digital shopper relevancy finnish results profiilit_fin… · 1. the techno-shy shopper 5 source:...
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February 2013
Digital Shopper Relevancy Finnish results
Agenda
Introduction
Digital shopper segments
Retail segment results
Digital shopping behavior and the shopping process
Channel behavior
Future outlook and expectations for retailers
Key implications
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Source: Capgemini, Digital Shopper Relevancy, 2012
The Digital Shopper Relevancy study explores how digital shoppers use and value digital channels
3
• The Digital Shopper Relevancy Online study has been conducted in collaboration with ORC International, a London-based global research firm
• ORC surveyed online more than 16,000 digital shoppers representing 16 countries. The digital shopper sample in each country is based on the national samples representative of the population in terms of age and gender
• Digital shopper translates in the study as a shopper using one or more digital technologies or channels in one or more phases of their shopping journey
• Key areas of the study include the usage of digital channels, purchasing behavior in key retail segments, and the role of digital channels throughout the shopping process today and in the future
• Capgemini Consulting segmented the consumer base using over sixty behavioral variables. The used methods included factor analysis and k-means clustering
Introduction to the study
Overview of the Finnish sample
• In total, 1008 Finnish digital shoppers responded to the online questionnaire
• 52 % of the Finnish respondents were female, 48 % men
• The sample has an extensive representation of age classes from 18 to 65 +
Source: Capgemini, Digital Shopper Relevancy, 2012
Six different digital shopping behaviors were identified
2. The Value Seeker
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3. The Occasional Online Shopper
4. The Rational Online Shopper 6. The Social Digital Shopper
1. The Techno-Shy Shopper
5. The Digital Shopaholic
Source: Capgemini, Digital Shopper Relevancy, 2012
1. The Techno-Shy Shopper
5
Source: Capgemini, Digital Shopper Relevancy, 2012
• Techno-Shy Shoppers have an overall passive attitude towards new technologies
• Digital channels are not considered important in any steps of the buying process
• Low number of frequent and confident online shoppers
• Only little recent online shopping activity
• Slight interest in social media but prefer personal contact via phone/call centers
• Both young students and older shoppers are represented in the segment
Bought online during last six months
22 % 26 %
34 %
8 %
34 %
0 %
20 %
40 %
60 %
80 %
100 %
Food Health and personal care
Fashion DIY Electronics
Purchases by retail segment
2. The Value Seeker
6
Source: Capgemini, Digital Shopper Relevancy, 2012
• Price-sensitive shoppers with low interest in digital shopping and new technologies
• Smartphones and mobile apps play no role in the shopping process
• Typical online purchases include fashion and personal healthcare items
• Value an easy shopping process with clearly marked prices and product information as well as convenience in return policies
• There are significantly more women (63 %) than men, relatively more retired people (27 %) and 60 % of shoppers are over the age of 45
22 %
45 % 51 %
5 %
27 %
0 %
20 %
40 %
60 %
80 %
100 %
Food Health and personal care
Fashion DIY Electronics
Purchases by retail segment
Bought online during last six months
3. The Occasional Online Shopper
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• Occasional Online Shoppers end up shopping online only infrequently
• Online shopping activity is relatively small throughout all product categories
• Use digital channels especially for choosing and comparing products and tracking down deliveries
• Value flexible delivery and return options as well as customer service and available product information
• Expect digital channels to be in own native language and anticipate lower prices when shopping online
• The slightly women-dominated segment has a high number of high school and college graduates while 57 % are above 45 years old
Source: Capgemini, Digital Shopper Relevancy, 2012
11 %
27 % 30 %
12 %
41 %
0 %
20 %
40 %
60 %
80 %
100 %
Food Health and personal care
Fashion DIY Electronics
Purchases by retail segment
Bought online during last six months
4. The Rational Online Shopper
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• Relatively confident online shoppers buying mostly fashion products and electronics
• Overall second most active online shopper segment
• Know what they want and use Internet to find the most optimal solution for them
• Value well-functioning online stores with clearly marked product information, pricing and charges as well as reliable delivery processes
• Less interest in using social media and mobile apps & no trust in retailer-hosted consumer communities
• The segment has an equal amount of men and women 25 % of which are retired
Source: Capgemini, Digital Shopper Relevancy, 2012
18 %
39 %
55 %
12 %
57 %
0 %
20 %
40 %
60 %
80 %
100 %
Food Health and personal care
Fashion DIY Electronics
Purchases by retail segment
Bought online during last six months
5.The Digital Shopaholic
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Source: Capgemini, Digital Shopper Relevancy, 2012
72 %
84 % 82 %
81 % 85 %
0 %
20 %
40 %
60 %
80 %
100 %
Food Health and personal care
Fashion DIY Electronics
• Early adopters and experimenters; use digital means very actively throughout the shopping process
• Substantially higher rate of online purchases throughout retail segments, also in food and DIY
• Prefer to communicate with retailers online and are active users of social media & other peer-to-peer networks to share their opinions
• High expectations for retailers in the future; expect the full integration of physical, online and mobile shopping experience by 2014
• A vast majority anticipates the evolution of the physical retail stores to become mainly showrooms
• The majority of the segment are men, working full time and 61 % have a college degree or higher
Bought online during last six months
6. The Social Digital Shopper
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Source: Capgemini, Digital Shopper Relevancy, 2012
• Social Digital Shoppers are very optimistic towards the use of all digital technology and consider themselves as frequent and confident online shoppers
• High usage of social media, opinions and experiences shared through digital channels
• Digital means considered important in all the phases of the shopping process
• However purchase less online than average in all other retail segments than electronics
• 63 % of the segment active users of mobile applications and services; trust mobile devices also for paying, locating and identifying themselves
• 46 % of the respondents in this segment is under the age of 35 and 11 % are students
23 %
33 %
53 %
4 %
63 %
0 %
20 %
40 %
60 %
80 %
100 %
Food Health and personal care
Fashion DIY Electronics
Purchases by retail segment Bought online during last six months
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Finnish and Swedish digital shoppers are not very active in social media, most shoppers belong to the conservative segments
Russia has leaped directly to the digital age; Social Digital Shoppers form the largest digital shopper segment
Online shopping market is mature in the UK and shoppers are moving towards more active digital behavior
Source: Capgemini, Digital Shopper Relevancy, 2012
13 %
14 %
12 %
11 %
20 %
20 %
18 %
9 %
17 %
21 %
6 %
25 %
32 %
25 %
30 %
9 %
7 %
7 %
20 %
17 %
11 %
12 %
14 %
29 %
0 % 20 % 40 % 60 % 80 % 100 %
Segment distribution per country
The Techno-Shy Shopper The Value Seeker
The Occasional Online Shopper The Rational Online Shopper
The Digital Shopaholic The Social Digital Shopper
“(Retailers) should also think about the people who are not interested in major developments in the grocery store. I am 60 years old and leave my phone at home when I go shopping.” Finnish shopper
Finland is dominated by the more conservative digital shopper segments
1 2 3 4 5
Phone
Smartphone
SoMe
In-store technology
Internet
Overall channel preference of online food shoppers
Food Average 1 = Not at all important 5 = Extremely important
Food sector online stores are frequented by the Digital Shopaholics
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Food shopper profile – Who are buying food online?
• Online grocery shopping is still relatively marginal, practiced especially by digitally active shoppers
• Globally 29 % of the shoppers have purchased food during the last 6 months
• 43 % of the digital shoppers stating they have recently bought food online are under 35 years old
Food shopper expectations – Compared to average shoppers, food shoppers…
… utilize a wider variety of channels during their digital shopping journey
… have higher usage rates of smartphones and mobile apps in all stages of the shopping process
…willing to contact call centers to gain additional information
… are active digital shoppers also in other retail segments
44 %
20 %
11 %
10 %
9 % 6 %
Food-buyer customer segment division
Source: Capgemini, Digital Shopper Relevancy, 2012
In Finland online grocery market is still in very early phases compared to international development
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0 %
20 %
40 %
60 %
80 %
100 %
Finland Russia Sweden UK Global mean
Share of respondents who have purchased food online during the last 6 months
• In Finland, only 11 % of the sample has recently bought food online
• Although Digital Shopaholics form the smallest segment in Finland, they still have been the most active segment
• On average, Finnish online food shoppers are younger and less price sensitive than their international counterparts
0 % 20 % 40 % 60 %
"The Occasional Online Shopper"
"The Social Digital Shopper"
"The Techno-Shy"
"The Convenience-Seeker"
"The Rational Online Shopper"
"The Digital Shop-a-Holic"
Customer segment division for digital food shoppers
Finland
Global
Top three retailers mentioned in Finland:
Source: Capgemini, Digital Shopper Relevancy, 2012
The Digital Shopaholic
The Rational Online Shopper
The Value Seeker
The Techno-Shy Shopper
The Social Digital Shopper
The Occasional Online Shopper
1 2 3 4 5
Phone
Smartphone
SoMe
In-store technology
Internet
Overall channel preference of online health and personal care shoppers
Health and personal care Average
35 %
19 % 14 %
8 %
14 %
10 %
Health and personal care customer segment division
Health and personal care shoppers often turn to social media and smartphone apps in search of information
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Expectations – Compared to average shoppers, health and personal care shoppers…
…utilize smartphones to gain additional information throughout the shopping journey
… turn more likely to social media in search for product information and promotions
…have also bought food and DIY online 50 % more likely - opportunities for cross-selling
Shopper profile – Who are buying health and personal care online?
• 41 % of health and personal care shoppers are men, so it is not only women buying the products
• All age groups are represented in this customer segment
• There is a prevailing interest for Internet purchases of this category
Source: Capgemini, Digital Shopper Relevancy, 2012
1 = Not at all important 5 = Extremely important
28 %
25 % 13 %
9 %
16 %
9 %
Fashion-buyer customer segment division
Over 50% of the digital shoppers have bought fashion online during the last 6 months
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Shopper profile – Who are buying fashion products online?
• Globally, fashion is recently bought online by 52 % making it the second most popular category
• The younger the digital shoppers the more they buy online
• Digital Shopaholics and Social Digital Shoppers are the major digital shopper segments for fashion
Fashion shopper expectations – Compared to average shoppers, fashion shoppers…
…purchase often more products in a single transaction online than in physical stores
…look for smartphone capabilities not only information search, but also in making the transaction and following up on the delivery
…show interest in shopping online together with friends
1 2 3 4 5
Phone
Smartphone
SoMe
In-store technology
Internet
Overall channel preference of online fashion shoppers
Fashion Average 1 = Not at all important 5 = Extremely important
Source: Capgemini, Digital Shopper Relevancy, 2012
1 2 3 4 5
Phone
Smartphone
SoMe
In-store technology
Internet
Overall channel preference of online DIY shoppers
DIY Average
69 %
5 %
3 % 5 %
9 %
9 %
DIY-buyer customer segment division
Digital shoppers of DYI use digital means actively to search and compare products
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Shopper profile – Who are buying Do-It-Yourself (DIY) online?
• DIY was the smallest segment , globally 21 % had bought DIY during the last 6 months
• Digital Shopaholics are substantially more active buyers of DIY items compared to other segments
• DIY segment is male-dominated (57 % of shoppers), but also women shop DIY online
DIY shopper expectations – Compared to average shoppers, DIY shoppers…
…consider themselves as technologically advanced and use smartphones to find the information they need as well as purchase and pay for the products
…expect retailers to provide call center service throughout the shopping journey
…are particularly active food online shoppers
Source: Capgemini, Digital Shopper Relevancy, 2012
1 = Not at all important 5 = Extremely important
All segments value internet as the key channel at each stage of the shopping process
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• Occasional and Rational Online Shoppers as well as Value Seekers all focus their interaction heavily to internet • Email and In-store technology are used to enforce the message • Email is considered key for after sales service
• Digital Shopaholics and Social Digital Shoppers utilize a wider range of channels to find the information they need • Internet is however still the key channel in all stages of their shopping process • Techno-Shy Shoppers are cautious in their use of all digital channels
1 = Not at all important 5 = Extremely important
1 2 3 4 5
Smartphone
Phone
SoMe
In-store technology
Internet
The Value Seeker
1 2 3 4 5
Smartphone
Phone
SoMe
In-store technology
Internet
The Occasional Online Shopper
1 2 3 4 5
Smartphone SoMe
Phone In-store technology
Email Internet
The Rational Online Shopper
1 2 3 4 5
Phone
Smartphone
SoMe
In-store technology
Internet
The Digital Shopaholic
1 2 3 4 5
Phone Smartphone
In-store technology
SoMe
Email Internet
The Social Digital Shopper
1 2 3 4 5
Phone Smartphone
SoMe In-store technology
Email Internet
The Techno-Shy Shopper
Source: Capgemini, Digital Shopper Relevancy, 2012
Finnish digital shoppers are less active in social media than the global average
18
35 % of the Finnish digital shoppers indicate that the role of social media in their own shopping behavior will increase during the next three years.
% respondents that agree or strongly agree with the statements
Read other consumers’ reviews about the product in retailer digital channels Find out about new products through recommendations in blogs, social media and consumer review websites Share your reviews about the product with other consumers through digital channels
Share your comments about the product with the retailer
Participate in online customer communities provided by the retailer
Follow the retailer through social media
Create a public profile for yourself that is visible to other shoppers
Source: Capgemini, Digital Shopper Relevancy, 2012
0 % 20 % 40 % 60 % 80 % 100 %
Finland Global
Digitally active segments are willing to share information with retailers but expect to receive better service in return
19
Conventional digital shopper segments are still hesitating on sharing information with retailers
Social Digital Shoppers and Digital Shopaholics expect more active guidance from retailers online than in physical retail
0 % 20 % 40 % 60 % 80 % 100 %
"The Techno-Shy"
"The Occasional Online Shopper"
"The Rational Online Shopper"
"The Convenience-Seeker"
"The Digital Shop-a-Holic"
"The Social Digital Shopper"
I prefer to be offered additional product suggestions online than face-to-face in store
Positive indication Neutral indication Negative indication
0 % 20 % 40 % 60 % 80 % 100 %
"The Techno-Shy"
"The Occasional Online Shopper"
"The Rational Online Shopper"
"The Convenience-Seeker"
"The Digital Shop-a-Holic"
"The Social Digital Shopper"
I am happy to provide my personal data to a retailer as long as I trust that it will be used for my benefit
Positive indication Neutral indication Negative indication
The Social Digital Shopper
The Digital Shopaholic
The Value Seeker
The Rational Online Shopper
The Occasional Online Shopper
The Techno-Shy Shopper
The Social Digital Shopper
The Digital Shopaholic
The Value Seeker
The Rational Online Shopper
The Occasional Online Shopper
The Techno-Shy Shopper
Source: Capgemini, Digital Shopper Relevancy, 2012
1
2
3
Price and product were the key consumer relevancy criteria by digital shoppers
20
Finland Global
Experience
4 Ease of Access
Service
Importance ranking of buying decision attributes
agree that service (e.g. personal interactions, returns policies) is an important buying attribute
see the availability of relevant channels (e.g. stores, internet, mobile, social media) important
find the overall shopping experience (e.g. the inspirational experience and atmosphere) as important
Source: Capgemini, Digital Shopper Relevancy, 2012
Price
Product
5
find fair, honest and consistent pricing as an important attribute affecting decisions on how and where to buy
see that the assortment/range and availability of products is important
Active digital shoppers expect to see lower prices online than in physical stores
21
Easy price comparison in digital channels drives rapid price erosion
To fight price erosion and live up to the expectations of future digital shoppers, consumer product companies need to reconsider allocation of their marketing investments
0 % 20 % 40 % 60 % 80 % 100 %
I expect that by 2020 most physical retail stores will just be showrooms to select and order product, and the delivery will be done separately at my convenience.
Online price should be lower than prices in catalogs or physical stores
Positive indication
Neutral indication
Negative indication
Digital shoppers see the role of the physical stores changing
Online prices should be lower than prices in catalogues or physical stores I expect that by 2020 most physical retail stores will be just showrooms to select and order products, and the delivery will be done separately at my convenience
Source: Capgemini, Digital Shopper Relevancy, 2012
Key implications for retailers and consumer product companies
Get the basics right - Digital shoppers value core functionalities like price, product and delivery info
Product range and availability rank high – “own the category” with extensive online assortment
Email is valued high by digital shoppers. Ensure quality of content for relevancy to increase opening rates
Guarantee optimized user experience for key device types and keep up with the market development
Consider marketing spend reallocations – online price erosion sets price levels also for physical experience
Ensure content leadership in easily distributable format – empower social media and search engines
Separate hype from reality especially with emerging digital channels like social media and mobile apps
Only relevant communication will survive – invest in personalization capabilities
1
4
2
7
5
3
8
6
Create a true All Channel Experience Involve the shopper in the shopping process to help themselves and benefit other shoppers
9 10