- The Internet Trends report has served as a compass for the entire Tech, AdTech and Global Commerce industry since 1995.
- Was it going to come out this year? Its author, legendary venture capitalist Mary Meeker, left Kleiner Perkins Caufield & Byers in April to launch her own ’boutique’, Bond, a new technology investment fund (which has already raised more than 1, 25 billion dollars according to Adage)
- She did it ! Richer than ever (333 slides), with, among other things, all the Retail Tech statistics and trends that this visionary retains over the last 12 months.
Mary Meeker had given primacy to output at the Code Commerce Conference hosted by Recode. An excellent summary was given to you by Innocentia Agbe, journalist at FrenchWeb. For my part, I give you 6 impactful points for Retail.
Here is Mary Meeker’s fascinating video presentation (at an accelerated pace) and the report to download.
E-commerce in the United States represents 15% from retail total
Driving referrals is critical as acquisition costs soar. And how do you make your customer happy? Through personalization and customer experience.
Personalization / customer experience
Mary Meeker takes Stitch Fix as an example (last quarter up +29%)
Strich Fix is this online subscription service that delivers boxes (“Fix”) of clothing, and personalizes each shipment using algorithmic processing combined with the judgment of a natural person. The stylist then approves or reviews the data science proposal. Learn more
“The future of retail is personalization” says Mike Smith, the president and chief operating officer in an interview for WWD.
The model is as much about the algorithms (Stitch Fix employs a lot of Netflix alumni) as it is about the men and women who make up the battalion of Stylists – people who will check the algorithms’ proposals with what they know about each other. of their customers, through the relationship maintained, by email, such is the feedback from these customers.
A French example:
Etam. In his interview, Cédric Taravella, CEO of Etam, explained that the Retail Marketing Platform (reconciliation of online data and store data) set up with Ysance allowed, among other things, store customization based on online data at the local level: “We make our stores benefit from what we know about the products seen on the web by customers, in their catchment areas. We send this data to the store teams so that they can adapt the merchandising accordingly. Thus the customer from Bayonne will not see exactly the same products as the customer living in Strasbourg or the customer living in Warsaw”.
We used to talk about “Sponsorship” (friends, family). With e-commerce helping, we have evolved towards customer reviews. Social networks helping, we started to like, post or share. Besides that, influencers (including micro-influencers) also make recommendations.
- Businesses rely entirely on the recommendation model: Poshmark, Revolve.
- Companies are successfully “re-positioning” the images of their products posted on Instagram by others (customers, influencers) on their digital spaces (website, email, Facebook, blog, etc.). The photo posted by a client will always have more impact than a “marketed” photo (transparency, authenticity). And above all, the traffic coming from Instagram on their e-commerce site being low (we are talking about a few % of traffic), this tactic makes it possible to very significantly increase traffic, by relying on social content.
Social App/Messaging + Transaction
Mary Meeker highlights the increasingly frequent integration of e-commerce and payment in social apps and messaging, taking as an example the messaging app of KakaoTalk (South Korea) which has integrated a payment functionality since 2014. and a digital wallet. Also mentioned is the introduction of payment functionality in WhatsApp. The company began testing WhatsApp Pay in India in May 2018, and is preparing to roll out the feature in Europe, assembling a London-based team of 100 for the rollout. (25% of London WhatsApp team).
Insight: Integrating e-commerce and payment functionalities into social apps seems logical when you know the time spent by people on these apps and messengers. They are there, why not take advantage of them? Hence Instagram Check Out. But discovering a Product through an image does not necessarily result in an immediate purchase.
American retailers who have had Instagram Shopping experience longer than France know this. Because of this, they choose to provide as many opportunities for consumers to interact as possible, as this increases the conversion rate. Example with Crate and Barrel.
The mobile: the king of the world
In his interview, Cédric Taravella, CEO of Etam, had already surprised us by indicating that the desktop represents only 16% of online visits to Etam.com. By clarifying his thought:The desktop no longer interests me”.
For the first time, Americans will spend more time on their mobile devices than watching television. A 2019 estimate suggests adults will spend an average of 226 minutes (over 3.5 hours) on their phones compared to 216 minutes watching TV.
Note: in the US, the share of advertising investments made on mobile (finally) follows the time spent on mobile (In the United States in 2018, mobile represented 33% of the time of American consumers and 33% of advertising expenditure television: 34% of time spent, 34% of advertising expenditure; and desktop: 18% of time spent and 18% of advertising expenditure).
More and more people are using images to communicate. We take photos for a yes and for a no, and… there is Instagram. (Today there are 17 million Instagram users in France. Worldwide, there will be 1.31 billion monthly active users by the end of 2019 according to the Wall Street Journal).
Major platforms invest heavily in technology to be there for inspiration (Amazon, Pinterest) AND research (Google Image has launched an advertising format with “Shoppable” images).
Insight : Sensing the danger, more and more retailers are enriching their apps or mobile sites with the small camera icon on their home page in order to take a photo of a product from the real world and find it – or find its equivalent – in their catalog their. Because the worst, told us Ted Mann, the CEO of the leader in visual search for Retail Slyce, would be that, for example, Amazon would be the “default” app for this new form of search which is becoming a reflex for many consumers. .
Everything has been said about the importance of delivery – fast – Amazon Prime has set the bar very high and the consumer expects to benefit from the same level of service everywhere else. (After Amazon announced in April to offer “next day” delivery for its Prime members in the United States, Walmart in May began offering free “next day” delivery on more than 200,000 items on its site). Mary Meeker points out that data-driven order management (including delivery) is growing rapidly, allowing local merchants to grow their business by selling online, at affordable prices with fast delivery.
Insight: An example in catering is Panera Bread in the United States which, having achieved a Total Integration of its bases (Customer, Point of Sale (PoS), Digital, Production and Marketing) offers 6 ways to consume on-demand , including 3 ensuring fast delivery or collection in store:
- Order “on-the-go” in the app -> Skip the line
- Order Online – Pick up in store (10% of total sales)
Since this integration of the Bases, “Order ‘on-the-go’ and Order Online-Pick up in store” customers have increased their purchase frequency by +30%.
We also think of Instacart, which explained to Shoptalk in Las Vegas last March that one of its new services for retailers consists of taking charge of express deliveries from small local merchants who wish to serve their customers with same-day delivery. (Fashion boutiques or malls are also interested in preventing their customers from carrying around all day with bags).
Mary Meeker’s Presentation to Commerce Code (Recode). Enjoy!