Tag Archives: spending

Ecommerce Hit Milestone

Digital commerce, fueled by growth in mobile purchasing, hit a huge milestone last year.  In 2012, B2C ecommerce spending totaled on $1 trillion globally.  New research has come available that shows it’s not even close to slowing down.

shutterstock_111037535● From 2011 to 2012, global ecommerce grew 21% to reach $1.2 trillion

● By 2016, ecommerce is projected to hit $1.5 trillion worldwide

● In North America, digital spending grew 14% to nearly $365 billion.  Next year it is expected to expand to over $400 billion

● The number of digital buyers in the US is expected to grow from 150 million last year to 175 million in 2016

● China is expected to see the greatest growth.  Ecommerce is projected 65% from 2012 to 2013 and the number of digital customers will rise by nearly 25%

What Does This Mean To You?

What does your ecommerce strategy look like?
Digital purchasing, mcommerce in particular, is rapidly changing and growing. Having a strategy is important, but making sure it’s scalable is equally important.  Things like mobile point of sale will have a dramatic affect on how your business operates.  The international adoption of digital purchasing may open new markets for your business as well.  While we can’t predict the changes that may occur, being nimble and being able to quickly pivot is something that could give your company a competitive advantage in the future. For more information on how to capitalize on ecommerce growth, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Supervisor
407-420-5702
afiala@orlandosentinel.com

Source: Emarketer

Why Consumers Are Using Mobile Devices In-Store

In many studies, the top reason consumers are using their devices in-store is to comparison shop. This is the first step in “showrooming”. While it would be near impossible to stop customers from “showrooming”, it is not the only reason why consumers engage in mobile activity while shopping. A new report looked at reasons beyond comparison shopping and found takeaways that could help your business retain more in-store sales.

shutterstock_107546720• Nearly two-thirds of 18-34 year olds and over half of 35-49 year olds used a mobile device for shopping related activities. Even one-third of Baby-Boomers did the same

• 46% of 18-34 year olds and 36% of 35-49 year olds said it’s faster to use their mobile device to find product information than ask a store associate

• Just one in five Baby-Boomers said it was easier to get information off their mobile device vs. a store associate

• Baby boomers are four times more likely to increase their spending when assisted by an associate than by consulting self-service technology

• Overall, nearly half of consumers reported that a helpful associate motivates them to spend more in-store

What Does This Mean To You?

Customer service may be one of the keys to minimizing “showrooming”. While it will probably never eliminate it, a great consumer experience will help keep spending in your physical location. In fact, an educated, helpful staff could lead to customers spending more money.
What training does your staff undertake?
Do you have a staff training plan for ongoing learning?
How knowledgeable are they about the products you sell?
Would you consider them a helpful resource for shoppers?
An investment in training will pay off in saved sales. In tomorrow’s post we’ll look at how store associates feel about mobile, technology and its impact on customer satisfaction. For more information on the best ways your business can employ mobile solutions and keep more sales in-store, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Motorola

Holiday “Showrooming”

“Showrooming” is becoming a problem for many retailers – especially the big box variety.  Best Buy in particular felt an impact this holiday season.  Best Buy estimated that upwards of 40% of their physical store traffic has no intention of making a purchase – they are there to “showroom”.  According to a recent study, there are some interesting comparisons on how consumers used mobile devices this year vs. last year.

b7_cart_concepts_2011_b5v2• Nearly three-quarters of smart phone owners made a holiday purchase on their smart phone this year, that’s a jump of over 25% year over year

• Almost eight in 10 tablet owners made a holiday purchase this year, a slight increase of 7% from last year

• There was a slight decline in the amount of desktop machine owners making purchases – evidence suggests that they switched to a mobile device to make a purchase

• Nine in 10 smart phone owners have “showroomed” with their devices; over half of tablet owners have done the same

• Men were 17% more likely to “showroom” than women

What Does This Mean To You?

Mobile devices are a part of our everyday lives.  Every day, new apps, new functions and improved user experiences push consumers towards mobile.  While you can’t stop people from using their devices in stores, you can harness the power of mobile and use it to your advantage.
Mobile enabled loyalty programs and in-store mobile experiences can keep you competitive and your store top of mind.  Excellent customer service is also something that can give you the advantage over another store or an online competitor. In tomorrow’s post, we’ll look at why consumers use mobile in store and how some retail executives plan to use mobile to make a better experience for their customers.  For more information on creating effective mobile strategies, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: TechBargains; Best Buy

The Gifts Consumers Plan To Buy

From prior posts, we know that consumers are planning to give less gifts.  But what kind of gifts are they planning on buying?  New research has come out that chronicles the types of items consumers plan to buy over the holidays and what items they want to receive as gifts.

• Over half of consumers plan to buy clothing items as gifts this year

• 47% will give gift cards or gift certificates

• Over one-third of shoppers will be buying technology items or books

• Nearly 30% are giving games & toys or CDs, DVDs and Blueray discs

• Close to 30% will also be giving food & liquor as gifts

• Just under one in four are giving away money

• Almost 20% are buying cosmetics & health and beauty aids or jewelry or video/computer games

• The top 3 gifts shoppers want to receive is gift cards (45%), money (43%), clothing (35%)

What Does This Mean To You?

While it’s hard for businesses to carry all types of merchandise – gift cards is something that nearly everyone can offer.  While gift cards may not have a huge sentimental value, they are something that consumer’s desire as gifts and are easy to give as well.
Other reasons to create a gift card:

• Over half of gift card shoppers need more than one trip to liquidate
there card.
This gives you the opportunity to create awareness, loyalty and engagement with shoppers

• 61% of gift card holders spend more than the amount of their gift card and 75% of those who overspend spend 60% more than the value of their card.
Gift cards are almost always an extended sale.  Not only did the original customer make a guaranteed purchase – the person receiving them often spends beyond the cards value

• Nearly 40% of gift cards are not fully liquidated
Unfulfilled gift cards are pure profit for your business

One of the great things about gift cards is their flexibility.  They can be used in-store or online.  Developing an E-gift card strategy can also be very beneficial to your business, especially to attract last minute shoppers.  For more information on innovative ways to create new digital revenue streams or optimize your ecommerce abilities, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Mobile Commerce Daily; Deloitte; Card9.com; InternetRetailer.com

How Consumers Plan To Save Money Over the Holidays

Consumers may not be saying “Bah Humbug”, but many plan to give less gifts and save money where ever they can.  It’s easy to go overboard during the holidays, but recent research shows us how shoppers will be cutting back and keeping within their budget.

• Consumers nationwide plan to give 15% fewer gifts this year compared to last year

• Over 60% of shoppers plan to change the way they shop in order to save money this year

• Two-thirds of those who plan on saving will buy more items that are
on sale

• Over half are going to buy lower-priced items

• Nearly 50% will either go online for coupons, deals or better prices or use more store coupons

• Over 40% plan to spend less money on themselves or buy only what their family actually needs

• Roughly four in 10 will make a list and stick to it in order not to over spend or only buy items that qualify for free shipping

• 38% are going to consolidate shopping trips to save gas

• 34% will only shop at stores that have free shipping

• Nearly 30% are going to shop at less expensive stores than in prior years

What Does This Mean To You?

Saving money is paramount for a majority of holiday shoppers.  Any campaign that you engage in should promote the value you deliver and the benefit of shopping at your location.  Also, because so many consumers are looking at consolidating shopping trips – you may not have multiple opportunities to get a customer in the door.  It’s important to know what your competition is doing to ensure your offers are valuable to customers.  As we’ve seen in the past, shipping charges are an issue with consumers.  Free or reduced shipping can help you get more customers interested in your goods & services.  For more information on tactics that can help your business get more customers, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Mobile Commerce Daily; Deloitte

Attitudes Towards Holiday Shopping

The holidays, paraphrasing Shakespeare, can be both the best of times and the worst of times.  There’s time spending with friends and family and there’s the hustle & bustle of fitting family time in with decorating and shopping. New information is out on the attitudes of consumers and how it affects their holiday shopping plans.

• Four in 10 consumers say they tend to spend less on themselves so they can buy gifts for friends and family

• More than one in four don’t feel
their dollar will stretch as far this holiday season

• 23% love the holiday shopping experience

• Over one in five like to treat themselves to gifts during the holidays and 22% say that paying for the holiday season makes them very stressed out

• 19% say they save throughout the year to pay for the holidays

What Does This Mean To You?

Holiday shopping is all about the experience – either good or bad.  Many people avoid malls and shopping at any cost, others look forward to Christmas carols and colorful holiday displays.
Think about some of the things your business can do to make holiday shopping a good experience.
A great offer can help your customers be less stressful about spending money this time of year.  Gift with purchase shows how much you value your shoppers.  Stressing the value you offer can help you keep shoppers coming back after the holidays.  There are several things you can do to create value. One way is to address the reasons why consumers are not planning to spend much this year.
The top three factors that negatively affect holiday shopping are:

• Gas prices

• Rising food bills

• Home energy bills

Have you thought about giving away $5 gas cards for consumers who spend
over a predetermined amount?

You can partner with a local restaurant in your area and create reciprocal
coupon offer.  Their customers get a discount off merchandise at your store
and your shoppers can get free appetizer or other complimentary offer at
their establishment.

Things like this will set your business apart, but it all starts with awareness.  If you do not promote your offers and why shoppers should spend money with your store, it’s a moot point.  For the more information on creating the most effective efficient campaign to keep you top of mind this holiday season, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Mobile Commerce Daily; Accenture

Are Consumers Planning To Spend More Or Less This Holiday Season?

Recently, we had a post that talked about consumer spending during the holiday season.  Many consumers are still struggling with economic issues and are questioning their holiday spending plans. New research has been made available that looks into why consumers are not spending more this holiday season vs.
last year.

• Four in 10 holiday shoppers say they want to keep their holiday season simple and not too extravagant, that’s nearly 30% more than last year

• One-third say their living expenses have risen – there has been an increase of over 40% in people gave a rise in living expenses as a reason they are not spending more this year

• Another third said that they have less discretionary income this year

• Just over 20% say they have less in savings

• 11% say they have less job security

What Does This Mean To You?

Less than 15% of consumers said they are spending more this year vs. last year and shoppers are looking to save money wherever they can. As a business, you need to find ways to get shoppers into your store and have them spend their money with you.  Creating efficient communications and delivering valuable offers are paramount in creating customer traffic.
What kind of offers are shoppers looking for?
Free shipping is the most sought after form of discount.  Many consumers said they shopped on Cyber Monday because historically that’s when retailers offered free shipping. Gift with purchase has been another offer that works well – especially with gift cards.
The value of the offer is often determined by who the shopper is.  The more you can target your offers, the more valuable they are.  This is where loyalty programs can help.  The more information you can gain on a customer – what they like and don’t like, they types of products they buy and how much money they spend can help you create offers that bring consumers into your stores.  For more information on strategy to help your business have a profitable holiday season, please contact your Orlando Sentinel Media Group representative or:
Al Fiala
Advertising Research Manager
407.420.5702
afiala@orlandosentinel.com
www.orlandosentinel.com/mediakit

Source: Mobile Commerce Daily; Accenture