the retail revolution
Post on 30-Jul-2015
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A NEW RETAIL PARADIGM, COURTESY OF THE MILLENNIALS.THE RETAIL REVOLUTION
“People don’t alwaysremember what you say or
even what you do, butthey always remember
how you made them feel.”- MAYA ANGELOU
ADAPT OR DIE!DIGITAL DARWINISM
DIGITAL DARWINISM
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We are entering a new digital economy and to compete successfully in it, business
processes, models and systems need to evolve.
Those who do not adapt to these changes will not be successful.
THE RETAIL REVOLUTION
DIGITAL DARWINISM
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• Brian Solis is a digital analyst, anthropologist and futurist who studies the effects of disruptive technology on business and society.
• He’s studying the way that people embrace technology, from social networks to smartphones to intelligent appliances, and how that contributes to the digital lifestyle that is now synonymous with Generation Y - the Millennials.
• Some companies invest in new technologies without understanding the culture, nuances and relationships that the user has within those communities or how they use the devices.
THE RETAIL REVOLUTION
DIGITAL DARWINISM
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• They aren’t thinking about changing their work ecosystem to adapt to new technologies - they are trying include new technologies within the existing framework.
• Technology is and isn’t the answer to change, it’s the enabler.
http://www.briansolis.com/tag/digital-darwinism/
THE RETAIL REVOLUTION
DIGITAL DARWINISM
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“As technology and society evolve, leaders face the
need to adapt or die.”- BRIAN SOLIS
THE RETAIL REVOLUTION
ONLINE, OFFLINE...OMNICHANNELTHE LINES ARE BLURRING
THE LINES ARE BLURRING
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Due to these technological and societal changes, the lines
between the physical and digital retail channels are blurring.
Millennials just want to go ‘shopping’ - wherever and
whenever they feel like doing so.
THE RETAIL REVOLUTION
THE LINES ARE BLURRING
The majority of Chinese consumers now choose a
digital channel as the first step in researching retail products.
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- PWC TOTAL RETAIL SURVEY 2015
THE RETAIL REVOLUTION
START OFFLINE, FINISH ONLINESHOWROOMING
SHOWROOMING
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‘Showrooming’ occurs when a shopper visits a store to check out a product but purchases online, from
home or another location later.
Shoppers still prefer to see and touch the merchandise they buy, but many items
are available at lower prices online.
THE RETAIL REVOLUTION
ERMAHGERD!
SHOWROOMING
Have you ever intentionally browsed products at a store but decided to purchase online?
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- PWC TOTAL RETAIL SURVEY 2015
THE RETAIL REVOLUTION
START ONLINE, FINISH OFFLINEWEBROOMING
SHOWROOMING
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‘Webrooming’ occurs when consumers research products online before going into the store for a final
evaluation and purchase.
This form of shopping is globally on the rise and becoming more relevant to
consumers and retailers alike.
THE RETAIL REVOLUTION
WEBROOMING
Have you ever intentionally browsed products online but decided to purchase them in-store?
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- PWC TOTAL RETAIL SURVEY 2015
THE RETAIL REVOLUTION
COMES TO TRADITIONAL RETAILMOBILE SHOPPING
MOBILE SHOPPING COMES TO TOWN
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Singapore-based online retailer ZALORA opened a pop-up store in Causeway Bay
recently - an interesting move for an online retailer who are looking to grow their brand and sales with an O2O strategy.
Mobile is the bridge because of the ubiquity of the devices among their wider customer base.
THE RETAIL REVOLUTION
MOBILE SHOPPING COMES TO TOWN
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This ‘click-and-mortar’ approach is aimed at easing local (Hong Kong) customers into
the notion of online shopping and the e/m-com experience with an educational,
interactive and personable space.
THE RETAIL REVOLUTION
MOBILE SHOPPING COMES TO TOWN
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In the store, visitors are encouraged to scan a QR code to download the ZALORA
app to their mobiles using the free wi-fi, for an instant 20% discount.
THE RETAIL REVOLUTION
MOBILE SHOPPING COMES TO TOWN
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Shoppers can see, handle and try the clothing on in the store but they don’t take it home! They purchase it in the store via
the app and it is delivered to their home in a couple of days.
THE RETAIL REVOLUTION
MOBILE SHOPPING COMES TO TOWN
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ZALORA are looking to a future where online and offline shopping aren’t two
separate business models.
There will just be ‘shopping’ and it will be an integrated online and offline experience.
THE RETAIL REVOLUTION
MOBILE SHOPPING COMES TO TOWN
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More than 80% of people visiting this pop-up store have never shopped with
ZALORA before their visit.
75% had never even heard of the name before.
THE RETAIL REVOLUTION
WILL SOON BECOME THE NORM‘MAGIC MIRRORS’
MAGIC MIRRORS
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What if retailers focused on using technology to ease customer pain
points and smooth out bumps in the shopping experience, like trying to
flag down a salesperson while undressed in a fitting room?
THE RETAIL REVOLUTION
MAGIC MIRRORS
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What if you took the best from a mobile experience and brought it
into the store?
That’s what Rebecca Minkoff and the eBay Innovations Lab have done.
THE RETAIL REVOLUTION
MAGIC MIRRORS
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On a large wall mounted interactive screen, customers can swipes through collections and ‘looks’,
select the ones they like, request a fitting room, and when it’s ready for
them they are notified by text.
THE RETAIL REVOLUTION
MAGIC MIRRORS
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In the fitting room another mirror allows the customer to choose
different lighting settings, ask for more sizes and styles to be brought over,
select which pieces to buy, and confirm their checkout with a sales associate.
THE RETAIL REVOLUTION
MAGIC MIRRORS
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Customers can also save collections they didn’t buy to a personal profile
that will show what they have tried on and what they bought - allowing the
store and Minkoff brand to tailor recommendations and marketing
communications accordingly.
THE RETAIL REVOLUTION
MAGIC MIRRORS
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Digitally capturing shopping sessions can show what is trending with customers in
different stores, allowing the brand to immediately alter both in-store and online marketing to
reflect those preferences.
THE RETAIL REVOLUTION
MAGIC MIRRORS
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So if they know that in New York people are taking a lot of denim into
the dressing room, they can get hyperlocal with their marketing and
change the imagery on the interactive wall and email marketing.
THE RETAIL REVOLUTION
PHYSICAL RETAIL IS HERE TO STAY
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“People still want to use their five senses, not just the one sense you
use when you’re doing e-commerce.
So physical retail, a showroom, I think will never go away.”
- STEVE YANKOVICH (eBay Head of Innovation)
THE RETAIL REVOLUTION
IT’S YOUR JOB TO UNDERSTAND ME!I AM AN INDIVIDUAL
PERSONALISATION
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My likes and dislikes, wants and needs are unique to my
personality and way I live my life.
Brands need to cater to this and start personalising the experience, service
and offers accordingly.
THE RETAIL REVOLUTION
PERSONALISATION
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This is part of an actual email I get often from my telco provider - Smartone. I am
a 40 year old, single caucasian male. Why in the hell would I want to buy
anything to do with Hello Kitty?
I have been using them for 7 years and they know NOTHING about me.
THE RETAIL REVOLUTION
PERSONALISATION
Smartone, you know me so well...
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THE RETAIL REVOLUTION
PERSONALISATION
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What’s an even worse experience for me as a customer is how hard they make it
to unsubscribe from their eDMs and annoying weekly text messages.
THE RETAIL REVOLUTION
PERSONALISATION
Wait...what?
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THE RETAIL REVOLUTION
PERSONALISATION
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I will now make a concerted effort across multiple social platforms to
express my negative feelings!
THE RETAIL REVOLUTION
HULKSMASH!
PERSONALISATION
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This is the way of the Millennial!
THE RETAIL REVOLUTION
PERSONALISATION
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There are so many options for them to choose from. Give them a bad experience and they won’t just not come back, they
will tell everyone about it.
THE RETAIL REVOLUTION
PERSONALISATION
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So make sure it’s a good experience, because they will tell everyone about that too!
This is the ‘sharing generation’, where positives and negatives
are amplified.
THE RETAIL REVOLUTION
THE CONNECTED CONSUMERGEN-Y ARE ALSO GEN-C
GENERATION C - THE CONNECTED CONSUMER
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This year, people born between ’81 and ’96 are poised to become the new workforce
majority, and by 2025 it will be 75%.
THE RETAIL REVOLUTION
GENERATION C - THE CONNECTED CONSUMER
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It is the first fully social generation, and social currency is more
important than ever as a result.
THE RETAIL REVOLUTION
GENERATION C - THE CONNECTED CONSUMER
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“With every day that passes, Gen Y becomes far more important to the economy than we can realise. yet the gap between how Gen Y
communicates and connects and how business, educators,
governments et al. approach them is only widening.
- BRIAN SOLIS
THE RETAIL REVOLUTION
GENERATION C - THE CONNECTED CONSUMER
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THE RETAIL REVOLUTION
This generation are more likely to find love or be dumped via text or their Facebook wall..
GENERATION C - THE CONNECTED CONSUMER
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59% of this generation update their social status in class and watch TV with two or more connected devices
THE RETAIL REVOLUTION
GENERATION C - THE CONNECTED CONSUMER
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They believe that other consumers care more about their opinions than companies do - that’s why they share their opinions online,
THE RETAIL REVOLUTION
GENERATION C - THE CONNECTED CONSUMER
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Millennials have high expectation of themselves and their jobs and aren’t as motivated by money as much as
previous generations were.
THE RETAIL REVOLUTION
I DON’T JUST WANT ‘STUFF’ ANYMORE
A NEW RETAIL EXPERIENCE
THE NEW RETAIL EXPERIENCE
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In the future of retail, the consumer is king.
THE RETAIL REVOLUTION
THE NEW RETAIL EXPERIENCE
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If they don’t receive exceptional customer service
they will go elsewhere.
THE RETAIL REVOLUTION
THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
THE NEW RETAIL EXPERIENCE
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This demands a new retail experience that feels less like a
‘path to purchase’ and more like a first date that went really well!
It’s a journey to a relationship.
THE RETAIL REVOLUTION
THE NEW RETAIL EXPERIENCE
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- LIQUID AGENCY ‘The Future of Retail’
THE RETAIL REVOLUTION
The Old Way The New Way
THE NEW RETAIL EXPERIENCE
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Every tactic must be executed in the pursuit of getting to know the
customer, so that every message is intriguing, appreciative and
continues to draw them into a personalised brand experience.
THE RETAIL REVOLUTION
THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
Separate the customer from their purchase. The new retail model demands we think of
the customer journey in an entirely new way.
THE NEW RETAIL EXPERIENCE
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- LIQUID AGENCY ‘The Future of Retail’
THE RETAIL REVOLUTION
THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
Leverage the right technology. Technology allows brands to court the customer like never before - to learn
what they do and do not like.
THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
Share stories that inspire them. Be there for them when they need
something - not when you think they need something.
THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
It’s not about single sales. Ignite and foster a long-term, mutually beneficial and respectful relationship.
THE NEW RETAIL EXPERIENCE
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THE RETAIL REVOLUTION
Relationships = revenue.
- LIQUID AGENCY ‘The Future of Retail’
OUR CUSTOMERS
SO LET’S START DATING
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Retail success us about creating GREAT experiences - just like dating.
How attracted would you be to a date who just talked about themselves all night?
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
We need to start asking our customers the right questions.
We need to be interested in them, learn about them and then talk knowledgeably
about what is of interest to them.
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Every touch point along the customer journey is an opportunity to build a
relationship.
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Where, when and how often brands interact with each
customer should be thoughtful and meaningful.
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
What is said should give them exactly what they
need in the moment.
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Create experiences that are Relevant, Intimate
and Fun.
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Get to know the customer and execute from that insight! Don’t just blindly insert fancy
technology and tactics that may end up hindering the experience
LET’S START DATING OUR CUSTOMERS
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THE RETAIL REVOLUTION
Remember this... Like dating, too many calls are
just as bad as too few!
LET’S START DATING OUR CUSTOMERS
79(LIQUID AGENCY ‘The Future of Retail’)
THE RETAIL REVOLUTION
@nictinworth
THANK YOU.
FOR YOUR READING PLEASURE
LINKS
READING LINKS
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http://www.marketing-interactive.com/china-retail-journey-starts-with-digital/
THE RETAIL REVOLUTION
http://www.shopify.com/blog/14513673-consumers-are-showrooming-and-webrooming-your-business-heres-what-that-means-and-what-you-can-do-about-it
http://www.fastcocreate.com/3041516/master-class/mirror-mirror
http://www.marketing-interactive.com/events/click-mortar-real-answer-retail-industrys-woes/
http://www.briansolis.com/2012/04/meet-generation-c-the-connected-customer/
http://www.slideshare.net/liquidagency/retailing-is-like-dating
http://www.briansolis.com/tag/digital-darwinism/
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