customer shop experience - peter burggraaff
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Customer Shop Experience in RetailP t B ffPeter Burggraaff
Sh M k ti J 16 j i 2015Shopper Marketing Jaarcongres, 16 juni 2015
The retail industry seems to reach an agreement: integrated channels & tools are key for an exciting customer journeychannels & tools are key for an exciting customer journey
Customer journey
Orientation Selection Transaction Delivery Customer
Physical in-store INTERACTIVE SCREEN TO REVEW PRODUCT
GET PRODUCT INFO TO OWN
DEVICE
CHECK AVAILABILITY BY STORE ASSISTANT
Orientation Selection Transaction Delivery care
erve
d.
on
Digitalin-store
Storedevice
Own
DEVICE
PAY FOR PRODUCT WITH MOBILE WALLET
p, In
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rese
nter
actio
Owndevice
On-the-goDigital
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upIn Digitalout-of-store
At home SCAN PICTURE – ADD TO WISH LIST
TRACK DELIVERY
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Physicalout-of-store
RECEIVE EXCLUSIVE OFFERSSEE COOL MAGAZINE AD
STATUS
Shopper Marketing Jaarcongres - Customer Shop Experience - Peter Burggraaff.pptx 1Draft—for discussion only
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Note: Illustrative based on Gucci exampleSource: BCG analysis
OFFERSSEE COOL MAGAZINE AD
Market innovations observed along the customer journey provide new customer experiencesprovide new customer experiences
Orientation Selection Transaction Delivery Customer care
erve
d.
Mobile"webrooming"
Mobilewallet
Pricenegotiation
In-storenavigation
Curbsidei k
Customer dialogue
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resepickup
Bloggers
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Endlessaisles
Self-checkout
In-storeself-service Loyalty
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In-storepickup
apps
Shopper Marketing Jaarcongres - Customer Shop Experience - Peter Burggraaff.pptx 2Draft—for discussion only
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Note: Phases in the customer journey are derived from BCG's Shop Experience Audit
Threat or opportunity?Brick and mortar retailers benefit from digitalBrick-and-mortar retailers benefit from digital
6
Avg. yearly EBIT margin growth (%p, 2010 – 20152)Digital frontrunners
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Digital followers
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0 5 10 15 20
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1. Performance based on six criteria: (1) buy online, return in store; (2) buy online, pick up in store, (3) in-store navigation/movement tracking; (4) RFID tags on items sold; (5) Using augmented reality in store; (6) Using interactive displays in store. 2. Latest available data was used when 2010 – 2015 was not available.Note: Each of the criteria is scored on a 0-3 scale from not available (0) to leading the pack (3)Source: Press research, Annual reports, BVD Orbis, BCG analysis
How can digital solutions contribute to financial success?How can digital solutions contribute to financial success?
Potential benefits can be through• increased revenues• cost savings / better efficiencycost savings / better efficiency• or both
M d ll l h l
erve
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Measured across all sales channels
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Revenues Traffic Conversion Basket size
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Market innovations observed at retailers who adopted new solutions to boost traffic conversion and size of basketsolutions to boost traffic, conversion and size of basket
Traffic Conversion Size of basket
Smart Home Solutions
Interactive Fitting Rooms
Interactive Shopping Carts
erve
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Inc.
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right
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Push Notifications Digital Aid for Salesforce
In-store Kiosk for Online sales
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What digital solutions work for you?
Shopper Marketing Jaarcongres - Customer Shop Experience - Peter Burggraaff.pptx 5Draft—for discussion only
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Effectiveness of a digital service offering to be measured by its effect on revenue indicatorsby its effect on revenue indicators
Traffic
Number of unique customers
Conversion
Conversion rate
Size of Basket
Revenue per saleq• Per sales channel
Number of store visits• Per sales channel, per store
• % of store visits which lead to a purchase
Conversion rate per step in the
p• Total revenues divided by
number of orders
Items per order
erve
d.
• Unique sessions for online
Average frequency of visit• Per store, per demographic
sales process (Example: fashion)• % of store visits which enter
the fitting room• % of visits to fitting room which
• Number of items sold divided by number of orders
Revenue per customer
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Customer churn rate• Number of customers which did
not return since last time period di id d b ti t
lead to a purchase
Shopping cart abandonment• Per unique product (SKU)
% f i it h t d t i
• Total revenues divided by number of customers
Up-sell / Cross-sell rate% f t hi h t
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Number of brand mentions• Per (social) media platform
• % of visitors who put product in real or virtual shopping cart, and then not complete the purchase
• % of customers which accept alternative or augmented offer
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Note: Some indicators mentioned can be irrelevant for specific types of retailers.Source: Press research, Public reports.
Several retail technologies available to measure traffic, conversion & basket performance indicators in retail storesconversion & basket performance indicators in retail stores
Point of Sale / Loyalty programs Web Analytics
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Inc.
All
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Video Analytics WiFi / Bluetooth Analytics
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Shopper Marketing Jaarcongres - Customer Shop Experience - Peter Burggraaff.pptx 7Draft—for discussion only
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Source: Press research.
H2 get started Four Enablers of In Store Digital SuccessH2 get started - Four Enablers of In-Store Digital Success
Take R&D seriously
R&D needs to be taken seriously to drive digital innovation
Organize to innovate
Set up new organizational models to manage innovation
1 2
digital innovation• devote funds to digital ventures• bold experimentation• invest in own development
innovation• Store Employee Teams• Business and IT Teams• Innovation Labs
erve
d.
p• invest in start-ups
A il ITD f i i h
• A Portfolio of Start-Up Companies
3 4
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Construct IT systems with a stable back end and flexible front end for agile development
Data for insights
Develop information architecture to provide meaningful insights into customer behavior
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g p• Agile Development. • A/B Testing• Trial and Error• Scaling Up
g g• Build nimble digital frameworks.• Invest in master data• Create a “data lake”• Integrate data to leverage its value
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osto• Scaling Up• Integrate data to leverage its value.
Shopper Marketing Jaarcongres - Customer Shop Experience - Peter Burggraaff.pptx 8Draft—for discussion only
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Source: https://www.bcgperspectives.com/content/articles/technology_strategy_four_digital_enablers_bringing_technology_into_retail_store/
Thank youThank you
bcg.com | bcgperspectives.com
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