It’s been nearly a year since Jet.com, a direct challenger to the Amazon.com e-commerce empire, launched onto the retail scene. And over this relatively short time period, Jet.com has dropped its initial membership model, instead offering free shipping on orders over $35, two-day delivery on common household essentials, and an almost game show style shopping experience where customers unlock new deals and discounts when they waive free returns, buy in multiples, pay with debit cards, or add specific items to their online carts. On paper, this business model seems like a surefire way to gain savings-hungry, free shipping-loving shoppers’ attention. So is Jet.com making inroads with consumers? Or is the site destined to become another blip on Amazon’s radar, à la once hot flash-sale sites like One Kings Lane? For this analysis, we’ll take a look at Prosper Insights & Analytics’ latest consumer insights on Jet.com shoppers – including repeat purchasers – as well as how the Jet.com shopping experience stacks up against Jeff Bezos’ behemoth. Continue reading →
Index is Less Volatile and More Useful for Category and Retailer Predictive Analytics
June 6, 2016 – Prosper Insights & Analytics™ and MacroSavvy™ LLC have collaborated in the development of the Spending Confidence Index™, a less volatile index of consumer confidence/sentiment. This new measure integrates psychological and behavioral factors that affect spending and is valuable for all who wish to predict personal consumption.
The new index and its components are especially valuable for predicting spending at a category level. The index provides a new tool for category analysis and is part of a broader category toolkit that will result from the collaboration between Prosper and MacroSavvy. Continue reading →
At the recent Shoptalk commerce event, Jason Goldberger, Target’s Chief Digital Officer and President of Target.com, spoke about his customers’ point of view regarding on-demand delivery, insisting that instead of an immediate gratification shipment, Target guests were more concerned with having their expectations met within an accurate delivery window. That is, if the shopper was informed that their package would arrive on Tuesday, it should be sitting on the doorstep on Tuesday, even if that meant waiting the standard three to five business days for the package to arrive. This sentiment was also reinforced by the retailer’s recent abandonment of its pilot partnership with the Curbside pick-up app to focus on delivery and execution of retail fundamentals. However, recent research collected by Prosper Insights & Analytics suggests that Target guests in particular prefer a more expedited shipping process. Continue reading →
Prosper’s Consumer Confidence reading is down and the Consumer Spending Forecast is flat. Deborah Weinswig, Managing Director of Fung Global Retail & Technology, provides analysis on why sentiment is soft, as well as where consumer discretionary dollars may be going this summer. She also weighs in on a potential bright spot—the auto market. Continue reading…
Amazon. Without a doubt, whether spoken of directly, implied, or outright avoided, one of the top buzzwords at the recent Shoptalk retail conference was the name of Jeff Bezos’ online powerhouse, which shoppers have been increasingly gravitating toward over traditional retailers. Though some speakers, such as Hudson’s Bay Company CEO Jerry Storch, were dismissive of Amazon.com, others were willing to recognize it as a threat, with most leveling the following arguments against the retailer: 1.) consumers lose human interaction shopping with Amazon; and 2.) Amazon doesn’t provide shoppers with an “experience.” Continue reading →
Heading off its dismal report of a 3.9% same-store sales decline for Q1 2016, Kohl’s, the retail favorite of discount-loving shoppers nationwide, recently made a technological splash with the announcement that they were simplifying the brick-and-mortar purchase process by linking Kohl’s store credit cards and its Yes2You rewards program together under Apple Pay. The Menomonee Falls, Wisconsin, based chain was the first of just two retailers (the other, BJ’s Wholesale Club) to link its store credit card with Apple Pay, and the integration of loyalty rewards into a single-tap mobile transaction indicates that Kohl’s is taking a firm step into the digitally-driven retail future.
It seems more intuitive that an announcement of this kind might have been more likely to come from a retailer touting the latest and greatest in technology (i.e. Best Buy) or from a certain competitor making no secret about courting young shoppers with an elevated store experience (ahem, Macy’s). Instead, it seems that this sometimes underestimated staple in shopping centers nationwide has beaten its retailing peers to the mobile payment punch, allowing shoppers to double up on their loyalty (vis-à-vis their Kohl’s charge and Yes2You rewards) with one tap. The big question remains, though: are Kohl’s shoppers ready for Apple Pay? For this new analysis, we’ll take a look at some of the barriers that Kohl’s may face getting their shoppers to adopt Apple Pay using consumer insights from Prosper Insights & Analytics. Continue reading →
Perhaps Time Magazine will choose the Voter as the “person(s) of the year” for 2016. This might just be the year when historians say the voters, not their parties and ideologies, took control of the election process. Ever since the Indiana Primary win by Donald Trump, there have been numerous articles dissecting how the pundits and political elites misjudged Trump’s presumptive nominee status. Some attempted to explain Trump’s popularity in a derogatory way by claiming it to be a cult of personality, as if he were a dictator. Others simply said, in a condescending manner, that it is anger from less educated, lower income Trump voters that is driving his popularity. Neither of these analyses fits the profile. Continue reading…
Today’s consumers continue to evolve, which is evident in their shopping behaviors and purchase intentions. Deborah Weinswig, Managing Director of Fung Global Retail & Technology, has weighed in again this month on some of Prosper’s leading indicator analytics including Prosper Consumer Confidence, the Prosper Spending Forecast, the Prosper Impulsivity Score, and the Consumer Mood Index. She also took a special look at Prosper’s recently released Amazon Shopper Preference Index.
Amazon.com Shopper Preference Index: In just two years, Amazon’s Shopper Preference Index has increased 48% from 2014. Weinswig commented, “Amazon has become the first stop on the web to begin most shopping searches, and with an ever expanding product and service offering, it is no surprise. Amazon is still in the early innings in many product categories and Fung Global Retail & Technology anticipates continue reading…