Embed Size (px)
Citation preview
Attention to Retail
June 23rd, 2015
E-Commerce, M-Commerce And AdaptingTo Consumer Behaviour Anne-Marie Schwab, General Manager and VPRetailMeNot France
A bit about us…
The world’s largest marketplace for digital offers
CONSUMERS RETAILERS & BRANDS
70K+$4.4B Facilitated 2014 global retail sales
RetailMeNot - Statistics & Reach
36MM+ Email subscribers 18MM+Monthly mobile unique visitors (Global)
39% Total site traffic is mobile
~720MM Visits/FY 2014 600K+
As of March 31, 2014
Retailers and brands
Offers
We’re working with over 70,000 leading retailers
WHAT WE’LL TALK ABOUT TODAY
• Objectives of retail remain the same but the rules are changing
• Consumers have changed their mindset
• How retailers can respond
A brave new world of retail
REVENUE = TRAFFIC x CONVERSION x BASKET VALUE
PROFIT = REVENUE - INVESTMENTS
2011 2012 2013 2014
Traffic= eCommerce still continues to grow
Growth of ecommerce visits
Source: Fevad - * estimation
+154%
2011 2012 2013 2014€76
€78
€80
€82
€84
€86
€88
€90
€92
€90.00
€87.50
€84.50
€81.50
-10%
2011 2012 2013 20140.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%2.7%
2.5%
2.2%
1.8%
But conversion rates and average order values are in decline
Source: Fevad – Evolution des indicateurs clés du e-commerce français
Average basket size Conversion rate
-35%
Mobile is disrupting the industry
Mobile traffic is taking over
2011 2012 2013 2014 20150:00
0:28
0:57
1:26
1:55
2:24
2:52
1:55 2:02 2:07 2:102:13
0:31
0:53
1:22
1:59
2:26
Average time spent per day with desktop and mobile (UK)
Desktop Mobile
+16%
+371%
Source: eMarketer, UK 2015
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…
But mobile sales are growing fast
2013 2014 2015 2016 - €
20 €
40 €
60 €
80 €
100 €
120 €
140 €
160 €
180 €
200 €
€ 103 bn € 112 bn € 118 bn € 123 bn
€ 9bn
€ 22 bn€ 39 bn
€ 62 bn
Desktop and mobile ecommerce grotwth
PC Mobile
(3%)
(15%)(23%)
(30%)
Desktop and mobile ecommerce growth in Europe 2013 – 2016 in € bn
Source: Centre for Retail Research, May 2015
It is only the beginning..New technologies will broaden what mobile means
REVENUE = TRAFFIC x CONVERSION x BASKET VALUE
PROFIT = REVENUE - INVESTMENTS
Consumer have changed their
mindset…
The perception of the right price is shifting
Leaving 4 out of 5 consumers think that a product sold without any discount is overpriced
Source: CCM Benchmark, 2013
SOURCE: LH2, France, 2013
1/2 2/3Of consumers have already
abandoned a purchase because they coulnd’t
find a voucher
have added additional productsto their basket to be able to use
a voucher
An offer can make or break a deal
Category 1 Category 2 Category 3 Category 40
2
4
6
8
10
12
14 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 !
86 51of retail sales still
take place in the storeof consumers are inclinedto purchase in-store when
offers are available on mobile
% % %
Sources: CRR, PWC, RetailMeNot and The Omnibus Company 2013
90of consumers start the shopping journey in one channel and end it
in a different one
Consumers think about products & brands,
not channels!
Consumer seek « the right price »
What does this mean to brands and retailers?
Rule #1 – Listen to your customers
Source Deloitte, the Omnichannel Opportunity, 2014 amount spent on the most recent purchase
A clear mismatch between consumers’ expectations and what retailers offer
Explore& find Buy
Of consumers expect to find the same
promotions online as instore
Of retailers offer the same price online
and instore
Of consumersexpect to buy online and pick-up in store
Of retailersoffer this service
73%
Only
16% 30%
50%
Source Deloitte, the Omnichannel Opportunity, 2014 amount spent on the most recent purchase
And multi-channel shoppers spend more!
offline online
Boughtoffline
Bought offline, online research
prior to purchase
Boughtonline
Bought online, additional store research prior to purchase
€101
€158 €148
€106
Rule #2 – Mobile ≠ Desktop
Mobile User Experience ≠ Desktop User Experience
20 to 25% of EU retail websites
are still not optimized for
mobile
Rule #3 – Location matters
(go where the consumer is)
Geo-fencing – bring your customers in store
51% response rate to notifications received within area
Micro-Location (beacon) offers
63% response rate to notifications received within a store
Rule #4 – Make it personal (but make it right)
Consumers now expect you to know what they want
SOURCE: PwC, The speed of life, US 2012
73%
are willing to share personal information
depending on the benefitsthey will get in return
Transparency matters
The golden rules of Retailing 2.0
#1 - Listen to your customers
#2 – Mobile ≠ Desktop
#3 – Location matters
#4 – Make it personal
REVENUE = TRAFFIC x CONVERSION x BASKET VALUE
PROFIT = REVENUE - INVESTMENS
Every goal comes with it’s own strategy
Acquisition
Basket size
Category push
Conversion
Revenue increase
… Clearance, frequency, new launches….
2nd item -30%
First time customer
Free gift for purchases of more than 60 euros
Free shipping
-5% on beauty products
Case Study InStoreThe Body Shop (UK)
Objective: Drive footfall and storeand generate new sign-ups
Incentive: Free lip balm (value £3; exclusive for our members)
What we’ve done: - Push notifications sent to 1.2 million users- Dedicated code alert email, sent to 6.9 million members- Prominent listing on the app (2.9 million downloads)- Vouchercodes.co.uk homepage (5.7 million visits/month)- Editorial and social media coverage, including blog, Twitter and Facebook
Results
• +50k customers driven in store in 11 days
• 41k new customers recruited
• £93k of additional sales
Retail Challenges, Solved.
DRIVE online and in-store sales
INCREASE average order value
ACCELERATE new customer acquisitionBOOST customers revenue
RE-ENGAGE lapsed consumers
Let’s prepare tomorrow
As she walks past a Douglas partner store, she receives an offer of a discount of 3,50 € on Nivea lotions, only available todayShe lives in
Berlin, and it’s one of the first sunny days of the year
Julia is 30 years old and has sensitive skin.
Sending the right offers to the right person at the right moment incites spontaneous purchases
