retail innovation consumer behaviour - consumer... · 2016. 5. 24. · your smartphone, smartwatch...

RETAIL INNOVATION&CONSUMERBEHAVIOUR

SHOPPING TODAY

More people are doing little and often trips to supermarkets and convenience stores due to:

• Saving Money

• Reducing food waste

• Too busy to do big shops

74% OF PEOPLE SHOP AT A GROCERY

STORE OR DRUGSTORE ONCE PER WEEK

OR MORE WITH 45% SHOPPING TWO OR

MORE TIMES IN A WEEK

THE CONVENIENCE SECTOR ADDS TO THE ECONOMY IN GROSS VALUE JUST OVER…

£5bn That’s over 6% of all UK RETAIL…

Convenience leads the way as the most common place to top up but the food discounter (Lidl & Aldi) and High street discount (Poundland & B&M) are taking over.

• Satisfying customer needs: Food discounters are the highest ranked due to overall satisfaction, prices and store navigation

• Convenience gap is lowering. There are too many of them.

• Shopper behavior's are changing, technology and new applications linked to social media are driving footfall, particularly for new generation customers

SHOPPING TODAY

GOALS TO ATTRACT FUTURE CONSUMERS

Future mission to improve channels:

• Mission Focused

• Speed of Service

• Easy to shop

• Support lifestyle

• Inspire especially the new generation of shopper

• Create loyalty

• Use data effectively…information is currency

WHAT RETAILERS SHOULD ALWAYS ASK?

• Why are the shoppers in THIS store? Category should start with good range. Does not have to be bestseller but should provide for the shoppers in that store.

• Where should you be pushing harder? Showcase that section and expand it. Show the consumer what makes your store special.

• Where do you accept that certain products do not justify a place? Place the product in the less obvious section. Focus on what would the consumer purchase this item with(think meal deals)

CONVENIENCE STORES NOW OFFER A WIDE RANGE OF SERVICES AND FEATURES IN-STORE FOR THEIR CUSTOMERS.

IT’S ALL ABOUT SPEED

• Small stores allows customers to get in and out quickly.

• Self checkout- customers do complain about the keys at the checkout.

• Mobile scan & go- Scan and pay with your mobile phone

• Home delivery- Food delivered to your house

IT’S ALL ABOUT SIMPLICITY AND SPEED

DOES 'PAY BY APP' MEAN AN END TO SHOPPING QUEUES?

Smartphones are a critical part of the path to purchase.

• 44% of people use their smartphone always or most of the time while in-store shopping at grocery or drugstore locations.

• 75% of people have one or more grocery store or drugstore app on their smartphone with 39% of people having two or three apps and 28% of people having three or more.

CONTACTLESS PAYMENTS MAY BE ALL THE RAGE THESE DAYS, BUT YOU STILL HAVE TO TAP

YOUR SMARTPHONE, SMARTWATCH OR CARD ON A TERMINAL OF SOME KIND.

EASY TO SHOPConsumers want easy navigation and speed. Here are 2 examples of how 2 brands have achieved this:

• Sainsbury’s- Position products close to the entrance to speed up shopping for top up shoppers. Small basket shop.

• Media screens at till or behind the counter entice consumers to purchase whilst queueing to pay

• Hello Fresh- No shopping list needed. Meal solutions chosen by you or store and they deliver it to you. Benefits: No need to think, no need to shop. Becoming more popular.

SUPPORT CONSUMER LIFESTYLE

• Goal: Make your day and shopping easier

-Argos store in large Sainsbury’s

-Giraffe in Tesco

-Waitrose- Purchase John Lewis

products whilst doing food shop

ITS ALL ABOUT INNOVATION

• Saves both money & time

-automated ordering

-never being unable to sell

-controlling staffing costs

Loyalty solutions to provide the data is key for retailers to understand consumers

Tesco ‘If this then that’ app

Online platform to set triggers and

actions.

LINKS BACK TO SPEED AND CONSUMER

LIFESTYLE THEY WANT TO ENJOY THEIR

SHOPPING INSTEAD OF FEELING LIKE

IT’S A BURDEN.

CONVENIENCE FIGHTS BACK TO STAY AHEAD

• Food-to-go: stealing the limelight from traditional stores. Convenience are ideally placed to fight this battle but must ensure offer is right. Forecourts are ideally placed to exploit this

• Coffee offer in convenience stores- Coffee is key for consumers. Creates a relaxed atmosphere

• Focus on the community. More attractive to consumers if they have more offers to give e.g. royal mail, boots pharmacy etc.

• Invest in innovative loyalty schemes that provide instant customer treats or rewards

• Technology and innovation need no longer be the domain of the big boys.

• Be aware of the data available from your back office, a regular review of reports will help improve your offer

• Use all your instore technology to advertise, tills, PEDs, OPTs

• Introduction

• Payments today

• Payments tomorrow

• New insights

• Growing retail with insights

• Discussion

14

Agenda

Confidential & Commercially Sensitive

15

Today’s discussion

Confidential & Commercially Sensitive

Intelligent use of new data for new insights that enhance revenue

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INTRODUCTION

Diverse FTSE 100 multinational PLC

Record of growth and an ability and willingness to invest

Reputation for innovation and value creation through IT

Commercially conservative with courage to challenge

One of Britain’s largest independent agents for fuel cards

Provide fuel cards for all major networks

Excellent nationwide coverage – c. 80% of all sites available

Most experienced management team in the industry

Dedicated technology hub within DCC

In expanding software-as-a-service (SaaS) in UK and Sweden

Low impact deployment with cost and risk reduction

Award-winning Cardivation adds intelligence to any bank card

x

x

x

AIM:

Get fuel customers to spend more in

the shop

CHALLENGES:

Only get data on fuel cards

and affiliated loyalty scheme

Lots of payment methods

Sites can’t track many customers

Don’t know what they buy

Can’t communicate with them

Can’t link private sales to fuel cards

PAYMENTS TODAY

Confidential & Commercially Sensitive 17SOURCE: UK fuel industry

Cash30%

Debit cards40%

Credit cards10%

Allstarfuel cards

7%

Otherfuel cards

13%

Typical mix of payment methods

Cash is projected to decline.

Frictionless digital payments

Mobile and contactless will be big winners

• Growth of mobile – Apple Pay, Android Pay, Samsung Pay and LG’s G Pay

• Going wearable – Barclaycard bPay

• Security fears – tokenisation

• Biometrics – finger vein mapping

PSD2 legislation – new entrants with greater efficiency and cost-reduction

PAYMENTS TOMORROW

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Top payment trends

SOURCE: Tech Week Europe

19

There is a newpayment technology that gives dealers…

Confidential & Commercially Sensitive

Insights into ALL cardholders

Cardivation

Confidential & Commercially Sensitive 20

WHAT IT IS:

Cardivation is a patent pending card innovation that combines cloud and tokenisation technologies to add intelligence to any existing terminal* or card scheme…

MAIN ADVANTAGE:

…without adding expense to the card scheme or interfering with legacy systems at the bank or merchant.

*HTEC GemPAY 1 & 2 processed by FIS

Cardivation

Confidential & Commercially Sensitive 21

WHY WE INVENTED IT:

Better insights into all unknown customers

Channels to communicate with all customers

Digital replacement for paper receipts

Platform for new fuel card

DESCRIPTION:

CRM system imports PCI compliant level 3 VAT data from payment terminals and stores it for each payment card.

No separate loyalty cards needed.

BENEFITS:

Dealers get actionable insights on every cardholder, not restricted to one loyalty scheme, reduce loyalty overheads – i.e. card issuance and reward fulfillment.

Cardholders earn points on every transaction without carrying loyalty cards.

CARD-FREE LOYALTY

Confidential & Commercially Sensitive 22

Commercialised

OPTIONS:• Interface with existing loyalty scheme• Create new virtual loyalty scheme

Merchants need new insights

to increase margins

Confidential & Commercially Sensitive 23

If you switch

on Cardivation you will get…

24Confidential & Commercially Sensitive

BENEFITS OF CARDIVATION

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TOP LEVEL

Insights into

every unique

bank card

customer

Channels to

communicate

with them

Low impact

deployment

with no

disruption to

legacy systems

Digital

level 3 VAT

receipts

Optional

Card-free

Loyalty

Platform for accepting mobility

cards that can add incremental dry

goods sales to fuel card customers

MERCHANTSaves printing

VAT receipts

Reduces

checkout time

Simplifies PCI

compliance

Reduces cost of

loyalty data

More targeted

& integrated

offers

Reduces loyalty

infrastructure

Lower loyalty

fulfilment cost

CARDHOLDE

R

Easy receipt

management

Quicker

transactions

More secure

due to emailed

receipts

Easy expense

& VAT claim

Don’t need

loyalty cards

Rewards on all

transactions

Quick & easy

rewards

redemption