E-Commerce Learnings from 2015: Preparing to Win Online in Copyright 2014 Oracle and/or its affiliates. All rights reserved.
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1 E-Commerce Learnings from 2015: Preparing to Win Online in 2016 Copyright 2014 Oracle and/or its affiliates. All rights reserved.
2 Don Davis MODERATOR Editor in Chief Internet Retailer So Young Park Director, Product Strategy Oracle Commerce Copyright 2014 Oracle and/or its affiliates. All rights reserved.
3 3
4 What you should already be doing Be relevant and consistent in your messaging and communications. Make sure your production and operational processes are efficient. Get aligned internally. Learn from your mistakes. Know your customer. Work your budgets and forecasts. Have a good plan, execute, and optimize. Differentiate and have a clearly communicated value proposition. Focus on the end-to-end experience, not just online. 4
5 2015 Holiday Shopping Trends and Lessons Learned Copyright 2014 Oracle and/or its affiliates. All rights reserved. 5
6 Online holiday retail sales grew 13% YOY Consumers spent $69.08 billion online. Online retail sales grew 13% during Nov-Dec vs Compared to 3.3% year-over-year growth in total holiday season retail sales Of that $69B, $12.65 billion was via mobile devices (18%). Sales on smartphones/tablets grew 58.5% from same period of 2014 ($7.98B) E-commerce on desktops was $56.4B, up 5.9% from $53.3B in Sources: comscore, Inc, First Data, reported in Internet Retailer, Mobile accounts for nearly 1 in 5 online holiday purchases 1/8/2016 6
7 Top 10 e-commerce Days for 2015 holiday season Many retailers rolled out Black Friday promos in advance, influencing lower than expected e-commerce sales surge later in the holiday season, including on Free Shipping Day, Dec. 18. At the same time, shoppers often waited until the last minute to purchase with Dec 22 and Dec 23 experiencing the largest daily YOY gains of the season. Source: Internet Retailer, Top 10 E-Commerce Days of the Holiday Season 1/11/2016 7
8 POLL #1 Did you use your mobile device to get product information or make a purchase this past holiday season? A. YES B. NO
9 But the big story for holiday was in mobile Mobile accounted for nearly 1 in 5 holiday purchases. Mobile now accounts for approximately 60% of total time spent shopping online. Average mobile activity the week of Christmas was higher than any other week of the holiday season at 59.7% of e-commerce traffic versus 40.3% for desktop. Mobile activity was over 15 points higher than desktop during Thanksgiving week (58.4% vs 41.6%), peaking on Thanksgiving morning at 71% of e- commerce activity. Source: Custora; Mobile Commerce Daily Holiday Shoppers Spent $12.7B on Mobile; Internet Retailer Mobile Devices Deliver Holiday e-commerce Sales and Mobile accounts for nearly 1 in 5 online holiday purchases 1/8/2016 9
10 90% of shoppers are using their mobile devices to help make purchase decisions while in-store. Source: PowerReviews Retail Revolution Report 10
11 Mobile Shopping Behavior and Value 2015 was the first year ever that Google mobile searches surpassed desktop! 72% of millennials research online before heading to brick and mortar stores. 71% of shoppers who use smartphones for research while in-store say that it s become an important part of their experience. People who shop both in person and online spend 66% more than those who only go to stores and multichannel buyers have a 30% higher lifetime value. 56% of holiday season s searches resulting in a click to a top retail site was conducted on either a smartphone or tablet. Source: Google: Mobile searches surpass desktop searches worldwide; UPS Pulse of Online Shoppers via MarketingAdept.com Ultimate List of Ecommerce Marketing Stats for Holiday
12 What about Social? Throughout the 2015 holiday season, social media drove only 1.8 percent of all e-commerce orders, on par with 2014 (1.9%). Which categories convert social traffic the best? Food, Beverages & Tobacco Home & Garden Automotive & Vehicles Social is a discovery tool that drives awareness, but it doesn t live in a vacuum in order for it to be effective, integrate it with other methods (e.g. capture and retargeting). Identify and effectively utilize influencers to spread the word and drive referrals, loyalty, and build traffic. Try integrating Buy Buttons from Pinterest, Twitter, Google to make purchasing from social and ads more seamless. Source: Custora 2015 Holiday Recap, AddShoppers 2015 On-Site Marketing Breakdown 12
13 Holiday E-Commerce Orders by Marketing Channel Organic search was the leading channel driving online sales: 21.5% marketing: 20% Direct: 19.4% Paid Search: 17.7% Affiliate: 12.2% Social media (including Facebook, Twitter, Pinterest, Instagram): 1.8% Source: Custora 2015 Holiday Recap 13
14 2015 Lessons Learned 1. Rise of Mobile Commerce and Mobile Search 2. Social Media underperforms, driving only 1.8% of all e-commerce orders. 3. continues to be an effective marketing channel. 4. Shopping procrastination by consumers 5. Retailers started the season earlier, extending the season and reducing impact of one-day events. 6. Amazon and Prime continued success 3M people joined during 3 rd week of December, total membership in 10s of millions Prime customers spend 1,500 each year, vs $625 for non-prime Of est. $94B growth in CY2015 retail sales, Amazon s share was $22B 7. Free Shipping and Deals continue to be table stakes with increased expectations of quick turnarounds and incentives. Sources: Internet Retaile, Key Ecommerce Trends of the 2015 Holiday Season 1/28/16; Retaildive:. 3 Ways the Retail Holifday Season was Different in /4/16; MarketingLand, 2015 Holiday Season s 3 Biggest Ecommerce Surprises 1/20/16 14
15 Top 3 Actions for 2016 Holiday Prep Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted 15
16 Top 3 Actions for 2016 Holiday Prep 1. Understand and cater to your mobile customer. 2. Utilize intent data. 3. Actively learn from prior holiday performance and make sure you have conducted your Holiday 2015 Post-Mortem! 16
17 Catering to Mobile Shoppers Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted17
18 GO RESPONSIVE! 18
19 Target mobile customers wherever they are Think about context and experience what would shoppers want to know if they re not in front of a computer and want to purchase your product? Enable easy ways to research, close the consideration gap, and make the sale: Have ratings and reviews easily visible in all channels. Make it easy to text and get more information about a product, location, what s new or on sale. Allow scanning or photo capture for best price. Integrate signage. Make payment on mobile devices painless. Utilize beacons and push notifications. Align and optimize your marketing campaigns and channels. Be as mobile-friendly as possible in your marketing and design. 19
20 Understand your mobile customer segment Figure out what makes them different do they purchase more often? Are they less price-sensitive? Do they have a lower or higher AOV? Dig into your pathing data to identify key purchase and browsing patterns. Understand referrals and exits, specifically for mobile buyers and browsers. Analyze the top search keywords driving traffic to your mobile site (and your competitors sites!) and make sure your landing pages from those terms are optimized. Optimize online merchandising and advertising, bestselling products, top searches, and promotions and other campaigns specifically for mobile shoppers. 20
21 Leveraging Intent Data Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted21
22 Wish Lists Classic way of determining intent to buy Promote wish lists to shoppers to encourage them to find and browse, engage with your site and brand, even if they aren t ready to buy. This also gives you key data about what they are interested in. Target marketing campaigns specifically to shoppers who have wish lists: Send wish list service reminders and test them with and without incentives. Personalize their experience based on top categories and products in their wish list. Especially at holiday or other gift-giving times, encourage shoppers to create and share their wish lists. 22
23 Other Clues That Indicate Intent to Buy Time spent on a page Reading reviews Multiple visits to the same page (in one session or across multiple) Adding to Cart without checking out and Saved Cart Clicking on different products or searching in the same category Comparing products Watching a video Social sharing, pinning, posting a picture, or discussing a product Capture and conversion mechanisms: online chat, , call-back, remarketing, social offers, recommendations, website or mobile offers 23
24 Post-Purchase Intent Clues Intent data isn't just about capturing the initial conversion. There's intent data that happens post sale as well. What are some clues of that kind of behavior? Sharing on a social network after a purchase Reviewing or rating one or multiple products Answering community product Q&As Regular engagement with your brand s social channels These are good targets for loyalty campaigns and other marketing that encourages community, retention, and repeat purchases. 24
25 Post Mortem 2015 Holiday Season Commerce Review Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted
26 POLL #2 Have you already completed some kind of performance analysis from last holiday season? A. YES B. NO Copyright 2014 Oracle and/or its affiliates. All rights reserved.
27 What is a Post-Mortem? In the context of e-commerce, a post-mortem typically involves examining a project or campaign, figuring out the cause(s) of what occurred, and determining improvements for future iterations. 27
28 Tip 1: Conduct your holiday post-mortem ASAP Make sure you do your analysis while the holidays are still fresh in your mind. If you haven t done yours yet, try to do it by the end of March at the latest. Use this as a way to figure out who your mobile shoppers are and how to target them effectively in upcoming campaigns, including this holiday season. 28
29 Tip 2: Include all necessary stakeholders Think about all the different touchpoints a customer might come into contact with during their entire experience with you, so that your evaluation covers all channels and pain points: IT Marketing Customer Service Distribution Center Call Center Merchandising 29
30 Tip 3: Remind everyone what your plan was and the reasoning behind it Restate the promotions and products you focused on for the holidays, and any other key information: Key metrics and goals (actuals vs forecast) Important changes you made last holiday season vs years past and how those turned out Key customer segments targeted Key tests Shipping delivery cutoffs Specific landing pages or holiday product bundles you pushed 30
31 Tip 4: Analyze by customer segment, channel, and key pages Analyze beyond overall revenue, sales, and traffic so you can start to see patterns and clues you can learn from: Example 1: You hit your revenue number, but an overwhelming percentage came from new customers. This indicates a troubling issue with your loyal customers something you would want to address right away. Example 2: Your Affiliate Marketing channel ended up bringing in 10% more sales during the holiday vs. forecast, but customers who bought through that channel had significantly higher returns. Again, this is a finding that you would want to tackle in more depth. 31
32 Tip 5: Focus in on operational processes At the end of the day, your business is not just about what happens online. It is the sum total of a customer s experience--what happens instore or on the phone, and whether the shipment arrived in good shape and on time. You ll also want to evaluate production and other internal processes as well was your holiday plan well-executed? Were you able to respond quickly to holiday site emergencies? 32
33 Tip 6: Provide industry context Get stats and metrics about the broader market performance during the holidays and see where your business is similar and different. For example, were other sites in your space also seeing a downturn in average order value or an increase in sales from social networks? You ll want to know that. 33
34 Tip 7: Be clear and specific about what to do differently next holiday season and make sure you refer back to these recommendations when you do your next round of holiday planning (obviously!) Your holiday post-mortem can, and should, be used to help you test and improve performance in the months leading up to holiday as well. 34
35 7 Tips for Conducting Your 2015 Holiday Post-Mortem 1) Conduct your holiday post-mortem ASAP! 2) Include all necessary stakeholders. 3) Remind everyone of what your 2015 holiday strategy was and the reasoning behind the plan. 4) Analyze performance by customer segment, channel, and key pages. 5) Focus in on operational processes. 6) Provide industry context. 7) Be clear and specific about what to do differently in
36 More Holiday Readiness Tips Copyright 2014 Oracle and/or its affiliates. All rights reserved. Oracle Confidential Internal/Restricted/Highly Restricted36
37 More Holiday Readiness Tips for 2016 Plan for sales to go bad. Be nimble, especially during emergencies. Evaluate all internal system processes. Ensure your site can handle holiday traffic/load; perform end-to-end load and performance testing. 37
38 Does your platform support growth? If you re looking at some of my tips and thinking you might not have the infrastructure to help you have a successful holiday season in 2016 and beyond, you may want to do an assessment of what you need. Some things to consider: Ease of use SaaS Consider move to the Cloud (for agility, handle peak loads lower costs, backup, security). Agility High scalability and performance Responsive Your internal org and technology depth and expertise, total cost of ownership 38
39 LiveComfortably.com 39
40 LiveComfortably.com Owned by Hollander Sleep Products, the largest utility bedding pure-play supplier in North America. Needed to launch a new ecommerce site aimed at millennials before the holidays, focused on offering products that bring a real comfort to people s lives. Key factors in decision-making: Fast time to market Responsive Agile SaaS Doesn t require a large IT team to manage Secure Went live on Oracle Commerce Cloud in October 2015 and showcased at Oracle OpenWorld. 40
41 Modern Commerce Get a fully responsive design website and storefront up and running in a few weeks. Keep control over ever product, promotion and pixel without worrying about performance, scale or security. Now we can reach new markets and customers we ve never been able to reach before. And we have complete creative control over our digital brand and storefront, without worrying about the plumbing. - Elaine Turner Inspired Buying Experiences: Leading digital experiences across web and consumer devices, out-of-the-box SEO, search and navigation, promotions, and more. Creative Control: Out-of-the-box design themes, layouts, and functionality widgets; open APIs for limitless custom extensions. Growth & Performance: Focus on your business. Let us take care of the rest. Stay on the cutting edge with seamless upgrades. Rest easy with 99.9% up-time guarantees, elastic scaling, Level 1 PCI Compliance, pod isolation for enhanced protection and 24x7 support. 41
42 42
43 Modern Commerce Get a fully responsive design website and storefront up and running in a few weeks. Keep control over ever product, promotion and pixel without worrying about performance, scale or security. Now we can reach new markets and customers we ve never been able to reach before. And we have complete creative control over our digital brand and storefront, without worrying about the plumbing. - Elaine Turner Inspired Buying Experiences: Leading digital experiences across web and consumer devices, out-of-the-box SEO, search and navigation, promotions, and more. Creative Control: Out-of-the-box design themes, layouts, and functionality widgets; open APIs for limitless custom extensions. Growth & Performance: Focus on your business. Let us take care of the rest. Stay on the cutting edge with seamless upgrades. Rest easy with 99.9% up-time guarantees, elastic scaling, Level 1 PCI Compliance, pod isolation for enhanced protection and 24x7 support. 43
44 What to do next 1. Complete your holiday post-mortem! 2. Analyze and target your mobile shoppers. 3. Test a few intent-based campaigns. 4. Start to plan and prep for holiday now (you re not too early). 5. Make sure your platform and infrastructure can handle your growth plans. Interested in learning more about Oracle Commerce Cloud? 44
45 Q & A Learn more Or call Thank You! Copyright Copyright Oracle Oracle and/or and/or its affiliates. its affiliates. All rights All rights reserved. reserved.
46 Resources Oracle Commerce CX Blog AddShoppers 2015 On-Site Marketing Breakdown Report PowerReviews and Northwestern University Study: From Reviews to Revenue Connect with me or send me ideas for our blog! So Young Park, Director of Customer & Product linkedin.com/in/soyoungpark 46
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