online trends for hardware/diy retailers · online trends for hardware/diy retailers stephen baker...

Online Trends for Hardware/DIY RetailersStephen Baker & James O’Dwyer

April 2016

II Hello HAI!

James O’DwyerSenior Digital Consultant,Home Retail team

jamesodwyer@google.com

Stephen BakerManager,Home Retail team

stephenb@google.com

I

The changing digital landscape globally, Ireland and in the

Industry

TRENDS

The impact of mobile and its influence on

the Home & Hardware retail industry

MOBILE

How the Home & Hardware retail

industry is understanding the

connected consumer

CONSUMER

What are going to cover?

I The only constant is change…...

THE WORLD

is changing

TECHNOLOGY

is changing

PEOPLE

are changing

is changing

I Accessibility of devices is driving growth

€59 Phone €53 Tablet Connectivity Everywhere

Ireland, 3.2 devices per person!

3 out of 4 have a smartphone vs 61% European average

I Deeper engagement is the new normal

28%of 3-4 year olds

use a tablet

I The multi-screen world

[WEARABLE]MOBILE TABLETDESKTOP IN-CAR[TV]

e.g. Chromecast

66% will own a smart tv by 2016

I Towards total connectivity

The Internet of Things is with us now

WEARBALES

I A new breed of consumers and interaction

60%of all internet

access is from Mobile

INFORMATION MORE

ACCESS

Of all 2015 retail sales in UK was

online*

SHOPPING MORE ONLINE

15%

ENTERTAINMENTMORE CHOICE

2Bn+hours of YouTube video watched on smartphones each

month

I Behaviour has changed

Everyone, everywhere is ALWAYS

CONNECTED!

Instant gratification: Choice, informed, experts, price aware

Paths to purchase: users move across

devices seamlessly, more qualified than

ever

150x

I And media habits are changing

% Daily media time 2010 v 2014

TV

Print

Radio

Digital

38%

43%

15%

4%

47%

25%

22%

6%

I Technology removes borders

Irish sites that export drove 20%

more revenue than the average*

*source Wolfgang Digital

I In Ireland……….

I We’re seeing profound change

SMARTPHONE OWNERS TABLET OWNERS ONE-SCREEN USERS

77% of mobile searches occur at home or work—even if a PC is readily available (Search Engine Land)

86% of Irish populationthe internet on a daily basis

VOD reached 65% of the Irish population in the last six months

55% of YouTube views now come from a mobile device

65% of Irish populationare online while watching the tv

I Interest in Home online continues to grow

Home Improvement/

DIY

+31% YoY growth in

searches

Home Furniture

+19% YoY growth in

searches

Home Decor

+19% YoY growth in

searches

Garden

+23% YoY growth in

searches

So?

I Home and Hardware industry

Technology is changing

The world is changing

People are changing

To grow, the Home & Hardware industry must

exceed the pace of change

Mobile Is Changing Everything

I Thirty Years Of The PCFrom 9m units to 300m+ in three decades

Source: Ben Evans: Mobile Ate The World

I

Source: Ben Evans: Mobile Ate The World

Overtaken by a New EcosystemA shift in scale - from 300m+ PC units a year to 1.5bn smartphones and growing

I

Source: Ben Evans: Mobile Ate The World

Mobile is The New ScaleMobile was always bigger than PCs. Smartphones changed the game.

have and what we carryThe difference between what we

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WOW, it’sa lot

of stuff!we can’t carry everything

all at once

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What would be the

that you can’t leave home without?

essentialobjects

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So much

than a mobile phoneMORE

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per day

At bus stop, listen to new music playlist 8:30am

Buy new tote to take to Coachella 11:15am

Browse festival styles on YouTube7:15pm

On bus, check email for sales this weekend5:29pm

At lunch, play Scrabble while waiting in line1:33pm

Use flashlight app to find dropped earring11:09pm

Use maps to get directions to Creole food truck 1:13pm

At work, book Coachella tickets11:36am

Wake up and read news online6:50am

On the bus, read articles about Coachella 8:42am

150x

Nomophobianouna fear of being without mobile device, power source, or service area

MOBILE MEETSDIFFERENT NEEDS THAT

MAKES LIFE EASIER

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WELCOME TO

2016WHERE MOBILE IS

YOUR PRIMARY DEVICE

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WHERE WE SPEND 3 HOURS

PER DAY ON MOBILE

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91%Of smartphone users turn to their phones for ideas in the middle of a task

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53%Of all Home & Garden searches in the UK on Easter Sunday 2016 were on mobile

WHERE WE SEARCH

CONSTANTLY

WHERE WE DISCOVER

INSPIRATIONALCONTENT

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590mViews of Home & Garden videos on Youtube in the UK in 2015

WHERE WE COMPARE PRODUCTS

AND PRICES

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51%have discovered a new company or product when searching on a smartphone

WHERE WE BUY ON THE GO

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29%Increase in Mobile Conversion Rates In the past year

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WHEN WE BUYIN A STORE

82%Consult their phones on purchases they’re about to make in a store

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Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem

Web Videos Images Shopping News More Search tools

mi·cro-mo·ment/ˈmīkrō/ /ˈmōmənt/

noun; plural noun: micro-moments

1. A moment when we act on a need – a need to learn something, do something, discover something or buy something.

2. An intent-rich moment when decisions are being made or preferences being shaped.

About 44,800,000 results (0.37 seconds)

define: micro-moment

Micro-Moments: Moments That Truly Matter

I-want-to-know moments

66% of smartphone users turn to their phones to look up something they saw in a TV commercial

53% of online video viewers watch online video to be inspired or entertained

590mViews of Home & GardenContent on Youtube in the UK in 2015

I-want-to-watchwhat-I’m-into

moments

65% of online consumers look up more information online now versus a few years ago

I-want-to-go moments

82%of smartphone users use a search engine when looking for a local business

I-want-to-domoments

100M+ hours of “how-to” content have been watched on YouTube so far this year

I-want-to-buymoments

29% increase in mobileconversion rates in the past year

2X increase in “near me” search interest in the past year

91% of smartphone users turn to their phones for ideas while doing a task

82% of smartphone usersconsult their phones while in a store decidingwhat to buy

Micro-Moments occur throughout the consumer journey

Purchase new lawnmower for reserve and collect

Watch videos of celebrity

gardens

Search for lawn mower reviews in the aisle

Use an app to reserve & collect

flowers for the garden

Check out reviews for landscapers in

your area

Purchase

AWARENESS

CONSIDERATION

PURCHASE

LOYALTY

Winning the battle requires mastering a moment mindset

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I All of this is driving profound change

90% 98%

use multiple screens sequentially to accomplish a

task over time

move between devices that same day

90% 98%

I And the journey is complex

I There are now four key paths to purchase for Home & Hardware retailers to consider

Online Offline

Online

Offline

Media Channel

Purchase Channel

Cross Device Digital to Store

Traditional to StoreTraditional to Digital

I Why does this matter?

53% decrease in foot traffic

2X value of store visits

The value of visitors is increasing

I And we’re seeing real numbers

4x 8x

I But retailers are struggling

5%only

have executed on an omni-channel strategy

70%have no omni-channel strategy or are at the very beginning of execution

I Businesses need to embrace this change

☑ Care about measuring omni ☑Educate cross-x stakeholders on new ways to measure

☑ Get digital team buy in first ☑Agree on omni KPIs and incentives (and measurement required to support them)

☑ Talk “omni channel sales” not just “ecomm sales” ☑Let your cross-x teams know what to expect on a weekly / monthly basis (reporting, traffic etc)

☑ Set up an “omni channel sales” dashboard ☑ Just start measuring differently

☑ Line up executive support (start with sales leaders) ☑Start with digital to store, then move towards universal analytics and attribution

☑ Socialise a view of today’s consumer & retail landscape ☑ Optimise creative and offers across all media

☑Shift mindsets around “flighted visible media” v. “always-on digital media”

I Those that are, make moreStore Visits reporting proves impact of Search on dealership sales

3.43.4% of Search clicks led to a Store Visit in the following 30 days

4.9 %

Mobile clicks drove 40% higher Store Visit rate

17:1Overall Store Visit rate Mobile Store Visit rate Omnichannel ROAS

With some conservative assumptions, omnichannel return from Search estimated to be >1700%

I

I How Does Search Influence Store Footfall?

Customer clicks on AdWords search ad on computer, tablet

or mobile device

Customer visits store

Store visit reported

New reporting on how online ads lead to store visits will help tomeasure the full value of your online ads

ISt

ore

Visi

t Rat

e

Low

Med

ium

Hig

h

Online Conversion Rate

Typical PPC O2S Data for the Home Category

Low Medium High

Tools

ISt

ore

Visi

t Rat

e

Low

Med

ium

Hig

h

Online Conversion Rate

Mobile Consistently Influences Footfall

Low Medium High

I How Are Home Businesses Using This Data

CPSV

Understand the cost for influencing a store visit for comparison

across other channels

ROAS

Apply In-Store behavioral data to

transform current PPC ROAS

FVOM

Include additional data to demonstrate the full

value of mobile investment

BE THERE

MEASURE

BE QUICKHOWCAN YOUWIN?

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I Be There For The Micro Moments That Matter

InspirationalContent

MobileWebsite

MobileCommerce

LeverageReviews

BusinessInformation

Reserve &Collect

I

UX Principlesand optimization

suggestionsPixate Project

Prototype of msites and apps

PageSpeedTechincal evaluation

on your site/app performance

67%

Resources to support a great Mobile User Experience

of consumers are more likely to convert on a mobile optimized site

thinkwithgoogle.com

40% will abandon a site if it takes longer than 3 sec

Source: Lorem ipsum dolor sit amet, consectetur adipiscing elit. Duis non erat sem

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LEADS GENERATION

CALLS TO YOUR COMPANY

MOBILE COMMERCE

CROSS-DEVICE

APP DOWNLOADS

STORE VISITS

SITE TRAFFIC

USER ENGAGEMENT

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Understand the Value That Mobile Delivers to YourBusiness

I Thank You

James O’DwyerSenior Digital Consultant,Home Retail team

jamesodwyer@google.com

Stephen BakerManager,Home Retail team

stephenb@google.com