opus research retailer survey indoor location & analytics
DESCRIPTION
a survey of 66 U.S. retailers about their use and perception of customer indoor location analytics.TRANSCRIPT
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Greg Sterling July, 2014
Survey of US Retailers’ Use of Indoor Location
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Consumer Background
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MOBILE DEVICE ADOPTION
Smartphones:
• 70% penetration
• 160 million+ people
• Projection: 90% penetration by end of 2016
Smartphones: 70% Heading to 90%
Source: comScore, Nielsen 2014
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Source: StatCounter July 2014
PC vs. Mobile Traffic
Mobile now more than 30% of web traffic
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May 2013: US internet time on mobile devices exceeded internet time spent on the PC February 2014: US adults spent on average 34 hours per month using the mobile internet on smartphones. By comparison, they spend 27 hours on the PC internet Primary screen for younger users
Source: comScore (May 2013); Nielsen (Feb. 2014)
Mobile Now ‘First Screen’
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Indoor Location Opportunity
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IN-STORE SMARTPHONE USAGE
• Opus Research: 83% use smartphones in stores (Q3 2013)
• Pew Research Center: 72% use smartphones in stores (Q4 2012)
• JiWire: 80% used mobile devices in stores for shopping (Q2 2013)
• Thrive Analytics: 89% use smartphones while shopping at least sometimes (Q1 2014)
Smartphones and In-Store Shopping
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Source: Opus Research, E-Tailing Group, JiWire (2013)
1. Compare/checked prices
2. Look for coupons or offers
3. Search for product ratings/reviews
Top In-Store Smartphone Behaviors
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Source: Gallup March 2014
Impact of Mobile Devices on Offline Retail Shopping
Impact of Mobile on Offline Shopping
Because of mobile technology: • 18 to 29 year olds +14%
more likely to shop in stores
• $90K+ say -5% (decrease in offline shopping)
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Source: Swirl 2014, n=1,000 US adults
In-Store Marketing Impact In-store offers/notifications have potential to impact consumer
purchase behavior
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Opus Research estimated that indoor analytics and in-store marketing could together be worth $10 billion or more over the next several years.
Yet the market could be considerably larger:
• $20 billion to $50 billion currently spent to influence consumer buying at POS in stores*
• Up to $500 billion spent annually on grocery, personal care and sundries**
*Kantar Media, Booz Allen, Deloitte, Veronis Suhler Stevenson
**Nielsen May 2014
A Big Opportunity
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Retailer Benefits
• Understand in-store customer behavior and patterns
• Operational improvements, more effective layouts/merchandising
• Increase in-store engagement
• Influence purchase behavior, drive more sales
Beacon lift*: • Interactions with advertised
products increased by 19x for users who received a beacon message
• In-store app usage was 16.5x greater for users who received a beacon message
*Source: inMarket (April-May 2014) data drawn from 25,000 in-store shoppers across its app network
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Retailer Survey Findings
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• Fielded June, 2014
• 66 US retailer responses
• Respondents from Big Box, specialty store, grocery, electronics, department stores, convenience stores
• Place 2014 conference pass drawing offered as completion incentive
Survey Methodology
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• Most retailers (62%) currently not using in-store analytics
• Those doing tracking today primarily using “door counters”
• High degree of interest in indoor analytics among retailers not using today
• Lack of demonstrated ROI and confusion about indoor location technology holding back adoption
• 80% say interested re in-store proximity marketing; nearly 16% currently testing
• Majority would allow brands to communicate with in-store customers provided they were paid and could control message presentation
Overview of Findings
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Retailer Respondents
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Business Units Represented
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Respondent Influence
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
% Currently Using In-Store Analytics
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Value of In-Store Analytics
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Indoor Analytics Methods Used
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Who Controls In-Store Analytics Budget?
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Retailers Ranking of Data Needs 1. Impact of advertising (traditional, digital) on in-store
visits
2. Overall traffic to sales conversion ratios
3. Traffic and customer visit patterns and “dwell times”
4. Understanding customer demographics and personas
5. Effectiveness of store layout and merchandise displays
6. Customer yield
7. Sales associate to customer ratio
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Current In-Store Data Collected
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
In-Store Data Intended Usage
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Analytics Vendors Used
Additional choices, Experian, Nomi, Mexia, received 0.0%
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Desired Way to Manage Indoor Analytics
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Privacy and Notifications Company policies on privacy and in-store customer analytics
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Source: Opus Research June 2014 Retailer Survey on Indoor Location
Marketing to Consumers in-Store How interested in being able to offer proximity-based content,
promotions or rewards to in-store smartphone users?
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Under what circumstances would you enable or allow brands to communicate with or promote their products to your customers in store?
(check all that apply)
Source: Opus Research June 2014 Retailer Survey on Indoor Location
In-Store Brand Marketing
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Which of the following statements best explains why you currently have not implemented or deployed in-store customer analytics (check all that apply)
Percent
We intend to but haven’t yet 27.0%
Uncertainty about their benefits or value 21.6%
Uncertainty about best technologies to use 32.4%
Uncertain or unproven ROI 32.4%
Lack of available budget 18.9%
Concern about consumer privacy 13.5%
Insufficient knowledge of the market 18.9%
Uncertain where to get informaBon about potenBal vendors 10.8%
No clear internal stakeholder/advocate 10.8%
Source: Opus Research June 2014 Retailer Survey on Indoor Location
Non-Adopters’ Rationale
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Follow Greg Sterling on Twitter: @gsterling
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Pete Headrick [email protected]
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