digital shopper relevancy
DESCRIPTION
The myths of the all-Channel experience and how to be relevant By Brian Girouard Vice President, CapgeminiTRANSCRIPT
Digital Shopper
RelevancyProfiting from Your Customers’ Desired
All-Channel Experience
Brian Girouard, Capgemini
November 15, 2012
2© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
16,000 Consumers
9 Countries
2,000 Consumers
4 Countries
16,000 Consumers
16 Countries
10 Years + 34,000 Consumers + 18 Countries =
Countless Insights Into Shopping Behavior
Consumer Relevancy 2002 Future Consumer 2007 Digital Shopper Relevancy
3© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Digital Shopper Relevancy
16,000 Consumers in 16 Countries
Canada
USA
Mexico
Brazil
Sweden Finland
China
India
Australia
RussiaGermanyFrance
Italy
UK
Spain
Turkey
The Objective: To understand how a range of channels and devices are used and valued by shoppers
during the All-Channel Shopping Journey
4© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Digital Shoppers* Weave In and Out of Multiple Channels
During the “All-Channel Shopping Journey”
(*) shoppers who use one or more digital channels in one or more phases of their journey
Shoppers are no longer loyal to an individual channel but rather to an experience across all channels
5© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
We Analyzed Different Dimensions of Digital Shopping Behavior
Digital
Channels
Shopping
Journey
Phase
Market
Maturity
Shopper
Demographics
Attitudes &
Expectations
6 distinct segments
of digital shoppers
with specific behavior
and preferences
in their digital
shopping journeys
Product
Category
6© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Segment 1: Techno-Shy Shoppers
Passive attitude to technology
Digital channels not important
Only little recent online
shopping
Prefer personal contact
Bought online during last six months
1
7© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Segment 2: Value Seekers
Price-Sensitive,
Looking for best deals
Fashion & Personal Healthcare
More women than men
2
Bought online during last six months
8© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Segment 3: Occasional Online Shoppers
Bought online during last six months
Fewer online transactions
Use digital for
choosing & tracking
Better educated,
majority > 45 yrs
3
9© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Segment 4: Rational Online Shoppers
Bought online during last six months
2nd most active segment
Know what they want
Fashion & Electronics
Less interested in social & mobile
4
10© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Segment 5: Digital Shopaholics
Highest rate of online purchases
Heavy use of digital thru Journey
Social, share opinions
Expect fully integrated experience
Men, working full time, educated
Bought online during last six months
5
11© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Segment 6: Social Digital Shoppers
Frequently shop online, but
purchase < avg in most categories
Social media, smartphones,
identification are important
Young & from developing markets
6
Bought online during last six months
12© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Developing Countries Have a Higher Degree of Digital-Savvy
Shoppers
Dominant in developing
markets
Smallest segment, but
relatively big in Spain, France &
Germany
43% are “Digital Savvy”
Value
13© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Women are More Engaged Than Men When Using Digital
Channels
Source: Capgemini, Digital Shopper Relevancy, 2012
Receiving personalized offers and recommendations
Receiving inspirational content
Participating in online communities.
Using digital devices inside the physical store
Women are more interested in:
14© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
1.0 2.0 3.0 4.0 5.0
The Techno-Shy
The Rational Online Shopper
The Occasional Online Shopper
The Convenience-Seeker
The Digital Shop-a-Holic
The Social Digital Shopper
Digital Channels Likely Increase the Amount Spent In Stores for
50%+ of Digital Shoppers
I am likely to spend more at the physical store if I have used
digital channels to research products before going to the store
1.0 2.0 3.0 4.0 5.0
The Techno-Shy
The Rational Online Shopper
The Occasional Online Shopper
The Convenience-Seeker
The Digital Shop-a-Holic
The Social Digital Shopper
I am likely to spend more with a retailer if their services are
available at any time via any channel
1=strongly disagree, 5= strongly agree
Source: Capgemini, Digital Shopper Relevancy, 2012
The Value Seeker
The Digital Shopaholic The Digital Shopaholic
The Value Seeker
15© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Most Digital Shoppers Expect Major Changes in All-Channel
Experience In Future
Source: Capgemini, Digital Shopper Relevancy, 2012
Half of all consumers expect that by
2020 most physical retail stores will
just be showrooms to select and order
product
Roughly 30-40 % of the traditional
segments are more doubtful about the
pace of digital development of shopping
experience
Roughly 80 % of Social Digital
Shoppers and Digital Shopaholics
expect to see fully transformed role of
physical stores by 2020
56% of global consumers expect
seamless integration of multichannel
shopping experience by 2014
I expect that by 2020 most physical retail stores will just be showrooms to select
and order product, and the delivery will be done separately at my convenience
I expect my favorite retailers to provide seamless integration of their online,
physical and mobile shopping experience by 2014
0% 20% 40% 60% 80% 100%
The Techno-Shy"
"The Rational Online Shopper"
"The Occasional Online …
"The Convenience-Seeker"
The Digital Shop-a-Holic"
"The Social Digital Shopper"
Positive indication Neutral indication Negative indication
0% 20% 40% 60% 80% 100%
The Techno-Shy"
"The Rational Online Shopper"
"The Occasional Online …
"The Convenience-Seeker"
The Digital Shop-a-Holic"
"The Social Digital Shopper"
Positive indication Neutral indication Negative indication
“The Value Seeker”
“The Digital Shopaholic”
“The Value Seeker”
“The Digital Shopaholic”
16© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
How to be Relevant?
The Myth of All Channels
17© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
The Myths of the All-Channel Experience
Attempting to be great at all aspects of (digital) shopper
engagement is the way to win…
Most businesses understand what their (digital) shoppers
really want…
A compelling website, slick apps, and social media listening
are the ingredients for delivering an
All-Channel Experience…
18© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
It’s crucial to be clear on your brand position, and defend it
digitally
Differentiate on another attributeDominate on one attribute
Be On Par for the rest
19© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Access Experience Price Product Service
Friendly and clean
storeEasy to reach stores
Easy to navigate
storesCompelling
promotionsFreshness/ Quality
Maximum opening
hours
Availability
(no stock-outs)
No damaged goods
in store
Inspirational
Atmosphere
Customer Service
Complaints
handling /
return policy
Loyalty program
Wide and deep
assortment
Competitive pricing
Traditional
Relevancy
Criteria for
Physical Channels
“Better
Stuff, Better
Life”
“Making It
Easy for
You”
“Lowering
Your Costs”
“All About
Your
Experience”
“Whatever It
Takes for
You”
Dynamic Pricing
Mobile in-store
Shopping support
Advanced /
visualized product
information and
(usage) advice
Product
Comparison
e-Commerce
(mobile, social,
web)
Flexible delivery-
options ( home,
store-pick-up etc.)
Personalized
Pricing
Additional
Relevancy
Criteria for
Digital Channels
Personalized offers
Technology-
enabled staff –
support in-store
Interactive service
via digital channels
(e.g. click-to-chat,
social media)
Wider and deeper
assortment
Solution Pricing
Inspirational
Content
Community
engagements
(share
experiences)
Social Shopping
Location-based
pricing
Price
Comparison
Illustrative
Being relevant is about understanding shopper needs and
perceptions across the 5 Key Attributes
20© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
Superior execution starts with putting the consumer in the center
and building capabilities to deliver an All-Channel Experience
Put the Shopper at the Center
RelevantPersonalEngaging
Truly all-channel
Consumer InteractionConsumer ManagementCommerce ManagementOperations Management
Deploy Integrated & Flexible Business & IT
Architectures
Follow a Phased &
Controlled Approach
Grow the All-Channel Experience
2011 –H1 2011 –H2 2012 –H1 2012 – H2
Mo
bile
Pre
se
nce
Strategic Foundations Web Presence Social Network Presence
Future State
Current State
Mobile AppFactory
MED MED MED
Mobile WebFactory
MobileTicketing
HIGH HIGH HIGH
MDM
LOW MED LOW
Location Based Services
MED MED MED
AugmentedReality Game
MED MED MED
MobileCoupons
HIGH HIGH HIGH
MobileCompensation
HIGH HIGH HIGH
Google EarthEnterprise
LOWLOW MED
WidgetFactory
LOW LOW LOW
ProfilingEnhancements
MED LOWMED
Service Integration
ServiceManagement
Identity & Access Mgmt
BusinessProcess Mgmt
Strategy, ToolsIntegration
LOW LOW LOW
FacebookGame
MED MED MED
FacebookTicketing
LOW LOW MED
Bid-BasedCapacity Mgmt
HIGH HIGH MED
GroupReusable Portal
MED MED MED
Target ModelEnabler
MED MED MED
Diff Cost Time
Define and Build the Required Capabilities
21© 2012 Capgemini. All rights reserved.
Digital Shopper Relevancy | November 2012
How Can Capgemini Help?
Digital StrategyDigital
Re-Platform
Social Insight &
Interaction
Digital in the
Store
Customer
Analytics /
Digital Marketing
Let’s Discuss an All-Channel Experience Discovery Workshop