experience strategy in consumer electronics retail

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SHOPPER EXPERIENCE IN CONSUMER ELECTRONICS

What Does “Experience” Really Mean in Consumer Electronics?

Dan Seymour, Director, NA Shopper Marketing, Dell Inc.

John Kalvin, Consumer Channel Marketing Manager, NA Consumer Sales & Marketing, Intel Corp.



Dell - Restricted - Confidential

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Experience. Is it a Viable Strategy?

EXPERIENCE



Consumer Electronics are Confusing.



In Retail, there is Always an Experience.



Online.

At home.

In store.

On-the-go.

We Study Shoppers.



*Need image that expresses High-Level Message. Data will be

articulated in speaking points.

Shopper Attention: Short Supply. High Demand.



*Need image that expresses High-Level Message. Data will be

articulated in speaking points.

4.7 Seconds

4.7 Seconds



45%

20%

10%

10%

5%

10%

Fact Tag

Demo

Callouts

Display Stand

Category Signs

All Others

Six Primary Assets Share Shopper Attention

Source: IMR

6 Imperatives for Building Experience




1.Connect Online & In-store Shopping Experiences





2.Organize & Identify the Products






3.Prioritize the Shopper Information at 2’ Experience







4.Highlight What’s New & Different








5.Provide Expert Advice








5.Provide Expert Advice

6.Enable the Shopper to Experience the Product





50% Want more hands-on Experience



Whatever the product, Shoppers are buying Experience.

Retail Stores Need to be the Home of Experience. Again.



Measuring the Win



Optimizing “Experience”

for Consumer Electronics Shoppers





Renewed Shopper Focus Builds New Relationships

“Had much to learn” 55% Experience was lacking 40%




Dell Shopper Marketing Retail Evolution – from Trade to Shopper Marketing

Intro to Dell SM - Dan’s vision –

Intro to Dell SM capabilites

What was the catalyst?



New Relationships Create New Roles

We are the Shoppers’ Advocate.




Optimizing Experience

LAPTOP

Toothpaste

DESKTOP

49

40

22

OPEN TO BRAND AT BEGINNING:




Optimizing Experience

RESEARCH BEFORE PURCHASE:

76 82

16 LAPTOP

Toothpaste

DESKTOP




Visit Website 84% Visit

Store 80%



67% 84%



53% 47%



.com 53% 48%




Shoppers Define Experience.



We Measured 120 Needs Comprising Shoppers’ Experience in Consumer Electronics

Fielded:

Sample size:

Respondent criteria:

Visit distribution:

2014

n=1,000

Past month purchasers of key Dell categories Next three month intenders of key Dell categories

47% Store

43% E-com

10% Info Site




Purchase

Awareness &

Inspiration

Education &

Empowerment

Favorable

Process &

Policies

Convenient

Shortcuts

Details &

Validation

Intuitive

Organization

& Navigation

2 Types of Shopper Needs Aspects of Retailer performance & requirements to increase trips & improve conversion.

Core Needs

Trip Needs




Core Needs

• Present on every trip, regardless of the shopper’s purpose.

• Under-delivery of a core need is a barrier to trial and repeat.

Intuitive

Organization

& Navigation

Awareness &

Inspiration

Education &

Empowerment

Favorable

Process &

Policies

Convenient

Shortcuts

Details &

Validation

Purchase

“Cost of Entry” to be in consideration set for purchase




Education &

Empowerment

Awareness &

Inspiration

Favorable

Process &

Policies

Convenient

Shortcuts

Details &

Validation

Intuitive

Organization

& Navigation

Purchase Trip Needs

• Stores & websites compete to address & guide shoppers

• Distinct to different trips & shoppers

The basis for differentiation & Optimizing Experience In Consumer Electronics




+

Store-in-Store Program




Shopper Loyalty

Reputation as Authority

Compelling Assortment

Intelligent, Experienced Associates

+

Why Micro Center?




Awareness

& Inspiration

Education &

Empowerment

Favorable

Process

& Policies

Convenient

Shortcuts

Details &

Validation

Intuitive

Organization &

Navigation

Purchase

20% of all trips

• Immersive Experience

• Latest CE products in stock

• Ensure this device is right for me

• Knowledgeable & helpful associates

• Experience devices as in real life

Trip Needs Segment Opportunity: Awareness & Inspiration




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Experience

Contributes to

Excitement of

Getting New Device

Only

17% v. Avg.

20%



Offer a

Completely

Immersive

Experience

15% v. Avg.

15%



Carries the

latest Devices

47%

v. Avg.

39%



Devices

displayed

In an attractive

manner

30%

v. Avg.

30%



Knowledgeable about Devices

30% v. Avg.

22%



Experience the Devices as they would in Real World

23% v. Avg.

18%

OPTIMIZE EXPERIENCE



THE VIABLE STRATEGY FOR RETAIL’S FUTURE



OPTIMIZE EXPERIENCE


A SPECTRUM FOR DIFFERENTIATION



OPTIMIZE EXPERIENCE


A SPECTRUM FOR DIFFERENTIATION

FOCUS ON SHOPPER NEEDS: CORE & TRIP NEEDS

Thank you.



experience strategy in consumer electronics retail

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