Cyber Monday 2015 Trends: Why We Need Personalization

So the numbers are in, and Cyber Monday was actually America’s biggest online shopping day ever according to Adobe. Shoppers spent $3.07 billion on Monday alone, bringing total eCommerce revenue to $11 billion for Thankgiving Weekend.

Now, here’s the catch: while total spend nationwide increased, the average order size actually decreased from $69 to $67.30. This trend suggests that customers are shopping around and purchasing specific products from various retailers, as opposed to visiting a one-stop destination for all of their gifts. Here are some crucial points where companies should employ personalization to take maximal advantage of their eCommerce sites:

eCommerce features deals 24/7

It’s not about big single sales days anymore.

A telling trend we’ve observed in recent years is the extension of the holiday shopping season, which is no longer constrained to Black Friday/Cyber Monday but basically starts after Halloween and continues until Christmas (and possibly after).

What this means is that the most attractive deals and discounts are prompting customers to buy in smaller orders, but with increasing frequency. Today’s shoppers aren’t shy about buying a gift for dad on Amazon, picking up holiday cards in the store, and then downloading apps to look for deals on clothes that they can check out in person at the mall. Factors like greater smartphone and mobile device usage, an increasingly digital culture, and a lack of patience for the “Black Friday at 5:00 A.M. mosh pit” experience have pushed customers towards embracing the convenience, selection, and value provided by eCommerce.

Mobile as a platform for advertising

This past Thanksgiving week showed us that mobile purchases are increasing in number, but the common pattern observed is that people enjoy browsing for products on mobile (up to 49% of shopping visits occur on from mobile devices) and then make about 75% of their actual purchases from a desktop.

This means that the majority of customers who interact with your brand on mobile devices are probably there just seeking some basic inspiration and information. Since the screen space and attention span of a mobile user is so limited, it’s essential for your brand to maximize its impact on the viewer by showcasing for them the products that they’re most likely to buy.

Of course, mobile shoppers (especially impatient Millennials) will abandon your app or site if it’s too slow or acts buggy, so make sure that your brand’s tech presence is on point. Target’s site, for example, went down several times during Cyber Monday and it’s impossible to say how much potential business they lost for it.

Black Friday/Cyber Monday were huge days for eCommerce, but this isn’t the end of the story. What we’ve learned from this past weekend is that, regardless of how you slice it, eCommerce and the omnichannel shopping experience is becoming the de facto process for the modern holiday season. That means that today’s brands should invest heavily in personalization software to create a shopping experience that’s fast, functional, and provides relevant product offers to their customers. It’s only going to become more important next year and the year after, especially as more and more shoppers become comfortable with eCommerce as a whole.

Black Friday 2015 showed us a massive surge in eCommerce sales

Another Thanksgiving has come and gone, and this year’s Black Friday saw more shoppers make purchases online than ever. According to the National Marketing Federation, $4.45 billion dollars worth of revenue was generated in online purchases this weekend, an overall 14.5% increase since last year.

The NRF’s latest survey estimates that 103 million Americans did at least some of their shopping online from Thanksgiving Thursday to this past Sunday, which probably had a role in the decreased foot traffic that we saw in shopping malls and retail stores. The inevitable Cyber Monday statistics should confirm the overall trend that more people are opting out of shopping in person in favor of eCommerce, and the shoppers that still do enjoy visiting stores in person are increasingly going for the whole omnichannel experience via digitally-assisted purchases.

This shift could also be the result of an extended “holiday” shopping season that now starts just after Halloween, which means that shoppers who would have braved malls and Wal-Marts nationwide are now choosing to do their gift-buying earlier and online. Either way, we can see that more than ever shoppers have the luxury of making purchases based on price (always) and the convenience of the overall shopping experience year-round, instead of waiting participating in the Black Friday mosh pit for a couple of deals.

It’s not difficult to see a future where Americans start doing the bulk of their holiday shopping online as discounts on the goods they want start popping up in early November, perhaps even right after Halloween. Through eCommerce, shoppers have a wider variety of product choice, research tools, and access to a wider inventory than might be available in-store. And with the overall trend of extending the availability of holiday discounts, it’s likely that we’ll see a continued growth in online and mobile commerce while the Thanksgiving spike in brick-and-mortar stores continues to level off for everyone else but tactile shoppers that insist on seeing products in person and for whatever reason, enjoy the strange, contemporary American tradition of Black Friday.

Omnichannel Today: Week of November 30th

Omnichannel Today – Black Friday Edition

Happy Thanksgiving from NectarOM! As we gear up for the eCommerce holidays of Black Friday and Cyber Monday these are the latest news articles we’ve been paying attention to:

JC Penney’s Retail Reinvention

Unlike Nordstrom’s and Macy’s, JCP is on course to exceed holiday expectations during a season where eCommerce and digital platforms are taking away business from retail. The secret, as CEO Marvin Ellison puts it, is finding the balance between the “art” and “science” of retail. JC Penney is taking a completely different approach to their in-store experience, developing attractive new features such as store-within-a-store kiosks for both younger shoppers and the upcoming cohort Millennial-age parents. Next up for the department store? Focusing on the science side of things by making improvements to their eCommerce, supply chain, and data processing abilities.

Amazon’s ingenious scheme to undermine Black Friday

Black Friday and its younger sibling Cyber Monday are a major source of income for the retail industry every year. Since this last Friday, web giant Amazon has taken advantage of the holiday shopping fervor to entice customers with constantly updated deals and featured items, hoping to sway buyers that won’t miss the authentic “Black Friday Experience” of elbowing through crowded stores. That said, certain stores such as Best Buy and Target have responded to Amazon by making their in-store discounts apply to their eCommerce platforms as well.

Facebook Says Nearly One Third of Online Shopping Transactions Are On Mobile Devices

New data from Facebook suggests that its users are becoming much more comfortable with using mobile devices to shop and make purchases. The social media titan expects a 30% increase in the percentage of users who buy on mobile by the end of the fourth quarter. Facebook researchers also observed that about 45% of all shopping occasions involve mobile devices in some fashion, such as during product research that results in a purchase on a desktop.

Retail enters third phase of digital evolution: ‘Emotional’ eCommerce

A new article from the Financial Times discusses how modern shoppers expect brands to develop a relationship with them over social media and other digital platforms. The thought leaders interviewed point to the success of apps like Instagram, Etsy, and Olapic, who offer businesses the ability to showcase their “human side” to potential customers by using memes, shareable posts, and conversation starters to promote fan engagement over social media.

Other stuff we read this week:

How James Murdoch thinks the ad industry should innovate: ‘Empower the Consumer.’
Here’s how advertisers will be able to target TV viewers who see competitors’ ads
Goodbye privacy, hello ‘Alexa’: Amazon Echo, the home robot who hears it all
Volvo Wants to Use Microsoft’s Sci-Fi Glasses to Sell Cars

Check back next time for the latest developments in omnichannel! We’ll bring you news, facts, opinions, and infographics that will help you gain a broad perspective of the industry. Drop in, stick around, and subscribe to our newsletter – and who knows? You just might learn something.

Overcoming Personalization Challenges in Retail eCommerce

Online shopping is easy and efficient. With the introduction of omnichannel-savvy retailers implementing in-store pickups and fast home delivery, eCommerce is more popular than ever.

We know personalization is effective for every type of business. Customers like goods and services tailored to their wants and needs. We’ve seen some of the world’s strongest marketers reap huge rewards from personalization programs and experts predict that personalization is the key to the future of marketing.

But in terms of online retail, personalization is not always executed as well as it can (or should) be.

The problem

One of the biggest speed bumps in retail shopping online is determining a customer’s perfect size and fit. When shopping at brick-and-mortars, customers can tell whether an item fits by trying it on. However, the inability to physically model the clothing yourself is a huge caveat of online shopping at today’s top retailers.

However, there are a couple different ways that companies are tackling this problem.

Voluntarily sharing personal data

Determining which size fits best is often done by looking at the clothing’s measurements or relying on past purchases from similar retailers. However, both of these options can be problematic.

Let’s be realistic – how many shoppers actually use those measurements to determine which size is their best fit? Oftentimes, this can be too much effort to figure out. This is why most customers simply rely on the size they typically wear.

But while many customers have a standard size, retailers occasionally size differently from one another. Someone who wears a size XS pants at one store may burst out of XS shorts at a different retailer.

A scale that shows whether pieces run small or large can help fix this problem; however, this is not the only solution.

The best way to confront sizing disparity is by implementing a personalized sizing feature into your site. Sites with features like these are often customer favorites. Customers can feel confident with their purchase without worrying about the hassles of returning products. This feature gives customers a sense of security about making orders, which increases individual orders and draws in new customers.

So how does a retailer go about implementing a sizing feature? Consider the work from an expert: Lilly Pulitzer.

Click on the images to enlarge and learn about Lilly’s True to Fit feature.

Lilly Pulitzer helps customers unsure about their particular size by asking for their personal data. This data includes a customer’s height, sizing in other brands, and body shape. Lilly Pulitzer uses this data to evaluate which size is best for the customer. This feature also considers other sizes for the shopper, and explains which parts of a clothing item may fit poorly. Shoppers can save their profile, which comes in handy when checking sizing for other Lilly products.

Virtual fitting rooms

Retailers who more digitally inclined may have the option to utilize a new, exciting service. The UK-based company Fits.me works with retailers to create a virtual fitting room for shoppers. This is similar to Lilly Pulitzer, but much more visual. The feature projects how different clothing items would fit on one’s specific body measurements. After a shopper selects the fit they like best, he or she can proceed to customize the clothing item.

Fits.me is an innovative concept that has yet to make its way into U.S. retail. These virtual fitting rooms are available in Europe, but with the United States’ strong eCommerce market I expect features like Fits.me to come across the pond soon enough.

Need more personalization?

If you love learning about marketing personalization, be sure to read up on increasing loyalty with personalization and how personalization can be used with disconnected customers.

A Brief History of Omnichannel Marketing

In less than five years, one marketing strategy has evolved from an unfamiliar concept, to a trendy buzzword, to a crucial component for successful marketing. Omnichannel marketing is one of the fastest-growing concepts for retailers and consumers alike.

Omnichannel is about continuing a consumer’s shopping experience across multiple platforms. Retailers must integrate every available channel to create a seamless shopping experience for customers. Omnichannel aims to encourage evaluation and interaction between a customer and the retailer.

The concept of omnichannel was first introduced to the marketing world in 2010. The term was devised to describe a shopping experience that extends beyond multi-channel retailing. An ideal omnichannel shopping experience would be accessible to customers on all platforms, from traditional brick-and-mortars to the digital world of text message, emails, and online shopping.

In September 2010, a report from IDC Retail Insights predicted a strong reliance on omnichannel for successful marketers in years to come. According to the report, retailers utilizing multichannel strategies in 2010 saw a 15-35% increase in average transaction size, along with a 5-10% increase in loyalty customers’ profitability. IDC cited the growing ecommerce market as the key reason retailers needed to implement omnichannel strategies.

Despite its introduction nearly 5 years ago, omnichannel didn’t receive much attention until a few years later. In 2013, “omnichannel” became a buzzword for marketers and consumers alike.

A 2013 article in Huffington Post attributed the rise of omnichannel to the increase of smartphones. Shoppers with smartphones are showrooming, or using their mobile devices to research competitive pricing while in a store and purchasing a cheaper option later on a laptop or tablet. As Smartphone sales continue to completely overshadow traditional cell phone sales, showrooming continues to increase, promoting more retailers to implement omnichannel practices.

This past year, the concept has further evolved. Omnichannel has morphed from a “buzzword” into a necessity for retailers that want to stay competitive.

In early 2014, Marketing Land called omnichannel a “must” for brands and retailers. Citing a report by MIT, they argued that omnichannel consumers are the “central force shaping the future of e-commerce and brick-and-mortar stores alike.”

Similar to the IDC and Huffington Post, Marketing Land attributes the rise of omnichannel marketing to the digital age. The MIT report found that $12 billion retail sales were made on Smartphones, and $1.1 trillion store sales were influenced by the web. These findings show that consumers are using multiple platforms to enhance their shopping experiences.

Several articles by Forbes also indicate that omnichannel is more than a fad or trendy phrase. The publication has recently called omnichannel, “More than a digital transformation buzzword,” and have dubbed it the “future of digital commerce.”

Retailers are also proving that omnichannel marketing is imperative for survival in the competitive free market. A look at J.C. Penney’s marketing strategy from 2011-2014 is a prime example of omnichannel’s impact on sales.

Originally hoping to keep online sales strategies separate from in-store sales strategies in 2011, J.C. Penney experienced a massive 32% decline in sales. In 2013, the company evaluated their business strategy, recognizing that separating online from in-store sales was detrimental to their success. Upon implementing an omnichannel strategy merging the two platforms, J.C. Penney saw a 6% increase in e-commerce sales in 2013 and a 26% increase in the beginning of 2014.

Omnichannel marketing is likely to remain relevant in years to come. A Forrester Research report predicts mobile commerce to grow 33% annually for the next three years, fueled by thee rise of Smartphone sales and usage. The report also expects an 89% increase in retailers that integrate mobile technology in-store. As omnichannel has become essential for retailers, it is imperative to understand the concept and its implications. In doing so, businesses will be able to reach their full potential and achieve success in today’s competitive marketing world.

Luxury Interactive 2014 – Our Take on Omnichannel Needs

 

Luxury Int

High Fashion and Luxury Demand Omnichannel Engagement Solutions

October’s Luxury Interactive conference in New York City came and went with little fanfare in Midtown Manhattan. Overshadowed during the three short days by the much larger Comic-Con across town, Luxury Interactive drew a very particular crowd: retailers needing to differentiate their brand online, and the service providers peddling solutions.

In talking to today’s marketing and ecommerce gurus from the leading fashion brands of the world, it was clear that there are two specific priorities on everyone’s wish list for 2015…

  1. A solution to execute high-touch campaigns in the omnichannel (especially for smaller, more exclusive luxury companies).
  2. A tool to efficiently curate user-generated content so that it can be repurposed as additional art while successfully excluding low quality and/or unfashionable images.

The first problem seemed to be the most pressing, whether it was an agency like Huge Inc., or a large retailer like Saks Fifth Avenue; getting that Saturday champagne and brunch shopping experience to play in the digital world is a constant struggle. Luxury brands differentiate themselves through the projection of quality, whether it is the service level delivered by associates, the décor in the store, or the quality of the actual goods, luxury depends on differentiation for that extra margin. This isn’t easy to do in the digital world.

One great example of someone doing this well is Mitchell’s stores. Mitchell’s spent two years working on its ecommerce experience. Mitchell’s is arguably the single most revered luxury retailer in America. Mitchell’s is known not only for its quality products and high-class clientele, but also for the services provided in its stores. According to a conversation I had with Bob Mitchell, company president and author of “Hug Your Customer”, the company spent two years developing its ecommerce platform because they recognized that the brand needed to survive online, and therefore the customer experience needed to replicate the service level found in stores.

They really did a great job.

For example when I log in:

  • my salesman is featured prominently
  • I have my own dashboard that includes my most recent purchases
  • a list of recommendations (from both my salesman and the computer), and a calendar of events amongst other features show up

Differentiation is the key for maintaining luxury brands online, if you go above and beyond to provide extraordinary service in-store, you must now do even more online to make sure your shopping experience differentiates itself from your down-market competition. For marketers, that means using all the customer data available to personalize and cater to customers.

 

Mitchell's Stores Does Omnichannel Well
Mitchell’s knows their omnichannel customer

 

The agencies that I spoke with tended take the Mitchell’s view of luxury ecommerce, that luxury brands need to invest in a specific customer service experience, like having access to my personal sales associate while I browse the web, rather than repurpose third party technologies popular with mid market ecommerce businesses. The luxury brands themselves were less convinced that such investments are necessary. I think we’ll find that many of these luxury brands invest in small solutions to replicate the high-touch feel and balk on larger investments in a bespoke ecommerce ecosystem.

The Ins and Outs of 3rd Party Cookies

Mobile Personalization

Anyone who uses the internet has at some point heard the term “cookie.” So what exactly is a “cookie?” No I’m not talking about the things with the chocolate chips in them but rather a “cookie,” as it pertains to the internet, is a small piece of tracking data. Let’s say you visit Yahoo.com; upon visiting the site, Yahoo.com places a cookie on your computer that alerts it if you visit the website again. This is useful because the cookie can save important information such as what pages you visited, your login information so that you do not have to login each time you visit, and any items you may have in a shopping cart on an e-commerce site. This tracking and data storage capability make cookies very useful and make the web-browsing experience more pleasant and seamless.
 
 
Cookies come in two types, first party and third party. First party cookies are placed by the website itself such as yahoo.com. Third party cookies, however, are placed on your computer by a different site from the one you visit. So for example if you visit yahoo.com and receive a cookie from webtracker.com then this is a third party cookie and it can be used to transmit your web browsing history to a 3rd party site that can sometimes be malicious.
 
 
Fortunately this should not deter anyone from browsing the internet. Over the past few years, internet browsers such as Firefox, Chrome, and Internet Explorer have been blocking third party cookies from tracking user’s information. The way these browsers have accomplished this is best summed up through an analogy: Let us say that a shopping mall is the internet browser. Each store in the mall is a website and they are allowed to keep records of your information if you shop there. Now let’s say that a third party cookie is a person trying to sell you products who doesn’t have any affiliation to the mall. Fortunately the mall security (the internet browser in this case) will not allow this and kicks the third party cookie out. This makes the internet a safer place and one can browse without fear of being tracked by malicious sites.
 
 

Amazon eCommerce: Why the Company is Killing It

The most recent retail sales figures from February surprised most people. Everyone expected a modest increase because of the expiration of the payroll tax holiday. But, WHOA, they were much better than the future prognosticators’ expectations. And the biggest winner? Amazon, eCommerce. Everything from a-z indeed.

Slate magazine said it best in their tweet: “Retail sales were up in February as Amazon just KILLED department stores.” According to Slate, general merchandisers (including department stores) saw sales declines of 4% while Amazon eCommerce saw 14% sales increases.

So now the question is why?  Why is Amazon eCommerce doing so well while similar brick-and-mortar stores aren’t? Let’s look at what Amazon does well:

  • They have a vast assortment, yet it’s relatively easy to find what you want in a very short amount of time.
  • You get your order when Amazon says you will and in the condition they say.
  • They offer adjunct services to keep you in the Amazon family (and website), like Prime, which not only gives you free shipping but lets you watch shows for free.
  • They allow you to shop on amazon on every device imaginable.
  • Customer service responds to your questions or concerns very quickly.
  • Returns are simple.

In other words, Amazon eCommerce makes the shopping experience easy, consistent and pleasurable.

But other department stores with online stores do this too, right?  Many of them do.

And many argued vociferously, as recently as a few months ago, that the reason Amazon was winning was because of the price advantage related to not having to charge taxes.  Well, guess what?  Amazon has started charging sales taxes and they’re STILL winning.

Could it be that not only do they make it easy, consistent and pleasurable, but they connect with us, the customers, because they seem to KNOW us?  How often have you gone to Amazon.com to browse for one thing and ended up buying more than you expected?  I have. Lots. And I contend that it’s because they always seem to know what I need (okay, it’s want). Regardless, I always buy more than I probably should because I like what Amazon recommends for me.  I like how they personalize my shopping experience.

Well, here at Nectar, not only can we personalize your company’s shopping experience, we can hyper-personalize it!  Want to learn more?  It’s easy. Contact us for a demo!

Want to learn more or just shoot the breeze about hyper-personalization?  Contact me at patricia@nectarom.com.

Patricia Blair

VP Marketing, Nectar Online Media

 

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