Developments in ecommerce: Insights from Waitrose, Unilever and Amazon Emily Barley Event Reports IAB Engage, October 2013

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1 Developments in ecommerce: Insights from Waitrose, Unilever and Amazon Emily Barley Event Reports IAB Engage, October 2013

2 Title: Developments in ecommerce: Insights from Waitrose, Unilever and Amazon Author(s): Emily Barley Source: Event Reports Issue: IAB Engage, October 2013 Developments in ecommerce: Insights from Waitrose, Unilever and Amazon Emily Barley Warc Understanding how consumers use websites across different devices is vital to formulating effective ecommerce strategies. In evidence of this, representatives from Waitrose, Unilever and Amazon explained how their retail tactics are developing while speaking at IAB Engage, a conference held by the Internet Advertising Bureau in London in October Waitrose develops its online offering Robin Phillips, director of ecommerce at Waitrose, spoke about how the grocery chain improved its online offering with the relaunch of its website. The company has a history of co-ownership with employees, who are referred to as "partners", and premises its retail business on providing high-quality service and advice in store. "The biggest challenge is: how do I really get across sharing a love of great food and drink with our consumers?" said Phillips. "How do you interpret that on digital?" Waitrose found that people use its website in distinct ways at certain times and on specific devices. A common pattern is to use a tablet in the evening to build an order, which is then edited on mobile the following morning. Waitrose has seen PC use decline as mobile and tablet use both increase, and is therefore trying to make its website fit how consumers want to buy. Its search function, for example, allows an entire shopping list to be entered at once. Space is available for comments to be given to staff, for instance if a buyer prefers green bananas, as they select products for delivery. Prominently featuring images of its partners at every stage of the online shopping journey assists in giving Waitrose's website 2

3 a more personal feel, and this is central to its brand image. Digital content has also been created to emphasise the role of people at every stage of the purchase process. Blogs, Twitter accounts and a recipe site, including cook-along videos, then help answer customer queries around the clock. Collectively, this material is fulfilling the company's aim of "making the website a destination". Alliances with culinary experts including celebrity chefs Delia Smith and Heston Blumenthal have similarly yielded interesting and engaging content encouraging consumers to return to the site. Products from John Lewis, Waitrose's sister company, are even available on a click-and-collect basis from the latter chain's stores. Phillips said over half of John Lewis's click-and-collect orders are now picked up in this way. Waitrose's own click-andcollect capabilities are expanding, too, with tests of temperature-controlled lockers allowing orders to be accessed outside stores via a special PIN code. This adds flexibility to the shopping experience. Buying ideas at Unilever Ecommerce is an equally big focus for Unilever, the FMCG group. Digital has been integrated into all aspects of its strategy, from business planning to marketing and execution. "That has been the recipe for our success," said Luis Di Como, senior vice president of global media at Unilever. "It cannot be done just from one point of view." This is because "people go through this whole path to purchase seamlessly we need to combine all of this". Unilever's customer base is changing fast, di Como revealed, as "more than half of our sales come from emerging markets. And in those markets, people are leapfrogging technology and using mobile to connect". More broadly, shoppers are becoming more demanding of brands, with an attitude of "what we want, when we want, where we want it: this is the new digital world", making functionality in ecommerce increasingly important. Forming personal connections is, correspondingly, integral for Unilever. Jay Altschuler, its director, global media innovation, reported that it "builds brands that people buy, and ideas that people buy into". Becoming "a people-centric company allows us to deliver brand stories", he added. In order to be successful, this process "has to be done in an authentic and magical way it has to build an emotional bond", as "people have the ability to tune out". The company has used social content that resonates with people to promote its brands, a prominent example of which is 3

4 Dove's "Campaign for Real Beauty". "It's about a bigger social purpose to buy into," Altschuler said. Social video, he further ventured, allows "a big company to ramp up quickly, to speed up, to see how people are reacting", and then adapt its content in real time. Digital affords marketers the opportunity to develop lengthier creative content as well, marking a change of pace from short television ads, and facilitating the more fulsome development of brand stories. "That's really our entire philosophy it's all about connected on a personal basis," said Altschuler. The Dove "Sketches" video, for example, featured an artist making two drawings of a person he had never seen. The first was based on the person's description of themselves, and the second based on someone else's description of them. This video became the most-watched branded video of all time on YouTube, with over 56 million views to date. //www.youtube.com/embed/xpaojmxyjgk Another Unilever brand with a mission is Lifebuoy soap, which is seeking to reduce the child death rate in India by promoting good hygiene through its "Help a child reach 5" campaign. The brand has built a tool to crowdsource data on potential outbreaks of infection, which then allows for the targeting of solutions. //www.youtube.com/embed/oieosap-lgo Amazon taps mobile growth Amazon, the ecommerce pioneer, is a bellwether for the digital space, and has seen a dramatic surge in mobile searching and shopping. It has 215 million active accounts globally, and 65% of these users visit its pages on a mobile device, a total set to hit 94% in four years' time. Just as consumers move seamlessly between devices, so the company is ensuring their experience is consistent across channels. Lisa Utzschneider, vice president of global advertising sales for Amazon, discussed how consumers often start searching for products on mobile before moving to a tablet or PC to complete a purchase. Such multichannel shoppers spend more than the 4

5 norm a full 50% more in the consumer electronics category and Amazon has found that ad campaigns encompassing multiple screens perform 18% better than those on one screen. Interestingly, ads viewed on one screen are likely to be actioned on another. Even when the ad is seen on another screen, people are 56% more likely to visit a product site on a PC and 27% more likely to do so using a Kindle. Amazon's core principle is to work from the consumer backwards to innovate on its users' behalf to meet their expectations. Utzschneider said that ecommerce ads should help consumers rather than distract or disrupt them, and this utility helps make them successful. Being cautious with big data A note of warning was sounded by Bryan Melmed, director of insights at Exponential, the advertising intelligence provider, regarding big data. He suggested big data was being overhyped as providing solutions for a range of societal and marketing issues it simply cannot address. Used properly, big data is a tremendous tool, but "we really need to understand its limitations", Melmed said. A key role of big data, he argued, is to help marketers understand people's relationships with mobile: how consumers use their devices in varying ways, for varying reasons, and at varying times. The statements about it that Melmed expects to be discredited include the idea it can eliminate wasted marketing expenditure: some people will always resent the intrusion of ads and some spend will always be ineffective. Additionally, big data may create tensions between creatives and statisticians, as assumptions and theories that are felt to be correct are not confirmed by the numbers. Big data, he concluded, should change the way people think about marketing and encourage moves from causation to correlation. But people cannot be summarised by crude stereotypes like "soccer moms". "That's an old media tactic. What's nice about the data is that it forces us to look beyond that to the granular, the inconsistencies, the beauty," Melmed said. "There's a silver lining, but that means there's a cloud we need to be more and more responsible about how we use the tools that we're developing." About the author Emily Barley is Editorial Assistant at Warc. All rights reserved including database rights. This electronic file is for the personal use of authorised users based at the subscribing company's office location. It may not be reproduced, posted on intranets, extranets or the internet, ed, archived or shared electronically either within the purchaser s organisation or externally without express written permission from Warc. 5

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