Digital shopping and buying is a fact of life for the average US consumer, and retailers continue to face challenges and opportunities as new technologies develop and trends emerge. Topics in this webinar include: Why mobile conversion rates are climbing; How beacons and location-based marketing are driving in-store sales; How the visual web—YouTube, Snapchat, Instagram—is affecting ecommerce; Where influencers and consumer-generated content fit into the purchase funnel.

1. © 2016 eMarketer Inc.
Made possible by
Seven Ecommerce Trends You Need
to Understand Now
Krista Garcia
Analyst
July 28, 2016

2. © 2016 eMarketer Inc.
1. Mobile Conversions
Climbing

3. © 2016 eMarketer Inc.
Smartphone mcommerce is growing fast
46.8%
Mcommerce
15.7%
2.6%
74.2%
Ecommerce Total RetailSmartphone Mcommerce
US Retail Sales Growth, 2016

4. © 2016 eMarketer Inc.
Growth in US
smartphone
mcommerce
accelerated in
2015 and will
continue to
expand
through 2020
#eMwebinar

5. © 2016 eMarketer Inc.
The number of
US smartphone
buyers
continues to
rise
#eMwebinar

6. © 2016 eMarketer Inc.
US retail
ecommerce
smartphone
conversion rates
improved 33.4% in
2015
Conversion rates on smartphones
were still one-third what they were
on desktops, but that was up from
one-quarter in 2014
#eMwebinar

7. © 2016 eMarketer Inc.
Bigger screens =
higher conversion
rates
Phablets’ share of global
smartphone devices will rise
from 29% in Q4 2015 to 59% in
Q2 2017
#eMwebinar

8. © 2016 eMarketer Inc.
Faster load times = higher conversion rates
Load Time
2.4 seconds
3.3 seconds
4.2 seconds
5.7 seconds
(Source: Soasta, Sept. 2015)
Conversion Rate
1.9% (peak)
1.5%
1.0%
0.6%
#eMwebinar

9. © 2016 eMarketer Inc.
App search has been enabled by deep links
~50%
of the Internet Retailer 100 use deep links
(Source: Pure Oxygen Labs, 2016)
#eMwebinar

10. © 2016 eMarketer Inc.
2. Stores Still Matter

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Brick-and-mortar dominates US sales
92.8%
Retail sales that occur in-store
(Source: eMarketer, June 2016)
#eMwebinar

12. © 2016 eMarketer Inc.
Stores
generate the
most revenue
for US
multichannel
retailers
20% of revenues come
from ecommerce
#eMwebinar

13. © 2016 eMarketer Inc.
Stores are
still the focus
of many US
retail execs’
efforts to
enhance the
customer
experience
#eMwebinar

14. © 2016 eMarketer Inc.
Online retailers get physical
Showrooms Partnerships Stores
Image source: Bonobos Image source: West Elm Image source: GeekWire

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3. Mobile Drives In-Store Sales

16. © 2016 eMarketer Inc.
Mobile influences
45%
of all US shopping journeys
(Source: Facebook IQ, Feb. 2016)
#eMwebinar

17. © 2016 eMarketer Inc.
Nearly all
US adult
smartphone
users have used
location-based
services
#eMwebinar

18. © 2016 eMarketer Inc.
Proximity
marketing can
drive foot traffic
and sales
#eMwebinar

19. © 2016 eMarketer Inc.
Personalization
and
understanding
shoppers are
important
Beacons? Not so much
#eMwebinar

20. © 2016 eMarketer Inc.
Beacons have low adoption among US retailers
 Used by 15% (Source: Forbes Insights, Dec. 2015)
 23% implemented and satisfied, 22% implemented but
planning a change, 23% had no plans to implement
(Source: Retail Systems Research, Feb. 2016)
 20% currently used beacons (or augmented reality) and
17% planned to do so (Source: TimeTrade, April 2016)
#eMwebinar

21. © 2016 eMarketer Inc.
What are
retailers
focused on?
“[Beacons] are one of the
technologies that will help
advertisers and marketers
understand the customer’s overall
behavior. But other technologies are
also contributing to that holistic
customer view—Wi-Fi data, NFC
data and QR codes.”
—Thomas Walle, CEO and Co-Founder, Unacast
#eMwebinar

22. © 2016 eMarketer Inc.
4. More Experiences, Less
Stuff

23. © 2016 eMarketer Inc.
Spending on
services has
been growing
faster than
spending on
goods in the
US
#eMwebinar

24. © 2016 eMarketer Inc.
Digital spending intention among US internet
users is strongest for services
 This trend is more so
for millennials
 25% planned to spend
somewhat or much
more digitally on
entertainment, 24% on
airlines and hotels
#eMwebinar

25. © 2016 eMarketer Inc.
Experiential spending gained steam over the
holidays last year
52%
of US millennials
planned to buy
experiential gifts
(source: PwC, Oct. 2015)
39%
of those 35+ did
(source: PwC, Oct. 2015)
#eMwebinar

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The sharing economy isn’t widespread
#eMwebinar

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Sharing economy skews young
#eMwebinar

28. © 2016 eMarketer Inc.
Sharing or selling?
 eBay and Etsy, not
Rent the Runway and
Le Tote
#eMwebinar

29. © 2016 eMarketer Inc.
5. Images Speak Louder
Than Words

30. © 2016 eMarketer Inc.
Social commerce is practically synonymous with
Pinterest
 4.6 times as many Pinterest
users go there to shop
compared to Facebook and
Instagram
#eMwebinar

31. © 2016 eMarketer Inc.
Pinterest is designed to shop
Image source: Pinterest#eMwebinar

32. © 2016 eMarketer Inc.
Pinterest sparks discovery
“The discovery is usually led by an idea.
Ideas create intent for us to purchase
products, book a trip for travel or do
something else. We know that in order to
create intent, you must start first with an
idea and move beyond a beautiful photo.”
—Edwin Wong, Head of Partner Marketing
Insights, Pinterest
#eMwebinar

33. © 2016 eMarketer Inc.
Instagram is less
transactional
 Instagram has 34.8 million
more US users than
Pinterest
 58.3% of US Instagram
users are female
#eMwebinar

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Instagram inspires
Image source: Instagram#eMwebinar

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Most US
Snapchat
users are
under 25
Snapchat skews very
young, but will gradually
expand its user base
through 2020

36. © 2016 eMarketer Inc.
Nordstrom’s “Study Break”
“Our Snapchat Stories were a little bit
informal and natural—it was not a
commercial, it had hand-written text and
it was very different than what
consumers would see on TV or even
YouTube.”
—Bryan Galipeau, Director, Social Media and
Display, Nordstrom
Image source: Fortune#eMwebinar

37. © 2016 eMarketer Inc.
There’s
no
shortage
of visual
social
platforms
Image source: We Heart ItImage source: Imgur

38. © 2016 eMarketer Inc.
Influencers in the
Purchase Funnel

39. © 2016 eMarketer Inc.
Retail is late to influencer marketing
“Retailers have one
specific goal in mind:
Come shop with us
and spend your
money with us.”
—Stacy DeBroff,
Founder and CEO,
Influence Central
“Retailers do have more
emphasis on the middle of
the funnel and the bottom
funnel than other brands
who use our platform. …
Especially if they are
ecommerce, everything has
got to tie back to the sale.”
—Rustin Banks, Co-Founder and
Chief Product Officer,
Tapinfluence
#eMwebinar

40. © 2016 eMarketer Inc.
Advertising
has a trust
problem
#eMwebinar

41. © 2016 eMarketer Inc.
Younger US
internet users
are more
swayed by
influencers
But friends and family still
beat all other sources for
influence
#eMwebinar

42. © 2016 eMarketer Inc.
The value of
influencer
marketing
continues to grow
 Food and beverage had high
earned media value
 2015 EMV average ($11.20)
grew 63% over 2014
#eMwebinar

43. © 2016 eMarketer Inc.
7. Ecommerce Is Evolving

44. © 2016 eMarketer Inc.
Contextual, Connected, Conversational
Image source: Amazon Image source: Pizza HutImage source: Pinterest

45. © 2016 eMarketer Inc.
Buy buttons at work
Image source: Pinterest Image source: Instagram Image source: Facebook

46. © 2016 eMarketer Inc.
Social media users haven’t been clamoring for
buy buttons
 Less than a fifth of
consumers polled in
November 2015
worldwide were
interested in buy
buttons on select
social media sites
#eMwebinar

47. © 2016 eMarketer Inc.
#eMwebinar
Getting cozy with artificial intelligence

48. © 2016 eMarketer Inc.
Voice search is still emerging
 74% of US smartphone
users under 25 have
used digital voice
assistants
#eMwebinar

49. © 2016 eMarketer Inc.
Convincing consumers to use Facebook
Messenger for commerce will be a challenge
 54.7% of US users
would like to see
discounts and
promotional offers
 27.7% didn’t want to
receive any
messages
#eMwebinar

50. © 2016 eMarketer Inc.
Are bots the new apps?
Image source: Wingstop Image source: Kik
“We’ll begin to identify phrases that
identify people’s interest in placing
an order, and then we will be able to
proactively reach out to them. We
will learn as we go so we can learn
and adapt to those phrases.”
—Flynn Dekker, CMO, Wingstop, in
Nation’s Restaurant News

51. © 2016 eMarketer Inc.
Kik’s Bot
Shop
features
retail
brands
Image source: Kik#eMwebinar

52. © 2016 eMarketer Inc.
Recap
1. Smartphone conversion rates are improving
2. The store still matters for sales
3. Mobile can bridge online and offline worlds
4. Spending is shifting to experiences over goods
5. Visual commerce’s success varies by platform
6. Influencers can have sales impact, but it’s hard to measure
7. Ecommerce is becoming contextual and conversational
#eMwebinar

53.  Accelerate time to insight
 Holistically view customer journeys
 See experiences through your
customers’ eyes
 Unite teams around the customer
© 2015 IBM
A single place to answer…
what is happening and why

54. Performance Bikes Gains Insight Across
Channels
Leading Consumer Brand Visualizes Entire
Customer Journey
• Single view of journeys enables brand to
personalize content and deliver extraordinary
experiences that meet their business goals
• Understand activities that lead up to
key milestones, and customize content
to increase conversion
• Target look-alikes on third-party sites to
find more high value customers
• Single view of customer journeys across
channels to better personalize and deliver
extraordinary experiences
• Holistic customer understanding of multi-
channel experiences
• Easily connected email and web touchpoints
for a single view

55. IBM Customer Experience Analytics
Learn more at:
ibm.com/cxanalytics

56. © 2016 eMarketer Inc.
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Krista Garcia
Seven Ecommerce Trends You
Need to Understand Now
 Digital Shopper Marketing Trends in the US: Getting Personal
in the Aisles
 The Changing Path to Purchase: What It Means to Add Mobile
to the Mix
 Cross-Border Ecommerce 2016: A Country-by-Country Look at
Consumer Behavior and Trends