Retail:Influencing the final :30

A ScenarioYou enter a store. You see something you like. You write down the product name and manufacturer. You go home and order it over the Internet.

As a result, you didn't have to carry it, you probably got a better price, and you may have avoided sales tax. The store in this scenario is merely a showroom. Have I just described the exception to tomorrow's retail, or the rule?

-  Nicholas Negroponte, 1998 Wired Magazine

“Retail Darwinism”

InformationCommunicationConnections

Retail Truisms

The world of the consumer is changing.Boundaries between online and offline retail are blurring giving rise to more multi-channel experiences.

The relationship between store and consumer is quickly evolving.Mobile and other emerging technologies are empowering the customer.

Niche and personal experiences are replacing the “everything to everyone” model.

Shopping is a social phenomenon, but Retailers have yet to capitalize on that phenomenon throughout the shopping process.

The customer journey is moving from linear to interactive.

Agenda1. Evolution of the Consumer2. Evolution of Retail3. Evolution of Technology4. Evolution of Commerce5. Evolution of Experience6. Roadmap

(r)evolution of the consumer

Everything About Consumers Is Changing

Time has become more preciousWorking longer hoursMore time onlineMobile is fundamental

Critical eye on purchasesSmarter about valueSavvy about discovering products

Emergence of the “Recessionistas”

The majority of consumers have forever

changed.

Three out of four are now “evolved.

cautious optimism

value driven time filling mobiley networked

sourcing inspiration

selfishly green alternative

economy

concierge brands the family

network

The Evolved Consumer 10 consumer behaviors that emerged after the economic downturn

control

Boundaries between mediums is blurredConsumer demanding fluidity

Enabled by Technology

(r)evolution of retail

From a rudimentary beginning, gaming has evolved at exponential rates and has become more sophisticated, accessible and social

1961 1970s 1980s 1990s Late 1990s

Early 2000s

TodayMid-Late

2000’s

Click on a milestone to learn more

Retail has come a long wayWhere we startedPut a roof on itDo it with everyoneDo it from homeDo it yourselfDo it onlineDo it with technologyDo it any way you want

Losing the connection to changed customers

Reinvent the connectionReestablish the brand

We live in a seamless world

Multi-channel mentalityPersonalized commerceUnlimited inventoryBrands become the experience

Channel Agnostic

Reconcile physical and digital experiencesReplicate the efficiency of ecommerceRecommendations across platforms

Transactional to Experiential

Shift to Consumer Leading

With a New Definition of Customer Service

Smarter, more personalized, more informedPrice transparencyValue beyond the sale

New Platforms Where Buyers Become Sellers

Enhanced consumer choicePrice savings & value recoveryCross border tradeNew market formationSmall businesses are born

Perfect Competition?

Not there, but the barriers are breaking downTime and device contingentCreate preference through brand building

(r)evolution of technology

Social

81%received advice from

friends on product purchase through a

social site

90%of consumers online trust

recommendations from  people they know

44%of Moms use social

media for brand/product

recommendations

12xNumber of times more

trusted consumer reviews are than

advertiser messages

53% of people on

Twitter recommend companies and/or products in their

Tweets

Real Time Offers

Group BuyingNews,

reviews, & recos

Sharing experiences

Viral promotion

Social

Easy accessibility of information, news and content has forever changed the way buying decisions are made.

Mobile

37%Smartphone users

have made a purchase directly from their phone in the last 6

months

45%Look at third party

or consumer reviews of product during

the purchase process

43%Look for retailer or product coupons

36%Check the price of product while in

store to determine a “good deal”

68%Find address and store hours of a preferred store

SalesProduct

Information & Couponing

Augmented Reality

Comparison Shopping

Drive to Store

Mobile Phone

You can seamlessly move from advertising on the mobile device all the way through to the actual sale itself.

Tablets

36%Have made a

purchase through their tablet device

65%of Fortune 100 companies are

integrating tablets into the retail environment

49%Are interested in

advertising on tablet devices that are either

video or interactive

5.5xAverage conversion

rate of purchases over other mobile devices

147Million tablets sold globally by 2015

Customize Product Features

Concierge Service

EntertainmentReal time Inventory

Personal Shopper

Tablets in the Retail Space

Near Field Communications

150Million NFC chips will be shipped in 2011

1Million NFC enabled

phones will be sold in France in 2011

50%Of all NFC phones will be deployed in North

America by 2014

59%Of consumers want to

use their mobile phone to make

purchases at point of sale

220Million enabled NFC phones shipped by

2014

Near Field Communications

Touch to PayTouch to Discover

Touch to Share Touch to Ticket

Digital Out of Home

40%Say they take note or watch a complete ad

when exposed in store

68%Of shoppers said in-store messages help

their purchase decisions

29%Of shoppers made an unplanned purchase based on what they

saw on screens

#1Fastest growing digital advertising medium of

2010

80%Of brands experience

increases in sales with POS DOOH

placements

On premise On the goIn high traffic

areas

With interactive capabilities

Enhancing the experiences

DOOH

Surface Technology

20%Increase in sales for

on premise restaurant category

70%BMW dealers

implementing surface tech by 2012

50%Increase in on site conversion rates in

finance sector

35%Increase in service

efficiency in wireless carrier category

35%Cheaper for V2 of technology vs. V1

Ordering and On-Premise

Browse Products

Customize Experiences

Drive Foot Traffic

Provide Information

Surface Technology

(r)evolution of commerce

Pre-View Shopping

Reviews & Hints

Tracking & Organizing

Insider AccessGift Guides by

LocationHeat Mapping

Activity

Online click to chat

Twitter to better serve

Service as the new

marketing

Value beyond purchase

Listening to your social

graph

Digitizing Customer Service

Empower in-store

associates

Virtual dressing rooms

RFID for Easy navigation

Online consultScan and

recommend

Digital Assistants

Building Communities

Crowd sourcing ideas

Money saving advice

Sharing ideas through UGC

Extending engagement

Corporate social

responsibility

(r)evolution of experience

The Shopping Experience

Structuring the In-store Experience

• Incent repeat visits• Brands are story tellers• Support discovery• Encourage engagement • Enhance the value chain• Store becomes the stage• Digital drives displays• Implement entertainment experiences

• Enable social connectivity• Exploit multiple platforms• Complimentary experiences• Create targeted value• Expand points of discovery• Virtual currency for engagement• Activate eCRM initiatives

Structuring the Digital Experience

Structuring the Delivery Experience

• Capture / extend the brand experience• Say thank you• Drive trial• eCRM opportunities• Lifestyle surprises• Green alternatives• Hassle free returns

• Connectivity• Interfaces• Relationships• Services • Content• Standards

Structuring the Media Partner Experience

action plan

Breaking down barriers

"Great things are not done by impulse, but by a series of small things brought together.“

- Vincent Van Gogh

Understand Structure Execute Refine Scale

Tenets of an action plan

Understand

Audit the connectivity and technologies available within the retail environment

Connectivity and technology

Understand the financial implication and ongoing investment in maintaining technologies

Investment capital and roll out

Store traffic and buying patterns

Assess competitors use of technology and product suites and determine the unique selling proposition

Competitive audit

Gather a basic understanding of what the core activities, platforms and usage behaviors are in retail environments

Consumer behavior

Understand how consumers use the retail space, interact with products, and what the buying patterns are

Define the consumer behavior you aim to change and the business problem the technology will fix

Goals and objectives

Understand systems and processes to fulfill on consumer demand and avoid potential bottlenecks

Logistics and fulfillmentDetermine employee training needs and develop collateral

Employee training

Assess internal organizational structure and external partner capabilities

Audit internal resources/partners

Perform SWOT analysis of technology options and determine ROI from implementation

Cost/benefit analysis

Develop a long term vision for how the experience will evolve

Growth plan

Determine messaging strategy and points of contact for products and consumer segments

Location and user

Structure

Dynamics, principles and best practices apply globally, but when implementing tactics, local realities trump global trends

Think globally, act locally

Determine how consumers are adopting the technology over time, and what impact it is having on sales

Measure interactions

Create buzz around the launch both internally and externally

Social and PR promotions

Be cognizant of what is relevant to your brand, consumers and capitalize on your resources

Stay relevant

Understand the target’s drivers, passions, addictions and interests and use those as a guide to how you engage

Entertain and engage

Execute

Monitoring how consumers engage with your brand will help shape future consumer facing initiatives as well as how your business operates overall

Continuously measure and optimize/enhance

Analyze impact on the business in combination with other marketing initiatives

Analyze holistically

Champion a ‘beta’ mindset and be willing to learn from your mistakes and adapt to an ever changing marketplace

Test & learn

Constantly provide fresh content, giving your consumers a reason to return and more insights to draw upon

Refresh, refresh, refresh

Refine

Open lines of communication within the organization to create excitement and desire to become part of the program

Socialize successes

Scale

Understand the technology lifecycle and vision for growth and evolution

Product roadmap

Define the timeframe and costs associated with a global roll out

Expansion plan

Develop sharing platform to share best practices and learnings

Share Internally

Rethinking Retail

Apply across channelsConnect with the consumerCreate experiencesRedefine customer service

Summary

case examples

BootsHoliday Retail Integration: Greater than the sum of its parts

DebenhamsUsing QR to support their app

• Debenhams launched their fully transactional iPhone app in Oct 2010. Billed by Debenhams as a ‘virtual shop assistant’ the comprehensive app includes a bar code scanner.

• QR Codes are also appearing in-store, encouraging customer loyalty and improving the shopping experience. Once scanned the message on the left translates to

• “DB::ALERT::Thank you for downloading the Debenhams iPhone app! Enjoy a FREE tea or coffee in this store. Simply show your Debenhams app at the Restaurant or Cafe till in store! [Only valid today for one time use]”

GapDriving customer reviews and tips

• Gap used in-store QR codes to direct to customer reviews and fashion tips

• The bottom image is a direct mail piece linking through to a video interview with a Gap designer and a discount coupon

• Both touchpoints offer value to the customer

In-store QR directs to product reviews and style

tips

OxfamUser generated product history

Daimler’s Mercedes-BenzProduct customization, financing and ordering

Volkswagen Not only lower value purchases

BMWExpediting customer service and personalization

DKNY Discuss with friends and purchase

The North Face Mobile exploration and brand engagement with Facebook Places

StarbucksDoesn’t just have to be the act of sale

StarbucksDelivering discounts

FordDelivering engagement at events

NikeEngaging social behaviour at the storefront

Paramount Pictures Delivering unique content and driving foot traffic

Luxury BrandsActivating traditional mediums

Toys R Us – Hong KongHighlighting deals in the store

McDonald’s Product information

StackedProduct information

Cellar KeyDelivering better information for more informed choices

Macy’sAdvice and behind the scenes content

Things RememberedTablet enabled customization kiosks

Delta AirlinesTablets for at gate entertainment and food ordering

Iceland ExpressRentable in-flight entertainment

4FoodiPad’s enable a tech-savvy, social media oriented fast food experience

City SportsConnecting in-store, rewards, and events through tablets

PumaGlobal in-store crowd source design and building social connections

Metro Group: real,-Future StoreEnabling the consumer with mobile checkout

Kraft: iFoodAdding value through recipe ideas and shopping aids

ShopsavvyIntelligent in-store buying through better information

Tesco: Mobile shopping on the goTaking advantage of consumer wait time

Murphy USALocation based promotion to drive activation

Zoom RoomStreamlining customer service

PumaGlobal in-store crowd source design and building social connections

SF Art ExchangeComparative selling and consumer engagement

JCPenneyBringing online to the real world

Whole FoodsPaperless receipts

SingTel24/7 Flagship store through touchscreen technology

Luisa Via Roma3D Virtual Stores

Kraft & IntelNext generation meal planning

Gap IncEmbracing the auction model

7ElevenEncouraging check in for prizes