How Changes in Consumer Behavior at Retail Will Impact Your Business
Holiday 2011
Online Portion of the Pie Grows
Better deals and convenience online Consumers expect free shipping and returns (52% of surveyed)
Shipping clubs (Amazon Prime, Williams-Sonoma Reserve, etc.) 55% shop more with companies that have shipping membership programs
Social commerce struggles to find measurable success
Social networks are negligible % of source of sales
“Silence is deafening”
Mobile is making everyone’s life challenging
Mobile sales = $6B and ~2% of online retail Mobile is about driving cross-channel efforts Tablet users:
– 49% spend more time on internet
– 42% spend same amount of time on internet
Companies making headlines:
Amazon: 33% of shoppers
Google: 44% of web users
Facebook: 43% of web users
What can be learned from them?
1. Innovation iPad app in Nordstrom stores to help customers choose sunglasses
2. Simplicity “lowest common denominator”
3. Online sales tax won’t change game 38% would continue to shop online 39% don’t know if it would change behavior
4. A lot of hype around these companies
Shopping is now Omnichannel, which includes shopping from home, on-the-go, and in store.
2012 Predictions:
1. Bye Bye Best Buy-“Best Buy to Cut Costs and Close Stores” (Associated Press)
2. Deep discounts, deals, and free shipping are cost of doing business (thanks to Amazon.com)
3. Email and search will continue to drive traffic
– Google/paid search budgets will get bigger
4. Mobile optimization
– Consumer sessions across multiple devices (tablet, mobile, computer)
5. ROI for cross-channel investments? – Is this just a cost of doing business?
6. Facebook and social media impact is strong but not easily quantifiable or direct
For more information, please contact me.
