Turbotodd

Ruminations on tech, the digital media, and some golf thrown in for good measure.

Posts Tagged ‘online shopping

Shopping In The Great White North

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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.

IBM Benchmark: Cyber Monday Online Spend Increases By 33 Percent Over 2010

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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).

Online sales for Cyber Monday stayed in line with previous years until a late afternoon surge pushed sales up 33.0% over Cyber Monday 2010.

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.

You can download the latest Cyber Monday IBM Benchmark report here.

Black Friday: U.S. Online Retail Up 20% Year-Over-Year!

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I had absolutely nothing to do with shopping today, online or off.  But I seemed to have been a minority, and for those retailers looking to the holiday season to help bolster an otherwise anemic year, they will be excited by the news delivered today by the IBM Coremetrics e-retailing Black Friday Benchmark Report.

No flies on those guys! Apparently they were too busy counting everyone else’s clicks to pursue any of their own.

Click image to enlarge. Black Friday e-retail sales in U.S. were up 20% over the same period last year, with consumers turning to mobile devices like smartphones and tablets for their e-shopping efforts more than they ever have.

E-retail sales at major online retailers were up 20 percent as of 3 P.M. EST this afternoon, compared to the same time on the Friday after Thanksgiving last year.

The survey monitors some 500 major U.S. Online retailers, and the 20 percent is in line with the 20 percent year-over-year increase IBM was reporting mid-day yesterday.  However, apparently lots of folks are holding out until they’ve allowed the turkey trytophan to kick in and the evening football games to start, because full-day online Thanksgiving sales ended 39 percent up over the holiday last year and they soared Thursday evening.

Mobile devices also played a much bigger role in online shopping this year, according to the benchmark.  Shoppers are making 9.73 percent of their purchases from mobile devices such as smartphones and tablets, about the same as Thanksgiving day. And, as much as 17.37 percent of traffic to e-retail sites is coming from mobile devices, higher than even the 15.2 recorded yesterday.

Following are some other key highlights from this afternoon’s report (again, as of 3 P.M. EST):

  • Consumer spending increased: Online sales were up a healthy 15.9 percent, with consumers pushing the average order value up from $170.19 to $190.80 for an increase of 12.1 percent.
  • Luxury goods are making a comeback. Jewelry retailers reported a 17.6 percent increase in sales.
  • Social shopping. Consumers appear increasingly savvy about their favorite brands’ social presence, and are turning to their social networking friends for information about deals and inventory levels. 
    • Though the percentage of visitors arriving from social sites is fairly small relative to all online visitors — nearly 1 percent — it’s gaining momentum, with Facebook dominating the space.
  • Surgical shopping. Consumers know what they want and where to get it. People are viewing 18.0 percent fewer products on sites than they did last year, suggesting they are shopping with a specific item in mind and quickly moving up. (My kind of shopping! Surgical strike, indeed!)
  • Mobile shopping. Consumers are embracing mobile as a shopping tool, with 5.6 percent of people logged onto a retailer’s site using a mobile device on Black Friday (a jump of 26.7 percent compared to last Friday!)

The report also provided some color commentary on the types of retail categories and products that are especially sought this year:

  • Department stores.  They’ve become the research engine of choice for consumers looking for Black Friday deals and product promotions. As a consequence, shoppers are spending 17.7 percent more time year over year on department store sites.
  • Health and Beauty. A reported rise of 73.1 percent in the number of new consumers completing their first purchase on their sites and a 53.4 percent jump in the number of visits in which consumers completed an order.
  • In-Store Sales for Consumer Electronics and Appliances. These are expected to increase 3.5 percent this year compared to last, with consumers spending a larger-than-usual share in November, according to an analytics-based forecast from IBM’s Global Business Services division.

U.S. consumers have been increasing their savings relative to disposable income, from 2 percent in 2007 to nearly 6 percent today, which has led to strong pent-up demand for consumer electronics and appliances, both of which are typically seen as necessities in today’s economy.

Stay tuned here on the Turbo blog for other upcoming reports on the holiday season’s retail tidings.  It’s still Black Friday, we still have the weekend, and Cyber Monday is a full three days away!

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