personalization: relevant retailing
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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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©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
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
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©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
Customer Identification - How
Disney wristband – traffic tracking and
adjusting experience accordingly
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©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
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?)
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©2014 Boston Retail Partners. All rights reserved
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)
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©2014 Boston Retail Partners. All rights reserved
Events
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Dynamic promotions driven
by events (weather, holidays, natural disasters,
etc.)
©2014 Boston Retail Partners. All rights reserved
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
©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
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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©2014 Boston Retail Partners. All rights reserved
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.
©2014 Boston Retail Partners. All rights reserved
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 kmorris@bostonretailpartners.com 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
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