Posts Tagged ‘online shopping’
IBM recently announced a big win in its “smarter commerce” initiative. SHOP.CA, Canada’s largest online e-commerce marketplace, is using analytics software from IBM’s smarter commerce initiative to help engage increasingly empowered online consumers in a unique shopping experience, and build loyalty and sense of community.
A recent IBM survey of more than 2,000 Canadians showed friends and family are by far the most trusted influencers on purchasing decisions, but retailers are also gaining trust among shoppers here.
The same research also identified a growing movement among consumers to use social media to build communities with others who share their interests and tastes, and who consume the same. These strangers then help the consumer make more relevant discoveries and satisfying purchases.
SHOP.CA: One Stop Online Shopping
SHOP.CA’s online marketplace features millions of products across 26 categories and billions in multi-merchant inventory. Its website offers Canadians one-stop access to national and international brands, free shipping, free returns and no cross-border fees.
Also hosting a powerful loyalty program, SHOP.CA Rewards Dollars are offered for both purchases and online activities that generate a purchase, such as sharing a link to a favorite product with a friend, or posting written or video reviews to social media sites like Facebook and Twitter.
“With SHOP.CA, shopping will be forever changed in Canada,” says Don Tapscott, author and world leading business strategist. “It’s going to make shopping ‘social.’ People will become deeply engaged in the community. They’ll learn from each other. They’ll be able to collaborate, and because of the loyalty programs, they’re going to want to come back.”
SHOP.CA selected IBM’s technology as the e-commerce engine to power its consumer storefront, multi-merchant product catalog and SHOP.CA rewards program. IBM will also provide analytics on how site visitors behave and interact, as well as track their searching and buying histories. This data will get SHOP.CA insight on how, when and where to reach shoppers with content and offers personalized to their taste and preferences via mobile or social vehicles.
Smarter Commerce: A $20 Billion Software Market
Estimated at $20 billion for software alone, IBM has defined smarter commerce, a new, unfolding market driven by Web, social and mobile technologies which put more power in the hands of customers.
Today, 70 percent of the consumer’s first interaction with a product or service takes place online, and 64 percent of consumers make a first purchase because of a digital experience. Under the terms of the agreement, IBM is providing SHOP.CA with Coremetrics web analytics delivered through the cloud and IBM WebSphere Commerce Professional.
Go here to learn more about IBM “smarter commerce” solutions.
In the video below, Scott Laningham and I interview Don Tapscott at this year’s SXSW Interactive Festival about how digital technology is changing our world, detailing for us mere mortals its impact on business, education, children, and beyond.
So the IBM Benchmark is in for Cyber Monday’s online shopping extravaganza, and it appears that shopping from the office continues to king.
So much for post-Thanksgiving productivity at work!
Me, the only Cyber Monday deal I bought was a new version of VMWare Fusion for my MacBook Air. I’m a geek, and I like running multiple operating systems at the same time, what can I say? It also gave me a good excuse to try out the latest flavor of Ubuntu Linux (11.10).
But I was apparently in the minority. The U.S. Online retail sector delivered strong growth on Cyber Monday 2011 compared to the same period last year.
Here are the Cyber Monday headlines from the IBM Benchmark analysis:
- Cyber Monday 2011 Compared to Cyber Monday 2010 (year/year)
- Consumer Spending Increases: Online sales were up 33.0 percent over 2010, with consumers pushing the average order value up from $193.24 to $198.26 for an increase of 2.6 percent.
- Shopping Peaks at 11:05am PST/2:05pm EST: Consumers flocked online, with shopping momentum hitting its highest peak at 11:05am PST/2:05pm EST. Consumer shopping also maintained strong momentum after commuting hours on both the east and west coast.
- Mobile Sales and Traffic Grows: On Cyber Monday, 10.8 percent of people used a mobile device to visit a retailer’s site, up from 3.9 percent in 2010. Additionally, mobile sales grew dramatically, reaching 6.6 percent on Cyber Monday versus 2.3 percent in 2010.
- Cyber Monday 2011 Compared to Black Friday 2011
- Consumer Spending Increases: Online sales were up 29.3 percent over Black Friday.
- The Mobile Bargain Hunter: On Cyber Monday mobile traffic averaged 10.8 percent compared to 14.3 percent on Black Friday.
- Mobile Sales: Consumer sales on mobile devices reached 6.6 percent versus 9.8 percent on Black Friday.
- The Apple Shopper: Apple’s iPhone and iPad continued to rank one and two for mobile device retail traffic (4.1 percent and 3.3 percent respectively). Android maintained its position in third at 3.2 percent. Collectively iPhone and iPad accounted for 7.4 percent of all online retail traffic versus 10.2 percent on Black Friday.
- The iPad Factor: Shoppers using the iPad also continued to drive more retail purchases than any other device with conversion rates reaching 5.2 percent compared to 4.6 percent.
- The Social Influence: Shoppers referred from Social Networks generated 0.56 percent of all online sales on Cyber Monday versus 0.53 percent on Black Friday. Similar to Black Friday, Facebook led the pack, accounting for 86 percent of all social media traffic.
- Social Media Chatter: Discussions on social media sites leading up to Cyber Monday increased in volume by 115 percent compared to 2010. Top areas of discussion focused on consumers sharing tips about using price comparison websites while avoiding cyber scams, Cyber Monday deals for international consumers and conversations about Black Friday in-store shopping experiences.
“Cyber Monday was once again the big winner for the Thanksgiving holiday shopping season, with a record number of consumers focused on finding the best online deals,” said John Squire, Chief Strategy Officer, IBM Smarter Commerce. “Retailers that adopted a smarter approach to commerce, one that allowed them to swiftly adjust to the shifting shopping habits of their customers, whether in-store, online or via their mobile device, were able to fully benefit from this day and the entire holiday weekend.”
This news is based on findings from IBM’s fourth annual Cyber Monday Benchmark which tracks more than a million transactions a day, analyzing terabytes of raw data from 500 retailers nationwide.
With this data, IBM helps retailers better understand and respond to their customers – across the organization – improving sourcing, inventory management, marketing, sales, and services programs.