social media fundamentals, future of retail

Future of RetailSocial on the Outside, Social on the Inside

Friday, 28 September 12

PORTLAND

AUSTIN

ST. LOUISPHILADELPHIALINCOLN

NEW YORK

LONDON

SINGAPORE

We are the leading global, integrated, end-to-end social business consultancy.Working with 50% of the Fortune 500. Multi-year engagements. The largest group of Facebook Preferred Developers in the world. 500+ Facebook sites, mobile and gamification projects.

THE WORLD’S LEADING SOCIAL CONSULTANCY FIRM

SYDNEY

RIO DE JANEIRO


Our services

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SOCIAL BUSINESS INTELLIGENCE+ Dashboards & benchmarks+ Data services+ Reporting & analytics+ SaaS applications

PERFORMANCE BRAND MARKETING+ Social brand strategy+ Applications and experiences+ Community management+ Advocacy programs+ Listening programs+ Influencer outreach programs+ Social media buying

CONNECTED COMPANY+ Enterprise social

technology+ Workforce collaboration+ Workforce learning+ Social CRM+ Change programs


Some of our clients

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WE WILL DISCUSS

Where We Are Now Trends and Examples

What Next?


Where We Are Now Trends and Examples

What Next?


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Is bricks and mortarretail dead?


We hear lots about the “death of retail”

“JCB retailer’s shares fall by a fifth (...) it blames performance on disappointing demand for Euro 2012 kits and wet weather.”

“WHS sees 3 per cent fall in like-for-like third-quarter sales.”

“Mothercare- Strong performance outside UK helps offset cost of store closures but baby clothing retailer warns domestic market ‘remains tough.”

Source: http://www.ft.com/indepth/ukretailresults


http://www.ft.com/indepth/ukretailresults

http://www.ft.com/indepth/ukretailresults

While the future is mobile and social

39% of consumers rely on the websites for comparative shopping.

UK found that 39% want to use mobiles to receive personalised promotions.

52% want to use mobiles to checkout, and 42% to locate products in-store.

Source: http://www-03.ibm.com/press/uk/en/pressrelease/38901.wss


http://www-03.ibm.com/press/uk/en/pressrelease/38901.wss

http://www-03.ibm.com/press/uk/en/pressrelease/38901.wss

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So let’s go backto the basics.


Few understand what social truly means

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...and really understand what’s changing

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Behaviours

Competition Expectations


Competition: understanding your ecosystem

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Retailers

Customer

BrandsOnline Retailer


Brands: the engaging “cool factor”

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RELATIONSHIPS

SOCIAL BUYING

F2F

Brands have stolen the early march on developing relationships with consumers on the products and advocacy.

Its all about sharing, socialising, liking and making it easy to buy when you want to.

In-store is all about the experience, but it’s limited.


Online retailers are becoming the norm

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Online retailers have revolutionised what “good” customer service means, raising the bar.

When you want it, where you want it and social.

Organising for social means that traditional roles and responsibilities don’t need to exist or are carried out by customers.

SERVICE

CHOICE

ROLES


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Customers are the buyers


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Behaviours



Customer journeys have changed

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Customer Need Research Buy Feedback

Decision Point

“My shoes broke after I wore them

once.”

Access to an exponentially bigger pool of

consumers

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Need and research take less time and are often combined

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The decision point is reached at an earlier stage

Decision Point

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Consumers expect to have the option of buying online as well as in the store

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Cus

tom

er jo

urne

yS

ocia

l med

ia im

pact

on

cust

omer

jour

ney

Use

Enhanced feedback loop

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Rates, reviews,

complaints, etc.


To a non-linear, multi-channel journey

19Source : The OPEN Brand: Digital Trends for 2011 by Resource Interactive

Non-Linear, multi-channel, digital, consumer-controlled


http://www.slideshare.net/ResourceInteractive/the-open-brand-digital-trends-for-2011

http://www.slideshare.net/ResourceInteractive/the-open-brand-digital-trends-for-2011

Influence is shifting to the individual

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Source: Eloqua & JESS3, The Message is the Messenger, March 8 2011 Source: Forrester 2010 Source: AdWeek, A Million Little Klouts, Dec 14 2001


http://blog.eloqua.com/message-is-messenger/

http://blog.eloqua.com/message-is-messenger/

http://www.adweek.com/news/advertising-branding/million-little-klouts-137032




And the wisdom of the crowd...

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Brands are striking deals with social networks.Source: Wall Street Journal, June 30, 2011; Twitter


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Behaviours



This means we now have a social consumer

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...who expects more from retailers

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So to summarise...

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Understand your competitors and customer behaviours and expectations for YOUR market segment. 1

Online retailers are raising the bar in service and re-defining market models.2

Influence and trust is driven by peers, not the brands or retailers.3


Where we are now Trends and Examples

What Next?


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Moving to bricks and clicks?


We see the market split into three segments

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Early AdoptersExec sponsorship, Long term vision

Doing “Enough”Apps and Likes

“Hope it goes away”But if I’m going to do it, do it long term


...and follow three broad trends

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Customer Service: Delight your Customers.

Combining on-line and off-line: Delivering on the brand promise.

Shopping experience: Augmenting reality. 1

2

3


Combining the on-line and off-line

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Likes, purchases and history are available and accessible across all channels.

Deliver on the same brand promise on-line and off through every interaction including marketing, sales and service.

Campaigns move between digital and physical with the end goal of people in stores.

CUSTOMER

EXPERIENCE

CAMPAIGNS


Some recent examples where this has worked

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...including C+A in Brazil

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...and where the experience has not delivered

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Customer Service that delights

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Move from “just enough” to a concept of delighting a customer.

Available whenever, wherever suits the customer either through Twitter or Livechat.

Develop forums or communities where passionate customers help customers problem solve.

CUSTOMER

WHEN SUITS

SELF-SERVICE


Where Burberry’s new digital service leads

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Vodafone and SONY: users helping users

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Shopping Experience: Augmented Reality

Using apps, QR codes to help customers get more information once in store.

Find the products, combine the products.

Listening to customers to understand where there is missed market demand, the “next big thing”.

INFORMATION

PRODUCT

WOW - FACTOR


Including Burberry and IKEA

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And then we havenext generation.


Empowered employees: passion and knowledge

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Employees are a companies most important assets to share passion authentically and recruit top talent.

You are only as strong as your weakest employee - leveraging knowledge to deliver outstanding service.

Internal social networks to share knowledge, best practice and customer intelligence.

ADVOCATES

SERVICE

KNOWLEDGE


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Twelpforce: where employees act


Big data as a decision driver

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Using social data to drive internal decision-making on regionalised supply chain, store openings etc.

Using social listening to understand trends and complaints on competitor products, buzz for product launch etc.

Listening to customers to understand where there is missed market demand, the “next big thing”.

DECISIONS

PRODUCTS

TRENDS


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And aspirational...


Customer 360: combining social, sales, service and marketing

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What Next?Where we are now Trends and Examples


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So what isthe future of retail?


Bricks + Clicks can work if...

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Provide value-add in-store through passionate, connected and empowered employees- beyond marketing.2

Use social data to drive pro-active decision-making across marketing, sales development and competitive insight.3

1 It’s all about providing an integrated customer experience across every touchpoint, on-line and off.


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Dominika Tomek HEAD OF CONSULTING [email protected]

CONTACTS


mailto:[email protected]?subject=

mailto:[email protected]?subject=

social media fundamentals, future of retail

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