E-Commerce Innovators On The Future Of Retail Marketing
A WBR Digital Benchmarking Whitepaper | October 2014
Innovative Marketing, Improved Customer ExperiencesLeading retailers see mobile as the next great frontier for digital marketing. Which marketing channels provide the greatest opportunity for retailers in the next 3-5 years?
The vast majority of retailers surveyed are infusing in-store capabilities with mobile technologies in order to enhance consumer experiences. How are you creating innovative digital shopping experiences for consumers?
Businesses face many important barriers to digital marketing innovation, including cost, lack of resources, inadequate infrastructures, and inadequate leadership.What do you believe is the biggest barrier to digital marketing innovation within your organization?
It should come as no surprise that retailers overwhelmingly see mobile as the single most important channel of the next 3 to 5 years. Given the proliferation of smartphones in the U.S., mobile is a burgeoning marketing and commercial channel. According to some estimates, mobile devices now account for up to 60% of all digital media interactions, while 41% of smartphone users report having purchased retail products with their mobile devices. The importance of mobile as a retail channel is also evidenced by the fact that Forrester Research expects m-commerce to grow 33% annually through 2017, a projection which does not account for mobile devices’ ability to drive in-store sales.
As noted above, retailers are increasingly leveraging mobile devices to drive in-store sales. In fact, 27/30 of the e-commerce leaders we surveyed indicated that their top priority for creating innovative digital shopping experiences is integrating mobile with in-store. There are a wide variety of mobile technologies that impact the in-store experience. For instance, retailers can install Bluetooth Low Energy (BLE) beacons to sense customer movements in stores and deliver timely, relevant marketing messages, then conduct seamless check-outs using mobile wallets or specially-equipped POS devices.
Cutting-edge digital marketing practices offer a variety of advantages, including the ability to capture relevant consumer data and the chance to connect with consumers in a hyper-personalized way. Unfortunately, these innovations can be costly to implement and often require specialized expertise. Our e-commerce innovators cited 4 primary obstacles to digital marketing innovation: cost, lack of internal talent or resources, lack of infrastructure, and misaligned cultural priorities. These challenges can be substantial, especially given the amount of experimentation and iteration that can be involved in a successful mobile strategy.
As part of the E-Commerce Innovators Series, the eTail team interviewed 30 of the e-commerce industry’s marketing leaders about the future of digital marketing. These innovators discussed how they will leverage new technologies to enhance online and omnichannel shopping experiences and revealed which companies are the most innovative retailers in the world.
E-Commerce Innovators On The Future Of Retail Marketing
E-Commerce Innovators On The Future Of Retail Marketing
86%
43%32% 25% 21% 18%
Mobile Tablet Social Media Display/Retargeting
Content Marketing
Search0
20
40
60
80
100
89%
36% 36%21% 18% 18%
4%
21%Cost
4%Lack of consumer insight
21%Lack of talent/internal resources
21%Lack of infrastructure
21%Lack of
culture around innovation/leadership
11%Lack of
measurement strategy
Integrating mobile
technologies in-store
Creating virtual stores/ experimental
stores
Digital storefronts
Augmented Reality
Social Technologies
Personalization /customization
Remote customer service & product
expertise
0
20
40
60
80
100
Best-In-Class Retail Innovators
It’s All About Personalization
What types of retail innovation are you planning to implement in 2015?
When our e-commerce leaders were interviewed about how their companies plan to innovate their shopping experiences in 2015, the key word was personalization. As retailers have become savvier at collecting customer data through optimized omnichannel tools and special initiatives like customer loyalty programs, they have begun to formulate a more complete view of each customer. By better understanding each customer’s shopping patterns and preferences, retailers can now segment customers and develop personalized marketing messages that are more likely to drive action.
Leveraging mobile requires taking advantage of responsive design so emails and websites are optimized for any device, as well as developing capabilities to improve in-store experiences. Mobile tools like geofencing, BLE beacons, and digital wallets have the potential to create streamlined in-store shopping experiences for customers, while enabling retailers to better understand how consumers interact with stores.
Which companies have the most innovative online experiences?
E-commerce excellence is not a fixed target; it’s an ever-evolving journey. However, some retailers are a step ahead of the pack when it comes to innovative online experiences. According to our experts, Bonobos and Amazon offer two of the best online shopping experiences out there, blending best-in-class personalization with great customer service. When the conversation shifts to omnichannel capabilities, Gap and Target are considered leaders. Target’s Cartwheel, for instance, offers a modern way for consumers to find coupons digitally while sharing their favorite products on social media.
The Top 4 Retail Innovations Planned for 2015
The 4 Best-In-Class Retail Innovators
Customer segmentation and personalization
In-store mobile capabilities
Responsive design and mobile usability
Technology to help integrate in-store/online marketing
Bonobos
E-Commerce Innovators On The Future Of Retail Marketing
1
1
2
3
4
3
42 Amazon
Gap
Target
What is eTail West?As many retailers have learned, the e-commerce industry never allows for complacency. There has been a recent explosion of innovation and investment in the online retailing channel. The result is a dynamic and competitive selling environment that will challenge every online seller to satisfy and thrill online shoppers – before another retailer does.
Transforming Retail. TogetherLaunched in 1999, eTail has become the one stop shop for ecommerce and multichannel executives; an event where you can learn, get inspired, find solutions for your business and build lasting relationships. Dedicated to supporting the growth of the online and multi-channel retail industry, we bring together 1500+ executives across a number of verticals, including retail, CPG and travel/hospitality to learn, network and build relationships… All in a warm venue surrounded by palm trees!
Content Designed By You, For You.Researched for 6 months with retailers, our content is designed with you in mind. Our topics cover online marketing, digital engagement, customer acquisition and retention strategies, analytics, mobile, social, email, search, usability, design and more – If you have a challenge, we’ve got you covered.
Want to hear more from the innovators shaping e-commerce?See what they will be discussing at eTail West 2015!
Transforming Retail. Together.
Every retailer has unique challenges. Find out how eTail can help you solve yours.
Main Conference Day TwoFebruary 19th:
TRACK A: Data, Analytics & The Customer JourneyTRACK B: User Experience Optimization & PersonalizationTRACK C: B2C Growth Strategies & B2B CommerceTRACK D: Optimizing Mobile & Social
Main Conference Day ThreeFebruary 20th:
Mobile, Tablet & Social Strategies
Main Conference Day OneFebruary 18th:
TRACK A: Content, Loyalty & EngagementTRACK B: The Omni-Channel Experience & Integrated MarketingTRACK C: Conversion Optimization & TestingTRACK D: Next Generation Retail & The Mobile Experience
E-Commerce Innovators On The Future Of Retail Marketing
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