eMarketer Webinar: How Marketers Are Meeting the Challenges of Always-On Shopping

©2014 eMarketer Inc.

January 23, 2014

How Marketers Are

Meeting the Challenges

of Always-On Shopping

Sponsored by

Presented by:

Noah Elkin &

Yoram Wurmser

eMarketer, Inc.


Agenda

Reaching consumers across blurring lines

The state of always-on shopping

Marketing to the “always shopping” consumer

Twitter Hashtag – #eMwebinar


Marketing Across

Blurring Lines


We’ve

reached a

new

inflection

point ….

5 hours 16 minutes

43.6% of daily media time

4 hours 31 minutes

37.4% of daily media time

Digital’s

advance is

helping blur

the lines

between

everywhere

and nowhere

Source: eMarketer, July 2013


… and it’s driven by mobile

2 hours 21 minutes

19.4% of daily

media time

2 hours 19 minutes

19.2% of daily

media time

Source: eMarketer, July 2013


In a digital landscape defined by an

ever-expanding number of screens …

Smartphones

Phablet Phablets Social Machines Social Machines

Wearable Technology

Wearable Technology

Connected Consoles

Connected Consoles Ambient

Surfaces

Ambient SurfacesConnected Cars

Connected Cars


… mobile

devices

have moved

to the

center



One result: As marketers and retailers, we

must operate in a world of blurring lines


What Are the 5 Primary

Implications of Blurring

Lines?


1. The notion of the consumer is shifting


1. The notion of the consumer is shifting


2. “Mobile” isn’t necessarily on-the-go


3. Online is a persistent state

It’s no longer a distinct condition

characterized by sitting in front of a PC


4. Today’s path to purchase is a lot less

linear …

… and a lot more like an infinite loop


5. “Everywhere commerce” adds up: 2014

global B2C ecommerce will top $1.4 trillion

The US represents the single largest

ecommerce market, with nearly

one-third of global sales in 2014


The State of Always-On

Shopping


Keep in mind: We’re still scratching the

surface of the ecommerce opportunity


Smartphones play a key role in driving

always-on commerce …

Smartphones serve as the fulcrum

between digital and physical retail


… even if tablets generate far higher

on-device sales

Tablets will

account for

two-thirds of

US retail

mcommerce

sales in 2014



The reality of

multi-device

shopping:

Consumers

are always in

consideration

mode


Even if consumers aren’t consciously

shopping, they are still shopping

“Smartphone use is more or less

continuous. [It] doesn’t say anything

about whether the use has anything to

do with shopping, but it does mean that

[it has] a large part of the consumer’s

mind share during that shopping

mission. The shopping trip starts earlier

and ends later than it used to.”

—Nick Hodson, partner at Booz & Co.


In other words …

… shopping is about state of mind as much as

intent and physical location


Marketing to the

“Always Shopping”

Consumer


Research starts anywhere

“Webrooming”

is a

mainstream

activity, often

used to

narrow down

purchase

options before

visiting a

physical store



Marketers can help their own cause by

facilitating the research process

Tools such

as a wish list

can help

retain

shoppers as

they move

from one

screen to

another


Part of being in consideration mode

means staying attuned to ads and offers


The always-

on shopper

is also the

anywhere

shopper

Location

targeting is a

key mobile

marketing

opportunity


Rain = bad hair = opportunity for Pantene


More relevant information makes for more

effective location-based ads



Keep in mind: Purchase decisions are

often made before entering the store

Location-

based ads

may lose

effectiveness

once a

customer is

in a

brick-and-

mortar

setting


Research continues in-store: Is this a

threat or opportunity for retailers?

40% of US adults showroom, but only a

small percentage actually buy from an online

competitor while in-store


Some retailers

have tried to

embrace

showrooming

Best Buy has

made efforts to

use it as an

opportunity to

attract eyeballs

and dollars in

its stores


Think of mobile as a potentially valuable

tool for keeping purchases in-store

“Mobile is kind of this seamless glue.

The purchase process and

consideration have become more

meandering, and we’re using mobile as

the thing that jumps into those places.

The big thing is not to think of mobile

as just shopping on the go. Mobile is a

tool for in-store.”

—Johnna Marcus, director of mobile and digital

store marketing



Some

improvements

are as simple

as integrating

coupons and

loyalty

programs

Sephora’s app

lets customers

ditch plastic

loyalty cards

and have a more

personalized

experience


Retailers are

taking steps

to improve on

the in-store

experience

Lowe’s is

thinking about

how its

customers shop

and where to

address their

pain points


Others aim for deeper integrations of the

mobile, social and in-store experience

Example: Cartwheel by Target


Apple’s iBeacon technology gives retailers

multiple in-store engagement options

These include everything from micro-location

marketing to scan-and-click checkout

Image courtesy of AppleInsider Twitter Hashtag – #eMwebinar


… and can let

consumers

check out

anywhere

Walmart is

rolling out an

app feature that

lets shoppers

scan items for

purchase as

they browse the

store


Even at checkout, consumers still want

choices on fulfillment

Toys R Us lets online buyers pick up in-store —

but the opportunities are wider


Takeaways

2014 will be the year retailers reckon fully with

a world of “always engaged” consumers.

Consumers’ research about product decisions

now extends along a seamless continuum from

home to work to store.

– This means tailoring messages to reach users who may

raise their hand at any point in the purchase process.

The key to connecting with always-on

shoppers lies in offering multiple options, from

purchase to pickup to payment.

– Retailers should focus on customer pain points and

how smartphones can address them, especially

in-store.

Market trends

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You will receive an email tomorrow with a link to

view the deck and webinar recording.

Noah Elkin

Q&A Session

How Marketers Are

Meeting the Challenge

of Always-On Shopping

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Sponsored by

Yoram Wurmser

eMarketer Webinar: How Marketers Are Meeting the Challenges of Always-On Shopping

Marketing

shifting 2014

blurring lines

purchase process

store 2014

consumers

store

shopping

2014 emarketer