Astound Commerce | Q1 2017 | Page 1By Lauren Freedman | SVP Digital StrategyGlobal BrandResearch2017Astound ComerceAstound Commerce | Q1 2017 | Page 2The image part with relationship ID rId2 was not found in the file.The image part with relationship ID rId3 was not found in the file.I. The Methodology and ToplineII.Brand Manufacturer Website ResearchIII.PurchasingIV. The Physical StoreV.Customer ServiceVI. Social MediaAgendaAstound Commerce | Q1 2017 | Page 3I. The Methodology and ToplineAstound Commerce | Q1 2017 | Page 4SurveyGoalsGain a clear understanding of the role of brand manufacturer shopping experiences across digital and physicalstorechannels while also exploring differences in behavior based on gender and age.Explore esential brand manufacturer topics including: § Researching, website prompts, site experiences, sentiment and feature expectations (Q5-10)§ Purchasing and respective performance (Q1-17)§ The role of the brand manufacturers physical store (Q18-21)§ Customer service and brand manufacturers (Q22-23)§ Social media and brand manufacturers (Q24-25)§ CPG research and purchasing patterns (Q26-30)Astound Commerce | Q1 2017 | Page 5Survey Demographics§A 30-question online survey of 1000 consumers who shop online and have visited brand manufacturer websites in June, 2017 §957 initialy disqualified§50% Male/50% Female§5 sets of 200-Age demographic segments (18-24, 25-34, 35-44, 45-54, 55-70) §Income as outlined 17% 13% 15% 18% 16% 20% 0% 5% 10% 15% 20% 25% Under $25,00 $25,000-$35,000 $35,001-$50,000 $50,001-$75,000 $75,001-$100,000 $100,001+Combined Anual Household Income Before Taxes Astound Commerce | Q1 2017 | Page 6§ 58% of online shoppers visit 5+ brand manufacturer websites(67% Milenials)§ Social media (51%/64% Milenials) and search engine ads (47%/57% Milenials) biggest prompters to brand manufacturer websites§ “Very important” brand manufacturer features include onsite navigation (65%), complete product information (59%), rich product detail page (59%) and clear return polices (59%)§ While shoppers stil prefer multiple brand retail experiences, the role of the brand manufacturer website is multi-dimensional and particularly important once products are purchased froma research and service perspective -59% of shoppers prefer to research/55% want to shop directly at the brandmanufacturer rather than a retailer§ The majority of online shoppers expect more comprehensive information and beter prices from brand manufacturerwebsites than multi-brand retailers§ Brand manufacturers are meting and often exceedingonline shoper expectationsBrand manufacturer research§ Beyond web channel, physical stores see strongest usagewith social and mobile neck and neck; Milennials over-index on both§ Prices and products most often cause online shopersto make purchases§ 2 out of 3 shoppers have purchased at least 3 productsin the past 6 months from brand manufacturer websites with Milennials and males leading the charge § 2 out of 3 shoppers have purchased at least 3 productsin the past 6 months with Milenials (80%) and males (71%)§ Apparel and acessories top the list of brand manufacturer categories purchased§ Brand shopers grade website experiences highwith half receiving an ABrand manufacturer purchasingThe ToplineAstound Commerce | Q1 2017 | Page 7§ 8 in 10 online shoppers have visited the brand manufacturers physical store§ 70% of store visitors want to touch and fel the product while 59% sek out the ful brand experience§ 52% of online shoppers believe its essential that associates can place an order while 46% want them to be able to acces inventoryThe brand manufacturer physical store§ Email dominates customer service outreach (53%) while 36% use live chat§ 85% of online shoppers score customer service interactions good or greater with 42% coming in at excellent Customer service§ More than half of online shopers are connected to 3+ brand manufacturers on social media§ Almost half of shoppers connect with brand manufacturers on social media at least wekly Social mediaThe ToplineAstound Commerce | Q1 2017 | Page 8II. Brand Manufacturer Website ResearchAstound Commerce | Q1 2017 | Page 99% 12% 19% 29% 31% 0% 5% 10% 15% 20% 25% 30% 35% 1-4% 5-10% 11-20% 21-49% 50%+ % of shoping purchases done online (excluding groceries)“What percentage of your shoping purchases (excluding travel and groceries) is done online?” Milennial Non-millennial Male Female50%+ 36% 28% 33% 30%21-49% 30% 29% 31% 27%21+ 66% 57% 64% 57%Milennial shopping is 9 points higher than non-Milennials while males are 7 points higher then females in regards to 21%+ online purchasing 6 out of 10 online shopers make 21% or more of their purchases online.Astound Commerce | Q1 2017 | Page 1017% 25% 28% 30% 0% 5% 10% 15% 20% 25% 30% 35% 1-2 3-4 5-9 10+ # brand manufacturer websites visited in past 6 months “How many brand manufacturer websites have you visited in the past 6 months?” Milennialsare most aggresive as 67% visit 5+ brand manufacturer websites Milennial Non-millennial Male Female10+ 34% 28% 32% 28%59 33% 25% 30% 25%5+ 67% 53% 62% 53%58% of online shopers have visited 5+ brand manufacturer websites.Astound Commerce | Q1 2017 | Page 11Social media advertising and search engines serve as the bigest prompters to brand manufacturer website visits.9% 9% 14% 22% 22% 22% 23% 24% 25% 25% 25% 31% 35% 38% 47% 51% 0% 10% 20% 30% 40% 50% 60% Billboards SMS or Text messages from brand manufacturers Ads that seem to folow you around the internet showing you a Walking past a brand manufacturer's physical store Mobile advertising (including ads in mobile apps like Buzfeed) Baner advertising on content sites Direct mail/print catalogs or weekly circulars General email from a brand manufacturer Newspapers and magazines Emails that include a personalized offer (based on your tastes or Promotions (discounts/coupons) In-store visits to a brand manufacturer's physical store or retailer TV/Radio Recommendations from friends/family (online or offline) Ads in search engines (Google, Bing, etc.) Social media advertising (Facebook, Pinterest, etc.) Prompters to visit a brand manufacturer's website1 in 3 are prompted by an in-store visit suggesting cross-channel dynamics matter “Which of the following have promptedyou to visita brand manufacturers website? Check all that aply.” Astound Commerce | Q1 2017 | Page 12Males are more often prompted by both traditional and digital channels while females are more receptive to emails, social advertising and promotions.“Which of the following have promptedyou to visita brand manufacturers website? Check all that aply.” Avg Male Female M/F GapTV/Radio 35% 41% 29% 12Ads in search engines (Gogle, Bing, etc.) 47% 53% 41% 12Mobile advertising (including ads in mobile apps like Buzzfed) 22% 27% 17% 10Newspapers and magazines 25% 29% 20% 9Banner advertising on content sites 22% 25% 20% 5SMS or Text messages from brand manufacturers 9% 11% 7% 4Bilboards 9% 10% 7% 3Walking past a brand manufacturer's physical store 22% 22% 22% FlatDirect mail/print catalogs or wekly circulars 23% 23% 23% FlatAds that sem to folow you around the internet showing youa product recently viewed 14% 13% 15% -2Recomendations from friends/family (online or offline) 38% 36% 39% -3In-store visits to a brand manufacturer's physical storeor retailer who sells their products 31% 29% 32% -3Emails that include a personalized offer (based on your tastes or purchase history) 25% 22% 27% -5General email from a brand manufacturer 24% 21% 27% -6Social media advertising (Facebook, Pinterest, etc.) 51% 48% 54% -6Promotions (discounts/coupons) 25% 19% 30% -11Astound Commerce | Q1 2017 | Page 13Millennials are more often prompted by digital means including search engine ads, banner, mobile and social media advertising.Avg Milen Non-mill M/NM GapMobile advertising (including ads in mobile apps like Buzzfed) 22% 36% 13% 23Social media advertising (Facebook, Pinterest, etc.) 51% 64% 43% 21Ads in search engines (Gogle, Bing, etc.) 47% 57% 40% 17Banner advertising on content sites 22% 28% 19% 9Walking past a brand manufacturer's physical store 22% 27% 19% 8Recomendations from friends/family (online or offline) 38% 42% 35% 7Bilboards 9% 11% 7% 4TV/Radio 35% 37% 35% 2In-store visits to a brand manufacturer's physical store or retailer who sells their products 31% 32% 30% 2Newspapers and magazines 25% 24% 25% -1Ads that sem to folow you around the internet showing you a product recently viewed 14% 14% 15% -1SMS or Text messages from brand manufacturers 9% 10% 9% -1Emails that include a personalized offer (based on your tastes or purchase history) 25% 23% 25% -2General email from a brand manufacturer 24% 21% 26% -5Promotions (discounts/coupons) 25% 22% 27% -5Direct mail/print catalogs or wekly circulars 23% 19% 25% -6Astound Commerce | Q1 2017 | Page 1422% 25% 26% 31% 32% 38% 41% 44% 49% 57% 59% 59% 59% 65% 0% 10% 20% 30% 40% 50% 60% 70% The ability to share photos of how I use products Option to conect via live chat Selling tactics including top sellers, top rated, etc. Retail store information that conects visitors to a dealer Retail store information that conects visitors to the Promotions such as gift with purchase, buy more save User-generated content (reviews, Q&A, etc.) Comprehensive customer service information (FAQs, Clear warranty options Free shipping offers Clear return policies Product detail page that provides a rich sense of the Comprehensive product information Onsite search and navigation Feature and functionality importance when visiting brand manufacturer websites |Very ImportantOnsite search, product information, return policies and free shipping are very important to the majority of online shoppers.“When browsing and buying from brand manufacturer websites, how would you rate the importance of the following features and functionality?” Astound Commerce | Q1 2017 | Page 1528% 31% 39% 39% 39% 39% 38% 38% 34% 32% 29% 32% 31% 28% 22% 25% 26% 31% 32% 38% 41% 44% 49% 57% 59% 59% 59% 65% 0% 20% 40% 60% 80% 100% The ability to share photos of how I use products Option to conect via live chat Selling tactics including top sellers, top rated, etc. Retail store information that conects visitors to a dealer Retail store information that conects visitors to the Promotions such as gift with purchase, buy more save User-generated content (reviews, Q&A, etc.) Comprehensive customer service information (FAQs, Clear warranty options Free shipping offers Clear return policies Product detail page that provides a rich sense of the Comprehensive product information Onsite search and navigation Feature and functionality importance when visiting brand manufacturer websitesSomewhat Important Very Important Most shoppers find features important from standards that include onsite search to an array of information (product, policy and store) as well as user-generated content and promotions.“When browsing and buying from brand manufacturer websites, how would you rate the importance of the following features and functionality?” Astound Commerce | Q1 2017 | Page 16Very Important Male Female M/F Gap Option to connect via live chat 29% 22% 7The ability to share photos of how I use products 24% 20% 4Selling tactics including top sellers, top rated, etc. 28% 25% 3Retail store information that connects visitors to a dealer locator that shares where the manufacturers products are sold32% 31% 1Retail store information that connects visitors to the manufacturers physical store 33% 32% 1Promotions such as gift with purchase, buy more save more, etc.) 37% 38% -1Clear warranty options 48% 49% -1User-generated content (reviews, Q&A, etc.) 40% 42% -2Onsite search and navigation 63% 66% -3Comprehensive customer service information (FAQs, contact us) 42% 46% -4Fre shiping offers 53% 61% -8Comprehensive product information 55% 64% -9Product detail page that provides a rich sense of the product (zoom, alternative views, color change, spin) 52% 65% -13Clear return policies 52% 65% -13Clear return policies, product detail pages and product information are much more important for females.“When browsing and buying from brand manufacturer websites, how would you rate the importance of the following features and functionality?” Astound Commerce | Q1 2017 | Page 17Millennials find ability to share photos, live chat connections and selling tactics most important while non-Millennials care more about free shipping, comprehensive product information and clear return policies. Very Important Mil Non-Mil M/NM Gap The ability to share photos of how I use products 30% 17% 13Selling tactics including top sellers, top rated, etc. 32% 22% 10Option to connect via live chat 31% 22% 9Retail store information that connects visitors to themanufacturers physical store 37% 29% 8Promotions such as gift with purchase,buy more save more, etc.) 42% 35% 7User-generated content (reviews, Q&A, etc.) 45% 38% 7Retail store information that connects visitors to a dealer locator that shares where the manufacturers products are sold 35% 29% 6Comprehensive customer service information (FAQs, contact us) 46% 43% 3Onsite search and navigation 66% 64% 2Clear warranty options 48% 49% -1Product detail page that provides a rich sense of the product (zoom, alternative views, color change, spin) 56% 61% -5Comprehensive product information 56% 62% -6Clear return policies 55% 61% -6Fre shiping offers 51% 61% -10Astound Commerce | Q1 2017 | Page 1822% 24% 27% 30% 34% 38% 41% 0% 10% 20% 30% 40% 50% Virtual reality for evolved shopping experiences Room visualization and planning tools Virtual try on tools for apparel and accessories Video to highlight product details or demonstrate a product Customization tools that give shoppers the ability to customize a product to ones individual tastes Product finders that guide you to the right product (e.g. beauty products, home appliances, etc.) Sizing tools that asist in selecting the right product (e.g. TrueFit) Importance of specialized capabilities when shoping brand manufacturers across categories. Very Important.“How important are the following specialized capabilities when shoping brand manufacturers across a range of categories that might include aparel & accesories, sporting goods, health and beauty, home and technology, etc.?” Tools that help shoppers purchase the “right” products for them are very importantto 1 in 3 online shopers. Astound Commerce | Q1 2017 | Page 1930% 37% 32% 44% 40% 39% 39% 22% 24% 27% 30% 34% 38% 41% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Virtual reality for evolved shopping experiences Room visualization and planning tools Virtual try on tools for apparel and accessories Vid