1. UPS Pulse of the Online Shopper™
Tech-savvy shoppers transforming retail
UPS Pulse of the Online Shopper is an independent study conducted by 3rd Party independent researcher that conducts studies on customer behavior not sanctioned by UPS. This data will help you know how your customers are researching, considering and purchasing. This data will help you grow you business by knowing how your customers what to buy from you.
2016 U.S. Study
January 2017

2. Overview The 2016 UPS Pulse of the Online Shopper™ Study explores:
Insights into consumers’ online shopping preferences
Future online and omnichannel trends, particularly those driven by technology
How social media and other promotional vehicles drive retail sales
A total of 5,118 respondents were surveyed; data was then divided into:
Shoppers who purchased luxury, non-apparel goods in the past three months: 277 consumers
277 luxury, non apparel - rolex,

3. Results summary

4. Demographics of luxury
52%
millenials (18–34)
26%
gen X (35–50)
20%
boomers (51–69) 2%
Other (70+)
Age
54%
male
46%
female
Gender 6%
less than 25K
35%
25K–60K
33%
60K–100K
26%
100K+
Income

5. Shoppers are highly satisfied with their shopping experience
Overall online shopping satisfaction
Satisfaction is higher with online channels
Consumer satisfaction has increased 40% over the past 5 years. Today it is 81%. Over the past 5 years
81% of customers who shopped online are satisfied. How are they shopping
71% of your potential customers are still shopping at stores. But to gain a wider audience you have to go online. As you will see satisfication is higher when customers shop online vs the physical store.
Think 5 years of ago your comfort level and how that compares to today. There is a change in the mindset and you need to have an online presence.
70% smart phone – optimized for multiple types of devices, application (for larger retailers)
Where do you think that is going to be in 5 years?
Q10. How satisfied are you with your shopping experience in the last 3 months? – % Satisfied - Top 2 Box 7-Point Scale, n-=277
LUXURY NON-APPAREL

6. Cross-channel purchases are growing
47%
Multi-channel net
Frequency
of purchases by method
35%
35% soley online
47% multi channels, app driven, driven or in store
18% search and buy online
Shopping and buying are two different experiences. Propensity for customers off the street is low vs if there is technology to support the purchase. 82% higher hit rate if online vs just a store.
18%
Search and buy online
Search and buy in store
RB6. Thinking of all the purchases that you make, both online and in stores, how often do you purchase in the following ways?
LUXURY NON-APPAREL

7. In fact, more luxury, non-apparel shoppers plan to increase activity through online methods
Percent that will shop more by channel
41%
36%
29%
19%
If not online, get with the program – vs 19% in store purchases.
41% of more purchases will be on a laptop.
Where are you going to be in 3 years...where are your customers going to be in 3 years.
Desktop or laptop computer
Smartphone
Tablet
In store
Fut7. Over the next year, do you plan to shop less, the same or more than last year using each of the following means?
LUXURY NON-APPAREL

8. Digital is changing the way shoppers research and purchase goods
Research online
Purchase online
77%
65%
Research is going to happen. Retail website. 16% physical store, 7% catalog. 26% store, catalog 9%. Product research.
RB1. Thinking of your favorite retailer that has both physical stores and an online presence, what channel do you prefer to research and purchase products?
LUXURY NON-APPAREL

9. What’s important to shoppers: pre-purchase
Most important items when searching for and selecting products online
Most influential content when visiting a site
75%
67%
66%
60%
Product prices
Return policy
Detailed product info
Retailer reputation
Product reviews
71%
Communities / forums
66%
Photos submitted by consumers
64%
Now that we got your customer to your website what will drive them to purchase.
Movies... Product information, watch links, rings... Personalized reviews, builds reputation, creditability
RB5A. How important are the following factors when searching for and selecting products online?
Search1New. When visiting a retailers website, how influential are the following types of content?
LUXURY NON-APPAREL

10. What’s important to shoppers: checkout
Free shipping options
26%
Variety of payment methods
18%
Expedited shipping options
Luxury shippers don’t want to be nickeled and dimed. Thresholds set and established 9%
Check 2. What information or options are most important to you when going through an online checkout process?
LUXURY NON-APPAREL

11. What’s important to shoppers: post-purchase
Satisfaction with aspects of post-purchase experience
Information & Communication
Communication – post purchase – nurture the relationship
Put testimonials of these key satisfaction drivers on your website it will drive sales. (list track)
Track1. How satisfied are you with each of the following aspects of the post-purchase experience when shopping online? ? – % Satisfied - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL

12. But the in-store experience isn’t dead
43%
Love the thrill of hunting for and finding great deals
50%
Shopping relaxes me
47%
Shopping in-store is still a major part of my shopping routine
42%
In-store visits help me gather new ideas
New16_Omni_1. Thinking about the past year, please state your level of agreement with each of the following statements regarding your store behavior. ? – % Agree - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL

13. And, small retailers are very important
Top reasons to shop at small retailers
44% Unique items
32% Support community or small business
29% Like to try new retailers
29% Service they provide is superior
Customers are willing to make tradeoffs when shopping with smaller retailers
33% Limited hours or inconvenient locations
28% Longer delivery times
26% Paying for shipping and handling
25% Less sophisticated website
Retailers must have unique products to compete
Don’t follow the big retailers, be unique...that is what customers are looking for
Retailer1new. For what reason would you shop with small retailers either online or at a store as opposed to larger, well-known retailers?
Retailer2new. What tradeoffs are you willing to accept when shopping with small retailers, either online or at a store, as opposed to larger well known retailers?
LUXURY NON-APPAREL

14. Ship to store is in favor
54%
have shipped to store for pickup
Plan to use ship to store more in the coming year:
46%
of past users
72%
Of those,
made additional purchases in store
Flex5(NewQ_OC4). In the past year, when purchasing online, have you ever chosen the “ship-to-store” or “pick-up-in-store” option?
Flex6BNew. Do you plan to select “ship-to-store” or “pick-up-in-store” more often in the next year?
Flex6. When you selected “ship-to-store” or “pick-up-in-store”, in the past, did you typically end up purchasing more items while you were in the store during pickup?
LUXURY NON-APPAREL

15. Leverage store returns to drive repurchase
Preferred method of return
Made an additional purchase
In store
81%
64%
Online
65%
35%
Return an item in store
Ship an item back to retailer
Ret4. For those retailers that have both a physical store and online presence, how do you prefer to return items that you ordered online?
Ret4bnew. In the past year, when making a return to the store, have you also made a new purchase?
Ret4cnew. In the past year, when processing a return on a retailer’s website, have you also made a new purchase?
LUXURY NON-APPAREL

16. Social media should be integrated into your marketing strategy
47%
48%
33%
37%
2016
Follow retailers on social media
Luxury Goods
Non-Luxury Goods
Social media influences their purchases
58% are likely to engage with the retailer via social media when they are satisfied with a purchase
Critical. Facebook is still relevant #1. Influenced by those posts
SM1. Do you use any of these social networking sites in the following ways? % that follow retailers on this site, and % influenced to purchase
SM5. When satisfied with a brand or product you have purchased, how likely are you to engage with the brand or product via social media?
LUXURY NON-APPAREL

17. Social media content can engage consumers
63%
Promotions
Likelihood to click and explore posted content
54%
New product announcements
52%
Store locators
Social2new. How likely are you to click and explore the following types of content posted by retailers on social media? - % Likely - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL

18. Likelihood that these advertisement forms will prompt shopping
s with promotions are more likely to prompt shoppers to buy from a retailer
Likelihood that these advertisement forms will prompt shopping
promotions are still the best options to prompt purchase.
Nueture
Ad2. How likely are the following forms of retailer advertising to prompt you to shop with a retailer? - % Likely - Top 2 Box 7-Point Scale
LUXURY NON-APPAREL

19. Protect Your Reputation with Risk Management
Major U.S. City
Crime Rate per 1,000
Chicago
5.38
New York
2.57
Los Angeles
3.94
Miami
4.18
U.S. Average
2.3
Loss prevention best practices:
Select a carrier that offers armed, secured, transportation and insurance
Use shipping practices that are non-descript, secure and well packaged
Conduct due diligence prior to engaging in new business
Control of custody provides physical accountability for your valuables:
Use Air Express Service Levels
Limit 3rd Party logistics providers
Use transportation companies with employees, not contractors
When crime is up the threat is higher. Easy targeting, bigger prize, less work/risk for organized crime/cartels to target your valuables.
Prevention is the focus. Threat assessments, intelligence gathering
Source: FBI / CJIS / UNIFORM CRIME REPORTING (UCR) PROGRAM
LUXURY NON-APPAREL

20. Why not partner with a shipping and insurance specialist who can preserve that reputation?
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