Anatomy of Shopping TrendsThe Key Pillars Shaping Retail Success

@rickkenney

Rick Kenney

Trends ≠ Fads

True Shopping Stories from Across the Cloud

Shopping Activity

>1 Billion Visits

>20 Million Transactions

Periods

Q2 2017/2016/2015

Geography

30 countries globally NA and EU focus

Retailing Formats

Collaborations

Extending the Retail Model

The New Retail Pillar

Getting Personal

Today’s Topics

Mobile is the New Retail Pillar.

The Mobile Migration Continues

Analysis reflects a same site analysis of digital commerce sites from Q2 2014 to Q2 2017

Computers

Mobile

Tablets

Mobile-First!

57%60%

50%

40%

30%

20%

10%

Tra

ffic

Sh

are

Computers

Mobile

Tablets

34%

60%

50%

40%

30%

20%

10%

Ord

er

Sh

are

#1traffic driver

40%of buyer traffic is mobile

Mobile is the Source of Digital Commerce Growth

Analysis reflects Q2 2017 / Q2 2016, same-site activity

Computers | Tablets | Phones

-20%

-10%

0%

10%

20%

30%

40%

Visit Growth Order Growth

Visit and Order Growth, By Device

23%

33%

59%Used Mobile In-Store(over the last 3 months)

22%

Research

Some shoppers conduct more than one above activity, thus sum of activities is higher than the whole

11%

Buy

30%

Compare Prices

Apple Pay is Flattening the Funnel

2016 Christmas Holiday results

27% 58% 15%

85%Of buyers never see a checkout!

Be where your customers are

Engaging within Consumer Platforms

Social is an Introducer, Not a Closer

GROWTH AND HOPE, BUT… …A MORE DIFFICULT CURRENT REALITY

social traffic share growth since 201560%

47%of shoppers look for products on social media

4%

1%

Traffic Orders

0%

3%

5%

8%

Social Media as a percent of traffic and orders, respectively

The buy button –

where else will it turn up?

Consumer Platforms

Retailing Formats

Collaborations

Retailers are Extending their Enterprise

IvyrevelData Dress X Google

UniqloSPRZ Artist Collab

New BalanceX Stance

CollaborationsCollaborating Across Brands

Subscription Models: Creating a Recurring Engagement

Stitch Fix

Birchbox

Trunk Club

Storefront Evolution

The Hunt Begins in Stores and Digital ChannelsWhere are you most likely to start your hunt?

4%

37%

60%

Print Physical Digital

22%

19%

14%

6%

Online Marketplace

Search Engine

Social Media

Retailer or Brand App or Site

Source: Global Consumer Survey. Six Countries. March, 2017 N=6000. Values may sum to >100% due to rounding.

–Stacey Renfro SVP, eCommerce Pier 1 Imports

25% of the (online) sales are done from

within the four walls of the store with sales

associates. Further, buy online and pick up in

store accounts for approximately 25% of net

sales. The two channels are highly integrated.

Youth ≠ Only Digital

58%of Gen Z’s prefer to shop in stores

The Store is a Consumer Experience Hub

Opus V –

Michelin Rated

Restaurant

Fashion in the

Square

Tesla

Showroom

ModCloth IRLTouring Showrooms

Birkenstock x Barney’sPop-Up Box

M.GemiPop-Up Shop

M.Gemi photo courtesy of Lauryn Chamberlain, GeoMarketing

Extending Store Formats

“Important or very important”

79%

“I want to leave a store with my purchase in-hand.”

Shopper Product&

Making the Connection between…

Site Search Visitors are Surgical

2.5x

Revenue from Site Searchers

Site Search Visits

10% Visits

25% Revenue

An Expanding Product Catalog Means More to Merchandize

… executing manually is time-consuming and burdensome on the merchant.

Curating relevant experiences for the shopper is the new mandate…

The Impact of PersonalizationHow productive are shoppers that engage with recommendations?

A Small Share of Visits include a Recommendation Click

7%Visits

Reflects share of visits, orders, and revenue in which shoppers that click or tap a recommendation.

… But Those Visits are Massively Productive

7%Visits

24%

26%

Orders

Revenue

Reflects share of visits, orders, and revenue in which shoppers that click or tap a recommendation.

Share of Revenue

25% 26%

38%

Search And / Or Recommendation

Convert 3.7xthan ‘only search’

Site Search RecommendationsBoth

Recommendations Create More Engaged Shoppers

4.5x Higher Basket Rates

4.8x Product Views Per visit

5x Per-Visit Spend

Shoppers that click (or tap) a recommendation provide:

Personalization Drives Repeat Visits

Shoppers that engage with a recommendation

are 2x as likely to return

37%

19%

0%

5%

10%

15%

20%

25%

30%

35%

40%

Click No Click

Shoppers Making a Return Visit

Increasing the 7% Means Infusing Personalization Everywhere

Hannah’s Results

Rick’s Results Hannah’s Results

Jack Wolfskin Personalizes Site Experiences with Einstein

Provide relevant product options for all shoppers, new or authenticated

Used customer behavior to deliver tailored product sorts with Einstein Predictive Sort

Fuse personalization into the commerce experience for all shoppers

Challenge Solution

9.1% higher revenue per visitor

3.8% higher conversion

“It’s hassle free because it’s integrated into the ecommerce platform, and it’s much more convenient to have all the data in one place.” Sandra Schoeneberg, Manager E-Commerce, Jack Wolfskin

Mobile

Retailing Formats

Connecting

Get Personal beyond the (YMAL) box.

- Site Search

- Category Pages

- Personalized Pages

Extend your brand:

- Pop-ups

- Subscription models (yours or theirs).

- Collaborate!

Create the best experience on the small screen.

- Reduce Friction

- In-store Mobile Experiences

- Apps – Yours or Theirs

commercecloud.com/shopping-index