MULTICHANNEL REPORT SEPTEMBER 2014
D RE O S ON P S
BY
MULTICHANNEL REPORT
The customer must always come first
T
he way consumers shop has changed drasbe right for another. Within this report we’ve polled a tically, and with it the structure of retail has nationally representative pool of 2,000 UK consumers had to adapt with it to embrace the multi – or to find out how they shop across channels with fashion indeed omnichannel – age. But amid all of this, one brands and retailers, how they would like to shop and thing remains unchanged, and that is that good personal what they don’t like. As you’ll see in the coming pages, customer service is key. we have asked them questions across a range of topics This was the overriding message when we brought including online, mobile and tablet, in store, social together a selection of fashion retailers including media, personalisation and delivery. Bonmarché, Browns and Miss Selfridge to discuss the JAMES KNOWLES From wanting straightforward tools online such as findings of this report at our Multichannel roundtable clear sizing information, to being most likely to browse FEATURES & SPECIAL REPORTS fashion on their mobiles in the evening while watching on September 4 at the Ham Yard Hotel in London. EDITOR Over coffee and a healthy debate they stressed that TV, asking for kiosks and iPad-enabled staff in-store, to a preference for Sunday delivery, these findings all it’s easy to get carried away with investing in the latest technology, social media fad or digital strategy – and I couldn’t paint a picture of what the modern consumer wants from the agree more. For example, the jury is still out on many things such fashion brands and retailers they shop with. For each set of results we have asked our sponsors and some as how to best personalise service online, whether editorial content is really right for fashion retail websites, on issues such leading retailers to analyse them and give their opinions. as the real demand for in-store technology, or the best way to We do hope these findings are of interest, whether they match differentiate a mobile app.. what you’re seeing in your own specific area of the market or not, Crucially, retailers need to put their customers at the heart of and either way, we’d be pleased to hear your thoughts. everything they do and what’s right for one business might not james.knowles@emap.com
I
Tailor your technology to suit the market
t’s too easy to forget that ecommerce is still so apps; downloaded, forgotten with no repeat usage young and the technology which makes multiand ultimately deleted. Technology for the sake of channel retailing possible is still in relative technology is meaningless. Retailers must consider infancy. As I sat with major fashion retailers at the their customer at the heart of their strategies; otherDrapers multichannel roundtable earlier this month, wise, what’s the point? I was reminded that the issues facing marketing and The recent rise of retail IPOs, especially in technology professionals in the wider retail sector fashion, will drive a new wave of retail technology investment and every retailer, listed or not, needs are very similar. So often with new frontiers, like online, businesses to be aware of the sudden acceleration we are going DARRYL ADIE are quick to launch new services to keep up with their to see in technology innovation for online, mobile MANAGING DIRECTOR, competitors. However, without creating a reason for and in-store channels. The retailers who deliver AMPERSAND staff and customers to engage with technology and exceptional experiences through all channels and change, it is easy for it to become meaningless to the keep their promises to customers will ultimately customer’s experience. We’ve seen this already with mobile enjoy greater success and continued customer loyalty.
CONTENTS 03 Online Gauging the effectiveness of new tools and editorial content
07 In Store Technology is being used to deliver a full brand experience
11 Personalisation How retailers are collecting and using customer data
05 Mobile & Tablet These growing channels present a huge selling opportunity
09 Social Media Customers are engaging with brands through social networks
13 Delivery & Returns The final leg of the product journey is no less important
SPONSORED BY
Drapers / SEPTEMBER 2014 1
15 Roundtable Retailers and brands got together to discuss how they can deliver the best customer experience, both online and in store
I
Fashion continues to set the digital pace
t is now increasingly important for retailers to provide to understand these. Consumers’ opinions on how a flexible and seamless shopping experience regardreturns are managed or the payment methods they less of their customers’ locations, or whether they prefer to use are examples of this crucial market insight visit them in store, order online, use an app or over and by collecting and analysing this data, we are helping the phone. This can pose operational challenges for retailers to capitalise fully on the opportunity of multiretailers, and in today’s competitive market anticipating channel retail. This report looks at some of the key trends, ranging consumer demand is now even more important for supply chain operators. from the rise of m-commerce to the demand for a The fashion industry is leading the way in the digital JONATHAN PILBRO personalised shopping experience. Using research such revolution and we’ve seen a shift from customers VICE PRESIDENT OF as this enables us to develop an informed and interna[retailers] focusing on their domestic markets to explore FASHION & BEAUTY, tional multichannel strategy which is supported by a international opportunities. Demonstrating this, current DHL SUPPLY CHAIN robust and transparent supply chain. Accounting for volumes of online sales for non-UK postcodes are consumer shopping patterns and fluctuations in already at 17% and are forecast to double by 2018. demand alongside identifying and understanding future consumer This presents a fantastic opportunity but there are also some demand will help retailers and their supply chain operators to practical challenges to address and we are working with retailers deliver a great end-to-end consumer shopping experience.
Find out what makes your consumers tick
Stores have to work harder and smarter
he consumer shopping journey has certainly evolved in the past few years. Shoppers expect to be able to access the brands they want 24 hours a day, seven days a week, be that online, on the high street or through social media. This constant access to up-to-date information creates both CLAIRE DAVENPORT opportunities and challenges for retailers. On the one hand, it allows customers to MANAGING DIRECTOR, compare brands, products and prices, VOUCHERCODES which may encourage shopping around and put the onus on the retailer to show its offering in the best light. On the other hand, done well, multichannel can engage shoppers, improve brand loyalty and help retailers understand their customers better. Retailers are putting a lot of effort into technological innovations such as personalisation and shop-floor technology. This report suggests there is a significant appetite for these developments from consumers, but limited take-up so far. This emphasises that advances need to make the shopping experience more convenient, offer greater relevance and provide a genuine benefit to the consumer in order to encourage their use. Success hinges on retailers and brands going further than just understanding shopping behaviour. It requires businesses to take steps to understand the consumer as a whole. Getting to the heart of what makes the consumer tick, inviting feedback and interaction through social channels, using geo-enabled and in-store technology and innovative customisable web and app experiences is the key to building multichannel success. Retailers must think outside the box and provide a holistic multichannel experience their consumers will use, enjoy and engage with.
eing great at delivering a superior customer experience – from store to website to phone and beyond is now the backbone of any successful fashion retail offering. Knowledge and technology are key to success – by knowing your customers, their shopping behaviour, what they want, as well as when and how they DOMENICO want it, enables retailers to add value at ANTONUCCI FASHION SECTOR each stage of the buying process. This SPECIALIST, then results in happy customers that K3 RETAIL come back for more. While these figures would seem to indicate that in-store technology is not such a high priority for the average shopper, a number of fashion retailers are engaging successfully with their customers through various devices, as the traditional point of sale is moving towards becoming a point of service. One thing is clear: customer engagement is at the centre of promoting and selling more product and the intelligent use of technology and data is the way to achieve this. Stores must work harder and smarter than ever before in fulfilling the demands of their customers who, quite rightly, are not worried about the challenges you face to deliver all these new services, from managing click-and-collect, local fulfilment, mobile demands or seven-day delivery options. The overriding opportunity for retailers is to bring the store into the ‘omnichannel’ experience by delivering a joined-up brand identity across all customer touch points to meet the anywhere, anytime demands of today’s ‘my way’ consumer.
T
Drapers / SEPTEMBER 2014 2
B
MULTICHANNEL REPORT
Online
SALLY HEATH HEAD OF ECOMMERCE, NEW LOOK
The research illustrates that customers are becoming more multichannel, using a mixture of desktop/laptop, mobile device and store to complete their purchase. Online plays an important role in store, with a third of respondents using it as a research channel, so it’s vital they complement each other. At New Look cross-channel customers are three times more valuable than those shopping through a single channel. What comes through loud and clear is that customers are still looking for retail basics — clear pricing, simple info on sizing and lots of choice. Some like to ‘find everything in one place’, so multi-brand pure-plays dominate online purchases, especially for men. There is an interesting opportunity for fashion chains and brands such as New Look to trade on sites like Asos to gain better reach and access audiences who prefer to shop this way. Quality content and content marketing are becoming a must for effective etailing, both for SEO and engagement. While the main goal should be to enable the customer to ‘get to product’ easily, there is a growing appetite for engaging content. Global retailing presents one of the biggest opportunities. To be a truly global business you have to offer platforms for customers to shop with you, in their chosen language, currency and with convenient trackable delivery options. DARRYL ADIE MANAGING DIRECTOR, AMPERSAND
The internet has revolutionised how we shop, with a huge majority – 95% – of UK adults now shopping online. Those aged 18 to 34 choose online over the high street for their ‘department store’, favouring a pure-play to make multibrand purchases. Arguably, the online price war brings prices down lower than in stores and is therefore more attractive. That said, easy checkout, sizing guides and accurate stock availability remain the top requirements for consumers buying online. Retailers must understand stock levels to be able to offer services such as click-andcollect, and data should reflect realtime changes in stock levels on any channel. When combined with the ability to understand customer behaviour across channels, it can help businesses become true clicks-and-mortar retailers. Content merchandising has come to the fore this year, with the likes of Harvey Nichols, Asos and M&S integrating enhanced product pages, fashion shoots and lifestyle articles into their home pages. However, questions remain as to which type of editorial content fosters brand loyalty and encourages repeat visits and purchases. It is important that content becomes part of the purchase journey, enhancing the experience, while guiding the customer back to the product, ensuring the commercial message is not clouded.
Retailers’ digital strategies are integrating new tools and using editorial content to maximise conversion HOW OFTEN DO YOU SHOP ONLINE? Never 4.6% Once every year 1.7%
At least once a week 30.3%
15.2%
A smaller, edited selection of products Content to help me shop
Catwalk video of product
23.8%
10.5%
Product zoom function
360º product view
Virtual fitting rooms (where I can enter my sizing to see how a garment will fit virtually)
40.3% 36.6%
13.9% 55.7%
Simple but clear sizing information
A range of models of different heights/shapes and weight that I can alternate to determine fit
Mobile 17.7%
WHAT DEVICES DO YOU USE TO BUY FASHION? Mobile 11.3%
Desktop PC 48%
Tablet/ iPad 26.8%
Desktop PC 45.1%
Tablet/ iPad 19.5%
Laptop 64.5%
Laptop 61.6%
Browse and purchase online on your desktop 55.5%
20.7%
Product availability information: I want to know if it’s in stock in store At least once a month 40.4%
Just browse online on your desktop for research, but buy in store 33.8%
47.1%
Lots of product, the more the better
Once every few months 23%
WHAT DEVICES DO YOU USE TO BROWSE FOR FASHION?
DO YOU TEND TO... ?
WHEN BROWSING A FASHION RETAIL WEBSITE, WHICH OF THE FOLLOWING DO YOU WANT?
45.4% 27.5%
A store locator
Easy and quick checkout, with as few clicks as possible
Clear pricing information
Clear delivery information and price
DO YOU SHOP FROM... ?
45.8% 62.5%
A fashion chain’s website (such as Oasis, Topshop)
UK websites 73.3%
WHAT TYPE OF EDITORIAL CONTENT DO YOU WANT TO SEE ON FASHION RETAIL WEBSITES?
Fashion articles. I want something to read
22.8%
Non-fashion lifestyle articles – they don’t need to be about product/fashion
34.0%
Fashion shoots. I like to see the product brought to life
34.1%
Editor’s picks. I like advice on what to buy
28.6%
A department store’s website (such as John Lewis, House of Fraser)
A multi-brand retailer’s website (such as USC, Republic)
Stay on the site longer. I like to read articles and look at shoots, but not buy
3.7%
An independent retailer’s website
Price comparison/ discount sites
41%
Drapers / SEPTEMBER 2014 3
38.7%
9.2%
1.3%
7.4%
of men are most likely to shop on a pure-play, while just 0.6% will shop on an affiliate site
International websites 2.5%
DO YOU COMPARE UK RETAILERS’ BRAND PRICES WITH OVERSEAS ONES’? Sometimes 27.1% Yes 22.2%
20.9%
A pure-play etail website (such as Asos, Amazon, eBay)
An affiliate site (such as Asos Fashion Finder or ShopStyle)
WHICH OF THE FOLLOWING DOES EDITORIAL CONTENT ON RETAIL WEBSITES ENCOURAGE YOU TO DO?
18.8%
Both 24.2%
42.6%
WHAT TYPE OF WEBSITES ARE YOU MOST LIKELY TO BROWSE AND SHOP ON?
28%
of 18 to 24-yearolds are likely to buy online as a result of editorial content
Browse online on desktop for research, but buy on mobile/tablet 10.7%
10.6%
Stay on the site longer, and then purchase
20.4%
I don’t stay on the site longer, but it does help me purchase I don’t like content on retail websites. I just want to get to the product
60%
of women said the feature they most want is clear sizing information on fashion websites
35%
28.4% 40.6%
of 25 to 34-year-olds most want to see non-fashion lifestyle articles on websites
Drapers / SEPTEMBER 2014 4
No 50.7%
36%
of 25 to 34-year-olds compare prices on UK websites with those overseas
MULTICHANNEL REPORT
Mobile & tablet
HOW MANY FASHION RETAILER OR BRAND APPS HAVE YOU DOWNLOADED? 0
Increasing smartphone and tablet adoption presents a huge sales opportunity, but retailers must get their proposition right WHICH OF THE FOLLOWING DO YOU USE YOUR MOBILE TO DO?
2-3
Browse and research fashion products
Browse and buy fashion products
Compare prices with other retailers when in store
22.5%
Browse and research fashion products
14.3%
Browse and buy fashion products
14.1%
Compare prices with other retailers when in store
23.6% 2.5%
5+
Engage with fashion brands and retailers on social media platforms Upload photos of potential outfit choices for instant feedback
Find stores when out and about
To pay
To redeem offers
Scan QR codes in store or on advertising
Engage with fashion brands and retailers on social media platforms
6.4%
Upload photos of potential outfit choices for instant feedback
5.4%
13.1%
Find stores when out and about
8.8%
To pay
9.1%
To redeem offers
5.1%
Scan QR codes in-store or on advertising
I don’t use my mobile phone for any of the above
59.4%
WHEN ARE YOU MOST LIKELY TO USE YOUR MOBILE PHONE TO BROWSE AND BUY FASHION?
On my weekday morning commute
On my weekday evening commute
During the day at work/home/college etc
6.2% 14.4%
In the evenings, not while watching TV
At the weekend, on a Saturday
12.8% 12.1%
At the weekend, on a Sunday
31%
of 25 to 34-year-olds have downloaded 2 to 3 fashion retail apps; but 45.4% download none
17.9%
11.7%
23.3%
25%
DO YOU PREFER TO USE AN APP OR MOBILE WEB TO BROWSE AND BUY?
5.9%
Mobile app 11%
4.1%
61%
On my weekday morning commute
4.5%
On my weekday evening commute
4.8%
In the evenings, not while watching TV
At the weekend, on a Saturday
12.2%
Drapers / SEPTEMBER 2014 5
Both 16.7%
I don’t use third-party shopping apps 71.7%
More than 5 4%
WHAT STOPS YOU BUYING ON YOUR MOBILE?
19.5%
Don’t trust internet security on my mobile when paying
43.8%
The screen is too small to properly review items
29.3% I find it hard to browse and ensure I’m getting the best price
13.8%
10.3%
12.6%
At the weekend, on a Sunday
47%
Neither 53.9%
In the evenings while watching TV
We were surprised by the high percentage of respondents who didn’t use their smartphones or tablets for anything shopping-related. We’d have expected more consumers to at least browse fashion online. At Shop Direct close to 60% of traffic to our websites is from mobile devices, and 50% of online sales. So this contradicts our own experience. Of those who do use smartphones and tablets to shop, more are doing so later in the day. In fact, 26% of respondents said they were more likely to browse and buy fashion via smartphone at home in the evenings. At Shop Direct, we’re starting to see the smartphone become the preferred at-home shopping device. The research shows shoppers are still reluctant to download apps, so it is crucial to give customers real reasons to, and make content unique and engaging. This is something we’re working on with our transactional apps for Very.co.uk and other brands, launching later this year. Trust remains an issue on smartphones, with almost 20% admitting they lack confidence in internet security when making payments on their phones. This is something the retail and fashion industries need to continue to work hard to overcome. Only at that point will we succeed in driving incremental sales growth via smartphones. DARRYL ADIE MANAGING DIRECTOR, AMPERSAND
1.9%
of women will browse fashion on a tablet, while 22.5% of men do the same
3-4 11.4%
6.6%
I don’t use my iPad/tablet for any of the above
1-2 12.9%
11.1%
WHEN ARE YOU MOST LIKELY TO USE YOUR IPAD/TABLET DEVICE TO BROWSE AND BUY FASHION?
Mobile web 18.4%
HOW MANY THIRDPARTY SHOPPING APPS DO YOU USE?
6.9%
During the day at work/home/college etc 26.4%
In the evenings while watching TV
4.8%
18.3%
3.9%
4-5
67.7%
7.6%
1
DO YOU USE YOUR IPAD/TABLET DEVICE TO...
JONATHAN WALL ECOMMERCE DIRECTOR, SHOP DIRECT
22.9%
of 35 to 44-year-olds are reluctant to shop on a mobile because the screen is too small to see product
23%
I don’t feel comfortable
of men will browse and buy fashion via mobile in the evening while watching TV
56%
26.4%
of 45 to 54-yearolds do not compare prices on mobile in store
Drapers / SEPTEMBER 2014 6
Smartphones and tablets are now central to online and in store shopping, with an increasing percentage of customers starting their purchase journey by browsing on their smartphone and completing the purchase on another device at a later time. Mobile and tablet optimisation is crucial, but retailers need to focus on the consumer first and technology second. Customers are still unsure of the benefits of purchasing on a mobile and are put off by the smaller screen size and security issues. Retailers launching new solutions this year that took a tablet or mobile-first approach, like Marks & Spencer or House of Fraser, may have alienated their core consumer. By focusing first on the customer, you can tailor your technology investments to their needs instead of investing in the latest craze to keep up with the retailer next door. M-commerce is still so new and technology so fast-paced that we don’t fully understand the mobile customer. However, it is clear the majority of 18 to 34-year-olds use their mobiles while watching TV, so tailoring mobile-friendly campaigns during those times will increase the chance of interaction. As innovations such as beacons, mobile wallets and in-store tablets gain traction, time will tell if customers welcome them into their lives or if they will be a passing fad.
MULTICHANNEL REPORT
In store
PAMELA REYNOLDS ONLINE SITE MANAGER, HARVEY NICHOLS
In-store technology and service are at the heart of the multichannel proposition of the new Harvey Nichols site that launched in April. The luxury customer is more interested in the service behind the technology, and this has driven us to roll out the click-andcollect and click-and-try (beta) services in stores [both in July 2014]. Having staff on hand to offer expert guidance on our product range and styling is the foundation of the proposition. Kiosks and iPads can enhance the customer experience, but must be seamless and supported by in-store staff. Technology allows our style advisers to access the latest stock information across our stores, so the customer can have products delivered to their homes or local store.
IF YOU ORDER AND COLLECT IN-STORE VIA CLICK-AND-COLLECT, WHICH OF THE FOLLOWING IS IMPORTANT?
Technology has equipped retailers with new selling opportunities – but don’t forget customer service DO YOU WANT TO USE IN-STORE TECHNOLOGY? Yes 26.4%
ollection points are close to the doors, C so I can nip in and out
Many UK retailers have been reporting sales growth over the past year, but the majority of this is online, with the Centre for Retail Research forecasting there will be 22% fewer stores on our streets by 2018. But the growth of ecommerce does not have to signal the death of the high street: by making the most of in-store technologies, retailers can buck this trend. The way people shop is changing, with 30% of consumers using their phone while on the high street and 11% comparing prices before entering a store. Retailers can now deliver more personalised communications and offers directly to consumers to drive in-store footfall. Forward-thinking retailers are also employing innovative shopfloor technologies, which one in four consumers say they would like to use.
Mobile alerts that I receive when I walk past the store
Point-of-sale in shop windows
5.6%
9.2%
22%
Collecting items that I bought online
52.6%
THINKING ABOUT HOW YOU USE YOUR PHONE IN STORE, WHICH OF THE BELOW STATEMENTS BEST DESCRIBES YOU? HAVE YOU EVER USED ANY OF THE FOLLOWING IN-STORE TECHNOLOGIES?
I use my phone to check prices and compare products before purchasing items in store
I use my phone to check the store I’m shopping in has sufficient stock of the product I’m buying
Kiosks 34.4% 17.7%
iPads
11.3% 9.7% 6.7%
I use my phone to check reviews before buying products in store
I use my phone to buy products online after trying on/examining them in a bricks-and-mortar store
2.4%
I don’t use my phone when shopping in store
69.9%
Contactless payment 24.2%
Social mirror (whereby you can upload photos of yourself to social network sites)
DOMENICO ANTONUCCI FASHION SECTOR SPECIALIST, K3 RETAIL
14.6%
QR codes
Virtual mirrors (whereby you can try on virtual 3D clothes)
Returning from the Retail’s Big Show 2014 event in January in the US, it was clear that the store remains the theatre to promote your products, and technology – like virtual fitting rooms or beacons – was central to store layout and customer engagement. Retailers are beginning to exploit their online investment by optimising for mobile with responsive design. The ‘go anywhere basket’ can transact in store and equally can be used for social reviews and price comparisons. Click-and-collect services can help bring online customers into stores and enable retailers to upsell. There is still a traditional value of shopping on the high street and having skilled customer advisors to reinforce the positive in-store experience.
30.1%
32%
They accept returns too
CLAIRE DAVENPORT MANAGING DIRECTOR, VOUCHERCODES.CO.UK
Ability to try clothes on in store and then buy online (showrooming)
20.5%
Changing rooms
41.4%
33.3%
Personal shopping experience
20.8%
here are well-informed staff who know T who I am, and what I am collecting
No, I’m just there to shop 73.7%
38.7%
The time between arrival and being handed my parcel is speedy
he click-and-collect area is comfortable T and not separate to the main store
WHICH OF THE FOLLOWING INFLUENCES YOU THE MOST TO GO IN STORE?
DO YOU WANT TO USE IN-STORE TECHNOLOGY?
5.1% Yes No, I’m just there to shop
2.9% 23.4%
Touchscreens/virtual walls
I like staff to have tablets to show me products not in stock, which I can then buy
43.8%
Scanning QR codes (to enable your phone to go straight to a product/page online)
35%
of men are incentivised to go in store by a personal shopping service
Drapers / SEPTEMBER 2014 7
34.7%
41.7% 36.4%
12.1%
18%
34%
No, I’m just there to shop 77.5%
21.8%
21.8%
Virtual mirrors
18 to 24-year-olds
of men have used a kiosk, as have 34.3% of women
Yes 30.4%
56.3%
39.2% Kiosks where I can browse and buy from the online store
No, I’m just there to shop 69.6%
65.3%
60.8%
WHAT TYPES OF IN-STORE TECHNOLOGY DO YOU LIKE TO SEE IN FASHION STORES?
87.9%
78.2%
25 to 34-year-olds
25%
35 to 44-year-olds
of 25 to 34-year-olds use their mobiles to check a store’s stock levels
45 to 54-year-olds
43%
Yes 22.5%
55+
of 18 to 24-year-olds would like store staff equipped with iPads to order out-of-stock items
Drapers / SEPTEMBER 2014 8
43%
of women said that being handed their goods quickly is the most important aspect of click-and-collect
MULTICHANNEL REPORT
ANDRES SOSA DIRECTOR OF SALES AND MARKETING, THEOUTNET.COM
Considering that 36% of respondents are over 55, it’s not surprising that Facebook ranks so highly. We know this is the demographic experiencing growth on Facebook, and that a younger demographic is not joining. This might be down to this older demographic having more time and using it to keep in touch with family and loved ones. It’s very interesting to see Instagram’s importance, especially with the launch of InstaVideos, which meant Vine did not have the penetration that was anticipated. I think it’s down to the fact that most of us had already downloaded Instagram, which allows for 15-second videos, while Vine only allows for six. Nine seconds can make a real difference when it comes to storytelling. Customers want to showcase their own identity; it’s all about personalisation and customisation of product. They want to make something distinctly theirs, so while a trend will determine and define the parameters, it shouldn’t be a surprise to see that respondents are not inclined to purchase the same item as a friend just because it’s been shared on social media. ‘Same item’ is the key phrase here: they would probably be encouraged to purchase from the same brand or site, but they would be more likely to search for an item that is right for their personal style. GEMMA OWEN SOCIAL MEDIA MANAGER, DEBENHAMS
Customers love to follow brands on social media channels to get ‘something extra’. The brands that keep this at the front of their minds – connecting with their audience and offering exclusive content in the form of sale previews, competitions and new products, for example – will get the most engagement. At Debenhams our social media community is given sneak peeks of new designer product, treated to previews of TV ads and allowed to take control and pick the items they want to see discounted. Friend recommendations continue to be key in the social space. Consumers are more likely to engage with a brand if a friend is already doing so. However, interestingly it is men over women who are most likely to be influenced into making an actual purchase if a friend has bought and shared an item online. It suggests that men feel more confident taking recommendations and shopping online. Facebook remains the leading platform in the social space for people to check out fashion content. However, the introduction of the Twitter ‘buy now’ button could bring a shift in activity. The more salaries increase, the more people are likely to tweet – which could see the ‘buy now’ button becoming a real game changer in social commerce.
Social media It’s hard to measure the return on investment, but our results show social media heavily influences purchases WHICH SOCIAL NETWORKS DO YOU USE?
HOW DO YOU LIKE FASHION BRANDS TO ENGAGE WITH YOU ON SOCIAL MEDIA PLATFORMS?
Via competitions
When the Sale is on
Facebook 75.9%
Pinterest 6.5% Tumblr 3.4% Vine 2.3%
Instagram 12.1%
Through video
Through advertising
Share offers from retailers
Twitter 29.2%
WHICH SOCIAL NETWORKS HAVE YOU USED TO BROWSE FASHION? 26.9%
Instagram 2.4%
Tumblr
4.7%
Other
4.2%
14.7%
Head into store to buy
9.4% 13% 18.4%
More likely to engage with that brand
More likely to leave a comment of your own
25.4%
‘Like’ a product
Leave a comment
Unlike/Unfollow the brand
None of the above
IF YOU SEE A FRIEND OR FAMILY MEMBER HAS ‘FOLLOWED’ OR ‘LIKED’ A BRAND, OR LEFT A COMMENT ON A PRODUCT, HOW DOES IT AFFECT YOU?
9.1% 3.3% 18%
IF A FRIEND SHARES A LINK TO AN ITEM THEY BUY, WILL THIS TEMPT YOU TO BUY IT?
26.1% Yes 28.3%
26.4%
30.0%
13.6% 11% 8.6%
10.4% 5.3% 1.6%
3
4
5
6-10
of 45 to 54-year-olds most like retailers to use their social platforms to tell them the Sale is on
Drapers / SEPTEMBER 2014 9
11-20
21-30
0.7%
1.2%
1.3%
31-40
41-50
51-60
91%
0.3% 61+
of 18 to 24-yearolds use Facebook, compared with 68.1% of over-55s
35.4%
No 20.7%
It doesn’t influence my buying habits 51%
WHICH SOCIAL NETWORKS HAVE YOU USED TO BROWSE FASHION? Age
6.7%
27%
Do nothing – I’d ignore it
HOW MANY FASHION BRANDS HAVE YOU ‘LIKED’ OR ‘FOLLOWED’ ON SOCIAL MEDIA SITES?
44%
26.4%
Head into store to browse
More likely to go and buy a product on a brand/retailer’s 7.9% website
I don’t use social networks 60.3%
2
23.8%
18.1%
More likely to check out a product on a brand/retailer’s website
7.4%
1
50.1%
Click on links through to the fashion retailer/brand’s website to buy
42.7%
8.6%
Vine 1.3%
9.2%
37.5%
Click on links through to the fashion retailer/brand’s website to browse
Inspiring content. It doesn’t need to be fashion – just capture the imagination
Other 18.5%
0
42.9%
With regular product updates and news
WHEN YOU SEE THESE COMMUNICATIONS, HOW ARE YOU LIKELY TO RESPOND?
18-24
25-34
35-44
45-54
55+
77.5% 70.6% 58.4%
42.9% 27.1% 7.9% 2.9% 37.2% 43.8% 15.9% 3.8% 2.2% 28.7% 6.3% 3.4% 4.5% 21.5% 0.9% 0.6% 5% 27.9% 15.6% 0.6% 0.1% 4.9% 16.3% 2.5% 14.6% 17.5% 3.1% 8.8% 11.6% 1.8% 4.5% 5.3% 0.3% 2.1% 2.1% 0.1% 1% Facebook
48%
of women click links on social media platforms to a retailer/brand’s site to browse fashion
Vine
27%
Tumblr
of women use Facebook to browse fashion, while just 1.1% use Vine
Drapers / SEPTEMBER 2014 10
Other
34%
I don’t use social networks
of 18 to 24-year-olds will check product out on a retailer’s website if a friend/ family member has ‘liked’ it
MULTICHANNEL REPORT
Personalisation
IF YOU SIGN UP TO RECEIVE A FASHION RETAILER OR BRAND’S EMAIL ALERTS, HOW OFTEN WOULD YOU LIKE TO RECEIVE THEM?
Retailers are collecting a wealth of customer data, but how should it be used to maximum effect – and how comfortable are consumers about giving it away? HOW DO YOU FEEL ABOUT RETAILERS USING DATA ON YOU TO TAILOR SERVICE?
WHAT DATA WOULD YOU BE PREPARED TO GIVE?
73.3%
Name
Negatively 37%
Age
Date of birth
Address
Home telephone number
Work telephone number
Act on it and go in store to take advantage of an offer/discount 18.6%
5.1%
Multiple times a day
4.3%
Two to three times a week
31.1%
Every two weeks
Income
4.3%
Marital status
Yes 22.4%
I wouldn’t like it, it feels intrusive 64.5%
47%
Not act on it, but I would like to receive these communications 17%
of women are unsure how they feel about retailers using their data. Just 16.8% are positive
HOW DO YOU FEEL ABOUT RETAILERS USING THE DATA THEY CAPTURE ON YOU TO OFFER YOU A MORE TAILORED SERVICE?
19.2%
Negatively
1.9%
29.6% 28.8% 22.5%
Shopping habits, such as where else you shop
Personal interests, such as hobbies
30.6% 26.3%
39.2%
31.3% 21.3%
17.9% 13.1%
13.1%
82%
47.8%
35.9%
16.1%
of men would act upon a mobile alert to go in store to take advantage of an offer
Drapers / SEPTEMBER 2014 11
46.2%
43.1%
41.7%
Not sure 47.4%
5.5%
Size/weight/height details
19%
CLAIRE DAVENPORT MANAGING DIRECTOR, VOUCHERCODES.CO.UK
Don’t know 26.9%
Positively
Social log-in details
45.5%
I want the option to decide how often
There is a big age disparity when it comes to willingness to share personal data: 26% of those under 45 felt positively about retailers collecting information, as opposed to just 15% of over 45-year-olds. This means retailers adopting a personalisation strategy need to be sensitive with the data they have and how they use it. Far more useful than predefined customer segments is both browsing data and on-site behaviour collected during a visit to the site. Once they’ve been to the site, the data you’re able to collect is far more powerful than age, marital and financial status. Added to which, the on-site browsing data is more reliable than asking a user to complete data themselves. Interestingly, 65% would prefer not to receive texts or emails while shopping. While most retailers don’t do this, the majority are exploring iBeacon technology. iBeacon has huge potential to maximise impulse buying, but could alienate customers who prefer to shop unpestered. Targeting the 19% happy to receive comms, though, could have huge rewards. A surprising statistic is that 46% of people would like to decide how often a retailer contacts them by email. This is something brands need to take heed of and not bombard customers’ inboxes, regardless of the basic data available.
54.3%
2.6%
10.5%
Monthly
14.8%
3.9%
Financial status – ie, are you a home owner?
6.2%
No 50.8%
2.5%
Occupation and company name
19.9%
Once a week
DOES PERSONALISATION ON A WEBSITE – WHERE RETAILERS SHOW PRODUCTS YOU MIGHT LIKE BASED ON PAST PURCHASES – ENCOURAGE YOU TO BUY?
28.2%
Bank details
52.9%
8.6%
11.4%
Mobile telephone number
IF YOU GOT A RETAILER’S MOBILE ALERT WHILE OUT SHOPPING, WOULD YOU...
Every day
Positively 20.2%
Not sure 42.9%
LIAM PRICE DIGITAL TRADING MANAGER, WAREHOUSE
18 to 24-year-olds
of over-55s will give their name, and 60% their email. Less than 2% will give their work phone number
25 to 34-year-olds
52%
35 to 44-year-olds
of men are unlikely to buy more if retailers show them purchase history-based items
45 to 54-year-olds
50%
55+
of 45 to 54-yearolds want to pick how often they receive email alerts
Drapers / SEPTEMBER 2014 12
In the relentlessly competitive retail market, knowing what consumers want and promoting it to them in the right way and at the
right time is key. Personalisation in retail is nothing new. Online merchants have been using the data they collect from shoppers to deliver them targeted content for the past few years. But the use of this data is a delicate field to navigate for retailers and marketers. Consumer attitudes towards personalisation are by no means unified. While some dislike being delivered targeted marketing based on their shopping history, others expect it. One in four consumers say that a personalised experience encourages them to buy more, but shoppers are still wary of how their personal data is used – and over a third of consumers (37%) are unhappy about merchants making use of personal information they capture. Today’s consumers aren’t shy about providing their data; the use of social media and online shopping means modern shoppers are used to providing basic details. The value for merchants, marketers and payment partners lies in uniting their multichannel data to provide a truly holistic picture of consumers’ shopping journey. By knowing more about their customers, retailers can understand what they want and promote products to them.
MULTICHANNEL REPORT
Delivery & returns
WHAT IS THE MAXIMUM AMOUNT YOU’RE WILLING TO SPEND ON DELIVERY? Up to £10 4.1%
Free delivery and returns have become industry norms, but a reliable and convenient service remains key
Nothing. I’d only order online if the delivery is free 50.8%
WHICH DELIVERY METHODS HAVE YOU USED?
FOR HOME DELIVERIES, HOW IMPORTANT IS THE PACKAGING?
3.5%
90 minutes
Named day
Named hour
Not important, I just want my purchase 47.1%
22.4%
Really important, it’s all part of the experience 14.4%
49.3%
Somewhat important 35.9%
Somewhat important 32.7%
WHAT IS MOST IMPORTANT TO YOU? 5.6%
WOULD YOU LIKE RETAILERS TO START DELIVERING ON A SUNDAY?
Free returns
of women say free delivery is their priority, while just 5.2% cite nice packaging
Nice packaging
19.7%
Drapers / SEPTEMBER 2014 13
20.1%
55%
57.1% 58.4% 60.3% 64.4% 66.4%
I can choose the delivery time 21.7% 22.8% 6.6% 25.6% 27.5%
5%
of women would like retailers to deliver on Sundays. 58.3% of men feel the same
Free returns
Quick delivery 51.7% 32.5% 38.7% 36.2% 34.6%
25.6%
The option to leave a delivery with a neighbour
62%
62.5%
37.4%
Quick delivery
I can choose where to collect the delivery from, or return to
81.1%
Free delivery
I can choose the delivery time
Yes 60.3%
Free delivery 75% 70.9% 80.5% 82.1% 87.5%
WHAT IS MOST IMPORTANT TO YOU?
82%
Not important, I just want my purchase 53%
Customers want certainty and they want it cheaply or, better still, free. While there has been a lot of buzz around same-day delivery, and premium timed-delivery slots, uptake is low – cost being a key factor. Next-day remains a service that people will pay for, with more enthusiasm in the under-25s. Young fashion has a shorter shelf life than fresh milk, and if it isn’t there in time for tomorrow night, forget it. Now that free returns have become the norm, shoppers are expecting free delivery, too. Click-and-collect is booming – shoppers like the idea that the item will be waiting for them. Speed isn’t as critical here. Focus needs to be on the in-store experience – slick and easy for the customers, while allowing retailers to capitalise on the footfall. Collection from third-party locations is picking up, but remains small overall – there are a lot of players and noise in this space, meaning retailers need to consider which partner to choose. Sunday deliveries are a hot topic. Though most delivery companies tend to ramp up to seven days pre-Christmas, we’ve yet to see the launch of a successful year-round service. It is in the carriers’ interests (an instant 16.6% boost in capacity), and younger customers are much less likely to see Sundays as sacrosanct. It will happen, as soon as the commercial proposal stacks up.
17.5%
Buy in store and deliver to home
No 39.7%
Really important, it’s all part of the experience 17.1%
WHEN YOU COLLECT AN ORDER IN STORE, IS THE PACKAGING IMPORTANT?
4.1%
Click-and-collect in store
Click-and-collect from a locker (such as ByBox, InPost, Local Letterbox, Amazon Locker)
Up to £5 45.1%
8.8%
Same day
52.8%
Next day
MARTIN KEMP-POTTER HEAD OF LOGISTICS, ARCADIA
of 35 to 44-year-olds have used click-and-collect services, while 3.2% have used a 90-minute service
54%
of men and 52.3% of women say packaging is not important for click-and-collect
I can choose where to collect the delivery from, or return to 17.9% 15.3% 21.8% 23.5% 19.3% Nice packaging 9.6% 5.3% 4.5% 2.4% 4.9% The option to leave a delivery with a neighbour 17.1% 8.4% 20.5% 20.9% 25.6% 18 to 24-year-olds 25 to 34-year-olds 35 to 44-year-olds 45 to 54-year-olds 55+
55%
of 18 to 24-yearolds will pay up to £5 for delivery; 4.1% will pay up to £10
Drapers / SEPTEMBER 2014 14
JONATHAN PILBRO VP FASHION, DHL SUPPLY CHAIN
Today’s retail model is being driven by consumer expectations, whether this is enhanced customer service or faster and more convenient deliveries, and this multichannel report gives an interesting insight into UK consumer’s preferences. It also reveals that there are still some future trends that are predominantly being driven by retailers and brands. It is apparent that online shopping continues to have a strong foothold in the UK market, with more than 70% of consumers purchasing goods up to four times a month. The findings also revealed that next-day delivery is a key preference for consumers. However, 81% of consumers preferred free delivery to a quick delivery process, which by comparison was selected as most the most important factor in delivery by 37.4%. In addition, the ease of returns remains a key factor, while 60% of consumers would like to have Sunday deliveries. The ability to deliver this relies on the flexibility of retailers’ supply chain capabilities and demonstrates the central role of the supply chain in responding to demand. It is crucial that we are aware of these changes and support retailers as they adapt and develop creative solutions to meet demand. Research such as this is critical in informing future multichannel strategies.
MULTICHANNEL REPORT
Pam Reynolds
Robert Cavell-Clarke
Simone Williams
Rachel Tonner
Alex Field
Antony Comyns
Alex Holt & Lauren Garner
Claire Davenport
ONE GOAL, DIFFERENT PATHS
Retailers and brands have to consider all aspects of the customer experience Words by CHARLOTTE ROGERS Photography by PHIL WEEDON
M
ultichannel can be a tricky environment to navigate. Retailers and brands must consider the overall online user and in-store visitor experience, how they will capture consumer data for personalisation and devise a relevant social strategy. The questions they must ask themselves are many. Are they optimised for mobile? Do they have an app? What about integrating in-store technology? To gain greater insight into the factors at play Drapers polled a nationally representative pool of 2,000 UK consumers to find out how they shop across retail channels. Ecommerce specialists from retailers such as Harvey Nichols, Oliver Spencer and Bonmarché then gathered at the Ham Yard Hotel in London to discuss the results. Organised in association with ecommerce agency Ampersand, logistics provider DHL Supply Chain, retail software provider K3 Retail and promotional offers website Vouchercodes. co.uk, the roundtable covered every aspect of the multichannel experience from mobile and tablet to personalisation and consumer engagement in the social sphere. The session kicked off with a discussion of online shopping habits. Our survey found that more than 40% of shoppers buy fashion online
once a month, and it is the method most popular with younger consumers. When it comes to shopping in this channel, simple functions such as clear sizing information (55.7%) and lots of product (47.1%) were named as top priorities. By comparison, 40.6% of respondents do not want to see any editorial content on a fashion retail website, with 28.4% saying such content does not encourage them to stay longer on the site. “Editorial content should be a nice surprise for consumers and you might get some great engagement, but don’t make it your number one priority,” stressed Alex Field, global head of marketing at Thomas Pink. Laptops were the preferred device to browse and buy fashion online at 64.5%, followed by a desktop PC (48%), tablet (26.8%) and mobile (17.7%). The low level of mobile engagement surprised Darryl Adie, managing director of Ampersand. “For some of our customers more than 50% of traffic comes from mobile. Perhaps these statistics are a reflection of people still being uncomfortable with mobile or that uptake is different across different retail sectors?” Consumers were most likely to use mobiles to browse or buy fashion in the evenings (26.4%), with Sundays (23.3%) the next most popular time. Vouchercodes.co.uk general manager
Drapers / SEPTEMBER 2014 15
Claire Davenport reported on the success of the company’s new “save for later function”, which is typically used to browse in the morning and purchase later on. According to Davenport, about half of online traffic comes from mobile and tablet combined. “Buying fashion on tablets has grown less strongly than mobile over the past year. In the fashion sector two retailers with the same sales conversion on a desktop can have a variation of 1,000% in how they convert on mobile. There is a lot of variation between very mobile-optimised and non mobile-optimised sites,” she added. Barriers to mobile shopping are primarily security concerns (46%) and smaller screen size (43.8%). Jonathan Pilbro, vice president of fashion at DHL Supply Chain, argued that worries over the safety of public Wi-Fi can make people less likely to make mobile payments. PayPal was suggested as a solution to security worries by Mark Mearns, ecommerce and multichannel director at DHL Retail, as all the card details are stored so there is no need to input personal information on the move. The survey found that more than 67% of respondents had never downloaded a fashion retail app, with just 18.3% having downloaded up to three. These statistics came as no surprise
to Marina McKeever, senior director at Vouchercodes.co.uk, who argued that apps must offer a genuine benefit not found on an ecommerce site. The discussion then moved on to the in-store experience. More than 73% of respondents do not want to use technology in store. However, if technology is present then kiosks are most in demand at 34.4%, while staff equipped with iPads are also popular. Simone Williams, head of ecommerce at womenswear chain East, reported a huge uptake of iPads in store. In terms of service, personal shopping (33.3%), combined with the ability to try clothes on in store and buy online (30.1%) were key reasons to hit the high street. Simon Burstein, chief executive of London luxury independent Browns, argued that customers entering an upmarket store are looking for an experience only made possible through engagement with salespeople. “Sometimes technology can be a distraction,” he said. “Don’t distract, engage. You have the product in front of you, so sell what you’ve got.” When it came to social channels, Facebook was the most important social network at 75.9%, followed by Twitter (29.2%) and Instagram (12.1%). Unsurprisingly, younger consumers were most influenced by social media. The power of Facebook was highlighted by Domenico Antonucci, sector manager of fashion solutions at K3 Retail, who reported on the massive response enjoyed by a Nordic retailer which pushed its marketing budget into getting “likes” on Facebook, though he declined to name the retailer. The company found that more than 83% of its online visitors were female, information which prompted it to focus the home page on womenswear. When using social media, consumers most want to see information on when a Sale will start (50.1%), followed by product updates (42.9%).
Just 9.4% cited video as an attraction. Field wasn’t surprised: “We thought some good video on social media would help drive engagement. It doesn’t. It’s often the most boring pictures that get the biggest reaction. Your biggest fans really want to see your product in detail.” McKeever advised reaching out to bloggers as part of a holistic social strategy and stressed the importance of getting the experience right in the online channel, as customers can be vocal on social media when things go wrong. Personalisation proved an emotive topic, with 37% of those surveyed responding negatively to such requests. Consumers were least happy to give social log-in details, work phone numbers and bank details. More than 50% said personalisation would not encourage them to buy more, a statistic that did not surprise Robert Cavell-Clarke, head of scouting and design relations at online designer platform Not Just a Label. “We [the industry] are styling our customers with an algorithm, but they keep telling you just to buy white Converse and stonewash jeans. People will get sick of it. Curation should be done by a person.” Jack Wills global ecommerce director Jan Mehmet agreed the concept of complete personalisation still needs work. “On a one-toone basis we can find out exactly what that customer needs, but in the digital sphere we are still guessing.” When consumers were asked which delivery methods they have used, next-day came out top (52.8%), followed by click-and-collect (49.3%). Free delivery (81.1%), free returns (62.5%) and quick delivery (37.4%) were cited as the most important factors. The statistics resonated with Pam Reynolds, online site manager at Harvey Nichols, who reported on the success of click-and-collect at the business. She said its click-and-try service,
Drapers / SEPTEMBER 2014 16
ATTENDEES David Hathiramani, A Suit That Fits; Darryl Adie & Rachel Tonner, Ampersand; Sean Emmett, Bonmarché; Simon Burstein, Browns; Jonathan Pilbro & Mark Mearns, DHL; Simone Williams, East; Pam Reynolds, Harvey Nichols; Antony Comyns, Hawes & Curtis; Jan Mehmet, Jack Wills; Domenico Antonucci & Natalie Bruins, K3 Retail; Sofiane Oumohand, Miss Selfridge; Robert Cavell-Clarke, Not Just a Label; Lauren Garner & Alex Holt, Oliver Spencer; Alex Field, Thomas Pink; Claire Davenport & Marina McKeever, Vouchercodes.co.uk From Drapers: James Knowles & Charlotte Rogers
whereby a chosen item is placed in a changing room styled with other accessories, is also proving popular. Bonmarché marketing and multichannel director Sean Emmett backed click-and-collect as a means of reducing returns, as it brings the consumer back in store and offers a better chance of exchange or upselling. Interestingly, our survey showed that pretty packaging isn’t important for home delivery or in-store collection. However, Mearns said: “We find packaging quite emotive. We fulfil for a value retailer, which has scaled down the weight of its plastic to lower overall costs, as well as a top-end department store who wants to create a fully branded experience.” Despite all the technology on offer, a real desire for excellent customer service is clear. The focus is on understanding the consumer and the part each channel, device or platform has to play in the overall purchase journey, with a view to delighting them with a great experience.