Understanding shopper behaviour in an evolving Stuart Wood

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Understanding shopper behaviour in an evolving digital retail landscape

Stuart Wood

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Times are changing…it’s time to rethink the future of shopping and how this impacts your business…

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Technology adoption disrupting shopping behavior

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Unrelenting growth

Ipsos Global Omnichannel Survey 2018

Clothing

Electronics

Beauty

Grocery

Beverages

37%

18%

19%

8%

9%

Past 6 months Purchasing

61%

35%

26%

41%

16%

Past 6 months Purchasing

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…with no slow down in sight

eCommerce growth rates to 2022

Source: IGD, 2019

+286% +129% +49%

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…Convenience is the underlying catalyst

While price is will always be important convenience is the real driver

The shipping cost was low or free

I got a better

price/deal online

It was more

convenient

Ipsos Global Omnichannel Survey 2018 – Europe

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…and convenience drives new shopper rituals

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Moving beauty from sensorial to digital

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Making car buying easier

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Even removing “shopping” as we know it

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Personalisation pushing to a new level

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The power of social media

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Closing the gap between engagement & purchase

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Amazon is omnipresent & ruthless

100 million

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Increasingly challenging brands

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Driving innovation in packaging

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And becoming more omnichannel

Amazon video

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Alibaba’s “New Retail”

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But traditional retailers can adapt and survive

• 27% research in-store before buying online

• Over 60% research online before buying in-store

• Online is 25% of sales and also increases in-store

sales

• Omnichannel shoppers spend x 3.5

single channel shoppers

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DTC brands continue the disruption

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Anything is possible

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Where & how

to play?

How to optimise

digital influence?

How to futureproof

my business?

How to drive

conversion?

How to leverage

big data?

How will eCommerce

change shopping rituals

and disrupt my category?

“New Retail” poses new questions

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Ipsos eCommerce Learning Framework

Changes across:

• Technology

• Shoppers

• Shopping rituals

• Total company

futureproofing

• Integrated

omnichannel plans

• Innovate

• Engage

• Convert

• Throughout the

organisation

• With customers and

agency / tech partners

ENVISION ACTIVATE IMBEDUNDERSTAND

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Ipsos eCommerce Learning Framework

Changes across:

• Technology

• Shoppers

• Shopping rituals

• Total company

futureproofing

• Integrated

omnichannel plans

• Innovate

• Engage

• Convert

• Throughout the

organisation

• With customers and

agency partners

ENVISION ACTIVATE IMBEDUNDERSTAND

Winning in the disruptive “New Retail”

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Driving marketplace category growth

Category needs to be better promoted

Lack of brands shoppers want

Better organisation / curation

More online reviews

Delivery too expensive & slow

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Building a successful DTC platform

measure feet with

mobile

fully customised

products

Research Impact

• Sized opportunity & incrementality

• Optimised offer – pricing, shipping

• Ensured fluid usability of the app

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HIERARCHY

DEMONSTRATION

DIALOG

TONE OF VOICE

SEQUENCING

MOBILITY

RICHNESS

PERSONALISATION

EASE OF NAVIGATION THE 4 FUNCTIONS

The 10 Golden Rules of e-Merchandising

An e-commerce website is NOT a catalog, but a dialog, which should allow a mix of pull / push mode and a real quality of interaction.

An E-commerce website is not a picture, but a journey, divided into steps, each requiring a specific identity in terms of function, duration, tone, relation mode.

Most important messages should be carefully placed in the high impact areas of the website and on each page.

Online creates unprecedented possibilities of personalization, related to the visitor’s profile, history, mood etc.

The richness and the diversity of

the offer needs to be conveyed,

despite the “dryness” of the

media.

The digital world creates a special closeness with visitors, which

doesn’t exist on other medias. A blend of transparency / story telling / humor / gamification.

The store of the future is mobile. Winning ecommerceplayers must now

think mobile first, PC second. This requires focus, simplicity and clear shopper targeting.

The site should take advantage of

the specific digital functionalities

to effectively demonstrate the

benefits of the offer.

Four key functions need to be covered.

Usability is key : readability, fluidity, location, concision, direction, adaptation, wording, process control.

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Optimising the use of banners and enhanced content on Amazon

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Betting on the future?

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via phone

voice assistant

TV, robot…

1. Voice

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2. Beyond 2D

3D, VR, AR

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3. AI Driven Personalisation

make it mine

speak to me

reward me

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4. Direct to Consumer

simplify my life

make it better

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5. Social

for engagement

& conversion

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4. Direct to Consumer

Final thought onresilience

THANK YOU.stuart.wood@Ipsos.com