TECHNOLOGY

Adobe: Holiday season ringing up $1 billion online daily

BY Deena M. Amato-McCoy

Thirty-five days in, the 2017 holiday shopping season has already generated $65.15 billion.

Every single day (35 in all), holiday shoppers are spending over $1 billion in online revenue, volume that is on pace to make the 2017 holiday season hit a record $107.4 billion. This accomplishment will make the 2017 holiday shopping season the first to cross the $100 billion mark, according to Adobe Analytics.
Mobile shopping remains strong and is contributing to this growth. Mobile represents 48.8% of visits (40.3% smartphones; 8.5% tablets) and 32.4% of revenue (22.3% smartphones; 10.1% tablets).

When diving into the most purchased merchandise, post-Thanksgiving, the top products include Apple AirPods and iPads, laptops (Dell, Lenovo and HP), Amazon Fire TV and Samsung tablets in electronics; Hatchimals & Colleggtibles, PJ Masks, Baby Alive and Little Live Pets in toys; Super Mario Odyssey and Pokemon Ultra Sun/Moon in video games; Xbox One X and Nintendo Switch in gaming consoles; as well as vacuum tumblers.

Additional findings include:

• Discounts: While the best deals were seen during the Thanksgiving shopping weekend, shoppers can still find good deals on TVs (prices down 15.0% since October 1), computers (down 13.1%) and toys (down 15.0%).

• Conversion rates and average order value (AOV): Season to date, conversion rates are showing growth: desktop 4.5% (up 10.6% YoY), smartphone 2.0% (up 12.3% YoY), tablet 4.3% (up 9.3% YoY). AOV is $130, slightly lower over the same time last year (down 0.6% YoY).

• Marketing channel impact: For the season thus far, search retained the top spot when it came to share of sales for retailers (23.0% paid; 21.5% natural). This is followed by direct traffic (26.6%), email (19.8%), shopper helper sites (6.1%), display (1.8%) and social (1.2%).

“Following a blockbuster Thanksgiving weekend that broke all records, online spending remained strong as consumers look to the Christmas holiday,” said Taylor Schreiner, director, Adobe Digital Insights.

“Whether it’s shopping on a smartphone or returning to a desktop at work, consumers are pros now at finding the best discounts and closing deals quickly online,” Schreiner said. “With every single day since the beginning of November raking in over a billion dollars, we are well on track for the holiday season to make history and cross the $100 billion mark in online spending.”

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TECHNOLOGY

Study: ‘Porch piracy’ concerns on the rise

BY Deena M. Amato-McCoy

Retailers and consumers aren’t the only ones who think the holiday season is the “most wonderful time of the year.”

With consumers stepping up the frequency of online shopping this holiday season, thieves are getting more brazen, and ready to pilfer home deliveries. And they have been honing their craft, as nearly one in five (19%) of homeowners in the United States were the victim of a package theft in the last year, according to a study from connected home security provider Ring.

One in two homeowners (26%) receive a delivery at least once a week, and 24% receive packages multiple times a week. Yet, 73% of homeowners said carriers leave the deliveries on their front porch — in clear view of passers-by, especially criminals.

Stolen package victims were hit an average of 2.6 times last year (24% of shoppers), while 39% of shoppers lost at least one package last year. The average value of stolen packages is $140, according to the report.

As expected, these incidents increase during the holidays. Package theft spiked 35% in December 2016, up from 19% in November 2016.

With shoppers receiving an average of nine packages during the holiday season, thieves are on high alert. The good news is so are consumers. With 75% of consumers considering package theft a bigger problem during the holidays, they are taking more precautions to protect their deliveries.

A majority of shoppers (48%) are staying home when expecting a package. A growing number of homeowners also use technology to prevent package theft, including video cameras (27%) and video doorbells (12%), the report said.

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TECHNOLOGY

Study: Emotional engagement could boost revenues by 5%

BY Deena M. Amato-McCoy

If retailers want to drive revenues, they need to get more “emotional.”

Tapping into consumer emotions have the strongest impact in driving loyalty, according to a new study from Capgemini. Retailers that can foster higher emotional engagement with consumers could potentially increase annual revenues by 5%, according to the report, “Loyalty Deciphered — How Emotions Drive Genuine Engagement.”

Yet, a stark disconnect remains between executives and consumers when it comes to how well organizations are making emotional connections. Eighty percent of executives feel their brand understands the needs and desires of their consumers, only 15% of consumers agree.

As emotions become a key driver of loyalty, it proves that current loyalty approaches are broken. An earlier Capgemini report found that 28% of consumers are abandoning loyalty programs without redeeming any points, and over half (54%) of loyalty memberships are inactive. One key reason is that many of today’s loyalty programs attempt to buy consumer loyalty through monetary rewards only.

Emotional engagement, specifically, honesty and trust, trumps rational factors and brand values when consumer choose where to shop. Eighty two percent of consumers with high emotional engagement would always buy the brand they are loyal to when making purchasing decisions, compared to 38% of consumers with low emotional engagement. In addition, 81% of emotionally connected consumers will not only promote the brand among their family and friends, but they will also spend more. In fact, 70% of consumers with a high emotional engagement spend up to twice as much with those brands.

Emotionally engaged consumers are loyal to the brands they love and willingly act as ambassadors to family and friends. They want brands to be engaged and reciprocate their loyalty in two-way interactions (86%), but they also enjoy giving back to a brand (81%). Consumers also want differentiated shopping experiences both online (75%) and in-store (73%).

“Consumers are immune to transaction-based loyalty programs of the past, so a retailer’s engagement with consumers needs to shift from being transactional to more emotional and meaningful,” said Kees Jacobs, Consumer Goods & Retail Lead, Insights & Data Global Practice at Capgemini.

Females and males equally represent emotionally engaged consumers, but millennials (58%, aged 18-36) and consumers in urban locations (53%) comprise the largest proportion. Italy (65%) and Brazil (57%) have the most highly emotionally engaged consumers followed by U.S. (56%) and Spain (51%).

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