retail ecommerce trends for 2013 and beyond | digital juggler

44
8 Key Trends for Retail E- commerce in 2013 Presented by James Gurd Owner, Digital Juggler Thursday 17 th January, 2013 MetaKinetic, Wokingham 18.00 – 20.00 In association with

Upload: digital-juggler

Post on 22-Jan-2015

10.715 views

Category:

Documents


1 download

DESCRIPTION

This is a talk I gave at Berkshire Digital on Thursday 17th Jan 2013 on retail ecommerce trends for 2013 and beyond. The talk looks at 8 key trends based around the theme that ecommerce is increasingly becoming centred on two key battlegrounds: mobile & customer experience. The slide deck provides some interesting examples from well know retailers and includes links to relevant additional reading. I hope you find it useful. Thanks, James.

TRANSCRIPT

Page 1: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

8 Key Trends for Retail E-commerce

in 2013Presented by James Gurd

Owner, Digital Juggler

Thursday 17th January, 2013MetaKinetic, Wokingham

18.00 – 20.00

In association with

Page 2: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

8 Key Trends for 2013

4 for Mobile 1. Responsive design vs. Device Detection 2. Mobile showrooming 3. Mobile marketing budgets increase 4. In-store Wifi ubiquity

4 general trends 5. Delivery/Returns battleground 6. Attribution modeling improves 7. Content gets an ROI 8. Subscription & rental e-commerce growth

“2013 will see a greater shift in focus towards mobile & customer – understanding that user

experience drives ROI and that not being mobile friendly in a multi-device world is like

waving a white flag”

Page 3: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Part 1 – Mobile Trends

Page 4: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Why does mobile matter?

Multiple uses for mobile

Mobile search

Local information

In-store price comparison

Mobile payment

Check-ins

Social sharing

Device fragmentation

There are >6,500 different models of mobile device

Feature phone

Smartphone

Tablet

Variety of screen resolution is increasing e.g. iPad Mini

“Not having a mobile strategy is like closing your site for business one day a week”

Page 5: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

More mobile devices being shipped than PCs

Page 6: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Mobile growth is global

http://www.thinkwithgoogle.com/mobileplanet/en/

Page 7: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

The Internet can help save the high street – The Endless Aisle

80% UK shoppers have reserved products online for in-store collection in 2012 (up from 74% in 2011)

44% shoppers always research online before buying offline

43% use mobiles on the move to compare prices/read reviews (up from 19% in 2011)

Useful reading: Econsultancy’s guide

http://bit.ly/10bwkmu

Always on commerce:

Store finders

Vouchers

Buy & collect

Local search

Click to call

In-store WiFi

QR codes

Kiosks & Tablets

Pop-up shops

Interactive mirrors

Page 8: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 1 – Responsive Design vs. Device Detection

What are the benefits of responsive design? Tailor content layout based on device type Reduce complexity of scrolling for visitor Improved user experience

What are the benefits of device detection? Customise the type of content shown based on the

device type Focus features/functionality based on likely intentions

of visitors Remove page elements that don’t work on specific

devices Add elements to take advantage of device capabilities

e.g. touch-friendly CSS for touch screen For GPS enabled handsets, can pick up user location

via GPS instead of asking people to fill out forms

In 2013 more e-commerce retailers will use responsive design (using either CSS or JavaScript) or device detection to tailor page content based on resolution of browsing device.

Page 9: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Obvious, right?So why aren’t these well-known brands doing it?How their sites look on a small tablet (480x640)

Drag picture to placeholder or click icon to add

Drag picture to placeholder or click icon to addDrag picture to placeholder or click icon to add

Drag picture to placeholder or click icon to add

Page 10: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Example: benefit of responsive design

Page 11: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Example: benefit of responsive design

http://mattkersley.com/responsive/

Page 12: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Example: device detection to improve targeting

Promoting relevant apps

Detect model and OS of phone

Make smarter choices for targeting services & content

If visitor is using an iPhone, don’t offer Android version of app – promote the iOS version.

Page 13: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 2 – Mobile showrooming

Why?

People are used to using their mobile phones to find more information

Can enable social sharing and voting

In-store WiFi is making web-based interaction more comfortable

Not everyone wants to buy in-store and carry out – arranging home delivery can be more convenient

In 2013 more shoppers will use stores to ‘try on’ merchandise, then turn to their mobile to shop around online or access more information before committing to a purchase.

Page 14: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

What will we see more of?

The much maligned QR code

Interactive mirrors

Interactive content from product Suppliers

Augmented reality

NFC tags – when will Apple join the party?

Brands experimenting with ways to increase in-store engagement and use the store environment to drive sales offline and online.

“27% showrooming shoppers will likely make a purchase online using their smartphone or tablet while they are still

out shopping”

Accenture Holiday Shopping Survey, October 2012

Further reading: http://bit.ly/V6domW

Page 15: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Example: Interactive mirrors

Interactive mirror at Republic’s Westfield Stratford City store.

Sportsgirl, Australian retailer, providing interactive mirror for multi-channel shoppers

Page 16: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 3 – Mobile marketing budget increases

Why?

More and more online shoppers are using multiple devices

Mobile is a key touch point in the buying cycle even if it’s not the last click

Mobile is essential for multi-channel retail

Geotargeting can drive local conversion

Mobile search is a big growth area + retargeting

In 2013 a greater % of the marketing budget will be invested in mobile marketing campaigns. Q4 2012 – mobile drove 20% of clicks and 15% paid search spend (spend up on Google & Bing).

Page 17: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 4 – In-store Wifi & Enhanced Services

Why?

More and more online shoppers are using mobile devices in-store

43% in UK said they used mobile for price comparison and product reviews (up from 19% in 2011)

Can be used to capture valuable customer data

74% happy for retailer to send promotion text or email while using in-store WiFi (OnDevice Research)

3G connections can be unreliable – WiFi enhances experience

Useful reading – Econsultancy blog on in-store WiFi

http://bit.ly/VBe5A0

In 2013 more retailers will use technology, such as WiFi, to enhance the in-store customer experience and increase the opportunity for data collection and targeting.

Page 18: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Example: mCasino from Groupe Casino

Making shopping easier

App for use in local grocery stores

Pushes deals & promotions

App knows product availability based on which store the customer is in

Link with loyalty cards to personalise promotions

The app is able to collect customer data – frequency, purchase history, repeat items etc.

Page 19: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Part 2 – General Trends

Page 20: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 5 – Delivery battleground

Why?

“The great online delivery scandal” – IoS

Several issues/opportunities to address: Extended returns period – not just statutory Payment-on-dispatch Online order tracking Text status updates Alternative delivery methods Free returns Easy customer service support – web / phone /

email

In 2013 more ecommerce retailers will focus on improving their end-to-end order management process to increase customer satisfaction with delivery and after-sale care.

Page 21: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Did your Christmas gift order arrive on time?59% said they would not shop with a retailer again if they failed to deliver on time.

Survey of 1,000 UK consumers

Page 22: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Example: Wiggle making life easy for returns

365 day returns policy for unused/undamaged items

Return via Collect+

Generate and print online returns label

Online FAQ that is referenced in the dispatch note

If faulty, refund up to £25 carriage, if over this arrange for collection via Customer Services.

Page 23: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

One step further: Zappos

Free returns for all domestic orders (US)

Pre-paid UPS domestic or USPS domestic label

365 day returns policy

Self-service online

If you order on 29/02 in a leap year, you have until 29/02 of the next leap year!

Credit automatically to card you paid on

The flowers story: http://bit.ly/10uT9BN

Page 24: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

The good: House of Fraser

Buy online, collect in store.

Clear communication: Order confirmation

email Dispatch confirmation

email Order ready

confirmation email Order collection

confirmation text

Returns via store or post

In-store staff understand the policy

Page 25: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

The good: Maximuscle

Text message confirmation day before delivery

Can re-arrange delivery via text reply

Text confirmation of new delivery date + online order tracking reference

1hr delivery window – excellent

Provides name of carrier

Even includes the name of your driver!

Page 26: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

The bad: Maillife

Inaccurate online order tracking

No link to courier live delivery information

Bare minimum 7 days ‘cooling off’ period

Up to 28 days for ‘unsatisfactory’ goods

Only standard delivery option – up to 7 working days

Account log-in doesn’t always work – cookie issue

Page 27: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Smaller businesses can compete: Accessories Online

Page 28: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 6 – Attribution modelling

Why?

At basic level multi-channel funnels are easy to identify using basic analytics tools

What is missing is intelligent modelling to predict the impact of changes to the marketing mix

Data interrogation will enable retailers to assess impact of changes to marketing focus

Attribution analysts will be worth their weight in gold

Added value in multi-channel environment – impact of offline / online marketing on each other

In 2013 more retailers will use analytics tools to understand channel interaction to help them improve the efficiency of marketing investment & campaign planning.

Page 29: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

The basics – assisted conversions

Page 30: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Drilling down into the data

Page 31: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

What questions can it answer?

The enticing….

How does changing my keyword targeting via PPC affect my overall ROI?

What is the best way to use retargeting to support my SEM?

Which email segments are contributing the most to my social media channels?

The downright adrenaline pumping….

How does my offline PR drive online activity?

How is my digital marketing affecting local stores?

Does social media contribute to lifetime value & ROI?

What content is contributing to my KPIs?

Page 32: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 7 – Content Marketing quality not quantity

Why?

Brands are built around content – content communicates values, personality etc

Content is the glue between people and products

Major impact for SEO – Panda update started the ball rolling for ‘thin’ content to be down graded

“In 2013, I predict that marketers will be forced to go outside of their comfort zone to find scalable ways to produce content that can fuel their marketing programs. Some may try outsourcing content creation outside of their marketing teams. Some may go outside their organization's walls to find content to curate. Others may attempt to crowdsource content creation among their user base.”

Pawan Deshpande, Founder & CEO, Curata

In 2013 marketers will spend more time & effort integrating content into their overall marketing plan, with a focus on quality rather than quantity.

Page 33: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Create a bespoke content marketing plan aligned with overall marketing plan. Create content in-house or outsource to specialists.Example – Red Bull

Build from scratch

Tap into customer demand.Use established networks like Quora, LinkedIn, Twitter, Facebook etc.Example: Volvohttp://bit.ly/XHZYye

Crowdsource

“As the demand for more quality content becomes primary to all corporate social, SEO, and demand-generation objectives, CMOs will start to look at the "build vs. buy" scenario of content marketing”

Joe Pulizzi, Founder, Content Marketing World

Buy-in

Tap into existing content pool, buying talent and/or content assets that are ready to use.Example – Google & Zagat

Further reading from Econsultancy: http://bit.ly/W2OKit

Page 34: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Right down to the microcopy

Tweekscycles – Cove STD Frameset

Crumpler – The Gimp 13” Laptop Wrap

Page 35: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Trend 8 – Alternative commerce models

This is already happening – unsurprisingly the US is leading…

Taps into people’s interests & passions and removes the need to make buying decisions

Using expert knowledge to deliver relevant products

Example - Birchbox: Beauty and lifestyle products Free shipping on each order Loyalty scheme with points for each purchase made Website is also provides standard e-commerce shop

In 2013 more websites will spring up that create communities by offering alternative e-commerce models. Two key models are subscription & rental commerce.

Page 36: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Other examples

Shoedazzle.com

Create your fashion profile

Each month celebrity stylists help choose your collection

You can choose which products to receive

No commitment & free two-way delivery/returns.

Page 37: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Other examples

Dollarshaveclub.com

Helping you manage the cost of shaving

Pay a monthly fee

Can upgrade/downgrade at any time to different razors

Handle is free, you pay for the blades

Page 38: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Other examples

The Thing Quarterly

Selling unique content

Object based periodical

Produced by artists, writers, musicians or filmmakers

The object is hand-wrapped and delivered to subscribers

Page 39: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Examples from the UK

Able & Cole

Sign-up and select a food box

Pay a monthly fee

USP – fresh food from local family farms

Don’t have to be in – they will leave in a safe spot

Green angle – boxes are re-used

Page 40: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Examples from the UK

Graze

Sign-up and select a food box

Weekly deliveries

First box half price to encourage sign-up

Health & nutrition based food

All boxes fit through normal sized letterboxes!

Page 41: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

And a New Year bonus!

Already popular in the US and likely to spread

Tapping into the innate desire to be part of your local community

Creating a retail proposition by aggregating the brand power of local businesses

Example – Scoutmob in the US: Mobile app for iOS & Android Local mobile deals Local curated content

Also likes of Giltcity.com – taking LBS to next level, more than just a check-in like Foursquare, Gowalla etc

Trend 9 – Local curated commerce

We will see more websites catering for local audiences with relevant products, offers & content – acting as aggregators for local brands.

Page 42: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

Scoutmob

Page 43: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

For crystal ball addicts…

E-commerce Predictions for 2013 - Shipwire

Master list of 2013 predictions from industry sources - Econsultancy

Digital Marketing & Ecommerce Trends 2013 – CEO, Econsultancy

Top mobile commerce prediction for 2013 – Mobile Commerce Daily

14 predictions for digital marketing in 2013 – Mindshare

4 best practices for digital marketers in 2013 – Mashable

Page 44: Retail Ecommerce Trends for 2013 And Beyond | Digital Juggler

the end…

Thank YouE: [email protected]

M: +44 (0) 7794 539 399W: digitaljuggler.com

T: @jamesgurd

Keep an eye out for #ecomchat – weekly industry ecommerce chat – new topic every week