THE DIGITAL & MOBILE RENAISSANCE AN ETAIL FRANCE BENCHMARKING REPORT AN ETAIL FRANCE BENCHMARKING REPORT

Transcription

1 AN ETAIL FRANCE BENCHMARKING REPORT

2 TABLE OF CONTENTS Introduction 03 Pt.1 Business Growth and Investment 04 Reimagining the Rules of Retail 10 Pt.2 Mobile Strategy and ROI 11 Pt.3 Multichannel focus 16 About etail France 17 About RetailMeNot 18 About WBR Digital 18

3 INTRODUCTION The way retailers do business in France, and around the world, has changed. There are technological disruptors, greater competition, and customers with higher expectations of what an online shopping experience should be. The increased competition in the French market is driven in a large part by the continued trend of growth in the e-commerce sector in France, and indeed in the wider European market. This growth led to a proliferation of e-commerce sites in 2014, as well as a determined effort amongst the big players to consolidate their positions at the top of the market. Internet sales are expected to grow by a further 10% or more in 2015, meaning that French e-commerce will cross the 60 billion Euro threshold during this time. As a result, France will maintain its position as the third largest e-commerce market in Europe, and remain an important growth area in an otherwise sluggish economic reality. Leading up to the etail France 2015 conference we wanted to discover how some of the largest retailers doing business in France are responding to the biggest challenges in the market today. We surveyed 77 leading executives including Heads of E-Commerce, Heads of Multichannel / Omnichannel and Directors of Digital Marketing as well as others of a similar standing. This report presents the results.

4 PT.1 BUSINESS GROWTH AND INVESTMENT LOOKING AT MY ONLINE BUSINESS FROM , MY: 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Traffic Customer Repeat Visits Average Order Value y Decreased y Stayed the same y Increased 90% OF ETAIL FRANCE RETAILERS SEE INCREASE TO MOBILE TRAFFIC IN Two major signifiers of the health of online business, web traffic and customer repeat visits, saw significant increases in amongst retailers operating in France. This speaks volumes about the success of previous investment; driving return visits with more engaging and easy-tonavigate e-commerce sites, better executed PPC and SEO campaigns and rich, well developed content. Digital has made the retail environment more competitive than ever. Online shoppers buy more often, but the average order value in France has been declining for the past 10 years. Merchants have to find the right balance between recruiting new customers and generating repeat visits. It is encouraging to see that the large majority sees positive results in both areas

5 IN WHICH AREAS OF E-COMMERCE TECHNOLOGY ARE YOU PLANNING TO INVEST IN THE NEXT MONTHS? Mobile Multichannel Initiatives SEO Site Merchandising CRM Social Platform Usability/testing PPC 62% 51% 40% 35% 32% 25% 24% 18% 13% MOBILE TOP PRIORITY FOR INVESTMENT IN THE NEXT 12 TO 18 MONTHS Retailers cannot ignore the impact of new technologies and digital innovation if they want to stay ahead of the competition. An improved mobile experience, omnichannel optimisation and personalisation are the key priorities for retailers to leverage. It is not surprising to see that mobile and multi-channel commerce are on top of the list of investments for the next months. Consumers already take these new opportunities for granted and it is vital for retailers to reflect this in their strategy. DOWNLOAD THE AGENDA

6 WHAT ONLINE ACTIVITIES PRIMARILY DRIVE CUSTOMER ACQUISITION AT YOUR COMPANY? Paid Search Marketing Organic search Retargeting Affiliate Partners Social Media Mobile Marketing Marketplaces 59% 54% 50% 35% 35% 26% 25% 15% PAID SEARCH OUTSTRIPS AS PRIMARY DRIVER OF CUSTOMER ACQUISITION marketing may have had its day in terms of being the leading driver of customer acquisition, but it still remains an important element of marketing strategy for more than half of responding etail France retailers. Managing the acquisition of new customers through both paid and organic search has become a top priority, with paid search heading up the list for nearly 60% or responding retailers. We see a clear trend to diversification of investments to cover all of the different channels. Search remains, of course, a very important element of the marketing mix and remains the top priority.

7 WHAT ONLINE ACTIVITIES PRIMARILY DRIVE CUSTOMER RETENTION AT YOUR COMPANY? marketing Customer service/support Loyalty/reward programs Social Media Remarketing Personalisation Mobile campaigns (e.g. geolocalisation) 57% 50% 46% 43% 40% 38% 26% MARKETING LEADS THE WAY FOR RETAILERS SEEKING TO RE-ENGAGE THEIR CUSTOMERS Retailers in France are using a wide range of strategies to re-engage their customers, remains an important method of outreach along with effective customer service, loyalty programmes, and social media. Increased mobile usage and personalisation are bringing new life to marketing and allowing retailers to target their customers in a very efficient way. Those who succeed in touching their user base intelligently see a clear uplift in their conversion rates. DOWNLOAD THE AGENDA

8 WHAT PERCENTAGE OF YOUR OVERALL MARKETING BUDGET DO YOU SPEND IN THESE AREAS, AND WHAT PERCENTAGE OF TOTAL REVENUE DO EACH OF THESE AREAS CONTRIBUTE? Budget y 0% - 25% Revenue % of Budget / Revenue y 26% - 50% y 51% - 75% y 76% - 100% Search Search Budget Revenue 100% 100% 90% 90% 80% 80% (Of Responents) 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% (Of Respondents) Display Budget Display Revenue 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% (Of Respondents)

9 Social Media Budget y 0% - 25% Social Media Revenue % of Budget / Revenue y 26% - 50% Mobile Budget Mobile Revenue 100% 100% 90% 90% 80% 80% 70% 70% 60% 60% 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% (Of Respondents) y 51% - 75% y 76% - 100% (Of Respondents) SEARCH TOPS MARKETING BUDGET SPEND LIST Broadly speaking we see marketing spend closely aligned to total revenue contributions. Both search and display spend feature prominently, and both are attributed with significant returns in terms of revenue. Interestingly, for many respondents mobile is not yet delivering demonstrable ROI, however this may be due to inaccurate attribution. As investment in mobile is set to increase it will be interesting to see who, if anyone, cracks the attribution model. The consumer journey is becoming increasingly complex and retailers must choose wisely how they allocate their budget to reach the consumer throughout the different touch points. Despite the buzz around social networks, they are clearly not a priority for retailers. Although they have a large number of highly engaged users, they are primarily used for personal interactions and less for shopping. Successful social network marketing requires knowledge and resources and it is still hard to monetise these efforts and have a short term ROI. DOWNLOAD THE AGENDA

10 REIMAGINING THE RULES OF RETAIL Anne-Marie Schwab, General Manager and Vice President RetailMeNot France French retail has enjoyed uninterrupted growth in online and mobile shopping in recent years. As a result, merchants are racing to discover the most efficient means to attract and satisfy new customers in the digital environment, all the while streamlining and personalising the customer experience across all channels. Up until now, the retail game was relatively simple: consumers drove demand, retailers provided supply. However, over the past few years, the massive adoption of digital has profoundly changed the rules. For merchants, mobile disruption has forced them to rethink their business model. They need to consider how to deliver a mobile-first approach to ensure customer relations at all customer touchpoints (and there are more than ever!). Yet, it is surprising to see that many retailers still don t have a mobile strategy at all. This year, 19.2% of online sales in France will be carried out on a mobile phone, according to the Centre for Retail Research, and even more often mobile will be playing a vital role in the decision making process. For now, over 90% of transactions in France still happen in store, but about half of these transactions are influenced by the internet as the barriers between the online world and the high-street fall. Mobile plays a big part in this and accelerates the process. Today s consumers are already multi-channel in their minds, always on and always connected all the information they need is only a fingertip away. They don t understand why what they see online and what they see in-store is not the same, or why the mobile experience isn t as good as the one they find online. For those looking to crack the world of m-commerce, the mobile channel has huge potential to drive traffic, influence sales and build customer engagement. So far, brands and retailers are still experimenting with the variety of options that mobile channels hold and there are no clear guidelines. Retailers must stop working in silos and work towards a real multichannel experience, where customers have access to the same products and the same prices no matter where they shop. By investing in location-based targeting, retailers have the opportunity to drive much higher sales by tempting potential customers through push notifications with more relevant offers that they can t turn down. By promoting offers through trusted partners, retailers can draw people into stores while simultaneously building customer loyalty. Consumers are more likely to engage with a brand and drive a higher volume of sales if they feel certain the brand is offering them relevant and desirable offers on a regular basis. The key to success in retail today is removing friction from the shopping process by bridging the gap between online and offline channels. By adopting techniques that are relevant across both channels, retailers provide consumers with a consistent experience and perception of the brand, tailored to their specific needs. Making shopping feel seamless not only encourages shoppers in store but also builds brand loyalty, which ultimately helps to drive both online and in-store sales. Anne-Marie Schwab is General Manager and Vice President of RetailMeNot France. Anne-Marie has 25 years of experience in retail marketing which includes senior positions at Gillette (Procter & Gamble); Habitat and Galeries Lafayette.

11 PT.2 MOBILE STRATEGY AND ROI DO YOU HAVE A MOBILE MARKETING STRATEGY IN PLACE? 54% YES NEARLY HALF OF RETAILERS DO NOT HAVE A FORMAL MOBILE MARKETING STRATEGY IN PLACE 4 6 % N O While everyone agrees that the development of mobile is vital, it is interesting to see that many retailers still don t have a solid mobile marketing strategy in place. Those who don t face up this challenge risk losing their customers to more innovative competitors. HAVE YOU HAD MEASURABLE SUCCESS FROM YOUR MOBILE MARKETING EFFORTS? 40% DON T KNOW 2 2 % N O 38% YES 40% OF RETAILERS CANNOT MEASURE SUCCESS FROM THEIR MOBILE MARKETING EFFORTS STATISTICAL BREAKDOWN: Respondents without a mobile marketing strategy who could not measure the success of their mobile marketing efforts: 100% Mobile marketing is still fairly new and every retailer has their own distinct way to define success. There is no single right approach and experimentation and adaptation are critical to future success. Support from specialized 3rd party providers can help. DOWNLOAD THE AGENDA

12 ARE YOUR MOBILE CONVERSION RATES HIGHER OR LOWER THAN YOUR WEBSITE RATES? 16% 19% 65% y Lower y Around the same y Higher TWO THIRDS OF RETAILERS REPORT LOWER CONVERSION RATES ON MOBILE Retailers have discovered that although mobile is well suited to driving web traffic, it converts at a lower rate than desktop visitors. This browsing behaviour is being engaged by leading retailers who are developing content-rich sites to engage their audience on mobile and drive up conversion rates. Mobile conversion is one of the big challenges for retailers today. Mobile takes an important place in the shopping journey, but it s not yet the place where people transact. As retailers improve their mobile experience and consumers build trust in mobile shopping, this ratio will most likely inverse in the next few years. Those investing now will be the winners of that game.

13 WHICH OF THE FOLLOWING DO YOU HAVE IN PLACE [OR PLAN TO HAVE IN PLACE FOR THE FUTURE] 49% 32% 12% 7% y Mobile optimised website y Mobile applications y Mobile optimised y Tablet applications MOBILE OPTIMISED WEBSITE SEEN AS MOST CRUCIAL ASSET FOR FRENCH E-COMMERCE RETAILERS Retailers know that making your e-commerce experience work across platforms, and specifically on mobile, is not something which is nice to have it s essential. Just how they choose to execute this need varies according to the size of the organisation, however, many leading retailers have implemented fully responsive websites which provide the best possible experience to their visitors regardless of the device they are using. Although there is a big interest in mobile apps, retailers now understand that a mobile optimised website is key. Apps are a great asset for brands with a big and very engaged user base, but they should only be seen as an extension to a great mobile web experience, and not as an alternative. DOWNLOAD THE AGENDA

14 WHAT TYPE OF PROMOTIONS DO YOU PLAN TO RUN OVER THE NEXT 12 MONTHS? 71% 62% 57% 46% 35% 35% 28% 19% y Discounts on specific product or category specific offers y Discounts available for the entire store y Coupons y Private sales y Flash sales y Money off y Cashback y Percentage off TARGETED DISCOUNTS IN THE PIPELINE FOR 71% OF RETAILERS Retailers are planning to employ a variety of tactics to entice new and returning customers over the next 12 months. These will be primarily targeted to specific products and categories, rather than discounts available across the entire store. Promotions are a great way to increase conversion and can help improve brand perception. Everyone loves a good deal. But in order to preserve their margins, retailers must always align their promotional strategy with particular objectives and give the discount only to those who need the nudge to buy.

15 PT.3 MULTI-CHANNEL FOCUS ARE YOU PUSHING LOCAL OFFERS ON MOBILE [I.E. OFFERS WHICH ARE ONLY AVAILABLE IN CERTAIN REGIONS OR SELECTED STORES AND NOT NATIONWIDE] y Yes 28% y No 69% y Don't know 4% 30% OF RETAILERS HAVE BEGUN PUSHING LOCAL OFFERS ON MOBILE Retailers have begun to meaningfully experiment with localised shopping experiences, however nearly 70% are yet to utilise this functionality. Local offers are a great way for national chains to push individual stores and better target their clients. Only customers who live nearby can see the offer or will receive a push notification when they dwell near the store. Those offers can be limited to particular regions or stores to better respond to specific targets. DOWNLOAD THE AGENDA

16 ARE YOU RUNNING IN-STORE CAMPAIGNS? y Yes, as multi channel offers 67% - the same discounts are available online y Yes, as in-store only- 26% campaign discounts are not applicable online y No, our discounts are 6% online only y We never give discounts 2% NEARLY 70% OF RETAILERS EMBRACE MULTI-CHANNEL DISCOUNTS We can see from this data that retailers are increasingly realising that customers want consistency, and lacking options is a real turn-off. As internal walls are broken down, we can expect to see this number rise. Consumers don t think so much about channels, they think about brands. They don t understand why an offer is only available online or offline and not across all outlets. Retailers who want to offer a great omnichannel experience to their customers must stop working in silos and offer a coherent promotional strategy across all channels.

17 DISCOVER MORE AT ETAIL FRANCE November 2015 Trianon Palace, Versailles Contact Us +44 (0) etail is a one stop shop for e-commerce and multichannel executives; an event where you can learn, get inspired, find solutions for your business and build lasting relationships all in a beautiful venue. The strength of this year s etail France programme is founded on the quality of its research. To ensure you gain insight and answers for the latest trends, hot topics, and biggest challenges. We have collaborated with 72 industry experts, over six months, to gain quality insight and direction. With 2 days, 43 innovative speakers, 15 recommended technology exhibitors, and 140 leading retailers on site - if you have a pain point, we have it covered. DOWNLOAD THE LATEST AGENDA TO FIND OUT HOW YOU CAN BENEFIT FROM THE ETAIL EXPERIENCE! C O N T E N T F A N D I N N O V A T INSPIRATION. LEADERSHIP. RELATIONSHIPS S T A R I V E F I V E S T A R C O N T E N T I O N I S R U P T D F O C U S E D I O N DOWNLOAD THE AGENDA

18 ABOUT RETAILMENOT RetailMeNot operates the world s largest marketplace for digital offers. The company s eight websites and their mobile apps enable consumers across the globe seeking to save money to find hundreds of thousands of digital coupons and offers for their favorite retailers and brands. During the 12 months ending March 31st 2015, the network experienced more than 720 million consumer visits to its websites and during the first quarter monthly mobile unique visitors totaled 18.4 million. RetailMeNot estimates $4.4 billion in paid retailer sales were attributable to consumer traffic from digital offers in its marketplace. The RetailMeNot, Inc., portfolio of coupon and deal websites includes RetailMeNot.com, the leading online coupon site in the United States; VoucherCodes.co.uk, the leading online coupon site in the United Kingdom; ma-reduc.com, Poulpeo.com, Bons-de-Reduction.com in France; deals.com in Germany as well as ActiePagina.nl in the Netherlands. Contact: Astrid Canevet Sr Manager, Corporate Communications Tel: +33 (0) acanevet@rmn.com ABOUT WBR At WBR Digital we design and execute bespoke content marketing campaigns all year round, delivering our clients unparalleled access to the wider WBR event audience. We believe in creating rich content that engages and inspires. We conduct in-depth industry research, then add analysis and a double-shot of creativity, before marketing it for you, to targeted audiences of your choosing. It s industry research, it s thought leadership, it s quality content it s the perfect opportunity to generate qualified sales-ready leads. Contact us to find out how your business could benefit from: v Lead generation campaigns that fit your priorities v Bespoke webinars, benchmarking reports and whitepapers v In-depth research on current fastmoving issues and future trends v The opportunity to position your company as a thought leader Contact: Tanyel Ali Head of Digital Publishing Tel: +44 (0) Tanyel.Ali@wbr.co.uk