Digital Trends For Retailers in the Mobile Era

Digital Trends For Retailers
Diamond Club Business Brunch
IJL – 3 September, 2012
Eddie Prentice – Digital Marketer

Digital Trends Agenda
• Mobile
• Social
• eCommerce
• Conclusions
Eddie.Prentice@btconnect.com

Mobile

Current Mobile Technology
• 2G = voice and text
• 3G = 2G plus internet services
• 4G = faster and better coverage than 3G (not yet
launched in UK)
Current mobile technology is know as
“third generation” (3G)
Roll-out of 4G services is coming soon! Enabled
by the release of SPECTRUM. Expected to reach
the UK in 2013.

Mobile Network Operators
There are 4 UK mobile network operators (MNOs):
• Vodafone
• Telefonica O2 (known as O2)
• Hutchison 3G (known as Three)
• Everything Everywhere (Orange and T-Mobile networks that merged in
2010)
These four MNOs each have different spectrum holdings that were allocated
to them at previous auctions.
Many more mobile service providers in the UK
Virgin Mobile, Tesco Mobile and TalkTalk offer mobile service packages
through the four networks but do not have spectrum holdings.

About Spectrum
• Spectrum refers to the range of frequencies in
which a signal can be transmitted
• Spectrum between frequencies 300MHz and
3GHz is the “sweet-spot” for mobile operators
– Suitable for mobile communications and broadband
• Spectrum is allocated by means of licences,
overseen by Ofcom, the competition authority

Spectrum Why Is It Important?
Releasing Spectrum for 4G services will mean
• Faster and better coverage capabilities
than 3G
• Enhanced internet services for users
• Continued growth of the smartphone
market

Mobile Facts

Mobile Facts
26 million smartphone users
in the UK
Source: Comscore April 2012
69% of smartphone owners
currently own their first
smartphone
Source: Our Mobile Planet May 2012

Mobile Usage Its Not About Phone Calls
• A third of smartphone owners prefer using it for Web
browsing or e-mail even when they are near PCs.
• Over the past two years, iPhone users have spent 45
percent more time e-mailing on their smartphones and
15 percent less time e-mailing on their PCs.
• More than 60 percent of smartphone users would
consider buying goods with it or have already done so.
• As more products are distributed over mobile channels,
greater competition will raise the importance of design,
ease of use, and new mobile payment options.
Source: McKinsey Research

Mobile Site Design Basics

Mobile Sites Home Page & Navigation
Standard e-commerce websites can afford to
dedicate a lot of space to
– graphics
– merchandising
– large product photos
– navigational features
Mobile screens are much smaller and
need a different approach.

Mobile Site Design Basics
• Minimise menu and navigational items
• Vertical lists work better than horizontal
menu bars
• Links/buttons should be large enough and
widely enough spaced to view and click on or
touch.
• Search box is very important given a more
limited link navigation
– Enable filtering of results
– Include price in results
• Minimise form filing

Sign In Keep it Simple

Navigation Use Expanding Lists
Marks & Spencer

Mobile Site Home Page & Navigation
Regular site Mobile site
Mobile sites view better and download faster

Amazon $1billion in Mobile Sales

Mobile Touchscreens Design Tips
• The size of links. Links need to be big enough for users
to click?
• Space between links & action buttons. Allow enough
space to allow users to easily click.
• Font sizes. Make it easy to read on a small screen.
• Icons. Don’t take up too much room - may be
confusing for users who do not understand their
meaning. Make icons easy to understand or include
text descriptors
• Use single pages rather than multiple tabs. Easier to
scroll down a long web page than open multiple tabs.

Mobile Site or App

Mobile Site or App?
• Customers are not using these channels in a
mutually exclusive manner
• It’s not an ‘either / or’ choice
• Heavy app users are also the most frequent
mobile internet users
• Mobile apps and mobile web will continue to
co-exist going forward.
• The best strategy is not “either/or …” but
“both”

Links of London iPhone App

Links Of London iPhone App

Not Just About Online Sales Store Locator

Tiffany & Co One App Not Enough
Tiffany has an App to
promote the brand and
one specifically called
Engagement Ring Finder

De Beers Bridal App
Single theme: Bridal - Focus on customer needs rather than product
Good use of action phrases – Useful navigation options

M&S Checkout
• Mobile users do not want
to invest time in entering
lots of personal details.
• Make registration optional
• Minimise form fill
– Add shortcuts (postcode lookup)
– Pre-populate billing address
• PayPal payment option
may avert security concerns
On entering Checkout, users forced to register. NOT best practice

M&S Checkout
Users forced to put in
too much detail,
including date of
birth

Debenhams Checkout
Debenhams offers a much
slicker checkout process
– Allows guest registration
– Postcode finder
– Assumes same address
for billing & delivery
– Pages short and quick to
load

Topshop Checkout
• Very fast Checkout
• Guest registration
• Only requires delivery
address & card details
• Short pages (quick to load)
• Pulls up numerical keypad
to enter phone number

Mobile Conclusions

Mobile Commerce Challenges
Expressed reasons for lack of progress with
mobile commerce:
– Lack of internal knowledge and skills
– Lack of time
– No internal buy-in
– No specific budget for mobile
– High cost of implementation
– Inability to integrate with internal systems
– Fear of ever changing landscapey

What should you do now?
1. Plan ahead – start researching:
– Monitor what the big retailers are doing
– Download competitor Apps
– Visit competitor websites
2. Feel the experience as a mobile consumer:
– Use Facebook / Twitter
– Make online purchases from your mobile
– Download a QR code scanner
3. Start talking to suppliers so you know the issues and the
costs.
You’ve got time to deal with this but the sooner you start the
better prepared you’ll be.

Social Media

Social Media What’s the Point?
Grow customer engagement and build
brand loyalty
• Personalise your brand
• Enable customers to identify with your
brand

Social Media UK Statistics
• 31.5 million Facebook users in UK (over
50% of UK population)
• 97% students use Facebook
• Facebook accounts for 16% of all time
spent online in the UK
• 45% students use Twitter
• 25% of consumers have a Twitter
account

Social Media Brand Engagement By Age
Source: Fishburn Hedges, via Econsultancy, May 2012

Facebook

Facebook Fans Top 20
Source: eDigitalResearch Aug 2012 Eddie.Prentice@btconnect.com

Facebook Timeline
• On 30th March 2012, Facebook switched all existing brand
pages to its new ‘Timeline’ format
• Replaced the Wall with a more visually appealing format.
• In the past, the emphasis for Facebook marketers was on
custom apps and landing pages, which could easily be set
as the default landing page for any or all visitors.
• The new Timeline format means that pages are now
limited to a maximum of 12 apps.

Facebook Two Main Images
2. Profile Picture
1. Cover Photo
1. Cover Photo Chose a unique, custom image which represents your brand
2. Profile Picture Clear identifiable image that is recognisably your brand such as
your logo. It will be used across Facebook as a thumbnail image.

Facebook Apps
Apps
- Up to 12 apps allowed.
- The first four are always visible, so place your most important content here.
- Other apps can be accessed using the drop-down button at the right of the
page (3 further Apps for Links Facebook page).

Facebook Timeline
- You can extend your timeline to cover your entire history
- Page managers can add ‘Milestones’, depicting significant events
- Assign any date to pieces of content you upload, add pictures, video and text from
the past
- The purpose is to present your brand identity clearly to new visitors

Facebook Best Practice
• Try and post every day – don’t forget weekends. This
is an active time for many Facebook users
• Focus on engagement, not sales – ask questions, offer
tips, share interesting content links, respond to
questions
• You can sell but get the balance right e.g. 5 posts, one
sales message and 4 helpful content posts (80/20
rule)
• Have calls to action – tell them to like, comment,
watch (and why).
• Make it entertaining or fun

Like Our Page Hint Hint
Click on Red Bull App

Like Our Page Hint Hint
Arrows in graphic point
towards Like button.
No need to be subtle.

Facebook Engagement Tips
• Shorter posts (less than 80 characters) get higher engagement
rates than posts longer posts.
• Brands that posted (or scheduled posts) outside of business hours
showed engagement rates.
• Engagement rates tend to be higher on Thursdays and Fridays
compared with other days of the week.
• Engagement rates 18 percent below average on Saturdays.
• Fans are more likely to engage with “events” and “winning” than
with “contests” and “promotions.”
• Posts that end with a question result in higher engagement rates
than those that don’t.
• Avoid the question “Why?” - “Where?”, “When?”, “Would?” and
“Should?”, result in higher engagement.
Source: Facebook Blog

Twitter

Brands Followed For Offers, Discounts & Updates
Why do you follow brands on Twitter?
Source: Econsultancy

Twitter Followers Top 20
Source: eDigitalResearch Aug 2012
Harrods & Selfridges in
top 5 yet not in top 20
on Facebook.

Twitter Responding to Negative Comments
How to deal with the negatives?
• Respond quickly
• Apologize / empathize
• Make it easy to communicate (move it public
to private - DM, Email, Phone)
• Be human – no corporate speak
• Put things right – whatever it takes
• Offer an incentive to buy again

Instagram

Instagram Brand Uptake
Luxury brands are leading the charge on Instagram -
Burberry, Tiffany & Co., Hermès, Gucci, and Armani use
Instagram's visual format to drive product engagement.

ASOS on Instagram
- Posts images of latest ranges and behind the scenes views
- Asks followers to post images of themselves sporting a
particular look

Selfridges on Instagram
- Posts images of products and displays from its stores
- Asks questions about its followers fashion preferences

Tiffany on Instagram
Attracted 118,000 followers by posting images of
its products and New York stores.

Burberry on Instagram
- Originally showcased products but now photos around London
- Now using Instagram to position Burberry as a cosmopolitan, British brand
- Also, featured behind the scenes look at launch of new range, presented as
an invitation i.e. building network with exclusive content
- Now over 500,000 followers

Pinterest – The virtual Pinboard

Pinterest John Lewis
• Features a wealth of John Lewis products – why not just visit website?
• Misses the point of Pinterest – identification with the brand, not product promotion
• Result: just 486 followers

Pinterest Links of London
“Regularly liking and pinning other users’ images gains extra exposure for your brand
account and is invaluable for building a bigger following.” – Econsultancy, July 2012
Links of London: “0 Likes” “227 Followers”

Pinterest Kate Spade
Kate Spade re-pins and likes others content.
79,364 followers – has become a reference point
for trends and styles, doing things “colourfully”

Pinterest Fears & Khan
Antiques/design gallery – not a big brand like John Lewis yet more followers
and many more “Likes”

Pinterest Ikea
If you are going to show your own products, make sure you
provide links back to your website.
Ikea’s “True Blue” Pinboard is very eye catching, showcases their
products with great images but then no link to website!
This space can
be used for a
website link

Pinterest 9 Tips for Marketers
1. Don’t just blow your own trumpet - completely misses the point of social media.
2. Let others contribute - allow other users to pin content to some of your boards.
They will share the board with others. Be selective to avoid spammers.
3. Update your boards on a regular basis – to keep customers engaged you have to
give them new content on a regular basis.
4. Use eye-catching images (or don’t bother) – large, hi-res, colourful. You want to
inspire others.
5. Add links to your images - when you do pin your own product make sure to link
back to your e-commerce site.
6. Be wary of copyright infringement - If in doubt don’t pin it. Credit images – you
are unlikely to get sued if you send traffic to the copyright owner
7. Don’t include prices or logos – these images won’t get repinned. Just link back to
your website.
8. Make pins and pinboards searchable - use keywords in the descriptions so users
can find them when searching the site.
9. Add a Pinterest share tab to your website
Ref: www.econsultancy.com

Virgin Atlantic Consistent Customer Experience

Reviews & Ratings

Ratings & Reviews No Longer Optional
The views of your peers carry greater weight than the message of the brand

Negative reviews don’t
necessarily have more weight
than positive reviews. They give
authenticity to positives.

Who You Are Makes A Difference
Source: Reevoo, June 2011
54.2% of UK consumers say a reputable retailer
is important when shopping online

Reviews Still need convincing?
• 87.3% of UK consumers sometimes or always
read reviews before purchasing.
• 86.9% will not purchase a new product before
reading the impartial opinions of owners.
• 78.2% of UK consumers are more likely to buy
products with good reviews
• Almost half of UK consumers have written a
review.
Source: Reevoo, June 2011

Internet “Splinternet”
• Explosion of devices and networks has
turned the internet in to the “splinternet”
• New fragmented reality
• More complex to deliver a consistent
customer experience
Make a plan How? What? Who? Where?

How? What? Who? Where?
Forrester’s “Digital Customer Experience Strategy”

eCommerce

eCommerce Why It’s Important?
• 20% shoppers spend more than half their
income online
• 40% of UK consumers shop online at least
once a week
• 52% research purchases solely online
• 40% start their search for all purchases online
Source: PricewaterhouseCoopers / Reevo, June 2011

Olympic Ticketing
Tickets sold out in spite of the website not because of it

Olympic Ticketing
Buyers persevered because there was no alternative.
This is not the real world. Website usability is critical.

Mega Drop-down Menus
Most major retailers now have Mega drop-downs

Ernest Jones Mega Drop-down Menu

Mega Drop-downs Pros and Cons
Pros
• Reach lower levels of
navigation with fewer clicks
• Offer different paths to the
same product/brand
• Filter the customer’s product
selection, saving clicks
• Merchandising - offer the
most popular at top and on
the left
• Works well with horizontal
navigation bars
Cons
• Drop-downs can be very
difficult to use on mobile
devices
• "Paradox of Choice" - slows
the process with greater
complexity
• Technical issues - code that
behaves differently
depending on browser
• Can be difficult for visitors to
scan and make sense of it

Mega Drop-downs Tips
• Use headings
• Use columns
• Showcase your best sellers
• Keep it short - don’t extend off page of small screen
• Add a drop shadow or border to make it stand out on
page
• Test it in a range of browsers
• Consider using the full width of the page
• Use images and icons
• Speed - Comes up instantly on hover and disappears
when mouse is moved away
Ideas for improving mega drop-down usability

Mega Drop-downs M&S
M&S has many best practice features of a mega-drop-down

Abandoned Shopping Carts Reasons
Source: Comscore / Entrepreneur.com
Shipping related issues figure in 3 of top 5
reasons people abandon shopping carts

Shipping Time Cart Abandonment
The longer the delivery time the higher the abandonment rate

Checkout What Shoppers Want
The top 2 options people want to see at Checkout
relate to shipping & delivery date

Checkout “NO” to account creation
ASOS reduced cart abandonment by 50% when
they took the account registration process
out of their Checkout

ASOS First Checkout Page
Before & After
Form improved for
existing and new
customers
OLD
NEW

ASOS Checkout Good Practice
Visible FREE
returns and FREE
next day delivery
Products images
reassures correct
product has been
selected
Transparent
delivery costs
Visible and
reassuring
payment button at
top and bottom
Easy to see
“Change Details”

Trust symbol
Progress Indicator
Useful Information
specific to the field
Clear primary
call to action

Manual address entry
option - postcode
doesn’t always work
Manual Address Entry

Tailored
Payment
Fields
depending
upon your
chosen card
Clicking on
radio button
amends field
options

Ability to confirm
or edit your order
before placing it

Conversion Rate

Conversion Rate by Device
Source: Monetate Aug2012
Tablets convert better than smartphones

Conversion Rate by Traffic Source
Source: Monetate Aug2012
Search is second only to Email in terms of sales conversion

Conclusions

Mobile is changing the digital
marketing game but
it isn’t changing the rules
If you haven’t already done so ...
... start thinking now about
integrating a mobile strategy in to
your marketing plans …

Conclusion Plan It Don’t Leave to Chance
1. Mobile
- Research your competitors
- Feel the experience as a mobile consumer
- Start talking to suppliers so you know the issues
and the costs
2. Social
- How? What? Who? Where?
3. eCommerce
- Reviews & ratings no longer optional

IJL Seminar – 3 September, 2012
Eddie Prentice – Digital Marketer
Email: eddie.prentice@btconnect.com
Digital Trends For Retailers
Diamond Club Business Brunch

Digital Trends For Retailers in the Mobile Era

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