the shopper story 2017 - criteo shopper story 2017 —uk a global study of the changing nature of...

1 Copyright © 2017 Criteo

The Shopper Story 2017— UKA global study of the changing nature of retail from the

viewpoint of over 10,000 shoppers

2

What is The Shopper Story?Criteo surveyed nearly 10,000 omnichannel shoppers (who shopped both online and offline) across the globe

to find out what they think about shopping.

Copyright © 2017 Criteo Source: Criteo Shopper Story, UK 2017 | n = 1515

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Key Insights for the UK

Omnishopping is ubiquitous – and multi-directional

Retail and brand websites drive awareness as well as consideration

Search engines are not the shopping starting point for the majority

Shopping between sites is the norm

Impulse purchases are almost as prevalent online as in-store

The empowered shopper demands relevance and respect

Copyright © 2017 Criteo

Source: Criteo Shopper Story, UK 2017 | n = 1515

4 &

What is an Omnishopper?Shoppers who use a variety of devices, channels,

and platforms to browse and buy products.

5

Omnishopping is nearly ubiquitous in the UK

83% 83%78%

72%79% 78%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

US UK FR DE BR JP

Omnishoppers(percent of total)

Source: Criteo Shopper Story, US, UK, FR, DE, JP, BR 2017 | n = 9033

Omnishopping is a global phenomenon with the US and UK leading


In the UK, they spend

+13% online +31% offlinethan non omnishoppers

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Omnishopping takes many forms

Webrooming

Research online, buy in store

Scan & Scram

See in store buy it from

another retailer online

Click & Collect

Buy online, pick up at a

store or kiosk

Showrooming

See in a store, buy from

that retailer’s site

Click & Ship

See in a store but buy on

your phone for convenience

It’s all about enabling the shoppers to buy and get the product whenever, wherever they want.



7

Click & Collect is the most frequently done form of UK Omnishopping

Webrooming &

Showrooming are

also common


14%

19%

20%

25%

28%

38%

38%

71%

63%

60%

0% 20% 40% 60% 80% 100%

Make purchases on my phone from within a retail store from that retailer’s website

Make purchases on my phone from within a retail store on another retailer’s site (Amazon, etc.)

Make purchases online after seeing the product at a retail store

Browse products online and then purchase them in a retail store

Order goods online and pick them up in a retail store

Frequency of Cross Channel Purchasing(percent of total)

Regularly On occasion


8 &

What is the Role of Real World Retail?

9

Real-world retail is about the experience and discovery

I look forward to shopping in

stores when I have the time.

I like to try new retail stores.

I prefer to do as much online

shopping as possible.

I enjoy shopping in stores to

understand what is in style.

I like to shop online at

new websites.

I use my phone while in-store

to research products online.



10

Location and immediate need drive store visits in the UK

Omnishoppers seek

convenience and immediacy

from retail stores.

Retailers also need to:

Up the “genius” level of their staff

Optimise product mix

Enable better product experience


10%

22%

26%

27%

34%

39%

45%

45%

55%

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

The ability to checkout from my phone

More unique merchandise

Displays that show how to use a product

Store design

Better ways to try the product

Knowledgeable salespeople

Availability of in-store offers

Immediate need for product

Convenient location

Factors That Would Make Users More Likely to Shop In Retail Store(percent of total)


11 &

What Influences the Shopper Journey?

12

Contrary to the old model, digital channels drive awareness across categoriesDigital has more impact than word of mouth and retail stores across all categories, but TV still scoops up ad spend.

I typically find out about something new when I see it online.


90%

73%68% 67%

55%

82%

45% 43%37% 36%

79%

48% 48%

37%41%

75%

58%

43%

36% 35%

75%

49%44%

36% 37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Websites/Apps Retail stores Advertising People in Real Life Social Media

First Learn About New Product(percent of total)

Apparel & Accessories Consumer Electronics Home Ware FMCG Health & Beauty


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Digital drives product considerationOmnishoppers are eager for information about products. Websites empower them to make product decisions.

When I’m deciding between coffee makers, I go online to compare.


89%

67%65% 63%

49%

89%

44%

35% 37%34%

86%

43%40%

35%38%

84%

44%41% 39%

35%

86%

38% 39%34%

37%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%


Learn More About New Product(percent of total)

Apparel & Accessories Consumer Electronics Home Wares FMCG Health & Beauty


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Digital is also a point of purchase driver, regardless of where the purchase is made

I saw an offer on a retail site for just what I wanted.


44%

18%

9%11%

19%

53%

24%

8% 10%6%

50%

27%

6%

11%

6%

46%

36%

6%10%

3%

52%

24%

5%

14%

5%

0%

10%

20%

30%

40%

50%

60%

70%

80%


Last Influenced Product Purchase(percent of total)

Apparel &Accessories

Consumer Electronics Home Wares FMCG Health & Beauty

Source: Criteo Shopper Story, UK 2017 | n=1515

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The omnishopper journey does not usually start at search

of shoppers who have a type of item in mind do not start at search

80%


69%

77%

80%

31%

23%

20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

I don't have a specific item in mind

I know the type of item I want

I know the exact item

Starting Points For Online Purchases(percent of total)

Other sites Search engine


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Retail sites attract high intent shoppersShoppers turn to retail sites when they are in market to buy. They typically know the item or type of product they want.


0 5 10 15 20 25 30 35

Fashion/lifestyle websites

Social media

A brand website

Search engine

Amazon.com

A retail website

Starting Points For Online Purchases(percent of total)

I don't have a specific item in mind I know the type of item I want I know the exact item


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Retail websites are seen as increasing in influence – even over search and social


13%

15%

18%

19%

23%

27%

33%

38%

38%

39%

45%

50%

24%

22%

20%

18%

16%

15%

10%

13%

6%

6%

6%

4%

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

Newspaper advertising

Magazine advertising

Online ad banners

Online video advertising

TV advertising

Retail stores

Email from retailers/brands

Social media

Friends/word of mouth

Brand websites/apps

Search engines

Retailer websites/apps

Resources More Or Less Influential In Purchase Process(percent of total)

Less Influential More Influential


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How eCommerce sites can improve conversion

Free return shipping

Discounts available

Online chatReviews organized by

relevance

360° product images

Appealing photos

Copyright © 2017 Criteo Source: Criteo Shopper Story, UK 2017 | n=1515

Percent of shoppers that say these website factors are very important.

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Digital vouchers are seen as most influential

50%

53%

55%

64%

64%

65%

70%

0% 10% 20% 30% 40% 50% 60% 70% 80%

I print out coupons from the internet and use them in store

I clip coupons and use them in store

Discount codes/coupons on social media site motivate me to make a purchase

I often search for coupons online before making an online purchase

I look through and sometimes save coupons that I receive in the mail

I always take and use in-store coupons when they are available

Email discount codes/offers motivates me to make a purchase

Attitudes Towards Couponing(percent agree)


7 in 10 are motivated by email offers; 55% are motivated by discount codes through social media and half print out

online vouchers – yet most trade spend is still focused on in store tactics.

20 &

How Do People Shop Online?The journey is increasingly complex

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More than half the time, shoppers do not purchase from the first siteAll categories show a high level of “cross shopping”.

I check out more than one website to see what they have, when I can get it, and what it costs.


47%

44%

44%

56%

50%

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

Apparel

CE

Homewares

FMCG

Health & Beauty

Purchase From The First Website Visited(percent of time)


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43%

22%

14%

9% 10%

34%

19%

24%

8%

14%

38%

21%20%

9%

12%

34%

30%

13%

8%7%

33%

30%

17%

9% 9%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

I want a better selection The product I want is unavailable I want more product information I want to compare shipping options I want to read product reviews

Why Browse Different Websites(percent of total)

Apparel CE Home Goods CPG Health & Beauty

Selection and stock availability drive site abandonment


Product availability is more important in FMCG and Health & Beauty.


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78%

55% 55% 57%62%

77%

53%

73%

87%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Apparel Consumer Electronics Home Goods FMCG Health & Beauty

Frequency Of Making Unplanned Purchases(percent of total)

Sometimes/frequently Online Sometimes/frequently Offline

Impulse purchases almost as prevalent online as in-store


FMCG, Home Goods and Health & Beauty brands need to adopt ways of incenting impulse purchasing

online in ways similar to what they do offline.


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33%20%

55%

27%

23%

19%

28%

45%

44%

61%

17%29%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Apparel CE FMCG Health & Beauty

Are You a Member of Loyalty Programs(percent of total)

Yes, multiple retailers Yes, at one retailer No

Nearly 2/3 of omnishoppers belong to loyalty programmesLoyalty programs are an important step to enacting shopper marketing across channels.


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What Do Shoppers Think About Advertising Relevance and Data Usage?Awareness is high: Omnishoppers demand respect and relevance

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Shoppers recognise retargeting and understand the value

I like it when I see ads for things I was shopping for yesterday. A deal can make me buy now.


3%

8%

21%

37%

0% 5% 10% 15% 20% 25% 30% 35% 40%

It encourages me to go to a store to find out more about the product

I don't mind them if they are on the same device that I used for my initial search

I like receiving them as reminders about products I am considering

I like receiving them if I can get better discounts

Attitudes Toward Retargeting Ads(percent of total)


27

Omnishoppers want control, consent and transparency

Data may be the way to

drive ultimate relevance

for omnishoppers, but

publishers and retailers

need to tread with caution

– and full disclosure.


3%

13%

17%

18%

17%

35%

42%

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

I don't believe that publishers are using my internet activitydata

I am not concerned because I am in control over how mypersonal data is being used

I am OK with them using my personal data because I get avaluable service in exchange

I am interested in learning more about how they are usingmy data

I understand that my data is shared with advertisers and I'mOK with that

I feel that using my personal data invades my privacy

I am concerned about these companies selling my personaldata without my consent

Attitudes Toward Publishers & Retailers Using Browsing Data(percent of total)


28

Use data well — but don’t abuse the privilegeBrands and retailers need to gain the broadest possible view of the shopper so that they receive the most timely, relevant offers –

and think about long term loyalty versus short term gains.

are annoyed by

improper data use

1/3


17%

17%

19%

22%

31%

36%

0% 5% 10% 15% 20% 25% 30% 35% 40%

I am sometimes embarrassed by inappropriate ads

I feel advertisers ignore my personal preferences

I feel I am disrespected by the advertisers

Ads typically don't generate negative feelings for me

I feel advertisers care more about my money than my long-term loyalty

I am annoyed by offers for products I have alreadypurchased

Attitudes Towards Online And Offline Advertising(percent of total)


29

Amazon does not dominate the omni-

shopper journey. Retail sites, building on

long-time offline relationships, are a way

to reach highest intent omnishoppers.

Retail sites reach shoppers

in buying mode

Brands need to consider digital across the full funnel to ensure that they are capturing shoppers where decisions are increasingly made.

Retail sites drive awareness

and point of sale purchase

Takeaways for reaching the empowered UK Omnishopper

With the prevalence of

omnishopping, marketers need

to market to the shopper – not

the device or channel.

The omnishopping

mandate eliminates silos

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Omnishopper data usage is a privilege –

advertising timeliness and relevance is

the demand. Marketers who respect the

shopper earn long time loyalty.

Respect the shopperRelevance drives impulse

Takeaways for reaching the empowered UK Omnishopper

Omnishopper journeys include multiple sites and sessions. A networked approach to commerce marketing enables brands to reach valuable consumers across every channel and device.

It’s an ecosystem

With impulse purchasing almost as prevalent online as in-store, brands and retailers need to use data to present the most relevant and complementary products to encourage “click to cart”.


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About Criteo

Criteo (NASDAQ: CRTO), the leader in

commerce marketing, is building the

highest performing and open

Commerce Marketing Ecosystem to

drive profits and sales for retailers and

brands. 2,700 Criteo team members

partner with 16,000 customers and

thousands of publishers across the

globe to deliver performance at scale by

connecting shoppers to the things they

need and love. Designed for commerce,

Criteo Commerce Marketing Ecosystem

sees over $550 billion in annual

commerce sales data.

Contact: [email protected]


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