Title: How to Finesse this HighStakes Holiday Season and the year ahead
1How to Finessethis High-Stakes Holiday Season
(and the year ahead)
- Lauren Freedman, president, the e-tailing group
- Kelly ONeill, ecommerce product marketing
director, ATG
2Todays Presenters
- Lauren Freedman, president, the e-tailing group
- The e-tailing group is focused on providing
strategic and e-commerce solutions to online
merchants as well as businesses targeting that
market. Lauren is a veteran and visionary within
both the retailing and internet industries and is
a frequent resource to the trade and business
press and her speaking engagements have spanned
the globe. - Kelly ONeill, ecommerce product marketing
director, ATG - Kelly leads the product marketing efforts for the
ATG Commerce Platform and Suite. Key to this
role is Kelly's constant dialogue with customers
and prospects and an understanding of the
evolving product needs in the market.
3Agenda
- State of the multi-channel industry holiday
2008 - The 3rd Annual Mindset of the Multi-Channel
Holiday Shopper Survey - methodology, summary,
and highlights - 9 Practical Plays that are merchant musts for
the season with examples of best practices and
standards - Checklist for pre/post holiday success
- Delivering Value beyond Price
4state of the multi-channel industry holiday 2008
- Tense time for retailers with challenged
consumers and retail bankruptcies where
traditional holiday 08 sales are expected to be
up a meager 2.2 vs. 4 in 07 as apparel,
accessory and home goods face difficult times3 - Fourth quarter 08 is expected to be the weakest
holiday season in 17 years with sales up just
1.5 compared with 1.2 in 19914 - Gift card sales are expected to be down 5 to 25
billion5 - Online sales will grow 9 in 2008 low by industry
standards but a lot stronger than total sales4 - 2008 eCommerce sales will reach 158.3 billion,
up from 136 billion in 2007 where a 12 online
sales average annual growth rate from 2007-2012
is anticipated1 - Consumer growth coming online is projected to be
just 3.1 as 193 million US Internet users
(2/3rds of the population) already frequent the
web
1) US Dept of Commerce 2) eMarketer 3) NRF 4)TNS
Retail Forward 5) Archstone Consulting/Chicago
Tribune
5survey methodology sample
Over 1,000 adults (66 female/34 male) who shop
online 4 or more times per year spending 500
annually completed an online survey
- household income
- 21 under 50,000
- 45 50,000 - 100,000
- 29 more than 100,000
- 5 prefer not to respond
- education
- 21 some high school/college
- 24 college graduate
- 21 some graduate school
- 29 post-graduate degree
- 5 prefer not to respond
- presence of children age 18 or younger in HH
- 67 none
- 28 1-2
- 5 3 or more
- age range
- 34 age 25-44
- 30 age 45-54
- 28 age 55-64
- 8 age 65
6 survey summary
- Todays tough economy means less spending.
- Value spending is the mantra in as consumers
watch and monitor to get the best deals. Holiday
gift buying is particularly impacted by this
propensity for shopping smart as consumers
preview online to get the most for their money. - Although these consumers plan to buy fewer gifts
and spend less for those gifts, more are using
the web to research and shop wisely with online
purchasing levels equal to last year. - Convenience and efficiency have made shoppers
more comfortable with the online channel,
evidenced by more products being sold across a
broader range of categories as well as increased
usage of tools and information. - Influencers when buying gifts online are topped
by promotions, search and customer service based
on a ranking of 36 features where free shipping
tops the list. - Post-holiday spending is likely to be less than
or equal to last year with gift card redemption
split between immediate (41) and longer range
(55) intentions.
7for the 1st time the web has surpassed the store
as the preferred way for multi-channel shoppers
to purchase holiday gifts49 Internet 44
stores
Q7
8shoppers are buying more onlineacross a broader
range of categories
most are looking to purchase 58 - books/
magazines 53 - clothing/ accessories 49 -
music/dvd/ videos
Q12
99 Practical Plays
- know todays multi-channel customer
- engage and inspire
- gift
- guide
- promote
- personalize
- react
- service and support
- remember post-Christmas
10know todays multi-channel customer
convenience seeker Its crazy busy this holiday
season and the web is SOOOO convenient
last minute Ill wait until the big sales late
in the season and tend to procrastinate
cross-channel I prefer to research online and
purchase my local store
deal-seeker Im looking for the best prices and
the best deals
gifter Im a gifter extraordinaire and need the
right tools to find the right products and the
extra touches that simplify my life
surgical shopper Im all about efficiency and the
tools online help me make the right decision
enthusiast I shop certain distinct categories and
love to know whats new and whats hot
11the reasons for buying gifts onlinerated as
highly important focus onconvenience, efficiency
value saving time (88), hard to find products
(84),greater selection (83) avoiding the
crowds at the mall (83)
Q14
12while shipping charges are by far the greatest
deterrent to more online shopping this holiday
season,overall shoppers are more comfortable
with the channel shipping charges are too high
78 ty vs. 58 ly
Q10
13shoppers rank 36 features for importance and
influence when buying gifts online
- Tool sets that top the list center on
- promotional
- search
- customer service
Q15
14message to the customers and the times
- email Help the environment, plus a gift for you!
email 15 20 offers Free Shipping
15engage and inspire
- Be creative through visualization
- of the seasons favorites,
- taking advantage of tried and true tactics
16traditional merchandising features foster loyalty
and aid decision-making for online shoppers
frequent buyer programs (60) whats new (58)
Q20
17whats new top sellers
email New November Product Online In Stores
Today
email Cant-Miss Gifts 20 off Free Shipping
18members only promotions rewards
email Private Preview - Save up to 40 in our
Online Holiday Catalog
email Double InCircle points on great gifts for
him
19gift
- Ensure that your site offers the conveniences
shoppers seek to quickly find the right gifts
while delivering time-savings and conveniences
for todays harried shopper
20efficient gifting tools edge up in importance
convenience drives usage
Q18
21gift center gift finder
email Introducing Wine Finder Get
Buck-a-Bottle Shipping
email Go Christmas Shopping _at_ Cabelas
22more consumers conveniently shop onlinefrom
someone elses wish list3 or more times 34 ty
vs. 25 ly
Onsite Wish list management
Q15
23efficiency and free shipping provide the
incentive to buy more gift cards/certificates
online11-50 of online holiday purchases 42
ty vs. 30 ly
Q13
24visibility is paramount onsite gift ideas
holiday cut-off dates
25guide
- Tools that help shoppers search, find, and learn
about the products and categories they desire at
the prices they want to pay are optimal - Remember,
- old-fashioned customer service
- can go a long way
26more consumers are wisely researching products
online prior to purchasing them as gifts72 ty
vs. 65 ly
Q6
27well merchandised search results sorts
Merchandised with Learning Center
customer Service contact information clearly
stated
Wide variety of ways to sort search results
product compare included on page
28robust search capabilities areessential when
buying gifts onlineall of these features have
increased in importance year-over-year keyword
search (86) easily sorted results (84) rank
2-3 out of the 36 features surveyed
Q16
29consumers embrace expanded informationavailable
online via custom content tools quality tools
greater consumer acceptance and usage
Q17
30robust product pages
31product compare holiday-oriented guide
email The Perfect Turkey Starts With the Right
tools
onsite Shoe Dog selector tool brand size
32web 2.0 toolsratings/reviews video
email Top Reviews! Fans rate faves.
onsite Watch the demo included on robust product
page
33promote
- Tough times mandate promotional creativity that
encourages buying despite the economy
34promotional features drive gifting sales online
free shipping (95) sales/specials (83) are
among the most influential factors (ranking 1 4
respectively) newly tracked free returns
(82)stresses accommodating customer
conveniences
Q20
35early calls to action conditional free shipping
email Thanksgiving Dinners Over! Get a Jump
on Holiday Shopping!FREE SHIPPING on Stocking
Stuffers
email Give Thanks for FREE Shipping
36limited time only promotions gift for the gifter
email Hurry! You have only hours left to SAVE
20 on select gourmet gifts!
email Perfect Present 25 for You
37deferred payment outlet
email Buy Now, Pay Later, Plus get free shipping
email 7-Day Tent Sale in Progress
38multiple promotional tacticsfree shipping
limited time buy more
email Wednesday Preview 12 Days of Christmas
In-Store Plus 1-Day Sale!
email HurryUp to 50 Off, Free Upgraded
Shipping Too
charity club in-store
39personalize
- Provide relevant recommendations onsite and via
email to drive conversion and increase aov
40recommendations product page shopping cart
41personalized recommendations post order
Includes a link why this recommendation is for
you then enables customer to manage how item is
used for future recommendations
42react
- Monitor the season and adjust email campaigns to
reflect your business performance, your category,
and retail
43email essentialsreview email frequency to
optimize tactical performance
- Average number of emails received per week was
1.45 - Apparel accounted for 22 of email volume and
17 of the stores - Department Stores represent a larger percent of
the study in 2007 than 2006 and saw the greatest
decline in volume - (-1.27 average emails per week)
Source the e-tailing group 10th Annual
Mystery Shopping Study 4Q 07
44think last minute to accommodate procrastinators
gift card options e-card
onsite Mail standard or custom designed gift
cards last minute e-cards
email Theres still time to come bearing
bliss with an e-card
45drive store traffic
email Get what you REALLY wanted Shop The
Winter Sale!
email Dear Last-Minute Shopper weve got you
covered
46service and support
- Taking care of the customer
- is a sure way to retain shoppers
- now and in the future
47tools that foster accessible customer service
should be merchant must-haves start with
contact info (81) and a free phone number (75)
Q19
48essential customer serviceholiday delivery
contact options
email Our Favorite Gadgets and Gizmos.Only 10
Days left to shop
onsite Live chat, email and phone support
Shipping cut-offs for 12/24 delivery
49remember post-Christmas
50post-holiday purchasing will likely taper off
with 85 spending the same or less than last year
Q26
5155 will redeem gift cards throughout the
yearbut 41 have more immediate intentions
Q27
52post-holiday brandinglooking back looking ahead
email Start 2008 off right with great iPod gear
email Thank you and best wishes for 2008
53post-holiday promotionsBOGO sale gift card
redemption
email Buy One Bra, get Another at 50
Off! Details Inside
onsite Redeem your gift card messaging
54whats new sale valentine gift center
onsite Gifts by recipient, occasion, price sale
email All New Spring Website, over 125
New Hannas, And Savings Too!
cross-channel charity
55 checklist for pre/post holiday shopping
- 1. Invest in best-in-class search functionality
with relevant results clearly displayed and
easily sorted - 2. Use a variety of promotional tactics to keep
your site fresh while offering good value - 3. Keep shipping charges fair and ensure
customers understand the pricing - 4. Promote free or conditional free shipping as
often as possible while maintaining margins - 5. If customers pay for returns, evaluate
offering free returns for the holiday selling
period - 6. Remember to make your contact information
and phone easily accessible - 7. Provide category-centric content and tools
that make your site top-of-mind for researching - 8. Tout hard to find products, broad selections
and unique gift ideas - 9. Rely on traditional merchandising tactics to
aid decision-making (i.e. whats new, top
sellers) - 10. Focus on gifting features that add
convenience and efficiency to the shopping
process - 11. Offer gift cards/certificates ideally
redeemable via all of your sales channels - 12. Enable wish list functionality and provide
personal incentives to customers who use them to
shop for others (i.e. off your next purchase) - 13. Consider offering in-store pickup for last
minute gifts even if just for a pre-edited
selection of products - 14. Plan strong after Christmas events to
capitalize on holiday cash and gift card
redemptions - 15. Ensure that gifting is visible throughout
your onsite and post-order communication
56Delivering Value beyond Price
- Kelly ONeill, Product Marketing Director
57Retail Realities
- Conservative consumer spending likely to extend
into 2009 - Retailers will need to work harder to maintain
or even gain - loyalty and drive revenues - Technology investments must be centered on
driving the best customer experiences for an
increasingly diverse set of customers - And, delivering efficiencies empowerment to the
merchant
58Know todays multi-channel customer
convenience seeker Its crazy busy this holiday
season and the web is SOOOO convenient
last minute Ill wait until the big sales late
in the season and tend to procrastinate
cross-channel I prefer to research online and
purchase my local store
deal-seeker Im looking for the best prices and
the best deals
gifter Im a gifter extraordinaire and need the
right tools to find the right products and the
extra touches that simplify my life
surgical shopper Im all about efficiency and the
tools online help me make the right decision
enthusiast I shop certain distinct categories and
love to know whats new and whats hot
59Know todays multi-channel customer
- High Values
- Robust search
- Product recommendations
- Product comparisons
- Chat with experts
- Relevant consumer opinions
surgical shopper Im all about efficiency and the
tools online help me make the right decision
60Know todays multi-channel customer
surgical shopper Im all about efficiency and the
tools online help me make the right decision
61Know todays multi-channel customer
- High Values
- Gift lists
- Gift recommendations
- Click-to-call a gift specialist
- Gift wrap, messages and treats
- Ways to share my expertise
gifter Im a gifter extraordinaire and need the
right tools to find the right products and the
extra touches that simplify my life
62Know todays multi-channel customer
gifter Im a gifter extraordinaire and need the
right tools to find the right products and the
extra touches that simplify my life
63Know todays multi-channel customer
- High Values
- Store inventory information
- Reserve online, pick-up in-store
- Click-to-call my local store
- Coupons redeemable in-store
- Wish list accessible in-store
cross-channel I prefer to research online and
purchase my local store
64Know todays multi-channel customer
cross-channel I prefer to research online and
purchase my local store
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69Merchant Empowerment
- Business intelligence to rapidly identify threats
and opportunities - Product velocity changes
- Emerging customer segments
- Evolving search terms
- Direct ability to constantly update, refine and
optimize the shopping experience - Feature fast moving products and highlight the
best options for each customer segment - Engage emerging customer segments with targeted
promotions, messages and access to experts - Implement new search facets to highlight emerging
terms
70The Big Picture
71Questions?
- Lauren Freedman
- President
- the e-tailing group, inc.
- phone 773-975-7280
- email LF_at_e-tailing.com
- web www.e-tailing.com
Kelly ONeill Product Marketing
Director ATG phone 617-386-1345 email
koneill_at_atg.com web www.atg.com
Happy Holidays!