Techsavvy shoppers transforming retail 2016 US Study January 2017 Overview The 2016 UPS Pulse of the Online Shopper Study explores Insights into consumers online shopping ID: 747182
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Slide1
UPS Pulse
of the Online Shopper
™
Tech-savvy shoppers transforming retail
2016 U.S.
Study
January 2017Slide2
Overview
The 2016 UPS Pulse of the Online Shopper™ Study explores:
Insights
into consumers’ online shopping
preferences
Future
online and omnichannel trends, particularly those driven by technologyHow social media and other promotional vehicles drive retail sales2Slide3
3
Results summary Slide4
4
Demographics of luxury
52%
millenials (18–34)
26%
g
en X (35–50)20%boomers (51–69)2%Other (70+)Age
54%
male
46%
female
Gender
6%
less
than
25K
35%
25K–60K
33%
60K–100K
26%
100K+
IncomeSlide5
5
Shoppers are highly satisfied with their shopping experienceQ10. How satisfied are you with your shopping experience in the last 3 months? –
% Satisfied - Top 2 Box 7-Point Scale, n-=277Overall online shopping satisfaction
Satisfaction is higher with online channels
LUXURY NON-APPARELSlide6
Cross-channel purchases
are growing
6RB6. Thinking of all the purchases that you make, both online and in stores, how often do you purchase in the following ways?
LUXURY NON-APPAREL
35%
Search and buy online
18%Search and buy in store47%Multi-channel netFrequency of purchases by methodSlide7
7
In fact, more luxury, non-apparel shoppers plan to increase activity through online methods
Fut7. Over the next year, do you plan to shop less, the same or more than last year using each of the following means?
LUXURY NON-APPAREL
41%
36%
29%19%Desktop or laptop computerSmartphoneTablet
In store
Percent that will shop more by channel Slide8
8
Digital is changing the way shoppers research and purchase goodsRB1. Thinking of your favorite retailer that has both physical stores and an online presence, what channel do you prefer to research and purchase products
?77%
Purchase online
65%
Research online
LUXURY NON-APPARELSlide9
9
What’s important to shoppers: pre-purchaseRB5A. How important are the following factors when searching for and selecting products online
?Search1New. When visiting a retailers website, how influential are the following types of content?
75%
67%
66%
60%
Product prices
Return policy
Detailed product info
Retailer reputation
Most important items when searching for and selecting products online
Most influential content when visiting a site
Product reviews
71%
Communities / forums
66%
Photos submitted by consumers
64%
LUXURY NON-APPARELSlide10
10
What’s important to shoppers: checkoutCheck 2. What information or options are most important to you when going through an online checkout process?
26%
18%
9%
Free shipping options
Variety of payment methodsExpedited shipping options
LUXURY NON-APPARELSlide11
11
What’s important to shoppers: post-purchase Track1. How satisfied are you with each of the following aspects of the post-purchase experience when shopping online
? ? – % Satisfied - Top 2 Box 7-Point Scale
Satisfaction with aspects of post-purchase experience
Information & Communication
LUXURY NON-APPARELSlide12
12
But the in-store experience isn’t deadNew16_Omni_1. Thinking about the past year, please state your level of agreement with each of the following statements regarding your store behavior
. ? – % Agree - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL
43%
Love the thrill of hunting for and finding great deals
42%In-store visits help me gather new ideas47%Shopping in-store is still a major part of my shopping routine50%
Shopping relaxes meSlide13
13
And, small retailers are very importantRetailer1new. For what reason would you shop with small retailers either online or at a store as opposed to larger, well-known retailers?
Retailer2new. What tradeoffs are you willing to accept when shopping with small retailers, either online or at a store, as opposed to larger well known retailers?LUXURY NON-APPAREL
Top reasons to shop at
small retailers44% Unique items32% Support community or small business
29% Like to try new retailers29%
Service they provide is superiorCustomers are willing to make tradeoffs when shopping with smaller retailers33% Limited hours or inconvenient locations 28% Longer delivery times 26% Paying for shipping and handling 25% Less sophisticated website
Retailers must have unique products to competeSlide14
14
Ship to store
is in favorFlex5(NewQ_OC4). In the past year, when purchasing online, have you ever chosen the “ship-to-store” or “pick-up-in-store” option?Flex6BNew. Do you plan to select “ship-to-store” or “pick-up-in-store” more often in the next year? Flex6. When you selected “ship-to-store” or “pick-up-in-store”, in the past, did you typically end up purchasing more items while you were in the store during pickup?
LUXURY NON-APPAREL
54%
have shipped to store for pickup
72%Of those,made additional purchases in store46%of past users
Plan to use ship to store more in the coming year:Slide15
Preferred method of return
15
Leverage store returns to drive repurchaseRet4. For those retailers that have both a physical store and online presence, how do you prefer to return items that you ordered online?Ret4bnew. In the past year, when making a return to the store, have you also made a new purchase?Ret4cnew. In the past year, when processing a return on a retailer’s website, have you also made a new purchase
?LUXURY NON-APPAREL
65%
35%
Return an item in storeShip an item back to retailerMade an additional purchaseIn store81%
64%
OnlineSlide16
16
Social media should be integrated into your marketing strategySM1. Do you use any of these social networking sites in the following ways
? % that follow retailers on this site, and % influenced to purchaseSM5. When satisfied with a brand or product you have purchased, how likely are you to engage with the brand or product via social media?LUXURY NON-APPAREL
47%
48%
33%
37%2016201620162016Follow retailers on social media
Luxury Goods
Non-Luxury
Goods
Luxury Goods
Non-Luxury Goods
Social media
influences
their purchases
58% are likely to engage with the retailer via social media when they are satisfied with a purchaseSlide17
17
Social media content can engage consumers Social2new. How likely are you to click and explore the following types of content posted by retailers on social media
? - % Likely - Top 2 Box 7-Point ScaleLikelihood to click and explore posted content
52%
Store locators
63%
Promotions54%New product announcements
LUXURY NON-APPARELSlide18
18
Emails with promotions are more likely to prompt shoppers to buy from a retailerAd2. How likely are the following forms of retailer advertising to prompt you to shop with a retailer? - % Likely - Top 2 Box 7-Point
Scale
Likelihood that these advertisement forms will prompt shopping
Email promotions are still the best options to prompt purchase.
LUXURY NON-APPARELSlide19
19
Protect Your Reputation with Risk Management
Loss prevention best
p
ractices:
Select a carrier that offers armed, secured, transportation and insurance
Use shipping practices that are non-descript, secure and well packagedConduct due diligence prior to engaging in new businessControl of custody provides physical accountability for your valuables:Use Air Express Service LevelsLimit 3rd Party logistics providersUse transportation companies with employees, not contractors
LUXURY NON-APPAREL
Source:
FBI / CJIS / UNIFORM CRIME REPORTING (UCR) PROGRAM
Major U.S. City
Crime Rate per 1,000
Chicago
5.38
New York
2.57
Los Angeles
3.94
Miami
4.18
U.S. Average
2.3Slide20
Why not partner with a shipping
and insurance specialist
who can preserve that reputation?
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
©
2017
United Parcel Service of America, Inc. UPS, UPS Capital, the UPS brandmark, and the color brown are trademarks of United Parcel Service of America, Inc. All rights reserved.20Slide21