5 things you need to know about selling to local consumers

5 Things You Need to Know About Selling to Local Consumers

www.streetfightmag.com@stevenhjacobs #modernshopper

Steven Jacobs | Deputy Editor | Street Fight

Kill the ecommerce division Consumers now shop at the seam of the physical and digital worlds1Think consumer — not device — first A unified experience is no longer an opportunity — it’s a necessity 2Forget the funnel The shopping journey can begin and end wherever the consumer choses. 3Stop thinking of mobile as a sales channel Mobile is the thread that ties the modern shopping experience together4

5 Mobile is for doing Commerce — not content — will drive marketing innovation on mobile

1 Kill the ecommerce division Consumers now shop at the seam of the

physical and digital worlds.

Mobility has broken down the wall that once separated online and offline commerce. Shoppers now rely on

both digital and physical resources to discover, evaluate and buy goods and services.

Separating ecommerce and store operations only hampers innovation, keeping the web out of the store

and the store out of the web.

1

The largest category of commerce is now web-influneced offline sales

$450.00

$900.00

$1,350.00

$1,800.00

2012 2013 2014 2015 2016 2017

Non-web-influenced-offline sales Web-influenced offline sales Online sales

Source: eMarketer

Stores have become productive as ecommerce has grown

Foot

traf

fic (m

illion

s)

0

850

1,700

2,550

3,400

Offl

ine

reta

il sp

endi

ng (b

illion

s)

$2,775.00

$2,850.00

$2,925.00

$3,000.00

2012 2013 2014

Foot traffic Offline retail spending

Foot traffic is declining — but store spending is slightly up

Source: WSJ, eMarketer

Nearly every consumer is a cross-channel shopper

95%of shoppers

said they shop both online and in stores.

Source: eBay

2 Think consumer — not device — first A unified experience is no longer an

opportunity — it’s a necessity.

2The cloud has fundamentally changed what we expect

from technology. Consumers now assume that they can do anything anywhere — website, app or store.

But it turns out that retailers are dramatically behind demand. Soon, that will become a liability — not just

an opportunity.

Shoppers want digital functionality in stores

Halfof holiday shoppers

said they were frustrated because their in-store

experiences were different from those online.

Source: Accenture

Shoppers avoid stores because of poor information

25% 60%of consumers who avoid

stores do so because of limited awareness of nearby stores.

of holiday shoppers said they were frustrated with

out of stock items

52%of holiday shoppers said they were frustrated with

lack of information to make purchasing decisions

Source: Google IPSOS

Retailers trail consumers in omnichannel adoption

of retailers offer store inventory search online.

32%Retailers offer….

of retailers said they currently support buy online

and pickup in store capability

33%

Source: Accenture

71% of consumers said

searchable store inventory online was important

of consumers said the ability to buy online and pickup in

store was important

Consumers want….

50%

3 Forget the funnel The shopping journey can begin and end

wherever the consumer choses.

3Shoppers view the digital and physical assets of a

brand as a means to an end.

Marketers should strive to create flexible systems that can adapt to the unique needs of every

purchase decision.

Click-and-Collect (Decide Remotely, Fulfill In-person)

Local Commerce (Decide In-person, Fulfill In-person)

Ecommerce (Decide Remotely, Fulfill Remotely)

Showrooming (Decide In-person, Fulfill Remotely)

Remote

Rem

ote

In-person

In-p

erso

n D

ecis

ioni

ng

Fulfillment

We discover, buy and fulfill goods and services across the commerce graph

Source: Street Fight

Nearly everyone buys goods or services offline.

Nine in ten americans shopped online last year. That’s 90% of all Internet

users

Two-thirds of consumers said they bought in-store after

browsing digitally.

72% of consumers said they bought online after

browsing in store.

The majority of American shoppers already buy across the graph

Source: Pew Internet, Punchtab

87% 79% 34%

Before While AfterVisiting a store

Discovery occurs throughout the shopping experience

When do consumers search for information during the buying process?


4 Stop thinking of mobile as a sales channel Mobile is the thread that ties the modern

shopping experience together

4Mobile isn’t a virtual shop in a shopper’s pocket. It’s

the thread that ties a brand’s online and in-store assets into a cohesive experience.

It’s value is in interpretability: the ability to make two systems — digital and physical —

communicate more effectively.

Mobile is increasing — not decreasing — the amount we shop in stores

18-29 years

30-40 years

50-64 years

65+ years

0% 25% 50% 75% 100%

18-29 years

More young shoppers say that mobile has led them to shop in stores more frequently — not less

87% of millennials now shop the same more in stores because of mobile

Source: Gallup

Shoppers use the store and mobile throughout their shopping process

0%

15%

30%

45%

60%

Inspiration Research Purchase Post Purchase

Percentage of shoppers who search on mobile and used the store during phase of purchase cycle


42%of shoppers use their

device for in-store research

Mobile is the thread tying together the shopper journey

71%of those shoppers

say the device is more important to their

experience


5 Mobile is for doing Commerce — not content — will drive

marketing innovation on mobile

5The hallmark of the desktop experience —

researching multiple sites in multiple taps in multiple windows— does not apply to mobile.

Research suggest that mobile consumers want to focus less on search and discovery and more on task completion. That means applications that emphasize features such as commerce, ordering and delivery

tend to thrive.

Mobile behavior is moving from “viewing” to “doing” — That’s good for commerce.

0%

45%

90%

135%

180%

Lifestyle & Shopping

Utilities & Productivity

Messaging Social

Health & Fitness

Travel Sports News & Magazines

Media & Entertainment

Games

Doing

Viewing

Growth last year for mobile applications by category

Source: Flurry

In the 2000s, innovation focused on organizing information. Now, it’s shifting to commerce.

Google LocalReleased Yelp

founded

Yellow Pages Revenues Peak

$15.3 BFoursquare

founded

GrubHub IPOs Square nets $1b

valuation

Uber raises $1.6B

2003 2011 2015

Buy and retrieveFind and discover

Source: Street Fight

Steven Jacobs | Deputy Editor | Street FightContent, research and events for the new local economy

www.streetfightmag.com@stevenhjacobs #modernshopper

5 things you need to know about selling to local consumers

Documents

store spending

store capability33

store operations

store experiences

offline sales web

offline commerce

ecommerce division consumers

store inventory search