1 how to leverage multiple sales channels to reach & retain cross-channel shoppers welcome! may...
TRANSCRIPT
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How to Leverage Multiple Sales Channels to Reach & Retain Cross-Channel Shoppers
Welcome!
May 13, 2008
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Before we start
Submitting questions– Submit a question at any time by using the “ask a
question” module on the lower right-hand side of your console
– We’ll address these questions during the 10 minute Q&A section at the end of our presentation
Technical difficulties– Click on the help button– Use the “ask a question” interface
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Today’s presentation
Highlights from the Krillion Consumer Survey
Current retailer and manufacturer strategies
Readiness recommendation checklist
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Today’s presenters
Lauren FreedmanPresidentthe e-tailing group
Lauren FreedmanPresidentthe e-tailing group
Joel ToledanoCEOKrillion
Joel ToledanoCEOKrillion
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About Krillion
What we do:– Product-based local search– Driving online users to
in-store sales
Who we work with:– Leading manufacturers,
retailers, publishers, and search engines
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About the e-tailing group
14 years of e-commerce consulting
Author, “It’s Just Shopping”
50+ years traditional retail and catalog experience
Fortune 500 client projects ranging from strategic planning, merchandising, marketing, to technology development and messaging
Proprietary research studies on:mystery shopping & merchandising; marketing and multi-channel customer mindset; In-Store Pickup and Gift Registry
E-commerce expert and frequent speaker at industry events, trade associations
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Survey completed February 2008 1,000 consumers sampled 50% male, 50% female Spend at least $500 online annually Purchase online at least 4x per year
Purpose and methodology
To better understand the mindset of consumers who research products online that lend themselves to purchase at a local store.
The study highlights the role of Internet information resources, the retailer channel, and web-to-store convenience options offered online—such as in-store pickup and inventory availability—in shaping consumer purchase decisions.
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Web-ready buyers are demanding
“Web-Ready Buyers” are demanding, doing their shopping “homework” well in advance of their purchase
“Web-Ready Buyers” who are predisposed to research online are willing to spend at least several days or weeks researching products
They are first and foremost problem solvers who leverage the web’s efficiencies to quickly find the right answers to their shopping needs
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These customers leverage all channels,seeking complete information
The role of the manufacturer online has been elevated: a visit to their site is often the first stop for savvy online information seekers
The store is an integral part of shoppers’ multi-channel buying experiences
Expectations are high for Web-Ready Buyers regarding:
the number of information sources they seek out
the features they expect to see on any given site
their propensity for using in-store pickup
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The ‘Local’ proposition is clear
Saving time, convenience and saving money are consistently what matter most to consumers when using a local search engine to research products online
To the consumer, local is getting the right price for an in-stock product at a favored retailer
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Prior to buying, consumers are spendingconsiderable time online in ‘research mode’
What percent of the time you spend shopping (store/web/catalog) involves researching products online?
12%
21%
25% 26%
16%
1-14% 15-29% 30-49% 50-74% More than 75%
% of time spent researching products online
What percent of the time you spend shopping (store/web/catalog) involves researching products online?
12%
21%
25% 26%
16%
1-14% 15-29% 30-49% 50-74% More than 75%
% of time spent researching products online
Q3
42 percent of shoppers spend more than half of their total shopping time researching online
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Shoppers multi-source: 72% look to the manufacturer’s website when researching major branded products online, while 54% seek out favored retailers
Q6
When shopping for a specific manufacturer's product (i.e. GE dishwasher, HP Printer or Panasonic HDTV) which online resources will you typically use to conduct your research?
Select all that apply.
72%
54%
50%
47%
38%
30%
4%
Visit the manufacturer's website
Go to one of my favorite retailers online to learn more about what theyhave to offer and their prices
Go to a comparison shopping engine to check out prices of the productsin which I'm interested
Conduct a search online and look at a handful of search listings found
Visit a store or several stores to preview the product and then go onlineto learn more
Go to a search engine that has brands I'm looking for and localinformation about availability and pricing
Other*
Beyond this, shopper styles affect where consumers start their research
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Consumers are first and foremost needs-driven,with many influences triggering their searchfor online product information
Q11
What are the leading media and other influencers that typically trigger your search for product information online? Select all that apply.
58%
56%
50%
49%
44%
44%
42%
38%
38%
28%
26%
To solve an immediate need
Word of mouth
TV commercial
Prior visit to a store
Catalogs/Direct mail
Magazine or newspaper ads
Article about the product
Newspaper circulars
Consumer Reports Magazine
Online promotion or banner ad
• Women are more traditional: favoring word-of-mouth, catalogs, magazines, newspapers
• Men are more web-centric: embracing online promotions, banner ads and email
Word-of mouth continues to play an important rolesimilarly valued by consumers
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Depending upon the complexity of the product category, those surveyed invest several days or even months researching prior to making a purchase
Q8
Several days to weeks or even months are typically spent researching these product categories prior to making a purchase.
80%76% 73%
63%
45%38% 37%
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Top 3 essential online resources:manufacturers, retailers, search engines
Q13
Most essential
Somewhat essential
Least essential
Manufacturer websites 61% 35% 4%Retailer websites 54% 42% 4%Search engines 53% 41% 6%Shopping comparison sites 39% 43% 18%Consumer magazines online 37% 43% 20%Portals and other directories 25% 53% 22%Blogs 10% 25% 65%
Please rate each of the following web resources based on how essential they are to your online product research.
Secondary sources include shopping comparison sites,consumer magazines online, portals/directories, and blogs
16Q6
For complex product categories,manufacturer websites are the #1 destination
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Online retail experiences take place in many ways
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Exposing products can be facilitated via aseries of different channels and a variety of means
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Searching is part and parcel of the user experience,where the “best” price is top of mind
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Saving time (76%), convenience (69%), andsaving money (64%) are consistently what matter most
Q17
Given the ability to research products online usinga local product search engine, what 3 aspects of this kind
of experience do you find most appealing?
76%
69%
64%
38%
30%
23%
It saves me time
It's more convenient; allows me to comparison shop with contextincluding product information and customer reviews
It saves me money
It allows me to efficiently do my research prior to store visits
It lets me know what product is available at retailers in myneighborhood
Allthe information across many local retailers is available at one site
Given the ability to research products online usinga local product search engine, what 3 aspects of this kind
of experience do you find most appealing?
76%
69%
64%
38%
30%
23%
It saves me time
It's more convenient; allows me to comparison shop with contextincluding product information and customer reviews
It saves me money
It allows me to efficiently do my research prior to store visits
It lets me know what product is available at retailers in myneighborhood
Allthe information across many local retailers is available at one site
21Q15
What do you see as drawbacks you have experienced that may inhibit purchasing products at a local retailer using online information
resources? Select all that apply.
59%
53%
52%
30%
Finding the best price for purchase locally vs. buyingthrough an online reseller
Finding local retailers that have the product in stock
Finding local retailers that carry the product near me
The time it takes researching/searching for the rightproduct near me
What do you see as drawbacks you have experienced that may inhibit purchasing products at a local retailer using online information
resources? Select all that apply.
59%
53%
52%
30%
Finding the best price for purchase locally vs. buyingthrough an online reseller
Finding local retailers that have the product in stock
Finding local retailers that carry the product near me
The time it takes researching/searching for the rightproduct near me
For online shoppers, “local” means the right pricefor an in-stock product at a favored retailer
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Shoppers expect websites to aid in research,provide up-to-the-minute information
Q16
Please rate the importance of the following website features, information or tools to selecting a product you have researched online but intend to purchase at a local store.
88%
87%
83%
83%
83%
80%
79%
75%
69%
48%
43%
35%
Inventory/stock status
Special offers
Ability to sort & refine by brand, price, product feature, etc.
Ability to compare products side by side in a grid format
Customer ratings/reviews
Search website by keyword or product number
Price history/price tracking
Complete list of local stores
Pickup in-store options
Recently viewed
Relevant advertising
Wish list
Rating of very to somewhat important
Please rate the importance of the following website features, information or tools to selecting a product you have researched online but intend to purchase at a local store.
88%
87%
83%
83%
83%
80%
79%
75%
69%
48%
43%
35%
Inventory/stock status
Special offers
Ability to sort & refine by brand, price, product feature, etc.
Ability to compare products side by side in a grid format
Customer ratings/reviews
Search website by keyword or product number
Price history/price tracking
Complete list of local stores
Pickup in-store options
Recently viewed
Relevant advertising
Wish list
Rating of very to somewhat important
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To help make purchasing decisions, consumers embrace peer-based content like product reviews (84%) and consumer surveys/studies (57%)
Q14
What types of online content do you most frequently read, download or pass on to help you make a purchase decision?
84%
57%
49%
48%
39%
28%
26%
17%
2%
Product reviews
Consumer surveys/studies
Product images
Product literature
Product news
Articles written by journalists or experts
How to guides
Videos
Other*
What types of online content do you most frequently read, download or pass on to help you make a purchase decision?
84%
57%
49%
48%
39%
28%
26%
17%
2%
Product reviews
Consumer surveys/studies
Product images
Product literature
Product news
Articles written by journalists or experts
How to guides
Videos
Other*
• Women trend higher on image and product reviews
• Men care more about expert articles and videos
Product images (49%) and literature (48%) are expected sourcesof information that further support decision-making
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Customer-centric tools foster decision-making
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When selecting a local store to make a purchaseconsumers desire a comprehensive websiteincluding convenience-centric, store-related services
Q9
Website features that are "very to somewhat important" as they relate to purchasing decisions when selecting a store in one's local area
to make a purchase (top 2 on a 5-point scale).
87%
85%
81%
80%
79%
76%
69%
In-store returns
Current store promotions
Detailed store information
Delivery options
Manufacturer rebates
Product locator w/inventory access prior to store visit
In-store pickup options
Website features that are "very to somewhat important" as they relate to purchasing decisions when selecting a store in one's local area
to make a purchase (top 2 on a 5-point scale).
87%
85%
81%
80%
79%
76%
69%
In-store returns
Current store promotions
Detailed store information
Delivery options
Manufacturer rebates
Product locator w/inventory access prior to store visit
In-store pickup options
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Store promotions and services areevaluated simultaneously
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The store is an integral part of shopper behaviorfrequently involving multiple store visits
Q7
APPLIANCESCONSUMER
ELECTRONICSLAWN/PATIO
/GARDEN
SPORTS/ OUTDOOR
GEARCOMPUTERS
PERSONAL & CAR AUDIO
BABY GEAR
A combination of store visits and online research where final purchase would be at the local store
57% 69% 56% 53% 59% 51% 48%
Research online and buy at a local store 52% 69% 50% 51% 53% 48% 48%
Go to a local store to research, make my final selection and purchase 35% 29% 42% 43% 50% 40% 44%
Research online and buy online 30% 17% 32% 29% 20% 32% 38%
A combination of store visits and online research where final purchase would be online
26% 16% 20% 24% 18% 29% 22%
When thinking about purchasing products in the following categories, which of the following best describes your research and shopping process? Please select your top two most likely scenarios for each category.
For information-intensive purchases, consumers are more apt to research online and then complete their purchase at a local store
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Store visits often start withsophisticated retail locators
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55% have purchased a product online for in-store pick-up, increasing the role of web-to-store activity
Q4
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Merchants extend their reach, drivingtraffic to the store via in-store pickup
31Q5
*Other includes shipping not an option, out of stock online; taking advantage of a discount offered if picked up in-store
Buyers who pick up in-store are motivated byshipping savings and convenience benefits
• Among women saving on shipping is even more of a motivator as it was selected by 63%
Note: Beyond saving shipping expenses, immediate needs and convenience will always play an important role in “local” shopping
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Product locators with inventory access will serve as theultimate foundation for future cross-channel conveniences
33Q5
Are you ready?
Comprehensive content must be in place
Category-centric tools should give customers the control they demand to swiftly satisfy and solve shopper needs
Manufacturers must extend their efforts through retail and search partners
Cross-channel conveniences should be clear to shoppers
Merchants must think about both time and cost savings when structuring multi-channel experiences
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The e-tailing group contact information
Lauren FreedmanPresident, the e-tailing group [email protected] www.e-tailing.com
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Krillion: leveraging product-based local search
Joel ToledanoCEOKrillion Inc
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What shoppers care about
Consumers think:“research online buy offline”– Search on Google– Buy in a physical store
Who carries this product near me?
What does it cost?
Is it in stock right now?
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Search engines, shopping engines anddirectories, are not one-stop shops
Search engines don’t provide everything consumers need:– product– location– price– in-store availability
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In-store pickup is already popular
2007 online sales (est.):$1.5 billion
In-store pickup averages $60 more per customer
ticket
In-store pickup averages $154 more per customer
ticket
Source: National Retail Federation
55% picked up in store
40% picked up in store
2007 online sales (est.):$1.1 billion
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1. Online ads remain resilient. 2. Video surge slows. 3. Social-network advertising hits $1.6 billion. 4. Networking goes beyond MySpace and
Facebook. 5. YouTube decides the election. 6. Beijing Olympics pumps up ad spending. 7. Buy online, pick up in-store becomes
expected feature. 8. Movie downloading hits the mainstream. 9. Music marketers roll out new business models. 10.Dynamic ads heighten gaming revenue
potential.
And will become mainstream…
eMarketer predicts:• Multichannel retailers will roll
out more “buy online, pick up in-store” services.
• Forrester Research reports 79% of multichannel retailers ensure consistent pricing across their channels.
• Internet Retailer finds 75% of retailers link their e-commerce systems to their fulfillment and order management system.
Source: eMarketer Inc
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How Krillion enables web-to-store sales
• Yellow Pages
• Product reviews
• Shopping sites
• Widget on manufacturer websites
• Search engines
• Yellow Pages
• Product reviews
• Shopping sites
• Widget on manufacturer websites
• Search engines
Krillion Localization
EngineTM
• Metadata by category• Product categories
Local Retailers
Krillion has built a huge local shopping dataset of manufacturers, SKUs, store locations & in-stock product availability – more than 700 million data elements, and growing Leads!
Ready-to-buy
consumers
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The Home Depot case study:increased click performance
Launched: February 2008
Objectives: • Increase click performance
online with contextual marketing
• Drive sales through all Home Depot offers on/offline
Results:• 4x conversions to “see it”
locally button• 2x average CTR on all ad
impressions served
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Panasonic case study:sales uplift & tighter linkage
Launched: March 2008
Objectives: • Increase site capabilities
to drive more sales to dealers
• Offer real-time stock information
Results:• Thousands of new
views/month and growing• Double-digit conversions
to “see it” locally button• Increased conversion to
sale from Panasonic.com to dealers
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Bridging the Internet and the store
Mobile coupons will capitalize on theweb-to-store opportunity
– Offers sent to consumers drivein-store purchasing
Micro-local targeting through location-aware technologies“
What’s next?
“Mobile phones are more likely to be used in a multichannel shopping process than togenerate m-commerce sales.”
–Gartner Group, Feb. 2008
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Three ways to work with us to growyour web-influenced sales
1. Manufacturers: Krillion Product Locator drives revenue and directs in-store sales to dealers
2. Retailers: enhanced placements and integrated advertising to drive in-store sales
3. Publishers: Leverage Krillion’s product-based local search platform to increase audience engagement revenue opportunities
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For more information about working with Krillion to power your product locator or support your local in-store sales efforts, contact us at [email protected]
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Q&A
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Thank You!