Consumer Shopping TrendsWhat makes them tick? What makes them click?

Ronan VanceSeptember 22, 2011

2

3

Where to buy?

4

Many choices

5

PersonalSocial

ImmediateInformative

VarietyExperiential

SocialImmediate

VarietyConvenienceTransactionalInformative

The Times They Are A-Changin’

Early 20th Century

Late 20th Century

Early 21st Century

6

Agenda

Understanding the Online Shopper

Three hot trends that continue in 2011• Coupons• Daily Deal/Deal of the Day• Social Local Mobile (SoLoMo)

What’s Next?

Understanding the Online Consumer

7

8

The Online Shopper

2005 2006 2007 2008 2009 2010

3.7%

4.3%5.0% 5.1% 5.3%

5.8%

US Retail Ecommerce Sales as a Percent of Total Retail Sales

2005-2010

Source: U.S. Department of Commerce, Feb 2011 (via eMarketer)

9

The Online Shopper

I often don't have to pay tax

Better variety online

Easier to find items online

More convenient to shop online

I don't want to fight the crowds

Free shipping offers

Easier to compare prices

24 hour shopping

0% 10% 20% 30% 40%

Top Reasons US Shoppers will Shop On-line

Source: Shop.org, Oct 2010

Coupons

10

In response to economic conditions

12

Using social networks

Looking for employment

Finding and printing coupons

Shopping/researching online

Obtaining news and information

Price comparison shopping

0% 10% 20% 30% 40% 50% 60% 70%

28%

22%

36%

55%

44%

59%

15%

16%

26%

26%

32%

40%

Activities that US Internet Users Are Spending MoreTime on Now Than Before the Recession, 2009 & 2010

Source: PriceGrabber.com, “US Shopping Behavior in this Economic Climate” 6/1/10

20102009

Part of our culture

14

Maximize Coupon Usage

• Give choices• Diversify placement• Remove obstacles• Promote sharing • Go mobile

16

Adult Mobile Coupon Users (in US)

Series1

19.8

9.5%

35.6

16.5%

2011 2013 2011 2013

millions % of adult mobile phone users

Source: eMarketer, Aug 2011

Daily Deals

17

18

19

20

Daily Deals/Group Deals

22

23

Sources: Rice University Survey, June 2011 & Consumersearch.com and The About Group Research, June 2011

of deal buyers spent beyond the deal value

36%

of deal buyers for Groupon, LivingSocial, Travelzoo, and BuyWithMe were new customers

77%

of daily deal buyers returned to the establishment even without another discount

68%

of these new customers became regular customers20%

of deals were unredeemed at the end of the promotion22%

24

Social, Local, Mobile“SoLoMo”

25

26

SoLoMo

27

Direct mail

Social network presence

Email prospecting

Organic traffic

Affiliate marketing

Search engine Marketing

10%

18%

18%

44%

58%

90%

Which of the following were your top 3 most effective sources used for acquiring

customers

Source: Shop.org/Forrester, May 2011

F-Commerce?

Impact on Buying Behavior

30

Discovery +

E-Commerce+

Community =

Future of F-Commerce

31

SoLoMo Penetration

2009 2010 2011 2012 2103 2014 20150

102030405060708090

23.8

38.9

49.458.5

65.672.8

79.1

US Social Mobile Network Users, 2009-2015 (millions)

Source: eMarketer, Dec 2010

Note: Mobile phone users who have a profile and access social networks from a browser or installed app at least once a month

32

Local

• Check in

33

Local

• Check in• Find deals

34

Local

• Check in• Find deals• Build loyalty

35

Local

• Check in• Find deals• Build loyalty• Earn rewards

36

Local

• Check in• Find deals• Build loyalty• Earn rewards• Instant

gratification

37

Mobile

• Check stock

38

Mobile

• Check stock• Compare prices

39

Mobile

• Check stock• Compare prices• Find coupons

40

Mobile

• Check stock• Compare prices• Find coupons• Learn more

41

Mobile

• Check stock• Compare prices• Find coupons• Learn more• Read reviews

42

Mobile

• Check stock• Compare prices• Find coupons• Learn more• Read reviews• Shop online

43

Mobile

• Check stock• Compare prices• Find coupons• Learn more• Read reviews• Shop online• Phone order

44

Make a purchase

Compare features

Check availability

Look at competitive product/service

Read reviews

Check for discounts

Find the nearest store location

Compare prices of a product/service

17%

37%

38%

46%

49%

58%

58%

66%

Reasons to Use Smartphones While Shopping by US Smartphone Users

Source: Chadwick, Martin, Bailey, March 2011 (via eMarketer)

What’s Next

45

46

What’s Next

• Informative• Experiential• Personalized• Social• Immediate

47

48

49

Social Influence

50