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The Pulse of Nordic E-Commerce | An eTail Nordic report

eTail Nordic brought together an incredible number and variety of speakers – it was brilliant to get insights from so many successful and diverse businesses. – Manlio Sanna, Global Marketing Director, Carlsberg Group

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The Pulse of Nordic E-Commerce | An eTail Nordic report

Contents Introduction

4

Pt. 1 Sales and Marketing

5

Pt. 2 Omnichannel

11

Pt. 3 Attribution About eTail Nordic

16 20

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The Pulse of Nordic E-Commerce | An eTail Nordic report

Introduction Consumers in the Nordic region made online purchases of 4.29 billion Euros during the second quarter of 2016. This is an increase of more than 800 million Euros or 23 percent compared to the same period in 2015. At the same time, domestic commerce has been growing even more quickly, by 29 percent. Competition amongst retailers in the Nordics is fierce. As a result, retailers are looking to digital and omnichannel to bring new strength their retail offering. The gap is getting smaller between pure-play and

bricks and mortar retailers, and each are beginning to imitate the strengths of the other.

We spoke to high level

We interviewed 100 leading retailers in the Nordics to discover how they are responding to this new economic reality.

and Directors of Digital

In which country are you based?

executives including Heads of ECommerce, Heads of Multichannel / Omnichannel Marketing as well as others of a similar standing.

Are you a bricks and mortar retailer with an online presence, or an online-only pure player?

12% Pureplayer retailer

88% y Denmark y Sweden y Norway

25% 33% 20%

y Finland y Iceland y UK

15% 2% 5%

Bricks and mortar retailer with an online presence

To which regions do you deliver? y Western Europe y Eastern Europe y North America y East Asia y Russia y Australasia y South America y Central Asia y Africa

100% 47% 42% 39% 31% 31% 29% 25% 24%

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Pt. 1

Sales and Marketing


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The Pulse of Nordic E-Commerce | An eTail Nordic report

Your online real estate Do you have... While many retailers have invested heavily in their apps, the majority have made the decision to focus instead on a mobile optimised website. It can be hard for retailers to inspire customers to download a retailer specific app, let alone use it on a regular basis. This may explain the focus on well-designed, smooth mobile optimised sites.

2%

35%

63%

y A mobile optimised website 63% y Both 35% y Desktop eCommerce website 2%

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The Pulse of Nordic E-Commerce | An eTail Nordic report

What percentage of your eCommerce sales occur on mobile devices?

y 0-10% y 11-20% y 21-30% y 31-40% y 41-50% y 50%+

14% 6% 18% 18% 17% 27%

More than a quarter of sales in the Nordic region now occur on mobile devices - this is in line with the developing trend from around the world. Companies have been working hard to perfect the experience of buying things via mobile devices – this is now paying off. As consumer confidence gets stronger, we expect sales on mobile to continue to rise.

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The Pulse of Nordic E-Commerce | An eTail Nordic report

Do you offer these functionalities on your sales app / mobile optimised eCommerce site? y Multiple payment methods 73% y GPS enabled store locator 67% y Social media sharing functionality

60%

y User feedback feature

45%

y Cross-channel cart (mobile and desktop synced)

44%

y Click & Collect

43%

y Form auto-filling

30%

y Click to call (one touch calls to store or customer service)

20%

y Social media login functionality

18%

Offering multiple payment methods to customers is very important, and can significantly reduce any dropoff at basket. Retailers are also dipping their toes into the localisation pool with the use of GPS enabled store locators. The cross-channel cart is likely to become a more important are as retailers seek to achieve a clear view of customer behaviour regardless of the device they are using at the time.

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The Pulse of Nordic E-Commerce | An eTail Nordic report

Which best describes the way you personalise your eCommerce website experience: y We personalise our 35% website using CMS data and incorporate personalised marketing like email or social media y We personalise our website 16% on a basic level using CMS data y We do not personalise the website

13%

y We use real-time personalisation for the website based on a user’s individual profile

13%

y We have integrated all 13% data to achieve a single customer view and are able to personalise in real time across marketing and web channels y We use an algorithm-based 10% solution (plug-in / bespoke) to personalise the website based on a user’s prior behavior / the behavior of website visitor’s in general

More than half of respondents primarily use CMS data to personalise their website, with 16% of those supplementing the online personalisation with email and social media. At this time only 13% of respondents report that they are using realtime personalisation based on the user’s individual profile.

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The Pulse of Nordic E-Commerce | An eTail Nordic report

What are your biggest challenges when it comes to improving your data-analysis capabilities? y Problems developing data to include predictive analytics

38%

y Lack of in-house skills

34%

y Large volume of data / not knowing what to ask of it

29%

y Difficulties using existing data to get actionable insights

28%

y Dealing with legacy database problems

26%

y Our data doesn’t tell us enough

23%

y Convincing board-level decision makers of the ROI potential

22%

Data management and organisation is clearly an issue for retailers in the Nordics – data development to include predictive analytics is the number one challenge. Similarly, the third most common challenge is the sheer amount of data available along with the lack of an overall strategy. Perhaps the most profound problem, however, is the lack of the in-house skills required to make meaningful progress on these issues.

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Pt. 2

Omnichannel performance


The Pulse of Nordic E-Commerce | An eTail Nordic report

How would you rate your omnichannel operation compared to those of your competitors? y We’ve started, but we’re playing catch-up with our competitors

42%

y We’re on par with our competitors

28%

y We’re not operating at an omnichannel level

27%

y We’re ahead of the pack

42%

2%

27% 28%

Only two percent of retailers consider themselves to be ahead of the pack when it comes to omnichannel operations. There is clearly some caution being expressed here, however, these results do suggest that Nordic retailers consider themselves to be the beginning of the omnichannel journey.

2%

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The Pulse of Nordic E-Commerce | An eTail Nordic report

Do you have separate teams for online, in-store and mobile, or are your retail teams integrated? y Separate teams for online, 48% in-store and mobile y One integrated retail team 52%

48%

53%

In terms of omnichannel operations this is a sign that retailers are moving in the right direction. An integrated retail team is a huge step forward in terms of the alignment of shared goals, the allocation of budget and resources and promoting a spirit of cooperation rather than competition.

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The Pulse of Nordic E-Commerce | An eTail Nordic report

Are your prices consistent across all channels? y Yes

39%

y No

61%

Fewer than 40% of respondents are pricing their goods consistently across channels — this must be an area of focus for retailers seeking to streamline their omnichannel operations. Consumers don’t expect to find different prices on different channels from the same retailer – this is the reality of customer expectations today, and many retailers are struggling to keep up.

39%

61%

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The Pulse of Nordic E-Commerce | An eTail Nordic report

What initiatives are you currently running to improve the synergy between online and in-store? Retailers are looking for ways to improve their in-store performance by using the skills and technology which have been developed for eCommerce. Working with third party providers can be a great way to drive traffic and access consumers who are not yet part of your network, and 58% of retailers in the Nordics are now doing this.

Working with third party providers to share offers and vouchers

58%

Email gathering techniques

51%

Discounted pre-pay vouchers

50%

Cashback in-store

22%

Geofencing

17%

Sending in-store promotions via an app

16%

Nothing

15% Unique coupons to connect online and in-store (coupons printed on receipt)

14%

Digital rebates (take a picture of the receipt)

5%

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Pt. 2

Attribution


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The Pulse of Nordic E-Commerce | An eTail Nordic report

What kind of attribution model do you use? y First click

27%

y Positional

24%

y Linear

22%

y None

13%

y Last click

11%

y Last non-direct click

2%

y Time-delay

1%

27%

24% 22%

13% 11% No-one has cracked the attribution model yet, and the wide spread of strategies in use are on full display here. Certainly it is good to see nearly a quarter of retailers apply a weighted credit to multiple touch points along the customer journey by use of a positional attribution model. However, with nearly 30% of retailers still opting for a first click model there is still some work to be done to properly attribute ROI.

2% 1%

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The Pulse of Nordic E-Commerce | An eTail Nordic report

UN

How satisfied are you with your current attribution model?

IED SF I T SA

N EI

18%

SATISFIED

D THER SATISFIE

29%

53%

NO R

U

N

SA TI

SF

IE D

Retailers are still searching for the right attribution model for their business. 47% of respondents do not feel satisfied with their current strategy, and 18% of those are currently unsatisfied.

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The Pulse of Nordic E-Commerce | An eTail Nordic report

Do you feel that your current attribution model successfully takes account of the lifetime value of a customer?

Yes

No

69%

31%

Customer lifetime value is a critical measure of success for any retailer, but many are still struggling to take account of this as a part of their attribution model. In fact, 69% of retailers do not think that their current model takes customer lifetime value into account successfully.

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The Pulse of Nordic E-Commerce | An eTail Nordic report

About eTail Nordic eTail Nordic is the region’s premier event for senior ECommerce and Multichannel Directors from leading retailers. Each year, Scandinavia’s biggest names attend to network and get a 360° perspective on the most pressing challenges and opportunities in digital retail. eTail Nordic allows you to customise your event experience, so you can focus on what you need to know to most effectively transform your digital strategy. Prepare to receive in-depth advice on the hottest topics from mobile strategy, to personalisation, customer journey mapping and dynamic delivery. Ideas which will transform your business!

About WBR Digital At WBR Digital we design and execute bespoke content marketing campaigns, delivering insightful content to our high-level audience all year round. We are a team of marketers, researchers and writers with a passion for content with a creative twist. From research-based whitepapers focused on your priorities, to benchmarking reports, infographics and webinars, we can help you to inform and educate your readers, while reaching your marketing goals at the same time. Contact us to find out how your business could benefit from:  Year-round access to the wider WBR event database  Lead generation campaigns that fit your priorities  In-depth research on current fast-moving issues and future trends  Promoting your expertise a thought leader in your field Contact: Tanyel Crossley Head of Digital Publishing Tel: +44 (0)20 7368 9708 Email: Tanyel.Crossley@wbr.co.uk

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eTail Nordic Benchmarking Report 2016  

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