tag:www.econsultancy.com,2008:/topics/delivery-fulfillment Latest Delivery & fulfillment content from Econsultancy 2017-11-17T15:00:00+00:00 tag:www.econsultancy.com,2008:BlogPost/69591 2017-11-17T15:00:00+00:00 2017-11-17T15:00:00+00:00 10 thought-provoking digital marketing stats we’ve seen this week Nikki Gilliland <p>Without further ado…</p> <h3>Half of online shoppers abandon a purchase if they don’t like the delivery options</h3> <p>MetaPack’s <a href="http://content.metapack.com/acton/media/29620/2017-state-of-ecommerce-delivery" target="_blank">latest report suggests</a> that delivery has the power to make or break the online shopping experience, often being the difference between a purchase or an abandoned basket.</p> <p>In a survey of 3577 consumers across Europe and the US, 54% of respondents said delivery defines what retailers they regularly shop with. Half of all shoppers also said they would abandon a purchase if <a href="https://www.econsultancy.com/blog/69301-how-10-online-retailers-promote-free-and-fast-shipping">delivery choices</a> were unsatisfactory, while 39% would never use an online retailer again following a negative delivery experience.</p> <p>Lastly, the report also suggests that expectations are rising, with 54% of survey respondents saying they want online retailers to offer one-hour delivery services in metropolitan areas.</p> <h3>89% of B2B businesses attribute growth to ecommerce</h3> <p>With ecommerce predicted to represent 11% of all B2B sales in the US by the end of this year, <a href="https://cloudcraze.com/resource/why-digital-will-become-the-primary-channel-for-b2b-engagement-report/" target="_blank">CloudCraze has uncovered</a> the value B2B organisations are seeing from digital and online channels.</p> <p>In a survey of more than 400 B2B decision-makers in the UK and the US, it was revealed that 48% of B2B businesses sell their full line of products online. As a result, 89% of B2B decision-makers attribute expected business growth to the success of digital commerce, and 60% indicate that the growth of digital has caused their sales team to grow along with it.</p> <p><img src="https://assets.econsultancy.com/images/0009/0533/b2b.JPG" alt="" width="313" height="420"></p> <h3>83% of 18 to 24 year olds have bought an item of physical media in the last year </h3> <p>While the success of digital services like Spotify and Netflix might suggest otherwise, new data from eBay indicates that a large percentage of consumers are choosing physical media.</p> <p>In a survey of over 2,000 consumers, eBay found that 76% of Brits have bought a book, a DVD or Blu-ray, CD, vinyl record, or video game in the last year, rising to 83% for 18 to 24 year olds or so-called ‘digital natives’.</p> <p>Insight suggests that this could be due to an increasing desire to connect with the digital world, coupled with the emotional and intellectual appeal of owning physical objects. </p> <p><img src="https://assets.econsultancy.com/images/0009/0534/physical_media.JPG" alt="" width="600" height="393"></p> <h3>CMOs overhaul digital strategy amid brand safety concerns</h3> <p>New research from Teads has revealed that concern over brand safety has risen in the path 12 months, leading many CMOs of large UK brands to make drastic changes to their digital advertising strategies.  </p> <p>In a survey of 100 leading CMOs, 83% said they have become more concerned about brand safety in the past year, with 77% more worried about ad fraud than before. As a result, 95% of CMOs say they’ve overhauled their digital strategy, demanding greater transparency from suppliers and agencies, with 44% questioning their supplier relationships and 43% scrutinising agency relationships.</p> <p>What’s more, 36% of CMOs say they have boycotted or reduced spend on channels that can’t guarantee brand safety, and 37% of CMOs say they are now directly involved in the execution of digital strategy. </p> <h3>Singles Day results in a 61% increase in mobile traffic</h3> <p>Analysis of <a href="https://www.econsultancy.com/blog/69578-what-western-brands-need-to-know-before-joining-china-s-massive-ecommerce-economy">Singles Day</a> by Qubit has revealed that this year's shopping event drew 593% more visitors from China to UK retail sites compared to an average Saturday. </p> <p>There was a 236% increase in overall traffic from Singles Day in 2016, with 59% of visitors to UK retail sites from China coming from mobile.</p> <p>However, despite this growth, just 16% of revenue came from mobile shoppers, while desktop generated 82% of total revenue.</p> <h3>Strong performance in search correlates to retail success </h3> <p><a href="https://www.pi-datametrics.com/winners-loser-retail-causation-correlation/" target="_blank">New research</a> by PI Datametrics suggests that the most successful retailers are those who consider organic performance as a key KPI.</p> <p>From analysis of the top UK retailers - including ASOS, Boohoo, and Missguided - it was revealed that the most successful all have a strategy focused on customer intent and search data. </p> <p>ASOS has the strongest share of voice overall, which perhaps correlates to it also generating the most commercial success. Last year, its revenue grew 33% to £1.88bn.</p> <p><img src="https://assets.econsultancy.com/images/0009/0536/share_of_voice.JPG" alt="" width="740" height="385"></p> <p><em>Top retailers by share of voice</em></p> <h3>Searches for GDPR rise 215%</h3> <p>According to research from i-COM, more than 3x the number of people are searching for information about the GDPR legislation than they were at this time last year.</p> <p>Searches for terms related to GDPR have risen by 215% in the past 12 months, going from 138,290 in October 2016 to 435,600 searches in October 2017.</p> <h3>Ads failing to represent diversity in Britain</h3> <p>According to <a href="http://www.the7stars.co.uk/article/state-nation-latest-qt/" target="_blank">a study</a> by the7stars, UK advertising is failing to represent the diversity of life across the UK. </p> <p>The study – which involved a survey of 1000 Brits plus face-to-face workshops – found that just 11% of people feel advertising truly reflects where they live. In contrast, 55% of respondents say that it does not, and 56% agree that the debate around diversity in advertising is a big issue.</p> <p>Interestingly, there appears to be a regional split, with 18% of Londoners saying that advertising is reflective of life compared with just 1% of those in the North East.</p> <h3>Emotion is key to Black Friday email success – not deals</h3> <p>From the analysis of <a href="https://econsultancy.com/blog/66328-211-awesome-phrases-for-email-subject-lines-that-sell">email subject lines</a> by 50 UK retailers during Black Friday 2016, <a href="https://persado.com/insights/persado-holiday-email-subject-lines-dos-donts/" target="_blank">Persado found</a> that five key emotions generated greater levels of success.</p> <p>First, more than 20% of consumers engaged with challenge-focused emails, such as “are you ready?”. Meanwhile intimacy and encouragement also prompted consumers to respond. A third emotion was guilt, instilling in consumers a fear of missing out, as well as fascination – with interest piqued at the promise of trying something new.</p> <p>Overall, Persado determined that emotional language accounts for as much as 60% of audience response, showing the clear potential for retailers in 2017.</p> <p><img src="https://assets.econsultancy.com/images/0009/0535/black_friday_email.JPG" alt="" width="450" height="569"></p> <h3>In-app purchases boosted by ‘reward’ ads </h3> <p>A <a href="http://www.journalofadvertisingresearch.com/content/57/3/272.short" target="_blank">new study</a> by the Journal of Advertising Research (JAR) has revealed that ‘reward’ ads in gaming apps - which offer free items to users if they interact – can boost overall in-app purchases.</p> <p>By studying 1.4m transaction records and in-app behaviour, JAR found that more than 17% of users made subsequent purchases after clicking on a reward ad, compared with just 2.75% of users who did not.</p> <p>Finally, the study also found that those who spent more time playing gaming apps each day responded better to reward ads in terms of overall spending value.</p> tag:www.econsultancy.com,2008:BlogPost/69516 2017-10-23T09:26:00+01:00 2017-10-23T09:26:00+01:00 10 important digital marketing stats we’ve seen this week Nikki Gilliland <p>Now, let’s get cracking.</p> <h3>Snapchat and Instagram ad spend up 73% and 55%</h3> <p>New data from 4C Insights has revealed that ad spend was up for both Snapchat and Instagram in Q3 2017, rising 73% and 55% respectively.</p> <p>There was a rise in paid media spend across the board, with a 31% quarterly increase on Facebook, Instagram, Twitter, LinkedIn, Pinterest, and Snapchat.</p> <p>Instagram Stories remains a particularly strong channel, generating 220% year-on-year spend growth. Elsewhere, Facebook ad spend grew 27%, travel sector spend on Twitter surged 250% for the quarter, and ad spend on Pinterest grew 33% over the course of the year.</p> <h3>60% of speciality retailers offer loyalty programs compared to 22% of brands</h3> <p>A new report by <a href="https://astoundcommerce.com/us/specialty/">Astound Commerce</a> suggests that specialty retailers are outperforming brands in almost all omnichannel categories.</p> <p>First, 60% of specialty retailers offer programs to inspire customer loyalty, while only 22% of brands have these capabilities. Second, ensuring prices are consistent across channels is more complicated for retailers with many different brands, yet 37% offer these capabilities compared to only 6% of global brands.</p> <p>Lastly, three in four specialty retailers have a mobile app, while less than a quarter of brands can say the same.</p> <p><img src="https://assets.econsultancy.com/images/0008/9797/Loyalty.JPG" alt="" width="760" height="323"></p> <h3>More than half of Brits plan to buy Christmas gifts online</h3> <p>The latest <a href="https://www.salesforce.com/uk/form/industries/connected-shopper-report-2017.jsp?nc=7010M000000uIke&amp;d=7010M000002MOCH" target="_blank">report</a> from Salesforce suggests that the majority of Brits will be shopping online this Christmas. It found that 56% (or nearly three out of five Brits) plan to do half or more of their holiday shopping via the internet.</p> <p>Alongside a frustrating in-store customer experience, this could be due to online shopping allowing consumers to become increasingly informed. So much so that 56% of Brits claim to typically know more about a product than the store employee.</p> <p><img src="https://assets.econsultancy.com/images/0008/9793/Salesforce.JPG" alt="" width="780" height="216"></p> <h3>Nearly one in seven companies unprepared for GDPR</h3> <p><a href="https://dma.org.uk/research/the-gdpr-and-you-chapter-four" target="_blank">DMA research</a> has revealed that 15% of companies still have no plan in place to be ready for the new GDPR laws by May 2018.</p> <p>While 77% of marketers now rate their awareness as ‘good’, and 74% describe themselves as feeling somewhat or extremely prepared for the changes, this drops to 58% when it comes to their organisation being ready. </p> <p>Meanwhile, it also appears as if worries are increasing as time goes on. 42% of marketers now feel their business will be “very affected” by the new laws and a further 22% feel they will be “extremely affected”. Lastly, 65% of those surveyed agree that the GDPR will be a hindrance to their marketing.</p> <p><em>Check out our hub page to learn more about <a href="https://econsultancy.com/hello/gdpr-for-marketers/">how GDPR will affect marketers</a>.</em></p> <h3>98% of UK consumers believe in ‘bad personalisation’ </h3> <p>Research by Sitecore and <a href="https://www.vansonbourne.com/client-research/14121601jd" target="_blank">Vanson Bourne</a> has found that brands are failing to use customer data to deliver relevant and personalised customer experiences. In fact, a whopping 98% of UK consumers say that they believe ‘bad personalisation’ exists, with a further 66% believing brands are using out-of-date information about them.</p> <p>While brands say they’re collecting eight different types of data about online customers, 18% of them recognise that they lack the skills needed to properly use or analyse the data collected. </p> <p>Meanwhile, 42% don’t have the capabilities to integrate data collection and only 18% have the ability to collect online data on an individual (vs. consumer segment) level.</p> <p><img src="https://assets.econsultancy.com/images/0008/9791/Sitecore.JPG" alt="" width="650" height="618"></p> <h3>Click and Collect is driving additional in-store sales</h3> <p>A new report by <a href="http://now.jda.com/European-Customer-Pulse-Report-EMEA.html?srcid=jda-pr" target="_blank">JDA &amp; Centiro</a> suggests that click &amp; collect can be a pivotal driver for additional in-store sales. In a survey of more than 8,000 consumers across the UK, Germany, France and Sweden, 24% of European adults said that they have bought additional products while picking up their item from a physical retail store.</p> <p>UK consumers are particularly ahead of the curve in this area. 54% of UK shoppers say they have used it in the last year, compared to 42% for the European average.</p> <p>Despite this growing convenience, however, many consumers are still reporting frustrations over the online shopping experience. 55% of European adults say they have experienced a problem with an online order at some point in the last 12 months.</p> <h3>Consumers in developed countries are more suspicious of brands</h3> <p>Kantar TNS’s latest research has revealed that consumers in the UK and US are growing increasingly suspicious of brands, while those in emerging countries are more accepting of brand content and messaging.</p> <p>In China and Nigeria, 57% and 54% of consumers trust big global brands, however this falls significantly in developed markets like the USA and France, where just 21% and 15% trust big global brands.</p> <p>This ‘consumer trust divide’ was highlighted in a survey of 70,000 people across 56 countries. It also found that many consumers are choosing privacy over convenience, with 43% of global consumers objecting to connected devices monitoring their activities – even if it makes their lives easier.</p> <p><img src="https://assets.econsultancy.com/images/0008/9792/Kantar.JPG" alt="" width="780" height="390"></p> <h3>Majority of users happy with Twitter’s longer format</h3> <p>How do people feel about Twitter’s new 280-character limit?</p> <p>According to a survey by <a href="https://morningconsult.com/2017/10/13/u-s-adults-likely-favor-twitters-280-character-expansion/" target="_blank">Morning Consult</a>, people are largely positive, with 41% of users aged 18-29 responding well to the change, and just 14% expressing reservations.</p> <p>Similarly, 30% were somewhat supportive of longer-format tweets, while 17% said the increased character limit made them more likely to tweet themselves. 20% also agreed that they would be more likely to check Twitter for news about current events as a result of the change.</p> <p><img src="https://assets.econsultancy.com/images/0008/9796/Twitter.JPG" alt="" width="740" height="579"></p> <h3>Adspend on video ads overtake banners ads</h3> <p>The <a href="https://www.iabuk.net/research/digital-adspend" target="_blank">Internet Advertising Bureau UK</a> has reported that in the first half of the 2017, advertisers spent more on video ads than banner ads for the first time.</p> <p>Total digital adspend grew 13.8% to £5.56bn in the first six months of the year compared to the same period a year earlier. However, spending on online video ads grew at 46% to reach £699m, while spend on banner ads slowed to just 2%, reaching £685m.</p> <p>Video is now said to be the fastest-growing ad format, accounting for 35% of all spend going on display advertising. Meanwhile, display advertising as a whole grew 18% to £2bn.</p> <h3>Consumers think brands have a responsibility to break gender stereotypes</h3> <p>Finally, a <a href="http://blog.choozle.com/category/other/">Choozle</a> survey has delved into consumer sentiment on the usage of gender stereotypes in digital advertising, and whether or not it affects purchasing decisions.</p> <p>The results indicate that consumers feel it should be the brand’s responsibility to break down gender stereotypes, with 37% of people agreeing that the industry should not use them.</p> <p>Similarly, 36% of respondents said they like a brand more when it runs advertisements that break stereotypes and 25% said they are more likely to purchase from that brand. </p> <p><img src="https://assets.econsultancy.com/images/0008/9799/Gender_stereotypes.JPG" alt="" width="760" height="378"></p> tag:www.econsultancy.com,2008:BlogPost/69351 2017-08-18T14:21:00+01:00 2017-08-18T14:21:00+01:00 10 superior digital marketing stats we’ve seen this week Nikki Gilliland <h3>59% of Instagram Stories leads to a shopping cart</h3> <p>New research from <a href="http://klear.com/blog/instagram-stories-conversion/" target="_blank">Klear</a> shows that 59% of brands' Instagram Stories link to a shopping cart or shoppable page.</p> <p>In contrast, just 23% of brands link their Stories to other social platforms, while 10% link to a blog post.</p> <p>Klear also found that 36% of brand Instagram Stories involve some form of product promotion, making it the most popular type of post. 22% of Stories involve an 'insider look' at the brand, and 14% involve an influencer takeover.</p> <p><img src="https://assets.econsultancy.com/images/0008/8341/Klear.JPG" alt="" width="705" height="476"></p> <h3>42% of all US business trips extended for leisure</h3> <p>A new report by <a href="https://info.advertising.expedia.com/custom-research-bleisure-travel-market?utm_campaign=2016+Bleisure+Custom+Research&amp;utm_medium=email&amp;_hsenc=p2ANqtz-95eaQxjOzd1Wm5VMuR1rk8GpeXcXmlEqI5VyE4c0E936EhBaZ413dK_VHQxo3mDwsC1QszbOJw10YgbY-rQbFF3Yc6ZeBPe57BpU9teRl92GzRveM&amp;_hsmi=40388954&amp;utm_content=40388954&amp;utm_source=hs_automation&amp;hsCtaTracking=71e4538a-6c18-405f-9307-1eba7186fefa%7C7e4357af-3125-4efe-831c-afc5ee46c7c9" target="_blank">Expedia Media Solutions</a> has highlighted the growing trend for ‘bleisure’ trips – i.e. travel that combines both business and leisure.</p> <p>It has found that 42% of all business trips within the US are extended for leisure, with this increasing to 52% when employees have to travel overseas for work. Expedia also suggests that trips to attend conferences and conventions are more likely to turn into leisure trips, as opposed to travel for client meetings or presentations.</p> <p>Lastly, it found that the leisure portion of a trip can often equal or exceed the length of the business portion, making ‘bleisure’ trips much longer than a typical business trip.</p> <p><img src="https://assets.econsultancy.com/images/0008/8332/Expedia_stat.JPG" alt="" width="780" height="284"></p> <h3>55% of consumers prefer shopping direct from brands than retailers</h3> <p>A new study by <a href="https://astoundcommerce.com/us/2017/08/15/global-brand-research/" target="_blank">Astound Commerce</a> has found that over half of consumers prefer visiting a brand or manufacturer’s website rather than shopping from multi-brand retailers. </p> <p>In a survey of over 1,000 consumers, 54% said they would turn to brands over retailers for more comprehensive product information, improved customer service, better value and more chance of personalisation. </p> <p>45% of millennials said they expect a more engaging, holistic experience on a brand’s website than a retailer’s, while 59% of shoppers would visit a physical store to seek out the full brand experience they don’t believe they can get online.</p> <p><img src="https://assets.econsultancy.com/images/0008/8335/Astound.JPG" alt="" width="730" height="325"></p> <h3>UK sees surge in search interest for electric cars</h3> <p>New data from Hitwise suggests that there has been a surge of interest in electric cars in the UK, following on from the launch of Tesla’s ‘Model 3’ car.</p> <p>In July, there was a 345% increase in searches for the new ‘Tesla Model 3’, as well as a 346% increase in people searching for ‘electric cars’ in general. This comes on the back of the news that there has been a 10.3% drop in new car sales and an increase in used cars sales in 2017.</p> <p>Hitwise also found that people aged 18-24 were the demographic most likely to be searching for ‘Tesla’, and the third most-asked question to be: “What electric cars are available in the UK?”</p> <h3>Transparency now a pressing priority for brands</h3> <p>In light of last year’s Media Transparency report by the ANA, a large number of global brands are in the midst of making changes to their media governance practices.</p> <p>In a survey of global marketers in 35 multinational companies, the World Federation of Advertisers found transparency to be a top priority for 47% of brands, while 51% said it is rising up the list. </p> <p>Brand safety is also a hot topic, with 70% saying it has escalated as a priority in the last 12 months. As a result, 74% have suspended investment in ad networks where they felt there was an unnecessary risk to their brands. Meanwhile, 89% are also limiting or plan to limit investment in ad networks that do not allow use of third-party verification.</p> <h3>Global cart abandonment increases 1.3% on previous quarter</h3> <p><a href="https://blog.salecycle.com/stats/the-remarketing-report-q2-2017/" target="_blank">SaleCycle</a> has released its Remarketing Report for Q2 2017, highlighting key cart abandonment stats from April to June.</p> <p>It shows that the global cart abandonment rate for Q2 was 76.9%, which is up 1.3% on the previous quarter. Meanwhile, the average retail conversion rate was 3.29%.</p> <p>In terms of sectors, gaming websites had the lowest abandonment rates at 67.4%, while finance had the highest at 83.7%. This was closely followed by non-profit – a sector which faces ongoing challenges in optimising online conversions. </p> <p><img src="https://assets.econsultancy.com/images/0008/8333/SalesCycle.JPG" alt="" width="760" height="420"></p> <h3>88% of consumers value speed of delivery over choice of brand</h3> <p>A <a href="https://info.salmon.com/buying-tomorrow-report" target="_blank">new report</a> by Salmon has revealed that 88% of consumers see the speed of delivery as more important than the brand being ordered. Additionally, it found that modern-day consumers also like to shop in new ways, with 45% currently using a digital assistant like Alexa or Google Home to do so.</p> <p>Other stats from the report include the fact that almost a quarter of consumers make all their purchases online, while 37% of total online spend is now done through Amazon.</p> <p>Lastly, it is clear that consumers are becoming more digitally obsessed than ever before, with 57% believing they are more digitally advanced than the retailers that serve them.</p> <h3>Searches for ‘make up’ increase over 200% in three years</h3> <p>According to research by <a href="https://www.pi-datametrics.com/resources/market-performance-reports/beauty/?mc_cid=af12c67cd5&amp;mc_eid=bdac343de4" target="_blank">PI Datametrics</a>, the UK beauty market saw a 76% increase in search volume growth from 2013 to 2016. The term ‘make up’ specifically has grown a whopping 203% in these three years.</p> <p>Insight suggests that this growth can be put down to the popularity of bloggers and vloggers within the category, plus the rise of visual social media and its influencers. With make-up sales being worth an estimated £1bn in the UK in 2017, the opportunity for retailers continues to grow.</p> <p>Interestingly, the report also revealed that the top four performers within the beauty market are all retailers (as opposed to make-up or beauty brands themselves), with Boots.com owning 9.1% of the entire market and competitor Superdrug owning 8.7%.</p> <p><img src="https://assets.econsultancy.com/images/0008/8331/PI_Data.JPG" alt="" width="650" height="509"></p> <h3>77% of APAC mobile ads delivered via apps </h3> <p>A new study by <a href="http://www.vpon.com/en/events/2017H1AsiaReport/index.html?utm_source=VPON_EN&amp;utm_medium=EN_PPR&amp;utm_term=TH&amp;vpadn_src=EN_PPR_TH" target="_blank">Vpon</a> has revealed that mobile advertising in Asia-Pacific heavily relies on apps, with 77% of such ads being delivered in-app, and just 23% via the mobile web.</p> <p>This figure rises to 90% in Indonesia, where app usage is at its highest. Similarly, 86% of ads are delivered via apps in India, while the same goes for 85% in Thailand and 82% in Malaysia.</p> <p>In contrast, countries in East Asia are leaning more towards mobile web, with China and Japan delivering just 34% and 33% of ads in apps respectively.</p> <h3>Private Eye is the UK’s most-read current affairs title</h3> <p>The Audit Bureau of Circulation (<a href="https://www.abc.org.uk/" target="_blank">ABC</a>) has named Private Eye as the most-read news and current affairs magazine in the UK, with a circulation of 249,927 per issue, and a growth of 8.6% year-on-year.</p> <p>For the same category, circulation of the Economist was up 5% in the UK to 248,196, while Prospect grew substantially with a rise of 37% to 44,545.</p> <p>In contrast to the popularity of some news titles, ABC noted a decline in women’s weekly magazines, which dropped almost 11% from the same period last year. Look magazine suffered a 35% drop in circulation to 58,561, while Now fell almost 21% to 84,588.</p> <p>Elsewhere, TV Choice was found to have the biggest readership in the UK overall, with a circulation of 1.2m.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Our circulation is up 9% on this time last year, with an ABC of 249,927. Thanks to all of you for buying/subscribing!</p> — Private Eye Magazine (@PrivateEyeNews) <a href="https://twitter.com/PrivateEyeNews/status/895621655615086593">August 10, 2017</a> </blockquote> tag:www.econsultancy.com,2008:BlogPost/69301 2017-08-02T11:14:52+01:00 2017-08-02T11:14:52+01:00 How 10 online retailers promote free and fast shipping Nikki Gilliland <p>While <a href="http://www2.temando.com/l/86602/2017-07-10/4g564b">the research suggests</a> that 86% of UK shoppers prefer free over fast delivery, the majority of retailers assume that customers want a fast shipping service above anything else. As a result, just 27% of retailers say they offer free standard shipping every day, and almost a quarter of retailers admit that they don't use free shipping as a promotional tool.</p> <p>With this in mind, let’s take a look at how some of the biggest online retailers are promoting the service – and perhaps what they could be doing better.</p> <h3>Argos</h3> <p><a href="https://econsultancy.com/blog/67237-eight-examples-of-best-practice-on-argos-product-pages/" target="_blank">Argos</a> is one retailer that firmly favours fast delivery. </p> <p>Its FastTrack service is highlighted throughout its website, heavily promoting the fact that customers can get their hands on products the very same day as placing the order, seven days a week.</p> <p><img src="https://assets.econsultancy.com/images/0008/7950/Argos.JPG" alt="" width="780" height="365"></p> <p>While the £3.95 price point could arguably put off customers who do prefer free delivery, its Click and Collect service means there is also a fast <em>and</em> free alternative – a feature that combines the best of both worlds. </p> <p>Interestingly, Argos does offer free standard delivery on selected items (in an estimated four working days), but this option is kept a little under wraps, with the retailer clearly placing greater value on its FastTrack option. </p> <p><img src="https://assets.econsultancy.com/images/0008/7951/FastTrack.JPG" alt="" width="780" height="434"></p> <h3>B&amp;Q</h3> <p>B&amp;Q is not quite as transparent as Argos, with the price of its next day and standard delivery services only being highlighted at the checkout (or in the dedicated delivery info section).</p> <p>It also fails to use the word ‘free’ alongside its click and collect service, and although this is an arguably obvious detail its exclusion seems like a bit of an oversight.</p> <p><img src="https://assets.econsultancy.com/images/0008/7953/B_Q_1.JPG" alt="" width="780" height="552"></p> <p>That being said, its free delivery on items over £50 is nicely promoted, making sense for customers who will naturally buy bigger or bulkier items online. </p> <p>I also like the icons on category pages that tell customers whether items are available for pick up in-store at a glance.</p> <p><img src="https://assets.econsultancy.com/images/0008/7954/B_Q.JPG" alt="" width="448" height="412"></p> <h3>John Lewis</h3> <p>John Lewis is a little less worried about the speed of its delivery service, instead choosing to promote free services – both in terms of standard delivery and click and collect.</p> <p><img src="https://assets.econsultancy.com/images/0008/7955/John_Lewis.JPG" alt="" width="780" height="444"></p> <p>If Temando’s research is correct, and the majority of customers do value low or no-cost shipping, this could work in its favour.</p> <p>However, the fact that customers need to spend £50 to qualify could mean that people are more likely to go in-store. And while it’s a tactic used to increase overall order value, the trend for webrooming (browsing online before buying in-store) could also contribute to customers wanting to look elsewhere.</p> <p><img src="https://assets.econsultancy.com/images/0008/7959/John_Lewis_2.JPG" alt="" width="780" height="448"></p> <h3>Tesco</h3> <p>Last week, Tesco announced that it is to roll out its same-day delivery service across the UK, allowing customers to receive groceries from 7pm onwards if they order before 1pm.</p> <p>Unsurprisingly, the supermarket is now heavily promoting this online, highlighting how it can bring customers even greater levels of convenience. </p> <p><img src="https://assets.econsultancy.com/images/0008/7957/Tesco.JPG" alt="" width="625" height="555"></p> <p>While the service costs between £3 and £9, it is being offered free for a limited period for members of its delivery saver service. But according to Temando, price is not a deal breaker when customers really desire convenience. Its research shows that same-day delivery is the service that most customers are willing to pay extra for, with 56% of women and 57% of men agreeing. </p> <p>With the likes of Amazon setting the bar for this kind of convenience, it’s not surprising that supermarkets are starting to introduce it.</p> <p><img src="https://assets.econsultancy.com/images/0008/7958/same_day_delivery.JPG" alt="" width="714" height="515"></p> <h3>River Island</h3> <p>River Island often uses delivery promotions to increase online conversions. It is currently offering customers free worldwide delivery for a limited time only. </p> <p>With a prominent site-wide banner on the homepage and a creative tagline, it’s an effective example of how to use free delivery to boost short-term sales. </p> <p><img src="https://assets.econsultancy.com/images/0008/7960/River_Island.JPG" alt="" width="780" height="481"></p> <p>Again, it looks like River Island is veering toward free rather than fast as its selling point. It also promises free click and collect, and once the current promotion is over, free delivery on orders over £100. </p> <p>Meanwhile, the absence of visible returns information is a bit of a let down. Over a fifth of women are reported to abandon a purchase if free returns are not available, meaning that this could have an adverse impact on conversion rates.</p> <h3>M&amp;S</h3> <p><a href="https://econsultancy.com/blog/67883-marks-spencer-what-does-putting-the-customer-at-the-heart-of-everything-mean/" target="_blank">Marks &amp; Spencer</a> is one of the few online retailers that does not visibly highlight its delivery information at the top of its homepage – you’ll only find it if you scroll down to the very bottom. </p> <p>That being said, the services are clearly explained here, with M&amp;S favouring the word ‘free’ across the board to pique the interest of customers.</p> <p><img src="https://assets.econsultancy.com/images/0008/7961/M_S.JPG" alt="" width="780" height="549"></p> <p>Its product pages also provide a lot of clear and concise information, including an eye-catching 'free delivery' notice in red. </p> <p>In terms of the actual delivery, M&amp;S gives customers a load of options, offering standard delivery, nominated day, free over £50, and click and collect. The retailer could most definitely shout about this a little more on its homepage, even if it means moving its current banner higher up the page.</p> <p><img src="https://assets.econsultancy.com/images/0008/7962/M_S_2.JPG" alt="" width="780" height="711"></p> <h3>Clarks</h3> <p>Clarks is currently choosing to offer a special code for free standard delivery. While it’s similar to River Island’s strategy of using a short-term shipping offer, the inclusion of a code is a bit of a strange choice, only adding an extra step in the customer’s journey.</p> <p>The fact that it’s promoted on the homepage also means that there is nothing exclusive about it.</p> <p><img src="https://assets.econsultancy.com/images/0008/7963/Clarks.JPG" alt="" width="780" height="453"></p> <p>Perhaps it is trying to make customer feel like they’re getting something extra. However, with most people now expecting free or fast delivery as standard, customers might feel it doesn’t provide anything of real value.</p> <h3>Warby Parker</h3> <p>Warby Parker cements its customer-focused service with the promise of free shipping in the US and selected countries. This is obviously a sweet deal in itself, but it also goes one step further in its customer-centric approach with the ‘Home Try-On’ feature.</p> <p>This allows customers to pick five frames to try for five days, before sending back the four pairs they don’t want for free. </p> <p><img src="https://assets.econsultancy.com/images/0008/7964/Warby_Parker.JPG" alt="" width="780" height="523"></p> <p>While it is undoubtedly a big expense for the company, Warby Parker demonstrates the value of free shipping, ramping up word-of-mouth marketing and increasing customer loyalty thanks to the service.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Warby Parker has a pretty good selection, you can pick 5 to try on at home and they'll send em for free, don't even pay shipping &amp; handling <a href="https://t.co/lwWI1miSbE">pic.twitter.com/lwWI1miSbE</a></p> — (@Jibaye_) <a href="https://twitter.com/Jibaye_/status/886610566848143360">July 16, 2017</a> </blockquote> <h3>JD Sports</h3> <p>JD Sports is yet another retailer using free delivery as a limited offer. Its inclusion of a countdown timer makes it one of the most effective examples of the bunch though, using <a href="https://econsultancy.com/blog/65348-how-to-increase-conversions-by-creating-buyer-urgency-fear-of-loss/" target="_blank">urgency</a> to prompt customers into action. </p> <p><img src="https://assets.econsultancy.com/images/0008/7965/JD_Sports.JPG" alt="" width="780" height="548"></p> <p>It also promotes this throughout the website, prominently highlighting free delivery on its category and product pages. </p> <p>Temando suggests that shipping is not just about the delivery of items – extra factors like tracking orders and options for leaving items in safe places are also important. JD Sports has a useful ‘Track My Order’ feature, which also helps to improve the customer experience.</p> <p><img src="https://assets.econsultancy.com/images/0008/7966/Tracking.JPG" alt="" width="679" height="579"></p> <h3>ASOS</h3> <p>Finally, ASOS uses reliable delivery to instil loyalty in customers. Its Premier Delivery programme costs £9.95 per year for unlimited next day delivery and click and collect – an undeniably enticing deal for regular shoppers.</p> <p>The brand is pretty adept at promoting the service too, nicely highlighting both the fast and free nature of the service in its marketing copy.</p> <p><img src="https://assets.econsultancy.com/images/0008/7967/ASOS_premier.JPG" alt="" width="780" height="533"></p> <p>Elsewhere, it gives customers lots of choice and up-front information, helping to prevent customers from abandoning purchases at the checkout due to surprise costs.</p> <p>Even using the word 'options' here effectively evokes the retailer's focus on flexibility.</p> <p><img src="https://assets.econsultancy.com/images/0008/7968/Options_ASOS.JPG" alt="" width="780" height="599"></p> <p><strong><em>Related reading:</em></strong></p> <ul> <li><a href="https://econsultancy.com/blog/68739-how-has-click-collect-evolved-and-is-it-still-in-high-demand/" target="_blank"><em>How has Click &amp; Collect evolved, and is it still in high demand?</em></a></li> <li><em><a href="https://econsultancy.com/blog/67322-not-offering-same-day-delivery-you-could-be-losing-customers/" target="_blank">Not offering same-day delivery? You could be losing customers</a></em></li> <li><em><a href="https://econsultancy.com/blog/66151-ecommerce-delivery-how-fast-are-uk-retailers/" target="_blank">Ecommerce delivery: how fast are UK retailers?</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69296 2017-07-28T14:34:27+01:00 2017-07-28T14:34:27+01:00 10 superb digital marketing stats we’ve seen this week Nikki Gilliland <p>On we go…</p> <h3>Only 25% of data is being used for real-time customer engagement</h3> <p>Despite 60% of UK organisations believing that real-time customer engagement can deliver a 10%-40% increase in revenue, those same organisations are collecting less than a third of relevant data on their customers.</p> <p>What’s more, just 25% of this dataset is being used in segmentation for real-time customer engagement.</p> <p>These stats come from SAS’s <a href="https://www.sas.com/en_gb/whitepapers/real-time-customer-experience-report.html" target="_blank">Age of Now</a> report, which also reveals how slow companies are to act. It says that only 16% of UK organisations can adjust their marketing communication in real-time based on customer behaviour.</p> <p><img src="https://assets.econsultancy.com/images/0008/7888/SAS.JPG" alt="" width="750" height="327"></p> <h3>42% of customers more impatient due to reliance on technology</h3> <p>A new survey by Fetch and YouGov suggests UK consumers are increasingly looking to new technology for functional purposes, with 81% of millennials being more receptive than older generations to try new tech in order to improve the speed at which they do things.</p> <p>42% of UK consumers now say they are more impatient today than they were five years ago, mainly due to an over-reliance on technology to complete everyday life activities.</p> <p>When it comes to food, 61% of Brits are unwilling to wait 45 minutes or more for a takeaway they ordered online or using an app. Similarly, 22% of consumers say they are only willing to wait between 11-15mins for a taxi service.</p> <h3>CPC costs reach an all-time high</h3> <p>iProspect has just released its <a href="https://www.iprospect.com/en/us/insights/povs/paid-search-trends-2017-q2/" target="_blank">Q2 report</a>, which includes in-depth analysis of data from more than 1,800 AdWords accounts.</p> <p>It has revealed that CPC costs continued to rise in Q2, reaching their highest recorded levels since 2014. Despite this, iProspect found year-on-year impressions and clicks declined 16% and 27.5% respectively, as advertisers were forced to pay more per click while dealing with diminishing budgets.</p> <p>Elsewhere, it found mobile CPC to be on the rise, increasing 17% from Q1 to Q2 of this year and 52% year-on-year. Similarly, mobile click share increased 22% year-on-year. </p> <p><img src="https://assets.econsultancy.com/images/0008/7890/iProspect.JPG" alt="" width="743" height="547"></p> <h3>Over 60% of SMB’s attribute half or more of sales to Amazon</h3> <p>In a survey of 503 small- to mid-size retailers, NetElixir found that 60% of respondents attribute 50% or more of their ecommerce sales to Amazon. Interestingly, 26.6% are seeing a 50/50 split from their website vs. marketplaces like Amazon and eBay.</p> <p>In terms of the reasons why SMBs are choosing to sell on Amazon, 52% said that the potential for increased sales volume is the biggest benefit, 32.6% said increased brand exposure and 11.3% noted solid infrastructure. Conversely, 45% cited lower margins as the biggest downside.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">What was the biggest benefit and downside of <a href="https://twitter.com/hashtag/Amazon?src=hash">#Amazon</a>? <a href="https://twitter.com/hashtag/webinar?src=hash">#webinar</a> <a href="https://t.co/OhOnUZG67Z">pic.twitter.com/OhOnUZG67Z</a></p> — NetElixir (@NetElixir) <a href="https://twitter.com/NetElixir/status/890292060938543105">July 26, 2017</a> </blockquote> <h3>UK advertising spend grows 1.3% YoY in Q1 2017</h3> <p>WARC’s latest <a href="http://expenditurereport.warc.com/" target="_blank">Expenditure Report</a> has revealed that overall ad spend grew 1.3% to reach £5.318bn in Q1 2017. But despite being the 15th consecutive quarter of growth, it was actually the slowest rate seen in four years.</p> <p>This growth also occurred despite a 6.2% decline in total television advertising spend – TV’s first fall since 2009. However, it is forecast to recover next year with 2.5% growth in 2018.</p> <p>Meanwhile, online ad spend grew 10.1% year-on-year, and mobile growth was recorded at an impressive 36.2%.</p> <h3>Retailers wrongly assume that customers value speed over free shipping</h3> <p>According to a new report by <a href="http://www2.temando.com/l/86602/2017-07-10/4g564b" target="_blank">Temando</a>, 86% of UK shoppers prefer free delivery over fast delivery. However, the majority of retailers’ surveyed wrongly assume that customers place greater value on a fast shipping service.</p> <p>As a result of this misconception, many retailers are failing to respond to customer demands, with just 27% offering free standard shipping every day. Even worse, almost a quarter of retailers admit that that they don't use free shipping as a promotional tool.</p> <p>With 58% of shoppers stating that they’d shop more if free shipping was offered, many online retailers are still missing a trick.</p> <p><img src="https://assets.econsultancy.com/images/0008/7889/Tamando.JPG" alt="" width="780" height="439"></p> <h3>Usage of connected TV’s predicted to grow 10.1% in the US this year</h3> <p>Emarketer says that usage of connected TVs will continue to surge in 2017, with 168.1m Americans predicted to use an internet-connected television this year – up 10.1% on 2016.</p> <p>In terms of brands, it predicts that 38.9m Americans will use a Roku device at least once a month – 19.3% more than in 2016. Meanwhile, 36.9m will use a ChromeCast and 35.8m will use an Amazon Fire TV. Just 21.3m users are expected to use an Apple TV.</p> <h3>AI predicted to create over 2.5m jobs in the next 15 years</h3> <p>PwC has estimated that by 2030, 30% of British jobs will be lost to automation. On the back of this, <a href="https://joblift.co.uk/Press/artificial-intelligence-and-automation-potential-job-creation-will-fill-only-19-of-the-hole-left-by-robotic-job-replacement" target="_blank">Joblift</a> has further analysed the situation, comparing potential job creation with jobs lost.</p> <p>Research shows that 136,939 jobs dealing with AI and automation have been posted in the last 12 months, and jobs in this field have increased by an average of 0.06% each month.</p> <p>On this basis, calculations suggest that over the next 15 years, AI, automation and robotics will create 2,535,009 new jobs in total. However, by 2031, 13,375,363 jobs will be at risk from automation, meaning that newly created roles would be able to fill only 19% of the jobs lost.</p> <h3>John Lewis tops UK brand health rankings</h3> <p>John Lewis has ranked first in YouGov’s BrandIndex list of UK brand ‘health’. The ranking is based on consumer perceptions of a brand’s quality, value, impression, satisfaction, reputation and whether consumers would recommend the brand to others.</p> <p>BBC iPlayer comes in at number two on the list, followed by Sony and Marks &amp; Spencer. In contrast to these older, more heritage-based brands, the global list was topped by younger tech brands like Google, YouTube, and Facebook. </p> <p><img src="https://assets.econsultancy.com/images/0008/7892/Brand_health.JPG" alt="" width="500" height="291"></p> <h3>Cause-related ads generate more views &amp; engagement</h3> <p><a href="https://www.thinkwithgoogle.com/advertising-channels/video/cause-related-marketing-purpose-driven-ads/" target="_blank">Pixability</a> has revealed that the number of cause-related ads created by the top 100 global brands has increased four times over the past five years.</p> <p>Women’s empowerment accounted for 24% of these ads, making it the top featured issue. Meanwhile, 17% of ads were related to the topic of community aid and 14% were about sustainability.</p> <p>Pixability also found that the average number of views for cause-driven videos was almost 1m more than for those not related to a particular cause. The engagement rate was also 0.31% for cause-related ads compared to 0.29% for the rest.</p> <p><img src="https://assets.econsultancy.com/images/0008/7891/Cause_related_ads.JPG" alt="" width="750" height="384"></p> tag:www.econsultancy.com,2008:BlogPost/69252 2017-07-14T14:04:40+01:00 2017-07-14T14:04:40+01:00 10 dazzling digital marketing stats from this week Nikki Gilliland <h3>Three in four shoppers browse elsewhere before making Prime Day purchases</h3> <p>Research from <a href="http://blog.bazaarvoice.com/2017/07/10/brands-retailers-seize-amazon-prime-day/" target="_blank">BazaarVoice</a> suggests that Prime Day shopping extends beyond Amazon, with 76% of people visiting other online retailers before making a purchase. 46% of consumers are said to visit Walmart, while 40% check Target. </p> <p>BazaarVoice also found that consumers tend to browse other retailers depending on product categories. For example, more than half of shoppers researching electronics brands will also visit Best Buy, while 49% turn to Lowe’s for researching outdoor items like hammocks or barbeques.</p> <h3>33% of consumers say they will erase personal data as GDPR comes into effect</h3> <p>A new survey by SAS suggests that nearly half of consumers plan to utilise their new rights over personal data in May 2018.</p> <p>In a poll of over 2,000 UK adults, 33% said they plan to exercise their right to remove personal data from retailers, while 33% will also ask for their data to stop being used for marketing purposes.</p> <p>17% of people said they will challenge automated decisions, and 24% will access the data that retailers hold on them.</p> <p><img src="https://assets.econsultancy.com/images/0008/7477/SAS_GDPR.JPG" alt="" width="780" height="298"></p> <h3>Prime Day is the biggest sales day of the year for Amazon so far</h3> <p>New data from Hitwise has revealed that there were 9.5m transactions processed on Amazon.com during Prime Day 2017 – making it the biggest sales day of the year so far. The day generated even more sales than last year, when Amazon processed 6.7m transactions.</p> <p>Altogether, Amazon.com accounted for 87% of all online transactions processed by the top 50 retailers on Prime Day – a day when one in every 10 visits to the site resulted in a purchase.</p> <h3>Companies experience digital performance problems once every five days</h3> <p>Research by <a href="https://www.dynatrace.com/digital-transformation-audit/" target="_blank">Dynatrace</a> suggests that organisations are encountering digital performance problems on average once every five days, with individuals across business and IT functions losing a quarter of their working lives fighting to address these problems.</p> <p>In a survey of 1,200 global IT and business professionals, 75% of respondents said they have low levels of confidence in their ability to resolve digital performance problems. 48% also stated these issues were directly hindering the success of digital transformation strategies in their organisations.</p> <p>Marketing professionals are said to lose 470 hours per year or nearly two hours every business day to addressing performance problems, while IT operations professionals lose 522 hours per year or over two hours every business day.</p> <p><img src="https://assets.econsultancy.com/images/0008/7475/Dynatrace.JPG" alt="" width="582" height="293"></p> <h3>Debit cards overtake cash payments in the UK</h3> <p>The latest <a href="https://brc.org.uk/news/2017/debit-cards-overtake-cash-to-become-number-one-payment-method-in-the-uk" target="_blank">Payments Survey</a> has revealed that debit card purchases have overtaken cash for the first time in the UK, with nearly £190bn being spent via this channel in 2016.</p> <p>Meanwhile, the share of cash transactions shrank 4.5% to account for 42.3%, leaving credit and charge cards to make up the remaining 11.4%. </p> <p>The use of contactless technology has contributed to the rise in card payments, with consumers increasingly using contactless to pay for smaller purchases. The average transaction value on cards declined from £30.53 in 2013 to £25.40 in 2016.</p> <p><img src="https://assets.econsultancy.com/images/0008/7474/Cash.JPG" alt="" width="740" height="513"></p> <h3>37% of online spend goes through Amazon</h3> <p>The success of this year’s Amazon Prime Day might be indication enough, but new research from <a href="https://info.salmon.com/amazon-king-of-jungle-research" target="_blank">Salmon</a> has also highlighted just how much the retailer dominates the ecommerce industry.</p> <p>In a survey of over 6,000 consumers across Europe and the US, Salmon found that 37% of all consumer spending goes through Amazon. This could rise, too, as 73% of consumers say they will increase their use of digital shopping channels in future.</p> <p>53% of survey respondents also said they would be more likely to buy through Prime than a retailer’s online store, while the majority of consumers feel that Amazon is ‘leading the way in digital retail’.</p> <p><img src="https://assets.econsultancy.com/images/0008/7478/Salmon.JPG" alt="" width="550" height="435"></p> <h3>Fresh grocery searches on the rise</h3> <p>From analysis of over 100m online searches in Q2, Criteo has discovered that searches for online groceries increased by 108% during the period of April to June 2017.</p> <p>With consumers relying on faster and more flexible delivery options, buying fresh produce online is becoming all the more convenient. Consequently, searches for milk, eggs and cheese all increased in the second quarter. Online searches for milk increased by 92% from the first three months of the year.</p> <h3>More than 50% of travellers look for inspiration during the planning process</h3> <p>A <a href="https://info.advertising.expedia.com/multi-national-travel-trends-in-the-tourism-industry" target="_blank">new study</a> by Expedia Media Solutions has uncovered the motivations and behaviours of travel consumers across eight countries including China, Australia and the UK.</p> <p>In all eight countries, at least 50% of travellers say they are often undecided on a destination close to booking, with most looking for help and inspiration during the planning process. More than 65% say they are influenced by informative content from travel or tourism brands.</p> <p>That being said, the research also found differences in the kind of marketing people respond to. While ads featuring deals are most likely to influence Americans, Canadians and Australians, Chinese travellers are prompted by ads with appealing imagery and informative content. Both French and German travellers place equal value on appealing deals and imagery.</p> <p><img src="https://assets.econsultancy.com/images/0008/7476/Expedia_Media_Solutions.JPG" alt="" width="780" height="363"> </p> <h3>Marketers struggling to localise content</h3> <p>According to research from the <a href="https://www.cmocouncil.org/authority-leadership/reports/328" target="_blank">CMO Council</a>, marketers are finding it difficult to localise content and tailor their output for individual media platforms.</p> <p>In a poll of 150 marketers, just 36.2% agreed they were performing well when it comes to translating creative strategies across all the necessary physical and digital touchpoints. Furthermore, just 32% believed they are succeeding in adapting branded content for different markets, audiences, and locations served by their companies around the world.</p> <p>47.7% of respondents stated that ‘localisation demands’ – e.g. language, cultural values and religion – were putting pressure on teams to deliver creative at scale. 43.9% also cited new digital formats and device types as a big challenge.</p> <h3>Emojis lose momentum as a marketing tactic</h3> <p>Research from 2016 showed that 95% of Brits were more likely to open an email if they contained emojis that juxtaposed the subject line. However, a new study by Mailjet suggests that emojis might be losing their effect.</p> <p>In a series of tests, Mailjet found open rates in the UK and the US rise by just 5% and 6% respectively when emojis accompanied the subject line.</p> <p>While the crying-with-laughter emoji was previously the most popular, Brits are now 33% less likely to open a message using the crying emoji than an email without it. The current overall best performer is the simple red heart emoji, being one of the few to generate a positive net result across all test regions with a 6% increase in open rate. </p> <p><img src="https://assets.econsultancy.com/images/0008/7479/emojis.jpg" alt="" width="540" height="540"></p> tag:www.econsultancy.com,2008:BlogPost/69250 2017-07-14T10:52:35+01:00 2017-07-14T10:52:35+01:00 Four reasons behind Superdrug's 41% increase in profits Nikki Gilliland <p>So, why the big turnaround? Here’s a look at Superdrug’s strategy, and the reasons why it’s currently enjoying a resurgence.</p> <h3>Targeting younger shoppers </h3> <p>Boots is the largest health and beauty retailer in the UK, with over 2,500 stores compared to Superdrug’s 850 or so. It’s also got the longest history, as well as a large and loyal consumer base that includes people of all ages and budgets.</p> <p>With Boots catering to such a large demographic, Superdrug has changed its strategy to target a more specific set of consumers. While its rival concentrates on its own-brand beauty range of Botanics, as well as more mid to high-end brands such No. 7 and L’Oréal, Superdrug deliberately targets younger consumers interested in more affordable cosmetics. </p> <p>Cheaper brands like MUA, GOSH and Make-Up Revolution, despite being less well-known, are now sold in most stores.</p> <p>So, alongside a general focus on affordability, how exactly does Superdrug entice younger consumers?</p> <p>In the face of low-price beauty launches from the likes of Primark, H&amp;M and New Look, Superdrug’s work with <a href="https://econsultancy.com/blog/66560-what-are-influencers-and-how-do-you-find-them" target="_blank">influencers</a> certainly sets it apart. The retailer struck a deal with Zoella in 2014 to sell her beauty range, with the collection going on to break sales records. </p> <p>Upon launch, the Superdrug website saw twice as many visitors as usual, with 25% of new visitors clicking on the Zoella range. Since then, Zoella has gone on to release two new collections, both resulting in similar success for Superdrug.  </p> <p>Other popular influencers such as Tanya Burr and Fleur de Force have also partnered with Superdrug to sell exclusive make-up and cosmetics collections, meaning the retailer has been able to capitalise on their existing and loyal audience. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr"><a href="https://twitter.com/Zoella">@Zoella</a> <a href="https://twitter.com/ZoellaBeauty">@ZoellaBeauty</a> I've just picked this up from Superdrug it's so pretty <a href="https://t.co/IKAg0QyMdR">pic.twitter.com/IKAg0QyMdR</a></p> — Jessica newman (@jnew135) <a href="https://twitter.com/jnew135/status/883622463531253760">July 8, 2017</a> </blockquote> <h3>In-store experience</h3> <p>Influencers are not the only way Superdrug has aligned itself to younger shoppers. In 2014, it rolled out its new ‘Beauty Studio’ concept, offering beauty services such as threading, manicures and eyelash extensions in-stores. In select locations, it also introduced digital displays and an interactive ‘selfie’ area to encourage shoppers to share their makeovers on social media.</p> <p>Elsewhere, and even in stores that do not include a Beauty Studio, the design and layout of most stores is used to differentiate itself from Boots’ pared down approach. The retailer often uses bright colours and illuminated lettering, bringing a fashionable element into stores. Again, cosmetics is a huge focus, with this area often much larger than other areas.</p> <p><img src="https://assets.econsultancy.com/images/0008/7455/superdrug_cosmetics.JPG" alt="" width="650" height="431"></p> <p>Another way Superdrug has enhanced the in-store experience is to introduce Wi-Fi and its own radio station. ‘Superdrug Live’ is used to support brand campaigns and promotions, as well as create a unique store environment through music.</p> <h3>Healthcare focus</h3> <p>Alongside its Beauty Studio, Superdrug has also expanded into the healthcare market, placing much more focus on its status as a pharmacy as well as cosmetics retailer.</p> <p>While its stores used to have a 70/30 split between beauty and health products, some stores now have a 60/40 strategy, with the retailer introducing consultation rooms and services from pharmacists and nurses, such as flu vaccinations. </p> <p>Interestingly, Superdrug has also introduced its own brand of morning-after pill, selling it at half the cost of the average pill sold over the counter. The move has been praised by the British Pregnancy Advisory Service, which applauded the retailer for giving women greater choice and accessibility. </p> <p>There’s no doubt that Superdrug’s focus on healthcare is succeeding – sales of this category grew 12% last year.</p> <p><img src="https://assets.econsultancy.com/images/0008/7456/wellbeing.JPG" alt="" width="650" height="444"></p> <h3>Rewarding loyalty</h3> <p>Superdrug’s <a href="https://econsultancy.com/admin/blog_posts/69250-four-reasons-why-superdrug-is-succeeding/edit/Six%20tips%20for%20loyalty%20program%20success" target="_blank">loyalty program</a> has also grown over the past few years. In fact, membership is said to have doubled over the past two years, with the retailer having 19m registered members by the end of 2016. </p> <p>The Health and Beauty card is a fairly standard retail loyalty system, rewarding shoppers with points that can be exchanged for discounts. However, Superdrug adds value with exclusive offers and perks, also rewarding long-term loyalty members with exclusive gifts. Regular promotions like ‘Treat Thursdays’ – which offers exclusive discounts – provide incentive for members to collect and spend points.</p> <p>The Health and Beauty card also works in conjunction with the Superdrug app, allowing shoppers to collect and monitor points as well as access offers. By aligning the app and loyalty program, Superdrug has also been able to improve targeting, offering deals and promotions to customers based on their location or past purchase history.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Calling all Health &amp; Beautycard members! Get 10% off Diet &amp; Fitness products until 23:59 tonight <a href="https://t.co/pj1ctMQvf7">https://t.co/pj1ctMQvf7</a> <a href="https://twitter.com/hashtag/treatthursday?src=hash">#treatthursday</a> <a href="https://t.co/qcrKFWzd3g">pic.twitter.com/qcrKFWzd3g</a></p> — Superdrug (@superdrug) <a href="https://twitter.com/superdrug/status/885431137660796928">July 13, 2017</a> </blockquote> <h3>Improved online presence </h3> <p>While most consumers might naturally think of Superdrug in terms of physical stores, the retailer has been making strides to improve its ecommerce capabilities – as well as its general digital presence.</p> <p>With improved delivery and click and collect, it offers customers more flexibility than before – perhaps one of the main reasons its saw a 60% growth in online sales last year.</p> <p>Another reason could be its Online Doctor service, which allows customers to consult with a doctor on various medical issues and arrange prescription for collection or delivery. The popularity of the Online Doctor has spurred on expansion of Superdrug’s healthcare services, with the retailer recently announcing that will open 30 new stores and create 600 new jobs in the UK.</p> <p>Meanwhile, Superdrug uses social media to reach out and interact with consumers. Its Twitter and Facebook strategy involves a lot of user generated content, with the brand also using lifestyle and pop-culture inspired content to engage younger, female consumers.</p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">Chris says he isn’t bothered… but we have a feeling that he is defo bothered! <a href="https://twitter.com/hashtag/draaaaaama?src=hash">#draaaaaama</a> <a href="https://twitter.com/hashtag/muggymikeisback?src=hash">#muggymikeisback</a> <a href="https://twitter.com/hashtag/loveisland?src=hash">#loveisland</a> <a href="https://t.co/Tzj24KdgFW">pic.twitter.com/Tzj24KdgFW</a></p> — Superdrug (@superdrug) <a href="https://twitter.com/superdrug/status/885590454573641736">July 13, 2017</a> </blockquote> <h3>In conclusion…</h3> <p>Making both beauty and healthcare accessible, Superdrug has managed to carve out a niche in the market, making its high street presence almost indispensable to consumers.</p> <p>While it previously stood in the shadow of Boots, its strong growth and expansion plans means it is a worthy competitor – possibly even winning in the fight for the attention of today’s young consumers. </p> <p><em><strong>Related reading:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67138-native-apps-for-retail-10-reasons-it-s-now-or-never/">Native apps for retail: 10 reasons it's now or never</a></em></li> <li><em><a href="https://econsultancy.com/blog/66160-how-boots-can-improve-its-customer-journey-from-search-to-checkout/">How Boots can improve its customer journey from search to checkout</a></em></li> <li><em><a href="https://econsultancy.com/blog/68472-three-reasons-behind-whsmith-s-boost-in-profits/" target="_blank">Three reasons behind WHSmith’s boost in profits</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69216 2017-07-07T10:12:39+01:00 2017-07-07T10:12:39+01:00 Four factors fuelling the growth of fast fashion retailers Nikki Gilliland <p>So, what’s fuelling this boom? Here’s a bit of a deep dive into Hitwise’s <a href="http://www.hitwise.com/gb/articles/urgency-catwalk-look-fuels-fast-fashion-industry/?bis_prd=1" target="_blank">research</a> and how brands are capitalising on the consumer desire for instant and affordable fashion.</p> <h3>What is fast fashion?</h3> <p>Before we go any further – what exactly determines a fast fashion retailer? </p> <p>Essentially, it is when the production process is accelerated in order to get new catwalk trends into stores or online as quickly as possible. It also reflects the growing consumer desire for speed and value within retail. </p> <p>It means that, instead of waiting for new seasonal collections (i.e. spring/summer), consumers can get their hands on a continuous cycle of trend-led clothing, all year round.</p> <p>Brands such as H&amp;M and Zara were said to be among the very first fast fashion retailers. When the latter opened its first US store in 1990 (having first launched in Spain in the 1970s) it announced that it would only take 15 days for a garment to go from concept to completion.</p> <p>So, what’s fuelling fast fashion brands?</p> <h3>Speed and agility</h3> <p>Hitwise data suggests that ASOS, New Look and Very are the most popular brands in the category, accounting for 47% of the UK’s fast fashion market share. </p> <p>For brands like ASOS, the ability to capture millennial consumers is key, with this demographic now reportedly having an estimated spending power of $2.45trn. One way it does this is by delivering on the demand for new fashion, as younger consumers typically spend around seasonal events (such as festivals) as well as after payday.</p> <p>ASOS stocks over 60,000 items at any given time, allowing the ecommerce retailer to constantly update its inventory with ‘new in’ products.</p> <p><img src="https://assets.econsultancy.com/images/0008/7155/ASOS_social.JPG" alt="" width="750" height="475"></p> <p>Research by Goldman Sachs suggests that ASOS is able to do this by mastering its supply chain. The below screenshot shows the correlation between supply-chain lead times and like-for-like sales growth, with the results showing just how important speed is for both <a href="https://www.econsultancy.com/blog/69044-five-reasons-behind-boohoo-s-97-increase-in-profits" target="_blank">Boohoo</a> and ASOS.</p> <p><img src="https://assets.econsultancy.com/images/0008/7154/goldman.JPG" alt="" width="650" height="483"></p> <p>ASOS constantly tracks how well (or poorly) trends are selling online, before adjusting its inventory accordingly. This means that it reduces the risk of unsold stock, and in turn, delivers a steady stream of new trends for fashion-hungry consumers.</p> <h3>Celebrity endorsement</h3> <p>Hitwise data also shows that PrettyLittleThing.com is the fastest growing brand in the fast fashion category, with the site seeing a whopping 663% increase in online visits year-on-year since 2014.</p> <p><img src="https://assets.econsultancy.com/images/0008/7150/Hitwise.png" alt="" width="297" height="233"></p> <p>For PrettyLittleThing, working with celebrities and influencers has allowed the brand to drive awareness of its products. A popular search term relating to the site is ‘celebrities wearing Pretty Little Thing’ – mainly thanks to endorsements from the likes of Kylie Jenner and Sofia Ritchie.</p> <p>However, Pretty Little Thing does not only use celebrities to merely promote its clothing. Well-known names, like former TOWIE star Lucy Meck, have also created their own clothing lines with the brand. </p> <p><img src="https://assets.econsultancy.com/images/0008/7151/PLT.JPG" alt="" width="550" height="546"></p> <p>In doing so, it has allowed the ecommerce retailer to strengthen its connection with customers, offering them something more authentic and original than a shallow celebrity endorsement.</p> <h3>Sales through social</h3> <p>Alongside influencers, fast fashion brands have mastered the use of social media to drive sales. </p> <p>Today, consumers are constantly craving fashion and lifestyle-related digital content, not just to inspire their choices, but also for the purpose of entertainment. So, in order to deliver this, many retailers have started to act more like media brands – fusing the worlds of shopping, entertainment, and social media. </p> <blockquote class="twitter-tweet"> <p lang="en" dir="ltr">SHINE BRIGHT Shop the leggings - <a href="https://t.co/BAozK9oxRq">https://t.co/BAozK9oxRq</a> the shoes - <a href="https://t.co/ybfQaGIWuX">https://t.co/ybfQaGIWuX</a> <a href="https://t.co/7Nnp9xFv7m">pic.twitter.com/7Nnp9xFv7m</a></p> — boohoo.com (@boohoo) <a href="https://twitter.com/boohoo/status/879474400445292544">June 26, 2017</a> </blockquote> <p>Unsurprisingly, Instagram reigns supreme as the most effective platform for fashion brands, with many posting videos, Instagram Stories, and including links to shoppable content to allow users to smoothly transition from the act of browsing to buying. </p> <p>One brand that has effectively used social to increase sales volume is Missguided. It has even incorporated the recognisable user interface <a href="https://econsultancy.com/blog/67600-missguided-launches-tinder-inspired-app-experience-review">of another social app – Tinder – into its own</a>.</p> <p>With its ‘swipe to hype’ feature, consumers can dislike or like products to create their own wishlists.</p> <p><img src="https://assets.econsultancy.com/images/0008/7152/Missguided_app.JPG" alt="" width="550" height="483"> </p> <p>This ‘tinderisation’ of ecommerce shows how fast paced the industry has become, with consumers making impulsive decisions – often based on the knowledge that there will be continuous stream of new products in the pipeline.</p> <h3>Sustainability and ethics</h3> <p>The fast fashion industry has come under fire in recent years for its impact on the environment, as well as suggestions that the demand for cheap clothing is driving poor working and labour conditions. </p> <p>Interestingly, research shows that 19% of the top fast fashion related searches are linked to the environment, ethics and sustainability. In order to counteract this, many brands are now displaying increased levels of transparency, with some also introducing initiatives relating to ethical and environmental issues.</p> <p>H&amp;M, for example, launched a conscious beauty collection in 2016 which included ‘planet-friendly’ products. Similarly, it has set itself the goal of using 100% sustainably sourced cotton by 2020.</p> <p><img src="https://assets.econsultancy.com/images/0008/7153/H_M.JPG" alt="" width="760" height="321"></p> <p>Meanwhile, Zara has pledged to boycott Uzbek cotton, which is an industry linked to forced labour. The brand has also joined the Better Cotton Initiative to promote sustainability and best practices for workers in the cotton industry.</p> <p>Of course, there is still a long way to go before fast fashion retailers prove themselves, however these examples are helping to satisfy increasingly conscientious consumers – as well as enhance their brand reputation.</p> <h3>Other brands playing catch-up</h3> <p>So, what impact has the fast fashion had on the wider industry in general? Interestingly, mid-tier and luxury brands are recognising that the consumer desire for fast fashion is not only based on low prices. </p> <p>Often, it can simply be because consumers do not want to wait for seasonal collections. </p> <p>As a result, some brands are introducing ‘runway to retail’ concepts to allow consumers to get their hands on clothes as soon as they’re seen on the catwalk. Elsewhere, JC Penney has accelerated the delivery of merchandise in order to update stock mid-season, while GAP has announced that it will be trialling a fast-fashion model to see whether it increases sales.</p> <p>As the continued growth of retailers like Missguided and ASOS demonstrates, fast fashion could be a trend that’s here to stay.</p> <p><em><strong>Related articles:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/68728-how-fashion-retailers-can-use-search-trend-data-to-inform-marketing-product-strategy/" target="_blank">How fashion retailers can use search trend data to inform marketing &amp; product strategy</a></em></li> <li><em><a href="https://econsultancy.com/blog/66501-how-fashion-brands-are-setting-trends-in-digital/" target="_blank">How fashion brands are setting trends in digital</a></em></li> <li><em><a href="https://www.econsultancy.com/blog/68404-10-examples-of-great-fashion-marketing-campaigns" target="_blank">10 examples of great fashion marketing campaigns</a></em></li> </ul> tag:www.econsultancy.com,2008:BlogPost/69135 2017-06-02T09:32:24+01:00 2017-06-02T09:32:24+01:00 Dropit review: Is there a demand for a ‘shop and drop’ delivery service? Nikki Gilliland <p>It sounds kind of cool – but is there <em>really</em> a demand for this kind of service? I was intrigued, so decided to download the app and give it a whirl. Here’s my two penneth.</p> <h3>How does Dropit work?</h3> <p>Dropit works via an app which customers can download or access via the POS device in a store. Buying a day pass for £10 allows you to ‘drop’ as many bags as you like in one day, which will then be collected and sent to you in a single delivery at a chosen time.</p> <p>For my trial, I chose to use Dropit in Lululemon’s Regent Street store – one of over 30 that now offer the service in London’s Regent and Oxford Street area. </p> <p>It was all very simple to do. When I went to buy an item in-store, I told the employee I wanted to use Dropit, which meant I just had to enter my details into the POS device, select a delivery time, and wait for them to scan the receipt and a QR code. It didn’t take long, though it obviously meant a bit of extra waiting time than merely buying and walking out of the store.</p> <p><img src="https://assets.econsultancy.com/images/0008/6467/Dropit.JPG" alt="" width="589" height="524"></p> <p>I chose my item to be delivered to my flat the following evening, and sure enough, it was - packaged inside Dropit's signature bag along with a matching purse that held the day pass and receipt.</p> <p><img src="https://assets.econsultancy.com/images/0008/6469/IMG_0401.JPG" alt="" width="600" height="799"></p> <p>I was also able to track my item on the app to see its progress. The app also includes a list and map of all participating stores, though there’s not much else to it than that.</p> <p>In terms of who actually delivers the goods, Dropit partners with a third-party service (similar to most retail stores), so it’s not a company like Deliveroo that actually employs people to deliver.</p> <h3>Who is it aimed at?</h3> <p>The value proposition of Dropit is quite straightforward – it means you don’t have to carry around bags while you continue shopping or go straight out for the evening. However, the question really is whether this is a big enough problem for people to pay £10 on top of their goods to have their bags dropped off elsewhere. </p> <p>Personally, I can’t see myself ever using it in my every day life, unless it was a (first world) emergency and I really couldn’t take shopping bags along with me, say if I was going to a gig after work. </p> <p>Consequently, I do wonder if the service is more aligned to luxury shoppers – people that are willing to pay slightly extra for the comfort and convenience. Or, perhaps even tourists who are really serious about shopping but also want to enjoy their day doing other things. </p> <p>The fact that Dropit often cites hotels in its promotional copy suggests that people from out of town are a target customer. </p> <p><img src="https://assets.econsultancy.com/images/0008/6471/Dropit_insta.JPG" alt="" width="740" height="353"></p> <h3>What’s the benefit for participating stores?</h3> <p>Meanwhile, there seems to be more in it for retail stores. One benefit is the possibility of extra dwell time in-store. If people aren’t weighed down by heavy bags, I guess they might be less worried about carrying things and therefore more inclined to spend.</p> <p>There is also the benefit of accessing data about offline consumers that would usually only be gathered from online purchases. Details such as where people shop and how much they spend could prove massively beneficial for understanding, targeting and retargeting customers. </p> <p>Finally, Dropit’s partnership network means that it also opens up possible marketing opportunities for retailers, including promotion within the app itself or social media. </p> <p><img src="https://assets.econsultancy.com/images/0008/6470/Dropit_M_S.JPG" alt="" width="750" height="483"></p> <h3>Is it worth it?</h3> <p>Personally, I can’t see much of a demand for Dropit from your average shopper. Most people don’t tend to buy that much in one go – or at least prefer buying online if they do. Similarly, I can’t imagine many people would even think of carrying bags as an issue.</p> <p>Having said that, there’s no doubt that the service does provide real convenience. The app and delivery service itself is also seamless and slick, which definitely adds to its appeal. Ultimately, I think Dropit solves a problem that most people probably don’t even realise they have. Which I suppose is the hallmark of some of the most successful companies out there. </p> <p>For rich people or tourists who are serious about shopping in London, it could be something to consider. Retailers keen to get their hands on untapped data will certainly be keeping their fingers crossed.</p> <p><em><strong>For more on retail, subscribers can download the <a href="https://econsultancy.com/reports/digital-intelligence-briefing-2017-digital-trends-in-retail/" target="_blank">2017 Digital Trends in Retail</a> report.</strong></em></p> tag:www.econsultancy.com,2008:BlogPost/69071 2017-05-09T11:00:00+01:00 2017-05-09T11:00:00+01:00 M&S to trial grocery delivery service: Will it take off? Nikki Gilliland <h3>Growing UK delivery sector</h3> <p>According to <a href="https://igd.com/About-us/Media/IGD-news-and-press-releases/Online-grocery-delivers-huge-potential/" target="_blank">IGD</a>, Britain’s online food market is expected to nearly double to £17.2bn by 2020. It’s not just the big supermarkets that are involved, of course. The likes of <a href="https://econsultancy.com/blog/68508-the-four-goals-underpinning-deliveroo-s-growth-strategy/" target="_blank">Deliveroo</a> and HelloFresh – companies that offer takeaway options and <a href="https://econsultancy.com/blog/67861-four-reasons-recipe-box-brands-are-delivering-success/" target="_blank">at-home recipes kits</a> – are also taking a slice of the pie. </p> <p>Meanwhile, M&amp;S has been missing out. </p> <p>Despite the retailer’s previous insistence that its product-range and basket-size is too small to offer a legitimate and price-worthy service, the emergence and popularity of the delivery market is bound to have been a factor in its decision to get involved.</p> <p>The question is – how will M&amp;S convince customers that it’s worth paying for a proper delivery? </p> <p><img src="https://assets.econsultancy.com/images/0008/5947/grocery_delivery.jpg" alt="" width="700" height="466"></p> <h3>Changing consumer perceptions</h3> <p>With its ‘dine in for 2’ range, M&amp;S Food is typically seen as a top-up shopping option or a special occasion store. That being said, it is a very profitable one, with M&amp;S’ clothing business dwindling in light of the success of its food arm.</p> <p>Last month, the retailer confirmed it was opening an additional 34 food shops following a review of its UK store portfolio. Meanwhile, it already operates an ecommerce service for its wines by the case, as well as party food, homeware, flowers and other non-food items.</p> <p>As well as a focus on physical stores, M&amp;S has also been concentrating on food in marketing terms. Interestingly, news about its delivery trial aligns with a new campaign that aims to get consumers to think of Marks and Spencer in a different light.</p> <p>The ‘Spend it Well’ campaign is more about promoting brand values than its product-range, telling consumers that life is too short not to spend time and money on the things that matter the most. </p> <p>This, alongside clear investment in physical food stores, is perhaps a sign that M&amp;S is serious about getting consumers to view it as more than just a place to pick up a sandwich.</p> <p><iframe src="https://www.youtube.com/embed/hYbh7PbYq5g?wmode=transparent" width="940" height="529"></iframe></p> <h3>Potential partnerships</h3> <p>So, back to the biggest obstacle of a viable business model.</p> <p>According to reports, M&amp;S is currently in talks with Ocado about a potential partnership to handle order fulfilment. The most likely scenario would also involve M&amp;S products being available on Ocado’s website, rather than a new standalone website being set up for M&amp;S. </p> <p>This would solve the problem of small-basket values, giving consumers the option to pick and choose from Marks and Spencer alongside other food brands. </p> <p>However, with Ocado currently having a deal in place with both Waitrose and Morrisons, it’s not yet clear whether it’s actually possible to bring M&amp;S into the mix. Ocado’s current contract with Waitrose specifies that 70% of all non-own brand products sold have to come from Waitrose. If M&amp;S is classed as a brand – the deal will be unable to go ahead.</p> <p><img src="https://assets.econsultancy.com/images/0008/5948/M_S.JPG" alt="" width="760" height="528"></p> <h3>In conclusion...</h3> <p>With a proper logistics model, success with online grocery delivery is not totally implausible for M&amp;S.</p> <p>Even if consumers do not buy into the idea of a weekly shop, perhaps the introduction of speciality delivery services could prove enticing. If the popularity of its seasonal food is anything to go by - with Christmas and Easter ranges typically seeing shoppers flock to buy a large amount of ingredients in one go – consumers are likely to lap up the added convenience if it is on offer.</p> <p><em><strong>Related articles:</strong></em></p> <ul> <li><em><a href="https://econsultancy.com/blog/67883-marks-spencer-what-does-putting-the-customer-at-the-heart-of-everything-mean/" target="_blank">Marks &amp; Spencer: what does 'putting the customer at the heart of everything' mean?</a></em></li> <li><em><a href="https://econsultancy.com/blog/68355-how-online-grocery-retailers-are-capitalising-on-the-need-for-convenience/" target="_blank">How online grocery retailers are capitalising on the need for convenience</a></em></li> </ul>