From a talk given at the Digital Summit in Atlanta, May 2013

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Ecommerce 2018
Optimizing forTomorrow’s Consumer
Stefan.Tornquist (at)
Econsultancy
VP Research US
twitter: marketingStefan

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Econsultancy – Research,Training & Best Practice

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The next 40 minutes…
 Consumer of the future
 What your competitors are planning
 A bunch of thoughts on optimization

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The consumer of the future…

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Gone mobile…
Global installed base of mobile devices is
passing desktop/laptop May, 2013
Source: Kleiner Perkins http://techcrunch.com/2012/12/03/mary-meekers-year-end-trends-report-mobile-tablets-24-of-online-shopping-on-black-friday-up-22-from-2012/

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Most customers will be mobile…
50%
…of teen smartphone owners use
them as their primary access
to the Internet
PEW, 2012 – note, 47% of teen mobile owners have smartphones, totals at 37% of all teens

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…and product research
78%…of consumers use the Internet to
research products, regardless of
where they’re buying them
Source: Cisco http://newsroom.cisco.com/release/1128065

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They’ve taken control of shopping…
55%…of smartphone owners use them to
run price comparisons in store
Cisco http://newsroom.cisco.com/release/1128065

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6%…of Black Friday 2010
online purchases were
made via mobile devices
…bought mobile
Cisco http://newsroom.cisco.com/release/1128065

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24%
…and gotten used to it.
…of Black Friday 2012
online purchases were
made via mobile devices
Source: Kleiner-Perkins http://tctechcrunch2011.files.wordpress.com/2012/12/screen-shot-2012-12-03-at-8-09-57-pm.png

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…and bought social
#1Most influential source on buying
decision…online ratings and reviews
Cisco http://newsroom.cisco.com/release/1128065

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…and bought social.
#1Most influential source on buying
decision…online ratings and reviews
More influential than friends
and family (52% to 49%)Cisco http://newsroom.cisco.com/release/1128065

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They’re not like you and me…The Millenials
Send 50 texts a day
Are more influenced by word of
mouth, far less by TV
41% have bought via smartphone
Using email less over time, chat more
Mind targeting less
70% sleep with their phones
Do You Sleep With Your Cell Phone? | Pew Research Center

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…and buying products wherever they find them
Direct to consumer sales by manufacturers
are the fastest growing segment in online
retail…
15% annual growth
Do You Sleep With Your Cell Phone? | Pew Research Center

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In the next 5 years, your competitors…

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…all become mobile-first
“In 2009 mobile commerce barely existed.
Today, mobile touches nearly one in three
purchases on eBay.”
Steve Yankovich, VP of mobile for eBay, December 11, 2012.

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Make branded content standard…
79%…of marketers report increasing
branded content budgets at a
moderate or aggressive pace.

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86%
59%
54%
37%
35%
Follow social consumers…
Econsultancy and Adobe, 2012

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Communities of Note over 50MM users
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Size of bubble = estimated user base (Facebook 1 billion)
To new places…
Econsultancy, 2013

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Unify databases and data
73%…agree that “Consolidated
customer data is vital”
Econsultancy, 2013

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Update infrastructure
52%
…companies changing their online
commerce solution within 2 years.
Emphasis on content management
features and social media integration.
Source: http://www.destinationcrmblog.com/tag/omnichannel/

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A Bunch ofThoughts on Optimization

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Currently for every $92 spent acquiring
visitors, only $1 converting them.
Econsultancy, 2013

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1. Invest in theTest
32% v 67%…percentage of retailers with over 2% conversion rate, low vs
high spend on optimization
Econsultancy, 2013

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1. Invest in theTest
Econsultancy, 2013

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2.Testing is…people and process
60% v 20%…percentage of retailers with conversion rates under 1%...those
without a testing process in place vs those with a process
Econsultancy, 2013

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2.Testing is…people and process
 Perceived control over CR
 Someone directly responsible for CRO
 Incenting staff for CR
 Structured process
Top correlations with high conversion rates are all related to people, not tech…
Econsultancy, 2013

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2.Testing is…people and process
Econsultancy, 2013

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3. Optimization includes personalization
19%…average increase in sales for
companies employing website
personalization
Econsultancy, 2013

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4 .Take the easy wins
#1 - Social sharing
#2 – Credibility
indicators
#3 – Form Fields
Econsultancy, 2013

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4.Take the easy wins 2:Video
 Zappos +6% - 30% increase
 Ice.com +400% conversion
 Ice.com -25% return rate
 #1 Tip: Show the product in use, not in space

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5. GetAhead of Mobile
130%…PayPal adjusted their 2012
mobile payments estimate
from $3B to $8B…in 2012
http://www.nxtbook.com/nxtbooks/nrfe/STORES2013_20130114/

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5. GetAhead of Mobile
25%…of marketers report having a
defined strategy for mobile
experience or marketing.
Econsultancy, 2013

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5. GetAhead of Mobile
Econsultancy, 2013

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6. Don’t Forget Good Old Site Search
Econsultancy, 2013

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6. Site Search 1,2,3
 Mobile can change everything
 Higher conversion rate
 Great learning tool
 Too many results / none?

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7. Get SmartAbout Recommendations

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Thank you!
Stefan Tornquist, VP research (US)
stefan.tornquist (at) econsultancy.com
@marketingStefan