This document summarizes the results of a survey on digital shopping behavior conducted in November 2013 with over 1,000 respondents. It finds that 1 in 5 shoppers can now be considered "ÜberDigital" - doing the majority of their shopping research and purchases using smartphones. While most shoppers value personalized promotions and services, they also have concerns about retailers' use and protection of their personal data. The document outlines opportunities for retailers to better capture and utilize customer data and analytics to improve the shopping experience through more personalized digital offerings.

1. Jon Stine
jostine@cisco.com
Director, Cisco Consulting Services
January 13, 2014
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2. Web-based survey
N = 1,174
Margin of error <3%
Digital Shopping
Behavior Survey
Conducted Nov. 2013
Representative of the U.S.
broadband population by age,
income, region
Source: Cisco Consulting Services, 2013
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3. 1
2
 It’s a matter of trust…
In-store digital
concepts
 …yet, shoppers
 Which brands will mash-
Retail and personal data
generally don’t
 At risk: nearly $100 billion
per annum in incremental
industry IoE value
up the Internet and the
store?
 They’re waiting
 Ahead: an “s-curve” leap
in shopper behavior and
expectations
3
Digital shopper behavior
 1 in 5 shoppers is
now an ÜberDigital
 Say “hello” to the
future…
 …where mobile is the
norm
 Still asking if you need
guest Wi-Fi?
Source: Cisco Consulting Services, 2013
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4. DIGITAL MASS
ÜBER DIGITALS
80% 18%
Digital
Research
Browse
Purchase
Median Age 40-44
Last Year 11%
Smartphone
Research
Browse
Purchase
Median Age 30-34
Source: Cisco Consulting Services Primary Research, 2013
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5. The Vast Value
of the Internet of Everything
Internet of
Everything
Retailing
Sense Know Act
North America Retail Unrealized Value at Stake in 2013
DATA FUSION
RIGHT TIME
HYPER-LOCALIZED
Source: Cisco Consulting Services, 2014; n = 1,174
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6. Select up to three
DIGITAL MASS
ÜBER DIGITALS
80% 18%
46%
38%
30%
30%
Personalized promotions
via touch-screen or smartphone
Personalized products specifically for me
Personalized shopping lists
Personalized service
53%
47%
38%
34%
Source: Cisco Consulting Services Primary Research, 2014
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7. What if retailers could…
DIGITAL MASS
CAPTURE DATA
Transactions; On-hand inventory on order
ÜBER DIGITALS
TO CREATE
Improved in-stock
69% 27% 42%
Past buys; Store location; On-hand inventory
77% 38%
44% 82%
35%
Personalized digital offers
39%
37%
Store traffic; Orderqueue
No checkout lines
67% 26% 41%
43%
Smartphone in store; Location
37% 74%
37% 80%
In-store way-finding
57% 20% 37%
33%
38% 71%
APPEALING
VERY APPEALING
Source: Cisco Consulting Services, 2013
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8. Financial
Hospitals,
physicians Institutions,
banks
However:
56%
54%
Credit card
companies
47%
Government
agencies
37%
How much would you trust
these companies/institutions
to protect your personal data
and use it to provide
something you value?
National
retail
brands
31%
Internet
companies
18%
Source: Cisco Consulting Services, 2014; n = 1,174, Percentage answering 7 and above on a 10-point scale 1=not trust at all 10=trust completely
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9. DIGITAL MASS
ÜBER DIGITALS
Past purchasing history with this brand
57%
59%
Basic information about me (name, age, etc.)
52%
56%
Likes and dislikes (opt-in)
48%
49%
Information from products I am using
27%
TRUST CLIFF
30%
Past purchasing history from other brands
24%
TRUST CLIFF
29%
My location
20%
29%
Source: Cisco Consulting Services, 2013
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10. Select up to three
DIGITAL MASS
ÜBER DIGITALS
Guaranteed percentage savings on next purchase
52%
51%
Specific dollar savings on my next purchase
52%
53%
World-class privacy policy
39%
31%
Ability to use loyalty points at more than one retailer
TRUST CLIFF
24%
27%
TRUST CLIFF
Admission into a club that receives priority service
11%
18%
Admission into a club that receives priority offers
22%
27%
Source: Cisco Consulting Services, 2013
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11. DECISION JOURNEY
RESEARCH
PC
In store
DO IT NOW
U.S. 2013
BUY
60%
In store
39%
Online PC
Mobile
In store
Mobile
Online PC
32%
26% 86%
27%
33%
23%
22%
Über Digital 2013
INTERESTED
72%
66%
59%
56%
25% 84%
70%
54%
20% 92%
62%
20% 90%
24% 86%
Click ’n Collect
Kiosk
In store
12%
35%
47%
28%
40% 68%
Source: Cisco Consulting Services, 2013
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12. What are the three most important sources of information you use to help make buying decisions?
Online reviews retailer website
Friends and family
Online reviews expert sources
60%
58%
52%
Friends,
family
49%
44%
Online
reviews
Store employees
Online Friends, 42%
reviews family Online
experts
29%
Online
experts
Online
reviews
46%
43%
Friends,
Online
family
experts
21%
Store
Assoc.
15%
12%
Store
Assoc.
Store
assoc.
2010
2012
2013
Source: Cisco Consulting Services, 2010-11-12-13, 2010: n = 1004; 2012: n = 1007; 2013: n = 1,174
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13. How have your expectations for shopping changed over the past two years?
DIGITAL MASS
ÜBER DIGITALS
80% 18%
71%
61%
58%
58%
50%
Better values
Price visibility
Wider range
Information access
Faster
79%
72%
72%
75%
64%
Source: Cisco Consulting Services Primary Research, 2013, percentage responding “very likely” to research a product online
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14. © 2014Cisco and/or its affiliates. All rights reserved.
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15. Percentage responding frequently or always
1
2
3
4
BEST PERSONAL PRICE
MOBILE CONCIERGE
BEAT THE BUZZER
CONNECT THE DOTS
63%
42%
35%
34%
Opt-In. Smartphone. Scan.
Opt-In. Smartphone.
Gamification.
Gamification.
Calculates all your relevant
offers, coupons, loyalty points.
Greets, guides, provides.
At home or in store.
In-store. Smartphone.
Interest- and location-based
information, offers.
PC or smartphone.
Collect tokens or QR codes
throughout the store.
Your personal price. Now.
Your retail remote control.
Special promotion now
in limited time.
Act now and win!.
Act now and win!
Source: Cisco Consulting Services, 2013 (U.S. data, n= 1,174), percentage responding frequently or always
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16. Percentage responding frequently or always
5
6
7
8
REMOTE CONSULTATION
ENDLESS AISLE
SOLUTION BUILDER
SOCIAL SHOPPING
31%
29%
29%
21%
Mobile or fixed screen.
Online or in-store.
Online or in-store.
Smartphone. Social.
One-click connect.
Fixed screen and smartphone.
Fixed screen or smartphone.
Post photos. Pin ideas.
No appointment.
See brand’s entire inventory
on desired SKUs.
Suggested project shopping lists.
Send to professionals, friends.
Recipes. Outfits.
Whaddaya think?
Talk to the brand’s best.
What, why, and how.
Nearby stores. Dotcom.
Vendor.
Source: Cisco Consulting Services, 2013, percentage responding frequently or always
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17. Thank you.
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