Baynote’s Third Annual Holiday Shopping Survey strives to understand the changing behavior of the US consumer and provide insight for retailers so that you can better plan and prepare for great results next holiday season

1. The
Third
Annual
Holiday
Survey
Brought
to
you
by
Baynote
in
coopera8on
with
the
e-­‐tailing
group
1/10/13
Baynote,
Inc.
©
2013
1

2. Table
of
Contents
About
the
Survey
Determining
What
To
Buy
Device
Usage
and
Holiday
Shopping
Privacy
Issues
Key
Takeaways
Legal
Disclaimer
1/10/13
Baynote,
Inc.
©
2013
2

3. About
the
Survey
1/10/13
Baynote,
Inc.
©
2013
3

4. About
the
Survey
Children
<18
years
old
living
at
home
TOTAL
annual
pre-­‐tax
household
income
Less
than
$25,000
6%
$25,000-­‐$49,999
19%
$50,000-­‐$74,999
23%
$75,000-­‐$99,999
18%
14%
Two
Three
Four
or
more
5%
2%
WHO?
30%
HOW?
18%
$150,000-­‐$199,999
3%
$250,000
or
more
3%
18-­‐34
4%
35-­‐44
20%
45-­‐54
Prefer
not
to
respond
20%
55+
1/10/13
Baynote
in
cooperaUon
with
Lauren
Freedman,
President
the
e-­‐tailing
group
Age
Group
7%
$200,000-­‐$249,999
Measure
holiday
shopping
behavior
in
order
to
understand
the
shiOs
in
consumer
influence,
the
role
of
various
devices
and
sites
on
holiday
shopping
and
to
determine
sources
of
privacy
concerns
61%
None
17%
$100,000-­‐$149,999
One
WHAT?
30%
-­‐
-­‐
-­‐
-­‐
-­‐
1,000
respondents
between
Nov.
24
and
Dec.
5,
2012
50%
female/50%
male
Shopped
online
4
or
more
Umes
in
the
past
year
Spent
$250
or
more
online
annually
100%
owned
a
smartphone/55%
owned
tablets
Baynote,
Inc.
©
2013
4

5. About
the
Survey
Percent
of
holiday
shopping
done
online
as
of
survey
date
Majority
(>75%)
25%
Most
(75-­‐50%)
25%
29%
Some
(50-­‐25%)
Very
Li[le
(Less
than
10%)
10+
16%
7-­‐10
18%
1-­‐2
25%
3-­‐6
41%
14%
Limited
(25%-­‐10%)
1/10/13
Total
online
or
in-­‐store
purchases
made
this
season
as
of
survey
date
7%
Baynote,
Inc.
©
2013
5

6. Key
Findings
1/10/13
Baynote,
Inc.
©
2013
6

7. Major
Findings
• Tablets
are
the
future
and
the
future
is
now
• Retail
apps
have
room
to
grow,
but
are
sUll
not
widely
used
• Omni-­‐channel
strategies
are
strong
influencers
on
shopper
behavior
both
in-­‐store
and
online
• Paper
catalogs
currently
trump
social
for
markeUng
effecUveness
• Privacy
concerns
are
fading
as
convenience
and
trust
in
ecommerce
rise
1/10/13
Baynote,
Inc.
©
2013
7

8. Other
InteresUng
Findings
• Age
group
can
determine
the
best
influencers
by
demographic
• Smartphones
are
finding
their
useful
niche
• Social
channels
may
play
out,
but
not
unUl
the
age
group
grows
up
1/10/13
Baynote,
Inc.
©
2013
8

9. Determining
What
To
Buy
1/10/13
Baynote,
Inc.
©
2013
9

10. Personal
contact,
deal-­‐seeking
and
search
engines
are
the
top
three
ways
shoppers
figure
out
what
to
buy
When
deciding
what
holiday
gi0(s)
to
purchase,
where
does
your
process
typically
begin?
Percent
of
respondents
who
answered
“always”
or
“frequently”
58%
Ask
the
person
what
they
want
Look
for
discounts
and
then
find
that
product
to
make
the
purchase
42%
Use
a
search
engine
to
browse
for
interesbng
ideas
or
locate
hard-­‐to-­‐find
product
32%
They
send
me
or
I
request
an
email
with
the
items
they
want
29%
Look
through
physical
catalogs
28%
Browse
their
favorite
stores
to
find
interesbng
gies
or
ideas
28%
Look
at
the
person’s
wish
list
on
a
site
they
like
28%
Look
at
Pinterest
to
get
gie
ideas
Look
at
Facebook
or
another
social
sharing
site
to
get
gie
ideas
1/10/13
15%
15%
Baynote,
Inc.
©
2013
10

11. When
checking
prices,
shoppers
seek
stores
they
know,
and
most
know
Amazon.com
Once
you
have
confirmed
the
gi0
you
are
going
to
buy,
how
o0en
is
the
following
behavior
a
part
of
your
buying
process?
Percent
of
respondents
who
answered
“always”
or
“frequently”
I
go
to
Amazon
to
check
their
prices
and
see
if
they
have
it
available
66%
55%
I
check
prices
at
the
stores
where
I
usually
make
purchases
I
use
a
search
engine,
like
Google,
to
see
where
I
can
buy
it
49%
I
go
to
a
store
or
site
that
I
know
carries
the
item
and
buy
it
49%
I
check
for
product
availability
at
local
stores
48%
I
go
to
a
big
box
store,
like
Best
Buy,
Walmart,
or
Target,
that
I
think
will
have
the
product
45%
38%
I
peruse
my
emails
for
bargains
on
these
products
I
use
a
price
comparison
service/app,
like
Google
Products,
Shopzilla,
Nextag
or
PriceGrabber,
to
find
the
best
price
33%
I
go
to
a
local
store
I
frequent
to
make
the
purchase
33%
1/10/13
o
to
the
mall
and
look
around
at
different
stores
to
see
if
IBaynote,
Inc.
©
2013
I
g
can
find
it
29%
11

12. Most
and
Least
EffecUve
MarkeUng
Influencers
While
online
centric
methods
like
ra8ngs
&
reviews,
search
and
email
promo8ons
really
influenced
shopper
purchases,
other
tradi8onal
methods
like
catalogs
were
also
very
effec8ve.
1/10/13
Baynote,
Inc.
©
2013
12

13. Different
tools
work
best
with
different
age
groups;
but
everyone
loves
a
good
catalog
1/10/13
Baynote,
Inc.
©
2013
13

14. Social
exerts
very
liele
influence
on
shoppers
either
in-­‐store
or
online
In-­‐store
Purchases
Online
Purchases
Twi[er
Pinterest
76%
74%
74%
Twi[er
68%
Pinterest
Facebook
66%
Mobile
adverbsing
Mobile
adverbsing
65%
Text
messaging
from
retailers
60%
Facebook
59%
eCommerce
website
61%
Display
adverbsing
for
product
you
previously
viewed
50%
Product
recommendabon
on
ecommerce
website
49%
Google
search
results
that
included
pictured
product
38%
Online
rabngs
and
reviews
33%
Paper
catalog
30%
Email
promobon
29%
58%
Text
messaging
from
retailers
eCommerce
website
Display
adverbsing
for
product
you
previously
Product
recommendabon
on
ecommerce
Google
search
results
that
included
pictured
Online
rabngs
and
reviews
Email
promobon
Paper
catalog
62%
64%
45%
44%
26%
22%
21%
18%
How
o0en
did
the
following
channels
influence
your
online
or
in-­‐store
purchase?
1/10/13
Percent
of
respondents
who
answered
“never”
Baynote,
Inc.
©
2013
14

15. Price,
free
shipping,
availability
and
merchant
reputaUon
influence
final
selecUon
most
What
were
the
most
important
influencers
when
ulDmately
making
the
final
purchase?
Percent
of
respondents
who
answered
“most
important”
Final
price
including
any
promobonal
offers
47%
Free
shipping
without
condibons
38%
Product
in-­‐stock
and
ready
to
ship
35%
Merchant
reputabon
33%
Product
reviews
29%
Return
policy
Ability
to
receive
rewards/loyalty
points
Free
shipping
with
a
threshold
(i.e.
spend
$100
to
receive
free
1/10/13
Baynote,
Inc.
©
2013
24%
13%
10%
15

16. Device
Usage
in
Holiday
Shopping
1/10/13
Baynote,
Inc.
©
2013
16

17. Smartphones
help
shoppers
find
general
info,
product
previews,
prices
and
use
coupons
How
oJen
did
you
use
your
smartphone
during
the
holiday
season
for
any
of
the
following?
Percent
of
respondents
who
answered
“all
the
8me,”
“frequently”
and
“some8mes”
54%
Find
a
store
or
seek
out
store-­‐based
informabon
(hours,
Browse
websites
to
figure
out
what
to
buy
in
advance
of
50%
Compare
prices
before
a
store
visit
49%
Get
coupons
or
offers
46%
Compare
prices
while
in
the
store
46%
Look
at
product
rabngs
before
visibng
the
store
45%
Redeem
coupons
during
a
store
visit
45%
43%
Make
a
purchase
directly
on
the
website
Look
at
product
rabngs
while
in
the
store
Scan
a
barcode
while
in
a
store
to
check
the
price
at
another
Make
a
purchase
using
a
retailer’s
app
(i.e.
Nordstrom,
Use
a
QR
code
in
search
of
more
informabon
(in-­‐store,
via
1/10/13
Baynote,
Inc.
©
2013
42%
39%
39%
36%
17

18. Tablet
usage
consistently
centered
on
browsing,
price
comparison,
making
store
connecUons
How
oJen
did
you
and
involves
pof
the
following
holiday
shopping?
use
your
tablet
for
any
urchasing
Percent
of
respondents
who
answered
“all
the
8me,”
“frequently”
and
“some8mes”
65%
Browse
websites
to
figure
out
what
to
buy
in
advance
of
Compare
prices
before
a
store
visit
62%
60%
Find
a
store
or
seek
out
store-­‐based
informabon
(hours,
Look
at
product
rabngs
before
visibng
the
store
57%
Make
a
purchase
directly
on
the
website
57%
52%
Make
a
purchase
using
a
retailer’s
app
(i.e.
Nordstrom,
Get
coupons
or
offers
51%
Compare
prices
while
in
the
store
47%
Redeem
coupons
during
a
store
visit
47%
Look
at
product
rabngs
while
in
the
store
46%
Scan
a
barcode
while
in
a
store
to
check
the
price
at
another
45%
Use
a
QR
code
in
search
of
more
informabon
(in-­‐store,
via
1/10/13
Baynote,
Inc.
©
2013
44%
18

19. Tablet
usage
is
much
stronger
than
smartphones
from
browsing
to
buying
and
iuse
your
smartphone
or
tablet
How
oJen
did
you
nvolves
purchasing
during
the
holiday
season
for
any
of
the
following?
Browse
websites
to
figure
out
what
to
buy
in
advance
of
Compare
prices
before
a
store
visit
2.87
2.44
Find
a
store
or
seek
out
store-­‐based
informabon
(hours,
2.59
Make
a
purchase
directly
on
the
website
2.71
2.36
Make
a
purchase
using
a
retailer’s
app
(i.e.
Nordstrom,
2.79
2.73
2.26
Look
at
product
rabngs
before
visibng
the
store
2.61
2.15
2.56
2.41
Get
coupons
or
offers
Tablet
Smartphone
2.44
2.41
Compare
prices
while
in
the
store
2.41
2.36
Redeem
coupons
during
a
store
visit
2.4
2.24
Look
at
product
rabngs
while
in
the
store
Scan
a
barcode
while
in
a
store
to
check
the
price
at
another
2.16
Use
a
QR
code
in
search
of
more
informabon
(in-­‐store,
via
1/10/13
2.94
2.54
2.09
Baynote,
Inc.
©
2013
2.36
2.34
5
4
3
2
1
RATING
AVERAGE
LEGEND
5-­‐POINT
SCALE
ALWAYS
FREQUENTLY
SOMETIMES
ONCE
IN
A
WHILE
NEVER
19

20. App
usage
on
smartphones
and
tablets
sUll
the
minority
Percent
of
shoppers
who
made
holiday
gi0
purchases
using
a
retailer-­‐branded
app
on
a
smartphone
or
tablet
this
holiday
season.
Reasons
that
the
772
app
users
surveyed
chose
not
to
purchase
using
an
app
as
the
interface.
Sabsfied
with
web-­‐based
shopping
experience
Yes
23%
53%
Security
concerns
34%
Interface
not
ideal
shopper
experience
No
77%
17%
App
shopping
is
too
slow
17%
Inferior
shopping
experience
Only
1
in
4
holiday
shoppers
used
branded
apps.
1/10/13
Search
funcbonality
not
up
to
par
Forgot
I
ever
downloaded
the
app
Baynote,
Inc.
©
2013
13%
9%
8%
20

21. Privacy
Concerns
While
Holiday
Shopping
1/10/13
Baynote,
Inc.
©
2013
21

22. Privacy
concerns
are
low:
occasional
on
mobile
devices
How
concerned
were
you
with
privacy
while
researching
and
making
holiday
purchases
via
the
following
loca8ons
or
devices?
Smartphone
2.06
Mobile
App
2.02
Twi[er
2.00
Facebook
1.97
Tablet
1.94
Pinterest
1.92
eCommerce
Retail
Website
1.77
Marketplaces
(Etsy,
Ebay,
Fab.com,
etc.)
1.75
1.70
Personal
Computer
1.64
Google
1.58
Amazon
1.49
Store
1/10/13
5
4
3
2
1
RATING
AVERAGE
LEGEND
5-­‐POINT
SCALE
ALWAYS
FREQUENTLY
SOMETIMES
ONCE
IN
A
WHILE
NEVER
Baynote,
Inc.
©
2013
22

23. Order
abandonment
rate
due
to
privacy
concerns
is
insignificant
Did
you
find
yourself
abandoning
a
loca8on
or
device
because
of
privacy
concerns
during
your
holiday
researching
and
purchasing?
Answer Options
Store
Personal Computer
Amazon
Google
Smartphone
Marketplaces (Etsy, eBay, Fab.com, etc.)
Mobile App
eCommerce Retail Website
Tablet
Facebook
Pinterest
Twitter
1/10/13
Baynote,
Inc.
©
2013
Yes
9%
12%
9%
10%
15%
9%
12%
9%
11%
11%
7%
9%
No
86%
84%
81%
71%
65%
62%
52%
49%
44%
44%
34%
31%
Do Not Use
5%
4%
10%
19%
20%
29%
36%
42%
45%
45%
59%
60%
23

24. Important
Takeaways
1/10/13
Baynote,
Inc.
©
2013
24

25. What
Retailers
Can
Do
Now
• Customize
promobonal
strategies
by
demographic.
If
a
large
segment
of
your
customers
aren’t
influenced
via
social
then
invest
accordingly.
Likewise,
if
your
demographic
is
in
a
younger
age
group,
keep
an
eye
on
how
your
social
metrics
are
working.
• Catalogs
are
no
longer
stand
alone
channels.
They
are
an
important
piece
of
your
overall
omni-­‐channel
markeUng
strategy
that
influence
both
in-­‐store
and
online
purchases
across
all
age
groups.
• Tablets
are
the
future
of
shopping.
Make
sure
your
website
is
opUmized
for
tablet
browsing
and
buying.
1/10/13
Baynote,
Inc.
©
2013
25

26. What
Retailers
Can
Do
Now
• Strive
to
understand
more
about
the
role
of
customer
loyalty
and
your
brand.
This
will
impact
branded
app
usage.
Apps
may
be
more
suited
to
your
year
round,
loyal
shopper,
not
necessarily
your
holiday
buyer.
• Conbnue
to
invest
in
on-­‐line
markebng.
Pump
up
your
raUngs
and
reviews
and
make
sure
they
are
visible
and
fresh.
ConUnue
to
invest
in
personalizaUon
within
your
emails
for
offers,
cart
abandonment
and
shipment.
All
of
these
omni-­‐channel
strategies
are
strong
influencers
on
online
and
in-­‐store
shopper
behavior.
• While
privacy
concerns
are
waning
among
shoppers,
conbnue
to
build
their
trust
through
transacbonal
security
on
your
site.
Also
conUnue
to
invest
in
personalizaUon
technologies
to
build
trust
and
loyalty
within
your
customer
base
and
their
concerns
about
privacy
will
fall
by
the
wayside.
1/10/13
Baynote,
Inc.
©
2013
26

27. Legal
Disclaimer
The
contents
of
this
document
are
copyrighted
by
Baynote,
Inc.
RedistribuUon
or
reproducUon
is
prohibited
without
express,
wrieen
consent
from
Baynote.
For
wrieen
approval
to
redistribute
or
reproduce
content
included
in
this
document,
please
contact
markeUng@baynote.com.
1/10/13
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Inc.
©
2013
27