How to deliver retail to catch and keep the digital shoppers. For more information: http://cs.co/ibsg-nrf

1. “Catch and Keep” Digital Shoppers
How To Deliver Retail Their Way
Internet Business Solutions Group – Retail and Consumer Products
Cisco Consulting Services
January 13, 2013
For more information: http://cs.co/ibsg-nrf
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 1

2. Today’s Strategic Issue:
How Do You Catch and Keep?
The
Shopping Aware Research—Decide Transact Service–Support
Journey
Call Center
Online Store
CATCH AND KEEP
(all screens)
Channel The Dangerous Transition
Online
Preference (all screens)
65% TODAY’S STRATEGIC ISSUE 90%
 65% of US shoppers research online, purchase in store
 up from 57% last year
 40% research in the store, purchase online
 90% of all non-grocery US retail transactions occur in the store
Source: Cisco IBSG primary research, 2012; Forrester, 2012; National Retail Federation, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 2

3. From a Trickle to Tidal Wave: The US
Now Shops Through Bits and Bytes
Digital Mass
X-Channel
Meet the Shops
Grows (Again)
Digital Mass Mobile, too
Market ≈ 50% 65%
shops or wants to with
All US research online
smartphones, tablets, i
then buy in store. 57%
n-store touchscreens
8 in 10 Americans LY.
• Access the net daily
• Own mobile phone or tablet More Digital =
• Shop via the internet Make It Personal
Higher
. . . and Opt-In
1 in 10 Americans Expectations
• The Uber-Digitals 60% Three-Fourths
Now expect more Of Digital Mass Market
Digital Commerce = value, visibility to price- interested . . . with
Research + Transaction SKU data. limits.
12.22.12
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 3

4. The US Now Shops Through Bits and
Bytes; Which Brands Will Lead?
Give Me Digital Top Decision
One Content in the Source: Web
Strategy Store Reviews
Doesn’t Fit All 71% 52%
Want access to Most important for
digital content in the buying decisions.
store. 12% selected
Different segments store employees:
demand different content
and devices at different They Prefer Your Screen
points in the decision Self-Access or Mine.
journey.
85% 22%
of US shoppers want Wanted their own
Detailed, careful planning = self-serve digital device in store.
“Mashop” success access in the store. Store device: 21%
Don’t care: 28%.
12.22.12
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 4

5. Digital Shopping Now the Norm: Mobile
and Touchscreen Are Key Influencers
Percentage of respondents doing now or interested in doing
Eight in Ten
Digital Mass PC at Touch- Phone on Tablet at TV screen Phone at Phone
screen in
Market home store the go home in store home in store
97% 54% 48% 47% 47% 46% 46%
Über Digital Phone PC at Tablet at Phone on Phone at Touch- TV screen
in store home home the go home screen in in store
store
98% 96% 95% 93% 90% 79% 64%
One in Ten
12.22.12
Source: Cisco IBSG, 2012
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 5

6. Key Buying Influencers Now Firmly
Digital (2010–2012)
What are the three most important sources of information
you use to help make buying decisions?
Online reviews retailer website Friends and family Online reviews expert sources
Manufacturers' Web sites In-store product packaging and displays Print publications
Store employees Social networks Television programs
70%
60%
60%
52%
49%
50% 44%
42%
40%
29% 27% 29%
30%
24% 23%
19% 21% 20%
20% 16%
10% 12%
10% 10%
10%
0%
2010 2012
2010: n=1,004 2012: n=1,007
Source: Cisco IBSG, 2011 and 2012 (U.S. data)
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 6

7. Top Four In-Store Concepts
When Tested for Level of Interest
1 2 3 4
Automated Product Personal mobile Design
Pick-up Selector Shopping Center
53% 53% 50% 49%
A locker to View entire product Use mobile device Select, configure, arran
pick-up your purchase ranges and detailed in store to get offers ge products, to meet
from a store using a information about and coupons; scan needs and create
unique code specific products to help product code for design / solution
you decide what to buy online product
information, ratings, revi
ews, etc.
Source: Cisco IBSG, 2012 (U.S. data, n=1,070) Do it Consider it Ignore it
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 7

8. Three Conclusions to Take Away
To Influence Keys:
• Transparency = authenticity = trust
1 Buying, It’s Content
in Context
• Differentiating Value
• Every-where and every-screen
• Easy to access, easy to use
Self-Service Digital And the store, too. Ask:
2 Content Re-frames
Store Labor Roles
• Which experiences differentiate?
• How delivered today? Tomorrow?
• Best use of labor investment?
They Want But proceed carefully
• Opt-in a must
3 Personalized
Experiences
• Use the “transactional” data they’ve
already given – “Big Data” analysis
• Start with the Uber-Digitals
Cisco IBSG © 2012 Cisco and/or its affiliates. All rights reserved. Cisco Public Internet Business Solutions Group 8

9. For more information: http://cs.co/ibsg-nrf
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