personalization: relevant retailing

Personalization: Relevant Retailing

Retail Technology Conference Workshop Recap

April 10, 2014

©2014 Boston Retail Partners. All rights reserved

Table of Contents The Evolution of Retail Technology 3 Why Real-Time Retail? 4 Real-Time Retail Platform 5 Industry Trends 6 Chat Rooms

Customer Identification – How 7 Customer Identification – Why 8 MAC Address 9 Personas 10 Virtual Closet 11 Interactive Receipts 12 Events 13 Geolocation 14 Additional Opportunities 15 Additional Concerns 16

Wrap-Up 17 About BRP 18

Boston Retail Partners conducted the Personalization: Relevant Retailing workshop at the Retail Technology Conference in Orlando on April 10, 2014. The workshop brought together more than 40 retailers for a discussion on personalizing the customer experience. This document is a recap of the workshop discussions.

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The Evolution of Retail Technology How did we get here?

The evolution of retail technology

has taken more than 100 years and

evolved to where we are today

because of a lack of technology 45

years ago! Networks were not

evolved – they were unreliable,

slow and expensive – so a

decentralized store technology

model was created. Networks can

now support a centralized model to

enable real-time retail and

personalize the customer

experience.

Banking in the 90s transformed itself through networks – ATMs were born. Now it is the retail industry’s turn…advanced networks will completely transform retail as we know it!

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Why Real-Time Retail?

Today, the customer is

the new focus in the

retail systems

universe… we should be

selling to the next

generation of customers

with new technology and

not be handicapped by

the past.

The Customer is the Center of the Universe

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Real-Time Retail Platform

Most retailers have begun the process of integrating the components needed to enable customers to find the product they want instantly. And retailers can deliver it in a seamless, safe and integrated solution…. leveraging real-time analytics….leveraging a real-time rules engine.

Real-time Retail Makes it Possible

5


Industry Trends

28%$

16%$

3%$

62%$

63%$

72%$

0%$ 20%$ 40%$ 60%$ 80%$ 100%$

Use$Mobile$Marke6ng$

Have$Real<6me$Retail$from$POS$

Iden6fy$Customers$Walking$in$Store$

Today$ Plan$in$5$Yrs$

More than 20%

of retailers plan

to offer

personalized

promotions in

next 2 years.

The Time is Now to Personalize the Shopping Experience

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Customer Identification - How

Disney wristband – traffic tracking and

adjusting experience accordingly

7


Customer Identification - Why

Privacy versus Benefit – you’re not going to get customer information

without delivering something meaningful

and relevant

Empower customers and

associates

Opt-in or invisible

Personalized real-time

recommendations and offers

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MAC Address “A media access control address (MAC address) is a unique identifier assigned to network interfaces for communications on the physical network segment.”

Answer: There can be multiple MAC addresses per

customer – a new MAC address is recognized

when she opts-in again.

Question: What happens when

someone upgrades their

phone?

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Personas

“Create personas, or example users, as tools to represent the needs, desires, skills and environment of one or more classes of real users.”

Pairing the best associate with

customers coming through

the door

Matching employees to

customers based on fit

and specialty

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Virtual Closet “A Virtual Closet is a deconstructed online view of EVERYTHING you own.”

Retargeting – using past behavior to make recommendations

(What’s in your closet?)

11


Interactive Receipts “A digital receipt that builds your brand, engages your customers and transforms your business with valuable analytical insights.”

Receipts – associate with fashion icons that validate the purchase

decision

Useful/actionable receipts (embed URL or QR code for how-to video)

12


Events

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Dynamic promotions driven

by events (weather, holidays, natural disasters,

etc.)


Geolocation “…the identification of the real-world geographic location of an object, such as a mobile phone, tablet or an Internet-connected computer terminal.”

Heatmaps allow us to understand how a

customer moves through the store to better manage planograms and improve merchandising decisions

Tracking within the store, hot and

cold spots (planogramming)

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Proactive promotions triggered by customers’

proximity to store


Additional Opportunities

•  Guided selling •  Leverage clienteling for consultative personal selling •  Turn “C” associates into “A” associates

•  Mobile •  “…16% lift in sales from mobile experience in store

could lead to 50% guest satisfaction increase” •  Mobile payments – skip checkout

•  Give time back to the customer; give recipe up front to streamline grocery shopping experience and eliminate multiple trips

•  Entertain the kids with technology, so parents can shop •  100% personalization – paymentless checkout based on

knowing who the customer is, and that they’re good for it •  Social media integration •  Quiz customer and deliver recommendations; fun customer

engagement •  Wi-Fi – utilize for personalization, leverage what’s already in

place; in use at Tesco •  Retargeting – leveraging physical information for targeted

commerce ads •  Real-time merchandising; real-time video

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Additional Concerns

•  Privacy •  How much is too much information? •  With customer data comes a responsibility in how the

data is managed and utilized; example of store knowing a teen is pregnant before the parents based on purchase history

•  Security extends beyond the credit card to include all customer data (It is not just PCI but also PII)

•  Retailer mobile apps might not always be compelling enough to install and use

•  Offers need to be quick and convenient – can’t make it longer to collect discount than it’s worth

•  Legislation •  What about when legislation catches up with

technology (privacy/protection) •  Stronger privacy laws in California and Europe

•  Expensive alternatives; can’t do it all, so need a sound strategy around what will produce results and the best customer experience

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Wrap-up

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Real-time retail changes everything and puts the customer at the center of the universe, which means retailers need to sell to the next generation of customers, not just today’s customer. We are at a strategic inflection point where the network is taking center stage. The network enables an integrated world where consumers drive self-checkout on their smart phone, interact with their friends in real-time on purchase decisions and receive discounts and personalized pricing as they are shopping to create a cohesive customer experience. Your brand is unique and your customer experience should be tailored to your brand and the needs of your customer.


About BRP

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§  Retail experts with retail backgrounds

§  Built with unique professional profile u  Managed by industry-recognized leaders u  Recruit experienced retail professionals with process, technology

and operations skills

u  Recognized expertise in all facets of strategy, selection and deployment of Point of Sale, CRM/Loyalty, Customer Engagement, Order Management, Merchandising and Supply Chain solutions

§  Trusted advisors of acknowledged industry leaders

"  No exclusive partnerships or alliances with software or hardware

providers

Ken Morris Principal Boston Retail Partners 617.880.9355 [email protected] www.bostonretailpartners.com

u  Chanel u  TJ Maxx u  Family Dollar

u  ABC Fine Wine & Spirits u  Sports Authority u  Estee Lauder

u  Tire & Battery Corp u  Brooks Brothers u  Michaels Stores