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Online Trends for Hardware/DIY RetailersStephen Baker & James O’Dwyer
April 2016
II Hello HAI!
James O’DwyerSenior Digital Consultant,Home Retail team
Stephen BakerManager,Home Retail team
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
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
Stephen BakerManager,Home Retail team