This document summarizes the findings of a survey on holiday shopping preferences in 2013. Some key findings include: - Consumers do research across channels like catalogs, mobile, and online, but social media is less used for research. - Both online and in-store shopping are popular, with consumers valuing product evaluation, deals, and convenience differently between the channels. - Mobiles are well used for product research but less for purchases. Consumers expect a consistent experience across channels. - Most consumers will pay more for a better customer experience and are not loyal to any single brand.

1. Holiday Shopping
Preferences 2013
Rusty Warner, SVP Marketing
November 20, 2013

2. Introductions
Rusty Warner
Senior Vice President of Marketing
SDL Campaign Management & Analytics
@rustywarner

3. Agenda
• About SDL & Customer Experience Management
• Survey Background and Methodology
• Holiday Shopping Preferences
– Researching Gift Purchases
– Online Shopping Trends
– In-Store Shopping Behavior
– High Customer Expectations
• Key Findings & Recommendations
Q&

4. Optimizing CXM for the World’s Top Brands

5. Optimizing CXM for the World’s Top Brands

6. Defining Global Customer Experience Management
CXM is a strategy and practice for managing customer experiences
online and offline to acquire, retain, and turn customers into
satisfied, loyal brand advocates and ambassadors.

7. Three Business Requirements for Global CXM
Understand your
audiences’
interests and
motivations
Align your
organization across
channels, markets,
languages and teams

8. SDL Global CXM capabilities

9. Your Partner in Global CXM
 Publicly traded company, long-term
stability and $430M annual revenues
 2,700+ employees, 70 offices, 38 countries
 1,500+ enterprise customers and partners
 Innovative technology and services for
enriching global customer experiences
 Award-winning technology and services
 Serving 76 of the top 100 global brands
(Source: Interbrand 2012)

10. Why Focus on CXM?
• Priority: 50% of CEOs now rate Customer Experience Management as their
number one strategic investment. (Gartner)
• Profitability: 76% of consumers would pay 5% more for a better experience,
53% would pay 10% more and 10% would pay 25% more. (Accenture)
• Loyalty: Customer experience (CX) is a more powerful customer loyalty driver
than price-value perception. (Forrester)
• Equity: Over a 6 year period, CX leaders outperformed the S&P 500 index by
28%. Those who had poor CX performance lagged behind the index by almost
20%. (Watermark Investment Consulting)
• Consistency: In the UK, a £100 investment in the National Consumer
Satisfaction Index fund in 2007 would have by June 2011 returned £159 while
the same investment in the FTSE 100 would have returned just £94. (SynGro)
• Efficiency: A one point increase in customer satisfaction (CSAT) has been
proven to improve cash flow by 4% in major organizations. (Journal of
Marketing)

11. About the Survey

12. Methodology
• Survey
– Focused on consumer behavior and expectations during the 2013 holiday
shopping season
– Deployed in the United States, United Kingdom and Australia
– Conducted by third parties on behalf of SDL
– Respondents not aware the survey was conducted for SDL
• Key Themes
– “Showrooming” is still relevant with broad implications for retailers
– Social media remains an unused tool for researching products
– There is no clear shift from 2012 for online and in-store preferences
– Shoppers want to avoid crowds during the holiday season
– Consumers are using all channels in their interactions with retailers
– It’s all about a positive customer experience

13. Survey Respondents – Geographies
Number of Respondents by Geography
1,000
1,039
AUS
UK
US
2,000

14. Survey Respondents – Demographics
AUS
UK
US

15. Making a List...

16. Consumer Showrooming Habits
Top Resources Shoppers Use to Research
Products

17. Catalogs Are Alive and Well
Percentage of shoppers who use
catalogs to research products

18. Mobile is Good for Research
Percentage of shoppers who use
mobile for research

19. Social Media Not as Popular for Research
Percentage of global shoppers who use
social media channels to research products

20. Online Shopping Trends

21. The Online versus In-store Battle Continues
Online
In-store

22. Top Reasons to Shop Online
Top Reasons Shoppers Prefer Online over In-Store
1. Finding Products Online is Easier: 40%
2. Finding the Best Deal Available: 39%
3. Avoiding Holiday Crowds: 34%
4. Taking Advantage of Online Discounts: 25%
5. Convenience of Shopping from Home: 24%
6. Convenience of Shopping 7x24: 19%

23. Most Consumers Shop on Their Own Time
Shoppers who aren’t shopping online
during work
Believe it or not, only 1/3 of US
shoppers admitted to shopping
online while working and it is less
in the UK and Australia with only
27% admitting to shopping online
during working hours.

24. Mobile is Good for Researching; Not For Purchasing
Shoppers who won’t use a
smartphone or tablet this year or
won’t use it more than last year

25. In-Store Shopping Behavior

26. Top Reasons to Shop In-Store
Top Reasons Shoppers Prefer In-Store over Online
1. Evaluating Products in Person: 43%
2. Finding the Best Deal Available: 36%
3. No Shipping Costs: 35%
4. Taking advantage of In-Store Discounts: 35%
5. Convenient Store Location Near Home, Work or School: 28%
6. Unique Products Only Available In-Store: 15%

27. Product Evaluation Driving In-Store Purchase is Down
Percentage of shoppers who shop
in-store to evaluate products

28. Are We Experiencing the End of Black Friday?
US Shoppers who aren’t waiting for
Black Friday or Cyber Monday

29. UK and Australian Shoppers Aren’t Waiting Either…
Percentage of UK and AUS
shoppers who don’t plan shopping
around a specific day

30. High Consumer Expectations

31. The Ongoing Omni-Channel Trend
With this data confirming what
smart retailers already know –
consumers are coming from
all channels – brands can’t
focus all of their attention on
one channel over the other.
Brick and mortar retailers who
integrate their stores and ecommerce channels make it
possible for a customer to buy
online, pick up in-store, order
online, deliver at home and a
multitude of other possibilities.

32. Consumers Expect Consistency
Shoppers who expect a consistent
experience from mobile to laptop to
in-store

33. The Importance of a Positive Customer Experience
Shoppers who are willing to pay
more for a better customer
experience
Sixty percent of consumers
surveyed would be willing to
pay more for a product if the
brand delivered a positive
customer experience.

34. Quality, Price & Experience Drive Loyalty
Shoppers who aren’t loyal to a brand

35. Key Findings &
Recommendations

36. Key Findings & Recommendations
Omni-Channel is the Norm
• Retailers must recognize that consumers are using multiple channels
to interact with brands, find the best products, the best deals and
prices, regardless of when they start searching for holiday-related
bargains.

37. Key Findings & Recommendations
Consistency is Critical
• Consumers across the globe shop when, where, and how they want –
and they want the experience to be the same whether they are online,
on their smartphone in a store, reading Facebook…the list just goes on.

38. Key Findings & Recommendations
Prioritize Profitable Preferences
• Be prepared to kick-off coordinated, cross-channel marketing
campaigns this holiday season.
• Recognize how many channels you are planning to leverage this
season. Of those channels, prioritize which channel will be used
most to reach profitable customers.

39. Key Findings & Recommendations
Mobile Enables Research and Showrooming
• If you’re considering expanding mobile as a channel, take into
consideration the role that research and showrooming may have on
your campaign.

40. Key Findings & Recommendations
Social Campaigns Must Be Engaging
• Consider how you’re using social media to engage your consumers. If
you’re using social media, build a campaign that enhances other nonsocial media campaigns.

41. Summary
• In-store is still the front runner when it comes to researching products
• Catalogs still play a big role in the shopping and researching process
• Mobile offers consumers an easy way to research products so
determine a strategy that will help you drive mobile purchases
• Social might not be the place for research, but it is still a critical way to
build loyalty and to reach customers
• Create consistency across online and offline channels – consumers
are active across all channels
• Consumers will pay more when there is a positive customer experience
• Black Friday and Cyber Monday are not as important to consumers as
overall positive experiences

42. When Should Brands Start Holiday Promotions?
Shopper preferences for retailers to start
holiday promotions
Nearly 50% of global
consumers say that
November is the right
month to start holiday
promotions.

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service marks, images and logos are the property of their respective owners.
This presentation and its content are SDL confidential unless otherwise specified, and may not be
copied, used or distributed except as authorised by SDL.