Top 11 Trends in the Future of Retail According to Brian Solis
Post on 21-Feb-2017
Vision, Mission and Culture Design by Gapingvoid
Experience ArchitectureWhat does the future of etail/Retail look like?
Gift of Perspective:1Consumer behavior and expectations break legacy processes and systems. Customer experience takes architecture and fresh perspective to design the future and everything starts with #empathy
or what this thing is.
The State of Retail and Commerce in 1 Picture
Digital transformation represents the quest to understand how disruptive technology affects the digital customer experience.
You are now trying to capture the attention of an audience with an audience of audiences.MEET GENERATION-C
WHAT WOULDTHEWORLDLOOKLIKEIFICOULD STARTFROMSCRATCH?
Connected customers see the world differently. Theyre always on.
New SupplyNew DemandNew BehaviorTRUSTREPUTATIONCURATION
Master Total Re-CXingPeople look at their phones 1,500x each week.
They spend 177 minutes on their phone per day.
Facebook, Instagram, et al. is second nature.
SnapChat is a marketplace for human emoticons.
Youtube is the new Google.
On-Demand Economy:2Retail and e-tail will plug into the on-demand economy.
Customer Experience:3Retailers will need to compete through customer experience in addition to technology.
CX = Customer experience is the sum of all engagements a customer has with you during the customer lifecycle.
82% of shoppers will complete their online purchase with e-tailers that offer free return shipping or in-store returns.
Customers who could ship items back for free boosted their purchases at that store by 58%-to-357%.
Customers who were charged for return shipping dropped their purchase activity by 74%-to-100%.
Only 49 of the merchants in its Top 500 Guide offered free return shipping as of last January
Customer Loyalty is Getting a MakeoverLoyalty cards are on their way out and will be replaced by targeted, data-driven, personalized rewards derived through:Transactional data Demographic dataSocial dataCRM dataExisting loyalty dataProprietary dataSensor dataSupply chain dataLocation data
60% of consumers use their smartphones to pay because of the loyalty benefits that they get when they do.
Payments:4Payment options lead to retailer confusion but open door to new forms of insight and engagement.
Mobile payments early today, but expected to skyrocket
Nearly 15% of Starbucks customers already pay with their phones
Wearables help bring multiple features to mobile payment, make payment process even more seamless
New Payment Companies Bring eCommerce to a New Generation of Disruptors
Re-Engineering Payments, Checkouts and CRM
Social Commerce:5Social networks become the new e-commerce platform.
Merchants will continue to chase mobile customers with ads as well as sites optimized for those mobile viewers
The Trust Economy:6The trust economy encourages peer-to-peer influence (social proof), forces transparency and pushes retailers to market utility and usefulness to guide decision making (reciprocity).
eCommerce further fueled by the trust economy.
Airbnb travelers contributed 14 million new reviews over a 12 month period, a year over year rise of 140%.
90%of smartphone users are not absolutely certain of the specific brand they want to buy when they begin looking for information online.
65%of smartphone users look for the most relevant information regardless of the company providing the information.
Combine Content + CommerceBirchbox creates high-quality content to generate repeat business.
Its blog is packed with how-to guides and style tips that rival Cosmo and GQ.
You can buy any of the items featured.
Double Down on VideoAccording to Cisco, by 2017, video will account for 69% of all consumer internet traffic.
As shoppers grow more responsive tovisual presentation and seek responsive layouts, video will become a front-and-center asset to convey product details --not just demos --and facilitate improved webrooming.
Within one week of launching, Viking received nearly 1,000 high-resolution photos and videos from guests showcasing their travel experiences. Content covered 100%of Vikings itineraries; 98% was linkable to the itinerary page for a specific cruise, with an average of over 40 photos and/or videos per itinerary.
When the watch hits stores in 2015, the Starwood Hotels app will allow guests to unlock their hotel room doors without having to fumble with a key or dig through a bag to find a key card.
With the Apple Watch acting as a digital room key, guests who have a compatible iPhone will simply have to tap a button while standing at the door.
The app was featured during Apples unveiling earlier this week and it will be used at some of Starwood Hotels and Resorts Worldwides properties, which include the Westin, Sheraton, W and Aloft brands, starting next spring.
The future of the receipta new publishing and engagement medium? E-tailers and retailers are now able to tailor the receipt to enhance the customer experience post transaction.
Companies can also feed insights and analyticss to empower affiliate networks.
Webrooming and Showrooming:7Retailers invest in technology and experiences to promote webrooming and showrooming to their advantage.
Webrooming more common than showrooming (69% to 46% respectively), according to Harris pollMillennials prefer webroomingAmazon remains #1 for both showrooming and webrooming
Reverse Engineering etail and Webrooming/Showrooming to Improve Retail Experiences
Reasons for Webrooming vs. Showrooming:
47% don't want to pay for shipping
23% didn't want to wait for the product to delivered
46% like to go to a store to touch and feel a product before they buy
36% will ask the store to price match a better price found online
37% like the option of being able to return the item to the store if needed Source: Merchant Warehouse 2014
The Future of Retail:83d printing, IoT, virtual displays and personalization technology creates dymamic shelves and racks unique to each user and redesigns inventory and supply chain in the process.
Big Data & Beacons: Connecting online, in-app, and in-store experiencesFootfall, visits online, visits through appsRegency and frequency of visits, behaviors and transactions Brand affinitiesFavorite productsDemographicsLocationLoyalty program utilization Service quality, queue and abandonment Capacity planning and resource utilizationBeacons provide businesses with endless opportunities to collect massive amounts of untapped data, such as the number of beacon hits and customer dwell time at a particular location within a specified time and date range, busiest hours throughout the day or week, number of people who walk by a location each day, etc. This data then allows retailers to accordingly make improvements to products, staff allocation in various departments and services, and so on.
At the end of my session, the mirror gave me the option to check out right from my stall."The smart room recognized the shirt, recommend clothes to pair with it, and sent instructions to a sales clerk if I needed another size or color, for example.
The Shopper Journey:10Online apps and experiences influence decision-making and journeys. Retailers will eliminate friction and re-design the online/offline journey.
Customers consult 11 information sources on average before making a purchase.
Is it true mobile search has overtaken desktop search?
66% of all time spent on ecommerce sites is done on mobile.91% of ecommerce sites that are not responsive. 61% of customers leave a site if it isnt mobile-friendly
Smartphone users will immediately switch to another site or app if it doesnt satisfy their needs (your site is too slow).
Micro-moments unfold through a variety of common I want scenarios that help people take steps or make decisions I want to learnI want to buyI want to knowI want to goI want to do
Customer expectations are influenced by experiences engaging with other industries.
Businesses that focus on micro-moments, human-centered behaviors and expectations and related tech, will naturally re-imagine the customer journey, upgrade their experience and modernize the brand for the digital economy.
DataPersonalizationEngag`ementRelationshipIdentify Driven Marketing Starts Here
Innovation begins with us
This can prove to be difficult because one of the first questions any executive asks is, Can you show me other companies that are doing this and what ROI they are seeing? Making the case can become a classic chicken and egg scenario where the need to change and the ability to show that others are successful may not coexist.
Innovation Centers:11Retailers get into the innovation game to test new tech and better understand digital customers.
IT and digital is pervasive in peoples lives now. So the advice I would give somebody starting it now is, think of yourself like a consumer technology company.- Starbucks
Innovation Takes Many Shapes
A lot of work Labs is doing is focused on understanding the shopper, the actual consumer, relationship with the brand. It's about how we facilitate the ability for any kind of engagement, anywhere, anytime, any way. Shop my way.
- Andy Hedges, Director of Shopping Centre Management and Marketing, Westfield
When we think about ourselves, we think about constantly innovating and staying ahead of the curve, says Bridget Dolan, vice president, Sephora Innovation Lab. The mission is to make sure we are listening to our clients needs, our internal employees and the ideas they have, and keeping a finger on the pulse of trends, all the while competing with ourselves to make sure were always innovating.
Space 2.0:12Retail space is a blank canvas for re-imaging the shopper experience.
Telstra will remain relevant forever, said David Thodey, CEO of Telstra as it shifted its focus toward digital growth. Speaking at the Australian Digital Summit, he pointed to Sony as a company that had not moved with the times. You need to be bold, and you need people who are going to test you and drive you forward, he said.
Designed to blur the lines between digital and physical worlds and to provide customers with a personalized experience.The price tags in the store have been printed from digital ink, meaning prices can be adjusted centrally and instantly.We've got to make that seamless experience. It doesn't matter where you touch us anywhere in Australia, online, any retail presence, or when you call us.
Vision +EmpowermentNew Models, Processes, Systems to Support a Unified Digital Customer Experience
Understand the New Customer
Design the Digital Customer Experience
Behind every screen, every expression and impression, is a human beingnot a consumer.
Txt Experience to 33444For This Presentationbsolis@prophet.com | Altimeter Group, a Prophet Co.briansolis.com | @briansolisLinkedin.com/influencer/briansolisFacebook.com/thebriansolis