responsive mobile - the next phase of retail

Pivotal Labs Confidential

RESPONSIVE MOBILE: THE NEXT PHASE OF RETAIL


SPEAKERS

Stephen Derksen Business Development Manager, Retail and Hospitality Pivotal Labs @StephenDerksen

Jeremy Black Director, Retail, CPG and Automotive Pivotal Labs @JeremyWBlack

Jennifer Lee Omnichannel Retail Leader Deloitte

MODERATOR

PANELISTS


AGENDA

Opportunities and Trends Path to Purchase Omnichannel Responsive Design Mobile Apps Platform Key Takeaways/Q and A


OPPORTUNITIES Consumers expect an omnichannel shopping experience that is seamless across in-store, web and mobile channels

•  65% of consumers prefer a browser experience for shopping activities

•  Shoppers who interact with more than one channel spend 18%-36% more

•  mCommerce will skyrocket from $3 billion in 2010 to $31 billion in 2016


TRENDS

•  Shopping is social •  Millennials are setting the tone •  Mobile is the medium •  Create one seamless,

omnichannel shopping experience

•  Big Data provides great insight

Source: http://blog.bazaarvoice.com/2013/02/26/the-top-5-consumer-driven-trends-in-retail/


PATH TO PURCHASE Purchase path was seen as traditionally linear

•  Social interaction •  Product discovery •  Marketing •  Price-checking

Pre-Purchase

Purchase

Post-Purchase

•  Cashless/cardless purchase online or in-store

•  Self-checkout

•  Order management •  Customer service •  Loyalty


PATH TO PURCHASE Connected consumers define the path - it is not linear!

How Erica buys


PATH TO PURCHASE

•  80-90% of customers are pre-shopping before coming into store – if you’re not part of this process, you’ll lose customers

•  Mobile allows for collection of behavioral data

How do you fit mobile into that path?


BUSINESS MODEL DISRUPTION: OMNICHANNEL

“Customers will come to us”

“We need to sell online”

“Many customers shop across channels”

“Relevant products and services anywhere”

The Past: Store 1.0

The Recent Past: Store 1.5 e-commerce

The Present: Store 2.0 Multi-Channel

The Future: Store 3.0™ OmniChannel


TRANSFORMING THE BUSINESS MODEL Retailers will experience significant profit improvement and brand awareness by investing in OmniChannel capabilities

Conversion 20% 3% Traffic (000s) 90 200

Store OmniChannel

E/M-Commerce Sales

Sales ($ 000s) $900 $300 Gross Margin 47% 47%

Occupancy and Labour 26% 0%

Online Costs 0% 15% SG&A 11% 11% EBIT ($ 000s) $90 $63


OMNICHANNEL DIFFERENTIATORS


PRE-EMPTIVE DISTRIBUTION Why is it important? Allows retailers to gain easier and greater access to consumers beyond the traditional existing retail network

Presenting products where customers are


FOCUS ON CONTENT Why is it important? By developing a content strategy for targeted customer demographics, retailers can unify the content-driven experience across all devices and channels

Providing unified, device-agnostic shopping experience


BIG DATA Why is it important? Allows companies to gain a deeper understanding of customers to enhance customer experience and increase profitability

Linking data to provide personalized experience


GAMIFICATION Why is it important? Allows retailers to better engage customers throughout their paths to purchase as well as outside of their shopping time, driving loyalty and action

Creating multichannel customer engagement


DIGITALLY ENHANCED SHOPPING

Why is it important? Digital technology allows retailers to maximize limited selling space by creating “endless aisles” and increasing advertising opportunities, as well as to enhance the shopping experience

Introducing ‘endless’ virtual toy aisles


ENGAGE ACROSS MEDIUMS The mediums you use to engage your customers on the path to purchase and through omnichannel should be responsive and mobile


RESPONSIVE DESIGN


MOBILE APPS


ONE PLATFORM You need a platform that addresses Omnichannel, Responsive Design, and Mobile Apps


PLATFORM BENEFITS A Responsive Mobile Platform enables the creation of high performance web and mobile applications that deliver a rich user experience Benefits: •  Rich user experience increases conversions •  Broad device coverage attracts more visitors •  Provides content parity across devices •  “One web” vision enables a lower TCO •  One codebase to manage •  Improved website performance •  One URL drives higher SEO and SMO


WHAT TO LOOK FOR An ideal platform has: •  Tools to create a Responsive Design website

for all devices

•  A Server that provides browser and device optimization for displaying content

•  Middleware that creates mobile-ready APIs for your applications

•  Connectors that simplify integration with backend systems

•  Pre-built modules that reduce the cost and effort of development


KEY TAKEAWAYS/Q&A

•  Path to purchase: be part of the pre-purchasing process

•  Omnichannel: be consistent across all mediums and highlight your differentiators

•  Responsive Design: provide a consistent online experience, irrespective of device

•  Mobile Apps: offer your customers access to your brand wherever they are

•  Platform: use a provider who has one platform that addresses all your needs


Thank you! Pivotal Labs www.pivotallabs.com Deloitte www.deloitte.com