Cisco Study Overview: Digital Shopping Behavior in an Internet of Everything World Source: Cisco Consulting Services, January 2014

1. Internet of Everything
13 January 2014
Cisco Consulting Services
4.0
13 Dec 13
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2. 2014 Edition
Web-based survey
N = 1,174
Digital Shopping
Behavior Survey
Margin of error <3%
United States, Nov 2013
Representative of the US broadband
population by age, income, region
Source: Cisco Consulting Services, 2013

3. § Growth in Connected Consumers:
IoE changing expectations on how we will shop
§ Trust Barrier for Personal Service:
Retailers must offer valued services to get customer private
information
§ Wake-up Call to Retailers: Brands that mash-up channels win
Consumers interest in new IoE Service concepts
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4. DIGITAL MASS
ÜBER-DIGITALS
80% 18%
Digital
Research
Browsing
Purchase
Median Age 40-44
Last Year 11%
Smartphone
Research
Browsing
Purchase
Median Age 30-34
Source: Cisco Consulting Services Primary Research, 2013
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5. SEARCH
PC
In Store
BUY
In Store
DO IT NOW
US 2013
60%
39%
Online PC
Mobile
In Store
Online PC
32%
26% 86%
27%
33%
Mobile
INTERESTED
23%
22%
72%
66%
59%
56%
25% 84%
70%
54%
20% 92%
62%
20% 90%
24% 86%
Click ’n Collect
Kiosk
In Store
12%
35%
47%
28%
40% 68%
Source: Cisco Consulting Services, 2013
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6. 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
60%
Store employees
58%
Friends
family
52%
49%
44%
Online
reviews
42%
Online Friends
reviews family Online
experts
29%
Online
experts
Online
reviews
46%
43%
Friends
Online
family
experts
21%
Store
Assoc
15%
12%
Store
Assoc
Store
Assoc
2010
2012
2013
Source: Cisco Consulting Services, 2010-11-12-13, 2010: n = 1004; 2012: n = 1007; 2013: n = 1,174
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7. Roughly 50% will research a $100 product – More than 75% research when more than $250
DIGITAL MASS
ÜBER-DIGITALS
80% 18%
87%
85%
76%
47%
25%
14%
>$500
<$500
<$250
<$100
<$50
<$10
86%
84%
80%
54%
28%
17%
Source: Cisco Consulting Services Primary Research, 2013, percentage responding “very likely” to research a product online
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8. DIGITAL MASS
ÜBER-DIGITALS
81% 18%
32%
24%
51%
49%
I prefer to use my own device
I prefer to use store devices
I prefer to use a store app
I prefer to use a browser
51%
18%
64%
58%
Source: Cisco Consulting Services Primary Research, 2013
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9. Digital Shoppers Want “Safe” Self-Service
DIGITAL MASS
ÜBER-DIGITALS
81% 18%
64%
22%
11%
I prefer to shop on my own,
but with help when I need it
I prefer to shop on my own
I prefer help from store employees
all the time
64%
19%
14%
Source: Cisco Consulting Services Primary Research, 2013
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10. How have your expectations for shopping changed over the past two years
DIGITAL MASS
ÜBER-DIGITALS
80% 18%
71%
61%
58%
58%
50%
Better Values
Price Visibility
Wider Range
Information Access
Faster
79%
72%
72%
75%
64%
Source: Cisco Consulting Services Primary Research, 2013, percentage responding “very likely” to research a product online
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12. The Vast Value
of the Internet of Everything
Internet of
Everything
Retailing
Sense Know Act
North America Retail–Unrealized Value at Stake–2013
DATA FUSION
RIGHT TIME
HYPER-LOCALIZED
Source: Cisco Consulting Services, 2014; n = 1,174
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13. Select up to three.
DIGITAL MASS
ÜBER-DIGITALS
80% 18%
46%
38%
30%
30%
Personalized promotions
via touch-screen or smartphone
Personalized products specifically for me
Personalized shopping lists
Personalized service
53%
47%
38%
34%
Source: Cisco Consulting Services Primary Research, 2014
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14. What if retailers could…
DIGITAL MASS
CAPTURE DATA
ÜBER-DIGITALS
TO CREATE
Transactions OH inventory on order Improved in-stock
69% 27% 42%
44% 82%
35%
Past purchases store location OH inventory Personalized digital offers
77% 38%
39%
37%
37% 74%
Store traffic check queue No check-out lines
67% 26% 41%
43%
37% 80%
Smartphone in-store location In-store way-finding
57% 20% 37%
33%
38% 71%
APPEALING
VERY APPEALING
Source: Cisco Consulting Services, 2013
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15. Financial
Hospitals
Physicians Institutions/
Banks
56%
However:
54%
Credit Card
Companies
47%
Government
Agencies
37%
How much would you trust
these companies-institutions
to protect your personal data
and use it to provide
something that you value?
Source: Cisco Consulting Services, 2014; n = 1,174, Percentage answering 7 and above on a 10-point scale 1=not trust at all 10=trust completely
National
Retail
Brands
31%
Internet
Companies
18%

16. DIGITAL MASS
ÜBER-DIGITALS
Past Purchasing History with This Brand
57%
59%
Basic Information About Me (name, age)
52%
56%
Likes and Dislikes (opt-in)
48%
49%
Information from Products I am Using
27%
TRUST CLIFF
30%
Past Purchasing History from Other Brands
24%
29%
TRUST CLIFF
My Location
20%
29%
Source: Cisco Consulting Services, 2013
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17. DIGITAL MASS
ÜBER-DIGITALS
Time Spent in the Store
34%
47%
Location in the Store
35%
44%
Products You Try – but Don’t Buy
36%
43%
The QR Codes or Barcodes You Scan
27%
TRUST CLIFF
32%
Your Walking Path in the Store
26%
30%
TRUST CLIFF
None of the Above
25%
13%
Source: Cisco Consulting Services, 2013
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18. Select up to three.
DIGITAL MASS
ÜBER-DIGITALS
Guaranteed Percentage Savings on Next Purchase
52%
51%
Specific Dollar Savings on My Next Purchase
52%
53%
World-Class Privacy Policy
31%
39%
Ability to Use Loyalty Points at More Than One Retailer
24%
27%
TRUST CLIFF Admission into A Club that Receives Priority Service
11%
18%
TRUST CLIFF
Admission into a Club that Receives Priority Offers
22%
27%
Source: Cisco Consulting Services, 2013
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20. Percentage responding frequently or always
1
2
3
BEST PERSONAL PRICE
MOBILE CONCIERGE
BEAT THE BUZZER
CONNECT THE DOTS
63%
42%
35%
34%
Opt-In. Smartphone. Scan.
Opt-In. Smartphone.
Gamification.
Gamification.
Calculates all your relevant offers,
coupons, loyalty points.
Greets, guides, provides.
At home or in store.
In-store. Smartphone.
Interest- and location-based
information, offers.
PC or smartphone.
Collect tokens or QR codes
throughout the store.
Your Personal Price. Now.
Your Retail Remote Control.
Special promotion now
in limited time.
4
Act now and win!.
Act now and win!
Source: Cisco Consulting Services, 2013 (U.S. data, n= 1,174), percentage responding frequently or always
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21. Percentage responding frequently or always
1
2
3
BEST PERSONAL PRICE
MOBILE CONCIERGE
BEAT THE BUZZER
CONNECT THE DOTS
63%
42%
35%
34%
CONSUMER
ELECTRONICS
71%
CONSUMER
ELECTRONICS
47%
GROCERY
4
37%
CONSUMER
ELECTRONICS
37%
ÜBER-DIGITALS
82%
66%
56%
55%
Source: Cisco Consulting Services, 2013 (U.S. data, n= 1,174), percentage responding frequently or always
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22. Percentage responding frequently or always
5
6
7
REMOTE CONSULTATION
ENDLESS AISLE
SOLUTION BUILDER
SOCIAL SHOPPING
31%
29%
29%
21%
Mobile or fixed screen.
Online or in-store.
Online or in-store.
Smartphone. Social.
One-click connect.
Fixed screen and smartphone.
Fixed screen or smartphone.
Post photos. Pin ideas.
No appointment.
See brand’s entire inventory
on desired SKUs.
Suggested project shopping lists.
Send to professionals, friends.
Recipes. Outfits.
Whaddaya think?
Talk to the brand’s best.
What, why and how.
8
Nearby stores. Dot-com.
Vendor.
Source: Cisco Consulting Services, 2013, percentage responding frequently or always
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23. Percentage responding frequently or always
5
6
7
REMOTE CONSULTATION
ENDLESS AISLE
SOLUTION BUILDER
SOCIAL SHOPPING
31%
29%
29%
21%
HOME
IMPROVEMENT
39%
32%
APPAREL
HOME
IMPROVEMENT
8
33%
HOME
IMPROVEMENT
24%
ÜBER-DIGITALS
50%
50%
50%
43%
Source: Cisco Consulting Services, 2013, percentage responding frequently or always
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Confidential
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25. Growth in Connected Consumers:
IoE changing expectations on how we will shop
Wake-up Call to Retailers:
Brands that mash-up channels win
Trust Barrier for Personal Service:
Retailers must offer valued services to get customer private
information
Consumer appeal for seven new IoE in-store service concepts
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27. Here’s what I think every business should tell consumers
about their data collection programs
1
Exactly what data is being collected.
Many may assume that personally identifying
information is being collected
2
How the data collection technology works.
Boil the complex tech terms down into clear lay terms.
Once you know, is there a reason to fear “metadata?”
3
How the data is being secured
Show the steps you’re taking to prevent data
from being hacked or misused
4
Why the data is being collected
Show them the problems being solved,
the value being created
5
6
7
8
Michael Nadeau, Publisher,
September, 2013
How the data is being analyzed and reported
If it’s being analyzed in the aggregate, say so –
and explain what that means
Who is seeing the data.
People might assume that you share their data
with other businesses. Be clear about your policies
The consumer benefits of data collection.
Most important. Shoppers will provide personal
information if they feel they’re getting equal value in
return
It’s Opt-In
Give your shoppers the choice
Source: Data Informed, September 2013; Cisco Consulting Services, 2013
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