The rise of the flex shopperResearch and insights

19 March 2015

Ryan NealMarketing Manager UPS Netherlands

‘Pulse of the Online Shopper’ survey

• UPS and comScore

• Consumers’ online shopping behavior

• 6,200 respondents across 6 European markets

• 80% surveyed make 4 or more purchases every

3 months

DE FR ES ITNL UK

The rise of the flex shopper

7

• Constantly connected

• Ruthlessly efficient

• Switching channels and devices

• Information and control are paramount

• Expects highest quality

• every step of the way

• everywhere

in a world of frantically fast-changing technology

You have to be good everywhereto keep the customer and deliver differential added value

You need to deliver

a near-perfect shopping experience across all platforms

The store is in our hands

Mobile shopping is on the verge of a breakthrough

• Desktop/laptop still most popular for online purchases in Europe

• But smartphone-driven purchases grew 34% last year

• Now 1 of 6 smartphone users and 2 of 5 tablet users used them to buy online

1 of 6 2 of 5

34%

Devices used to purchase online in Europe, 2014

The store is in our hands

M-commerce will account for 13% of online sales in Europe in 2014

Online sales in Europe 2014

Source: Himediagroup

13%

• An increase of 86% above 2013

+86%year over year

increase

61%

13%

7%

12%

7%

StoreCatalogue Tablet

Smartphone

PC/laptop

The store is in our hands

Smartphones and tablets are used primarily for research

• 1 out of 5 prefers them to all other channels for researching products

The store is in our hands

• Half of all Dutch online shoppers use a smartphone in-store

• expand capabilities and be better informed

• compare prices with the competitor (26%)

• read on product details (15%)

• pay in-store (8%)

Phones are used throughout the shopping cycle: even in-store

• Many mobile offerings aren’t optimized

• Product images, purchasing information are unavailable

or hard to see

• This is an opportunity for retailers

• If you invest in mobile, think apps

• Improve the mobile customer experience

• Evaluate your loyalty programme

Rumors of the death of the store are exaggerated

The physical store is still essential – even for the flex shopper

• 4 out of 10 Dutch online shoppers buy in-store

48%42%

3%

6%1%

StoreCatalogue Tablet

Smartphone

PC/laptop

Preferred method of access to purchase products

Island days are over

The physical store is essential – be sure to connect it to the rest

• Traditional assets remain valuable

• Physical contact, serendipity, brand décor, in-store advice

• Stores are new fulfillment centers

• Pick-up points for online orders

• This dynamic drives footfall, revenue and loyalty

• 3 of 10 pick-up shoppers buy something while in store

• And many opportunities

• Differentiate and excel on all levels – the store is not an island

• Invest in traditional assets

• optimize for multichannel shopping

- pick-up point, inventory, mobile interface and services

• There’s room for improvement

• 64% of flex shoppers are satisfied with the store experience 6+

Fulfil smart and win

Smart delivery services seal the deal

• 9 out of 10 shoppers leave deals remain unclosed

86 93 89 8691 8688

Have abandoned a shopping cart (%)

Clear information and options for payment and delivery help

complete the sale

Overall satisfaction (%)

Convenience and choice

Number of delivery options

Availability of free shipping

Flexibility to choose my delivery date

Ease of making returns and exchanges

• And half or more don’t feel they’re getting it online

46

50

32

49

55

61

41

53

Fulfil smart and win

Shoppers want convenience, choice and information

Information

Knowing the total costs

Ability to see the inventory status

Ability to track on-line purchases in transit

64

56

62

58

51

55

In today’s shopping journey, every part of the chain matters

everywhere and all the time

The era of flex shopping

Logistics

Marketing

Customer

service

Sales

Research Purchase Fulfilment Aftersales