes.co.uk homepage (7 million visits/month) - Editorial and social media coverage, including blog, Twitter and Facebook
- 39. Results • +75% of sales took place in store • 1600+ instore sales generated in 7 days • 5x more sales generated for higher % discount instore
- 40. Retail Challenges, Solved. DRIVE online and in-store sales INCREASE average order value ACCELERATE new customer acquisition BOOST customers revenue RE-ENGAGE lapsed consumers
- 41. Let’s prepare tomorrow As they walk past Marks & Spencer, they receive a discount offer for fashionable rain boots, 25% off for the day They didn’ see this coming and are not wearing the right clothes Linda and Jane are out shopping when they’re suddenly caught by the rain Sending the right offers to the right person at the right moment incites spontaneous purchases