Ecommerce Trends and Tactics to Get Ready for the Holidays

§  Holiday sales are increasingly important for web
retailers and interactive marketers.
§  Planning is starting earlier and earlier.

© 2012 Forrester Research, Inc. Reproduction Prohibited
#holidaywebinar

Most sales are still in stores but increasingly
influenced by the web

#holidaywebinar

Online holiday sales have become more important to
overall retail
Total US Retail Holiday Sales ($B)

$401 $406
Other retail sales
$404
Online sales

$52 $60
$27

2005 2010 2011 (est)
Web as % of
6% 13% 15%
holiday total

Source: NRF Holiday Survival Kit 2011, Forrester historical online holiday forecasts
#holidaywebinar

Key ecommerce metrics are much the same
Conversion Rates Cart Abandonment Rates
10% 60% 53% 55%
8%
6% 40%
4% 2.2% 2.9%
20%
2%
0% 0%
2000 2010 2000 2010
Customer service $/order Repeat Shopper Revenue
$4 50%
$3 $3 40%
$3 40% 35%

$2 30%
20%
$1
10%
$0 0%
2000 2010 2000 2010
#holidaywebinar

To grow sales, you need a coordinated effort

§  Channel silos hinder basic,
seamless experiences.
§  All teams should know the
holiday promotional calendar
§  Communicate value
propositions and promotions
across all devices, mediums,
and marketing channels.

#holidaywebinar

Recommendations
§  Have a Cyber Monday and key date plan in place; deep discounts and deals
are now a cost of doing business

§  Recognize that it is difficult to put the “offer genie” back in the bottle, unless you are
Patagonia and you’re willing to trade off sales for the integrity of your brand

§  Attribution modeling becomes really obvious in light of data like this
–  The true value of all of your marketing channels becomes more transparent

§  Don’t neglect search, and especially email, around key dates

§  Ensure that key information is optimized for mobile, especially for multichannel
retailers; that applies to tablet content too

§  Enable sharing purchases through social networks post-transaction; incentivize
shoppers to share their purchases; worry less about “likes”

§  A code freeze is no longer a cost of doing business during the holidays

§  Audit your shipping programs
–  Are you competitive with other offers for similar products?
–  Is a shipping club appropriate?
–  Can customers easily track their packages?
#holidaywebinar

This year though, other days were as high as Cyber
Monday

Cyber Monday

Source: Chase Paymentech Pulse Index; http://pulse.chasepaymentech.com
#holidaywebinar

Shoppers spread their spend over many days

Pre-Thanksgiving Thanksgiving Cyber Monday Cyber Week
(11/18-23) Weekend (11/14-27) (11/28) (11/29-12/4)

This [period] will be my
biggest online 37%
37% 41% 37%
shopping period of the
year

Did you also buy online
earlier [in the holiday 37% 39% 43%
season]? NA

Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2011
#holidaywebinar

Cyber Monday isn’t always viewed as having “the
best deals”

“Of the following, when do you think are the best online deals during the holidays?

(11/18-23) Weekend (11/14-27) (11/28) (11/29-12/4)

Pre-Thanksgiving 21% 8% 4% 6%
Thanksgiving weekend
(including Black Friday) 34% 53% 26% 24%

Cyber Monday 11% 11% 33% 13%

"Cyber Week" 12% 10% 19% 28%

2 weeks before 10% 10% 18%
Christmas 13%

A couple of days before 8% 8% 11%
Christmas 9%

#holidaywebinar

Shoppers are shifting more of their wallet share
online during the holidays

(11/18-23) Weekend (11/14-27) (11/28) (11/29-12/4)

I shopped in stores
less because I
shopped online 66% 72% 76% 59%
instead

I shopped online
instead of in stores
for this purchase 78% 73% 81% 72%
because there were
better deals online

#holidaywebinar

“Cyber Season”

Holiday shopping season actually starts in Q3.
§  AOV increases by $14.08 from Q2 to Q3.
§  95% of ecommerce businesses said AOV drops
following the implementation of a technology project like
a replatforming or redesign.

#holidaywebinar

Recommendations
§  Have a Cyber Monday and key date plan in place; deep discounts and deals are now a
cost of doing business

§  Recognize that it is difficult to put the “offer genie” back in the bottle, unless you
are Patagonia and you’re willing to trade off sales for the integrity of your brand



§  Ensure that key information is optimized for mobile, especially for multichannel retailers;
that applies to tablet content too

§  Enable sharing purchases through social networks post-transaction; incentivize shoppers
to share their purchases; worry less about “likes”


#holidaywebinar

Customers during
Customers
the holidays

#holidaywebinar

Few shoppers are sick of promotions
Which of the following best characterizes your feelings about online deals, promotions, and
specials around the holidays?
(11/18-23) Weekend (11/14-27) (11/28) (11/29-12/4)
Deals are so frequently
offered that it is easy to
always buy with a sale or 6% 6% 5% 5%
promotion

Taking advantage of
deals is even more
important to me now 15% 15% 16% 15%
than in previous years

I love deals! The more,
the merrier 23% 23% 23% 22%

I will only buy if I have a
deal, sale or promotion 17% 21% 22% 18%

#holidaywebinar

Race to the bottom, or rising above it all?

#holidaywebinar

Understand and appeal to different visitor segments

If your website doesn't provide you an opportunity to put a different offer in front of
different segments based on user data, you are at a critical disadvantage.

1. New Customer
§  Highlight service differentiators and trust factors.
§  Test acquisition offers to create long-term value.

2. Holiday Shopper
§  Greet the customer with welcome-back message.
§  Highlight email signup to keep them engaged all year.

3. High Value
§  Thank and reward high-value customers.

#holidaywebinar

Here’s how…

§  Personalize return trips
based on average cart or
lifetime purchase values.

§  Badge products to promote
seasonal callouts. Test
different badges on different
products.

§  Highlight the best gifts of the
season, stocking stuffers,
limited-time offers.

#holidaywebinar

Recommendations
§  Have a Cyber Monday and key date plan in place; deep discounts and deals are now
a cost of doing business







#holidaywebinar

This is more like it

#holidaywebinar

While shoppers “spearfish,” their purchase path isn’t
straightforward

Hard goods Soft goods

One
One touchpoint
touchpoint
Two+ 54% 46% 60% 40%
touchpoints
Two+
touchpoints

Source: Forrester eBusiness Research in collaboration with GSI Commerce Holidays Attribution
Research (Q1 2012)
#holidaywebinar

What are you trying to measure?

Measure inbound channels by
more than just conversion rates.
§  Social is likely an initial
touch point that influences
behavior and ultimately
customer acquisition.
§  Keep customers in a
ready-to-buy state.

#holidaywebinar

Shoppers frequently find out about holiday deals
through email
How did you learn about these special deals [from today’s purchase]?
(11/18-23) Weekend (11/14-27) (11/28) (11/29-12/4)

I visited the retail site
44%
I visited the retail site I visited the retail site
44%
47%
directly
directly directly 39%
directly
Via email from the
37%
Via email from the Via email from the
39%
Via email from the
33%
retailer
retailer retailer 46%
retailer
Through search
11% Through search Through search
10% engines
Through search
12%
engines
engines 8% engines
Someone told me
9% Someone told me
10% abouttold me
Someone Someone told me
10%
about it
about it it 9% about it
Other email 8% Other email 9% 9%
Other email 8% Other email
Deals or shopping
6%Deals or shopping
7%Dealswebsite
or shopping Deals or shopping
7%
website
website 6% website
Retailer's social
4% Retailer's social 3% Retailer's social Retailer's social
3%
presence
presence presence 5% presence
Through traditional
4%Through traditional
Through traditional
4%
media (eg TV)
media (eg TV) media (eg TV) 3% media (eg TV)
Other social site 3% Other social site 3% 3%
Other social site 2% Other social site

#holidaywebinar

This is reflected in clickstream data as well
Percent of total transactions (hard goods)
General holiday Thanksgiving
Touchpoint (s) Cyber Monday
season weekend
Paid search alone 17% 17% 17%
Paid search + other 15% 16% 15%
Natural search alone 14% 13% 13%
Email + other 12% 12% 13%
Natural search + other 11% 12% 10%
Email alone 7% 8% 12%
Social alone <1% <1% 1%
Social + other <1% <1% <1%
Others (CSEs, affiliates,
8% 9% 8%
display) alone
15% 12% 11%
display) + others
100% 100% 100%
Research (Q1 2012)
#holidaywebinar

Email matters even more for soft goods
Percent of total transactions (soft goods)
season weekend
Social alone 1% 1% 1%
4% 5% 4%
display) alone
20% 22% 19%
display) + others
100% 100% 100%

Research (Q1 2012)
#holidaywebinar

Search matters even more than email for hard goods
season weekend
8% 9% 8%
display) alone
15% 12% 11%
display) + others
100% 100% 100%

Research (Q1 2012)
#holidaywebinar

Search has a smaller influence on soft goods
season weekend
4% 5% 4%
display) alone
20% 22% 19%
display) + others
100% 100% 100%

Research (Q1 2012)
#holidaywebinar

Search and email have higher AOV in Q3 & Q4

#holidaywebinar

Echo the look and feel of email campaigns

#holidaywebinar

Reinforce paid search creative site-wide

#holidaywebinar

Recommendations




§  Ensure that key information is optimized for mobile, especially for
multichannel retailers; that applies to tablet content too



#holidaywebinar

More mobile shopping during the holidays

Did you shop online with your mobile device over Thanksgiving Weekend
(Thursday - Sunday, November 24-27, 2011)?

Thanksgiving Weekend 28%

Cyber Monday 18%

Cyber Week 2010 9%

Cyber Week 16%

Source: Bizrate Insights/Forrester Holiday Shopping Flash Surveys, Q4 2010 and Q4 2011
#holidaywebinar

US mobile commerce is expected to grow to $31
billion by 2016

$31
$25
$19
$14
$10
$6
US$ (billions) $3

2010 2011 2012 2013 2014 2015 2016
% of eCommerce 1% 2% 3% 4% 5% 6% 7%

Source: Forrester Research Mobile Commerce Forecast, 2011 To 2016 (US)
Note: eCommerce includes mobile media and content, retail, travel, coupons/deals, and services.
Does not include mobile ring tones, mobile gaming, or mobile video

Source: June 17, 2011, “Mobile Commerce Forecast: 2011 To 2016” Forrester report
#holidaywebinar

Mobile conversion rates are lower because the
phone supports store shopping more

Please note which of the following you do with your mobile device(s) with respect
to any online retailer.
“Small screen” owners* Tablet owners

Base 1,725 recent online buyers with web- 456 recent online buyers with tablets
enabled mobile phone
Read emails from retailers 64% 63%

Receive texts with special offers from 49% 38%
retailers
Locate retail store/hours/directions 49% 54%

Browse or research products 47% 70%

Compare prices while shopping in 30% 29%
stores
Place orders for physical goods 17% 47%

*”Small screen” includes iPhones, Android-based phones, Blackberries or other phones with web-browsing capabilties
Source: Bizrate Insights/Forrester Mobile Commerce Online Flash Survey, Q4 2011
#holidaywebinar

Social sharing can be promising on mobile devices

Talbot’s incorporates “likes”
vs shares on Facebook;
JCPenney also integrates
Kaboodle and StyleHive

#holidaywebinar

Eliminating text and showcasing images is beneficial
for mobile browsing

Gap enables browsing of
images (without text) and
provides recommendations
to support greater time on
site

#holidaywebinar

Alternative payments are likely to be impactful on
mobile devices

PayPal helps to reduce
keystrokes at checkout on
mobile devices; PayPal
penetration when offered on
mobile devices is higher
than penetration on the
desktop site

#holidaywebinar

Staples opted to change the tablet experience
Desktop site Tablet site

Horizontal scroll; collapsed
dropdowns

Elimination of units; large
buttons to support cross-
channel

#holidaywebinar

Encourage power mobile users to create a shortcut
to your site from the homescreen

#holidaywebinar

Tablet optimization means tweaks like spacing lines
appropriately for a touchscreen

#holidaywebinar

How do tablet and mobile compare?

#holidaywebinar

Prep for tablet and smartphone traffic

#holidaywebinar

Recommendations





§  Enable sharing purchases through social networks post-transaction;
incentivize shoppers to share their purchases; worry less about “likes”


#holidaywebinar

Some say “the silence is deafening”

#holidaywebinar

Unfortunately, social has yet to make a mark on the
web marketing funnel
season weekend
8% 9% 8%
display) alone
15% 12% 11%
display) + others
100% 100% 100%

Research (Q1 2012) Reproduction Prohibited
© 2012 Forrester Research, Inc.
#holidaywebinar

Social has a bigger impact on soft goods

season weekend
4% 5% 4%
display) alone
20% 22% 19%
display) + others
100% 100% 100%

ResearchForrester2012) Inc. Reproduction Prohibited
© 2012 (Q1 Research,
#holidaywebinar

Consumers reinforce this data
How did you learn about these special deals [from today’s purchase]?
(11/18-23) Weekend (11/14-27) (11/28) (11/29-12/4)

44%
I visited the retail site I visited the retail site
44%
47%
directly
directly directly 39%
directly
Via email from the
37%
Via email from the Via email from the
39%
Via email from the
33%
retailer
retailer retailer 46%
retailer
Through search
11% Through search Through search
10% engines
Through search
12%
engines
engines 8% engines
Someone told me
9% Someone told me
10% abouttold me
Someone Someone told me
10%
about it
about it it 9% about it
Other email 8% Other email 9% 9%
Other email 8% Other email
Deals or shopping
6%Deals or shopping
7%Dealswebsite
or shopping Deals or shopping
7%
website
website 6% website
Retailer's social
4% Retailer's social 3% Retailer's social Retailer's social
3%
presence
presence presence 5% presence
Through traditional
Through traditional
4%
media (eg TV)
media (eg TV) media (eg TV) 3% media (eg TV)
Other social site 3% Other social site 3% 3%
Other social site 2% Other social site

#holidaywebinar

Consumers do however report sharing through social
networks

I have shared online shopping deals with others through my social network
(i.e. Facebook) within the last month.

Pre-Thanksgiving 32%

Thanksgiving Weekend 31%

Cyber Monday 32%

Cyber Week 30%

#holidaywebinar

Consumers say they like to read what about what
their friends recommend
Which of the following do you agree with in response to social media posts,
"likes," or links to products or retailers made by friends?

It is a great way to discover new products, brands, trends,
or retailers
48%

It is a great way to discover sales and promotions 40%

I have bought something based on a friend's post 17%

No reaction, I usually ignore these types of updates 15%

I notice the post, but generally do not take great interest in
it
11%

I don't like these posts 8%

Base: 5,578 recent online shoppers who use social media
Source: Forrester/Bizrate Insights Social Commerce Flash Survey, Q3 2011
#holidaywebinar

Consider social log-in to increase sharing

§  80% of U.S. social network users
prefer to connect to brands through
Facebook.
§  40% of consumers prefer social
log-ins rather than creating a new/
guest account.
§  When consumers can use social
log-in, time on site and page view
metrics more than double.

monetate.com/infographics

#holidaywebinar

How “agile” are you?

#holidaywebinar

Consumers now expect free shipping

“Which of the following do you expect from a retailer or brand?”

Free shipping on all my orders 55%

Free returns on all my purchases 52%

To see the same assortment of products no matter
44%
where I shop

Physical stores to be able to place orders online for me 32%

Physical retailers to price match if I find a price cheaper
28%
on my mobile device

Base: 4,731 US online adults

Source: Q1 2011 US Retail Online Survey
#holidaywebinar

Free shipping offers were popular this past holiday
season

Which types of special deals did you take advantage of for today's purchase?

(11/18-23) Weekend (11/14-27) (11/28) (11/29-12/4)

Free shipping with no
minimum order value 20% 26% 33% 23%

Free shipping with a
minimum order value 25% 29% 26% 25%

A discount on my total
purchase (% off or $ off) 30% 37% 46% 30%

#holidaywebinar

Many retailers offered free shipping with no threshold

#holidaywebinar

Shipping clubs are growing
“Are you a member of a shipping club or program (i.e.
Amazon Prime, Shoprunner or Williams-Sonoma
Reserve)?” “How does your membership in a shipping club or
9% program affect your shopping frequency?”
2010

I shop more (or plan to shop more)
with the retailer(s) whose shipping 55%
club I have joined

91%
N= 10,017 recent online buyers The shipping club has not changed
my shopping behavior with that 40%
12% Yes retailer
No
2011

I shop less with the retailer after
5%
joining the shipping club

88%
N= 15,520 recent online buyers N: 714 recent online buyers

Source: Bizrate/Forrester Online Retail Holiday Study, Q4 2010 and Q4 2011
#holidaywebinar

Shipping offers: Test what are you trying to achieve

§  Test to know where to put the
thresholds (which offers,
based on what costs?).
§  Test to learn quickly.
Remember, peak traffic differs
from off-peak.
§  Target based on visitor
geography to leverage
location, logistics for maximum
efficiency.

#holidaywebinar

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