UPS Pulse
of the Online
™
Shopper
Tech-savvy shoppers
transforming retail
2016 U.S. Study
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
January 2017
Overview
•
The 2016 UPS Pulse of the Online Shopper™ Study
explores:
•
Insights into consumers’ online shopping preferences
•
Future online and omnichannel trends, particularly those
driven by technology
•
How social media and other promotional vehicles drive retail
sales
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
2
Results summary
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
3
Demographics of luxury
Age
Gender
Income
52%
54%
6%
millenials (18–34)
26%
gen X (35–50)
male
46%
less than 25K
35%
female
20%
25K–60K
33%
boomers (51–69)
60K–100K
2%
26%
Other (70+)
100K+
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
4
Shoppers are highly satisfied with their shopping
experience
Overall online
shopping satisfaction
Satisfaction is higher
with online channels
Q10. How satisfied are you with your shopping experience in the last 3 months? – % Satisfied - Top 2 Box 7-Point Scale, n-=277
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
5
Cross-channel purchases are growing
47%
Multi-channel net
Frequency
of purchases
by method
35%
Search and buy
online
18%
Search and buy
in store
RB6. Thinking of all the purchases that you make, both online and in stores, how often do you purchase in the following ways?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
6
In fact, more luxury, non-apparel shoppers plan to
increase activity through online methods
Percent that will shop more by channel
41%
Desktop or
laptop
computer
36%
Smartphone
29%
Tablet
19%
In store
Fut7. Over the next year, do you plan to shop less, the same or more than last year using each of the following means?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
7
Digital is changing the way shoppers research and
purchase goods
Research online
77%
Purchase online
65%
RB1. Thinking of your favorite retailer that has both physical stores and an online presence, what channel do you prefer to research and purchase products?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
8
What’s important to shoppers: pre-purchase
Most important items when searching
for and selecting products online
75%
67%
66%
Most influential content
when visiting a site
Product reviews
60%
71%
Communities / forums
66%
Photos submitted
by consumers
Product
prices
Return
policy
Detailed
product info
Retailer
reputation
64%
RB5A. How important are the following factors when searching for and selecting products online?
Search1New. When visiting a retailers website, how influential are the following types of content?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
9
What’s important to shoppers: checkout
Free
shipping
options
Variety of
payment
methods
26%
18%
Expedited
shipping
options
9%
Check 2. What information or options are most important to you when going through an online checkout process?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
10
What’s important to shoppers: post-purchase
Satisfaction with aspects of post-purchase experience
Receiving an email or other alert to notify that
item has shipped
74%
Receiving an email or other alert with your
tracking information
73%
Receiving an email or other alert confirming
delivery of your item
73%
Receiving an email or other alert that your
package has been delayed
72%
Ease of shipping back product to retailer for
return or exchange
72%
71%
Clear and easy to understand return policy
68%
Ability to process a return/exchange online
Ability to receive your package on the scheduled
delivery date
Ease of making return/exchange in store
Special offers from retailer via email or text
Flexibilty to reroute packages after product has
shipped
Information &
Communication
64%
63%
61%
59%
Track1. How satisfied are you with each of the following aspects of the post-purchase experience when shopping online? ? – % Satisfied - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
11
But the in-store experience isn’t dead
50%
47%
42%
43%
Shopping
relaxes me
Shopping in-store
is still a major
part of my
shopping routine
In-store visits help
me gather new
ideas
Love the thrill of
hunting for and
finding great deals
New16_Omni_1. Thinking about the past year, please state your level of agreement with each of the following statements regarding your store behavior.
? – % Agree - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
12
And, small retailers are very important
Top reasons to shop at small retailers
44% Unique items
32% Support community or small business
29% Like to try new retailers
29% Service they provide is superior
Customers are willing to make tradeoffs
when shopping with smaller retailers
Retailers must
have unique
products to
compete
33% Limited hours or inconvenient locations
28% Longer delivery times
26% Paying for shipping and handling
25% Less sophisticated website
Retailer1new. For what reason would you shop with small retailers either online or at a store as opposed to larger, well-known retailers?
Retailer2new. What tradeoffs are you willing to accept when shopping with small retailers, either online or at a store, as opposed to larger well known retailers?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
13
Ship to store is in favor
54%
have shipped to
store for pickup
Plan to use ship to store more
in the coming year:
46%
of past users
Of those,
72%
made additional
purchases in store
Flex5(NewQ_OC4). In the past year, when purchasing online, have you ever chosen the “ship-to-store” or “pick-up-in-store” option?
Flex6BNew. Do you plan to select “ship-to-store” or “pick-up-in-store” more often in the next year?
Flex6. When you selected “ship-to-store” or “pick-up-in-store”, in the past, did you typically end up purchasing more items while you were in the store during pickup?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
14
Leverage store returns to drive repurchase
Preferred method
of return
Made an additional purchase
81%
In store
65%
Return an
item in store
Online
64%
35%
Ship an item
back to retailer
Ret4. For those retailers that have both a physical store and online presence, how do you prefer to return items that you ordered online?
Ret4bnew. In the past year, when making a return to the store, have you also made a new purchase?
Ret4cnew. In the past year, when processing a return on a retailer’s website, have you also made a new purchase?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
15
Social media should be integrated into your
marketing strategy
Social media influences
their purchases
48%
2016
33%
2016
Luxury
Goods
Non-Luxury
Goods
Follow retailers
on social media
47%
2016
37%
58% are likely
to engage with
the retailer via
social media
when they are
satisfied with a
purchase
2016
Luxury
Goods
Non-Luxury
Goods
SM1. Do you use any of these social networking sites in the following ways? % that follow retailers on this site, and % influenced to purchase
SM5. When satisfied with a brand or product you have purchased, how likely are you to engage with the brand or product via social media?
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
16
Social media content can engage consumers
63%
Promotions
Likelihood to click and
explore posted content
54%
52%
New product
announcements
Store locators
Social2new. How likely are you to click and explore the following types of content posted by retailers on social media? - % Likely - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
17
Emails with promotions are more likely to prompt
shoppers to buy from a retailer
Likelihood that these advertisement forms will prompt shopping
Emails offering free shipping
61%
Emails offering a discount
60%
53%
Emails with product recommendations based on past purchasing behavior
Store events
46%
Ads that follow you around on the internet showing you a product you recently viewed
46%
Emails reminding you that you left items in your cart without purchasing
46%
Posts on social media
Email promotions are
still the best options to
prompt purchase.
44%
Direct mail
42%
Emails reminding you that items in your cart include an incentive
41%
Emails with product recommendations based on what others have purchased
36%
Text messages with promotions
36%
Ad2. How likely are the following forms of retailer advertising to prompt you to shop with a retailer? - % Likely - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
18
Protect Your Reputation with Risk Management
Major U.S. City
Crime Rate per 1,000
Chicago
5.38
New York
2.57
Los Angeles
3.94
Miami
4.18
U.S. Average
2.3
Loss prevention best practices:
1. Select a carrier that offers armed,
secured, transportation and insurance
2. Use shipping practices that are nondescript, secure and well packaged
3. Conduct due diligence prior to
engaging in new business
4. Control of custody provides physical
accountability for your valuables:
•
•
•
Use Air Express Service Levels
Limit 3rd Party logistics providers
Use transportation companies with
employees, not contractors
Source: FBI / CJIS / UNIFORM CRIME REPORTING (UCR) PROGRAM
LUXURY NON-APPAREL
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees or customer, unless expressly authorized by UPS.
© 2017 United Parcel Service of America, Inc. UPS, the UPS brandmark, the color brown and photos are trademarks of United Parcel Service of America, Inc. All rights reserved.
19
Why not partner with a shipping
and insurance specialist
who can preserve that reputation?
Proprietary and Confidential: This presentation may not be used or disclosed to any person other than employees of customer, unless expressly authorized by UPS.
© 2017
United
Parcel
Service
of America,
Inc.Inc.
UPS,
UPS
the UPS brandmark,
and the
brown
trademarks
of United
Parcel
Service
of America,
All rights
reserved.
© 2015
United
Parcel
Service
of America,
UPS,
theCapital,
UPS brandmark,
the color brown
andcolor
photos
areare
trademarks
of United
Parcel
Service
of America,
Inc.Inc.
All rights
reserved.
20
Thank you