Shopper Marketing - September 2016 - 206


SHOPPING IN THE FLOW

THE EMERGING TECHNOLOGY LINE-UP

VIRTUAL
REALITY
(VR)

VIRTUAL VOICE
ASSISTANT

ARTIFICIAL
INTELLIGENCE
(AI)

AUGMENTED
REALITY
(AR)

SMART
WATCH

CONNECTED
CAR

RETAILER
MOBILE
WEB/APP

How Did We Get Here?

"THE" DISRUPTOR
Amazon has disrupted the purchase funnel in a powerful way,
by becoming America's anything-and-everything store, and
also the primary search engine11 for shoppers. Roughly 44% go
directly to Amazon to search, bypassing Google and the rest of
the Web; just 34% of shoppers today use a search engine.
Amazon has also redefined loyalty. According to some
estimates, there are more than 54 million Amazon Prime
users and they are incredibly loyal: they order more frequently
and spend more than non-Prime shoppers and continue to
spend more each year they remain a Prime member.
Amazon's continuing investments in technology will cause
further disruption.
The Amazon Dash button is essentially a physical representation
of an e-commerce buy button. Close to 200 Dash buttons now
enable shoppers to buy everyday items ranging from laundry
detergent to garbage bags and condoms, without using a
computer or mobile device.
Each button is connected to the Internet, and part of the
Internet of Things, yet another advance that will further
collapse the funnel.
The Amazon Echo could well be the most powerful disruptor of
all for Amazon. The built-in artificial intelligence of Alexa can be
verbally commanded to order an item, virtually ensuring no
household need forget to buy more of anything ever again.
TPN helps clients manage and optimize their Amazon
strategy and day-to-day merchandising initiatives through
our Amazon Practice.

2

TPN SPECIAL REPORT PART 1

Remember Simon, the first smartphone? Not many do. It debuted 20
years ago, but it wasn't until the mid-2000s that connectivity began to
change shopping behavior. Today, about 77 percent of all consumers
use a smartphone while shopping, and 44 percent have made a
purchase this way.6
Millennials are even more likely to shop with smartphones than older
shoppers, and just wait until Generation Z comes of age! Generation Z's
oldest members are 18 years old, so they were practically born with a
mobile device in hand. They're embracing new technology and
platforms at an even greater rate than Millennials, which means Gen Z
likely will once again change the game for brand marketers.
It's not just the platforms, software and apps facilitating change.
Sales of Virtual Reality (VR) headsets are poised to explode, fueling a
"tectonic shift" in gaming and home entertainment, according to the
Consumer Technology Association (CTA).7
Smart-home devices are just now reaching the mass audience, and
sales of wearables including smart watches and fitness trackers are
expected to be strong into the next decade. There's even a new category
within wearables called "hearables" that attach to the ear and provide
feedback about biometric responses such as heart rate, oxygen
saturation, distance and calories burned.
These emerging technologies are turning more commonly used
technologies, such as self-service kiosks and retailer websites/apps,
into an expected part of the new normal. So many devices, and so many
ways to reach customers! Which is not all good news for traditional
marketing fans.
"All this new technology is actually making it easier for brands to reach
their target, but much more challenging than ever for them to truly
connect with that target," said Love. "Today, each and every brand
touchpoint - from television ads to mobile messaging to social media
to digital POP and beyond - has to be perfectly synched with the
mindset, behavior and surroundings of your target at that particular



Table of Contents for the Digital Edition of Shopper Marketing - September 2016

Contents
Shopper Marketing - September 2016 - Intro
Shopper Marketing - September 2016 - 1
Shopper Marketing - September 2016 - 2
Shopper Marketing - September 2016 - 3
Shopper Marketing - September 2016 - Contents
Shopper Marketing - September 2016 - 5
Shopper Marketing - September 2016 - 6
Shopper Marketing - September 2016 - 7
Shopper Marketing - September 2016 - 8
Shopper Marketing - September 2016 - 9
Shopper Marketing - September 2016 - 10
Shopper Marketing - September 2016 - 11
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