A look at where eCommerce was and where it's headed. We walk through how consumer behavior has changed over the past 5 years, trends from 2016, predictions from 2017, and 7 actionable steps to creating a proactive marketing strategy.

1. BOLD PREDICTIONS
FOR 2017

2. TODAY’S PRESENTERS

3. Points To Be Addressed
Theonlinecustomer Lookbackat 2016 Predictions for the
upcomingholidays
and 2017
Strategies to adopt a
proactiveapproach
Recap and Takeaways Q&A
2 31
5 64

4. Don’t Forget Your Action Guide!
Only available to registrantsand attendees for immediate access
A guide containingthe 7 most important action
items that you can takefrom thewebinar, outlined
as 7strategies, so you haveclear guidanceof:
• The strategical initiatives that will help your business to
transition to predictive marketing.
• The metrics and KPIs you should keep in mind to report
success.
• The tools and resources you’ll need to execute each
strategy, from the most simple to the most complex.
Use the link shared on the chat window
to download now!

5. The Online Customer 1

6. Ecommerce Over the Past Five Years
eCommerce
represented 4.6%
of retail sales.
$194.7 billion in
ecommerce sales
2011 2012 2013 2014 2015
eCommerce
represented 5.2%
of retail sales.
$225.5 billion in
ecommerce sales
up 15.8% from 2011
eCommerce
represented 6%
of retail sales.
$262.5 billion in
ecommerce sales
up 16.9% from 2012
eCommerce
represented 6.5%
of retail sales.
$304.91 billion in
ecommerce sales
up 15.4% from 2013
eCommerce
represented 7.3%
of retail sales.
$341.7 billion in
ecommerce sales
up 14.6% from 2014

7. Retail YoY Growth

8. Let’s Look At Just eCommerce

9. Over the Past 5 Years, Consumers Have…Consumers Have…
o Moved from browsingonlineto buyingonline
o Increased their average spend
o Moved from desktop to mobileto multi-deviceshopping
• 70% of consumers indicated they personally use three or
more devices
o Demanded apersonalized experience
• 23% of consumers want ads to be tailored to the content
they’re viewing
• 21% expect ads to be tailored to their location

10. Consumers Demand Personalization
Across the board: in-store and online
ONLINE
• 64% want website optimization by
device
• 59% want promotions for items the
customer is considering
• 48% want reminders to order items
that they might have run out of
and need to be refilled
IN-STORE
• 82% want automaticdiscounts at
checkout for loyalty points
• 57% want real timepromotions
• 54% want complementary item
suggestions (personal shopper
experience)

11. Consumers Demand Personalization
Across the board: in-store and online
ONLINE
• 64% want website optimization by
device
• 59% want promotions for items the
customer is considering
• 48% want reminders to order items
that they might haverun out ofand
need to be refilled
IN-STORE
• 82% want automaticdiscounts at
checkout for loyalty points
• 57% want real timepromotions
• 54% want complementary item
suggestions (personal shopper
experience)
This is Where Predictive Marketing Comes Into Play

12. Look Back at 2016 2

13. 2016: Shifting Trends in eCommerce
Trend #1:Consumers Now Expect Immediate Delivery
Delivery Expectation:
In 2013 Four-day delivery was considered exceptionally fast
In 2016 Next-day delivery is nowexpected
In 2017 Same-day delivery is predicted as the newnormal

14. 2016: Shifting Trends in eCommerce
Trend #2:Clicks to Bricks
Reversal of influence: Thebrick &
mortar world isnow emulating the
digital world
• Immersive online user experiences (UX) spark
curiosity in shoppers to explore, return, and share
• Physical stores now implementing more features
like colorful super graphics, dynamicfloor
sequences and lighting, create a visual world like
a website

15. 2016: Shifting Trends in eCommerce
Trend #3:Increased Omni-channel Demand
Omni-channelretail: servingcustomers
seamlessly and interchangeably across channels
(e.g desktop,mobile,brick & mortar store)
• Only 5% of companies have a fully executed
omni-channel strategy.
• 88% of all retailers say they can no longer rely on
traditional sales channels to drive growth.
• 71% of shoppers see in-store stock level information
as critical to their purchase decisions.
• Less than 33% of retailers are able to provide such
stock level information.

16. 2016: Shifting Trends in eCommerce
Trend #3:Increased Omni-channel Demand
• Paradigm shift istaking place: Thinkingin
terms oflogistics and merchandising >terms
of omni-channel logistics and merchandising.
• Real Estate Impact: morespacefor 3PL
distribution centers will beneeded and have
to be located in densely populated areas.
• Summary: Less squarefootageofretail space
and moresquarefootageoflogistics space
will beneeded movingforward.

17. 2016: Shifting Trends in eCommerce
Trend #4:Social Commerce
2016 sawbreakthroughs in sales through Social
Commercechannels.Many social networks
opened their systems for selling.
• Pinterest / Twitter: both have buttons that
companies can use to post and sell their items
directly.
• Facebook:eCommerce platforms like Shopify and
Bigcommerce now have Facebook selling built-in.
• Instagram: new shoppable photos, a hint of things to
come

18. 2016: Shifting Trends in eCommerce
Trend #5:Beacon Technology
• Physical stores can implement physical beacons
• Shoppers enter thestoreand their mobile
devices pick up thebeacon signal
• Greetings, product details,special discounts &
promotions then becomeavailableon the
shopper’s device
• Online and Offlinechannels and experiences
are becoming morefully integrated

19. 2016: Shifting Trends in eCommerce
Trend #6:Niche Flash Sales
• Biggest success with flash sales
has come from ecommercesites
that don’t generally havesuch
sales.
• Runningflash sales for regular
customers creates an urgency
that is hard to pass up.

20. 2016: Shifting Trends in eCommerce
Trend #7:Virtual Sales Forces
• Online support teams no longer wait for
customer questions.
• Companies beginning to treat online
employees like brick and mortar sales
people.
• Virtual sales forces are now becoming very
proactive.
• Instead of waiting for customers to buy, sales
people are using chat modules and other
tools to coaxcustomers towards a purchase
in real-time.

21. 2016: Shifting Trends in eCommerce
Trend #8:Cross Border Commerce
• Global tradeby traditional methods has hit along,stagnant
plateau.
• Conversely,B2Band B2C onlinepurchasingis experiencing
explosivegrowth.
• By 2020, projected onlinecross-border commerce
purchases by region.
o North America: $140 billion
o Europe: $180 billion
o Asia-Pacific: $245 billion
• Morefulfillment centers eCommercefulfillment centers will
be required in proximity to major international airports.

22. 2016: Shifting Trends in eCommerce
Trend #9:Real Time Analytics
• Reviewing Analytics amongtheC-Level ofa
company is longer a once-a-month activity.
• Merchants need moreadvanced real time
analytics
o Track customers behavior on the site
o Target and promote to real-time preferences
o Respond quickly to exits to re-engage with clients
• Real Time Analytics are becoming an
essential norm

23. Bold Predictions
For the upcoming holidays at 2017 3

24. Predictions For the Upcoming Holidays & 2017
Online shopping continues to grow, the number of retailers vying for
attention continues to grow, 2017is the year to differentiate.
1. One-to-One Mass Personalization will be theNewNorm
2. Creating aseamless experience across devices is key
3. Retailers will embracePredictive Marketing to Stay Competitive&
Reduce theRisk ofChurn

25. One-to-One Mass Personalization
Retailers who embracesegmentation and personalization are
going to start winning in the retail space.
Where:
• Website optimization
• Email marketingstrategy
• In-storeexperience
How:
Get access to your datain an actionableway to allowyou to make
theright decisions to interact with your customers in theright way.

26. Creating a Seamless Experience Across Devices
Consumers are shopping on multiple devicesand expecting the
same levelof support and service regardless.
1. Make sureyou haveamobileresponsivesite
2. Createthe right incentives to ensurethat your customers sign
in and stay signed in when browsing, regardless ofdevice.
a) One step checkout
b) Automaticloyalty points and coupons applied
c) Personal shopper experience
3. If you haveabrick & mortar presence,hookup your POS datato
get afull view ofhowyour customers shop.

27. Predictive Marketing to Keep a Competitive Edge
“PredictiveMarketers are 2.9xmore likelyto report revenue growth at
rates higher than the industry average”
1. Start With Your LowHanging Fruit:
a) Incorporate dynamicproduct recommendations into your existing automated campaigns
b) Create a win-back series based on predicted churn, instead of guessing
2. Test,Test, and Test SomeMore
a) Not every campaign is going to be a knockout, but you can do things to optimize foundational
campaigns, such as best customer, win-back, welcome series, cart recovery, as you go.
3. Get Creative
a) Just because a segment of your customers may be small, doesn’t mean they aren’t a lucrative piece of
your business. Speaking to the right audience with the right message can pay offin way that blasting
your entire database cannot.

28. Additional Strategies
To adopt a proactive approach in 2017 4

29. Strategy #1: Dynamize Your Segments
FOCUS ON 3 TYPES OF DATA
Transactional
• How they bought?
• How they paid?
• When did they makethe
purchase?
• What discounts did they
use?
Interaction
• What did they lookat?
• How did they find us?
• What are thekey touch
points for conversion?
External
• What’s thefeelingfor my
brand?
• What social media trends have
an impact on purchases?
• What are main concerns /
advantages?
ACTION: With data mining,
identify high value customers,
create clusters and create loyalty
programs around this.
ACTION: Creating segments based
on similar behaviors to enable
personalized marketing based on
the shoppers interest.
ACTION: Empower yourself
with the right analytical tools to
identify customer sentiment.
Centralize data collection and
processing in 1 main platform.

30. Strategy #2: Provide Real-Time Rewards
INNOVATE WITH INCENTIVESLEVERAGED BY DATA
Serve content at the right time,
and in the right way.
Offer personalized experiences and
associate with partners that help
you to raise your positioning.
Make rewards quick and
frictionless for the consumer.
GOALTO ACHIEVE: Know more about your customer’s
interests, in order to create a richer set of experiences and a
value proposition.
WARNING: To succeed at this, IT and marketing collaboration
must be enhanced. Don’t work as silo teams.

31. Strategy #3: Provide Service Enhancements
GO BEYOND POINTS AND DISCOUNTS, THE RIGHT SHOULD TELL…
Behavior patternsthat are unique
to a segment of your customers,
and that the brand is not
capitalizing on.
Howcustomers’ needs change
over time, even if it is at a fast pace
Customers’ passion pointsand
whomyou should partner with to
leverage the experience (quality
over quantity)
Post Office LTD, UK Logistics O2 (Telefonica UK) Telecommunications

32. Strategy #4: Automated Retention
Profitabilitycomes with retention, and higher online competition just
makesit easier for the customer to switch, thus…
Identify scenarios (e.g abandoned
carts) where customer spend and
engagement are low. Create
dynamicsegments accordingly.
Track their browsing behavior and
identify what causes low spend, low
engagement and what might call
their attention.
Plan campaigns that tackle the root
of the problem and allow youto
stay relevant and capitalize on
customer intent.
ACTION FOR CURRENT CUSTOMERS: Create email campaigns
for replenishment or with dynamic product recommendations.
ACTION FOR PROSPECT VISITORS: Create onsite banners or social
retargeting campaigns.

33. Strategy #5: Smarten Your Search
GO BEYOND THE DEFAULT PRODUCT RECOMMENDATIONS BY CATEGORY
Use tools or softwarethat through smart
technology (e.gmachine learning)allowyou to:
• Identify customer preferences beyond the default
product category
• Build a more diverse catalog of recommended
products
• Increasing the likelihood of higher conversionrates
and average order value
ACTION: Partner with someone who alreadyhas the
know-how and resources to capitalize upon smart search.
Plus, polish content creation and delivery.

34. Strategy #6: Conversational Commerce
Enrich Your Knowledge About Your Consumer Needs With Contextual Information
Messaging-apps or virtual assistants
(e.g Apple Siri) act as data
collectors.
Rules and artificial intelligence (AI)
allows a chatbot to interact with
users through a chat interface.
Engagement and interaction is
tracked.
Resolve customer service issues
and provide recommendations in
real time.
ACTION FOR CURRENT CUSTOMERS: Work closely with key partners, such as payment gateways, to enable mobile transactions through
messaging-apps (e.g Uber & FB MSG). Plus, consider that conversational apps are set around the way customers organize their lives.

35. Strategy #7: Create Your Predictive Model
REQUISITES
• An organizational culture where data is
democratized.
• Move from reactive social listening and look at the
‘why’ behind it. This might uncover personality
traits.
• Be open to act on insights that may seem
counterintuitive. This sets the breeding ground for
innovation and differentiation.
GOALTO ACHIEVE: To uncover the ‘next best action’
scenarios, using customer data to indicate the best offer
or communication to send.

36. Strategy #7: Create Your Predictive Model
GOALTO ACHIEVE: To uncover the ‘next best action’ scenarios, using customer data to indicate
the best offer or communication to send.
1. Define data inputs (transactional,
demographics, social, media, etc)
and collect. Make sure to validate this
input with business stakeholders to
avoid junk data.
2. Train a statistical model to analyze
and compute the inputs, once it has
assigned weights to the different
variables.
3. Test the performance of the model
on a different data set, to identify
errors within the model (overfeed,
variance, etc).
4. Once satisfied, implement the model
to start predicting likelihood of
conversions and creating dynamic
segments.

37. An additional resource for you 5

38. Don’t Forget Your Action Guide!
Only available to registrantsand attendees for immediate access
A guide containingthe 7 most important action
items that you can takefrom thewebinar, outlined
as 7strategies, so you haveclear guidanceof:
• The strategical initiatives that will help your business to
transition to predictive marketing.
• The metrics and KPIs you should keep in mind to report
success.
• The tools and resources you’ll need to execute each
strategy, from the most simple to the most complex.
Use the link shared on the chat window
to download now!

39. TIME FOR A Q&A
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plumtreegroup.net
windsorcircle.com
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