trends shaping digital experience | retail's digital summit 2016 | the future of retail 2017

The Future of Retail 2017

Trends Shaping the Digital Experience

AndreaPuerari #shoporg16

A selec?on of main issues and trends from Retail's Digital Summit

Retailisimmersedinaneweraofengaging,relevantandvibrant commerce and the most astute players arecomingupwithuniquesocial strategies to influence the

shoppers.

Retailersneedtochoosetherightchannelbasedontheircustomers.

Virtual and augmented reality promise to take theimmersive customer journey to a higher level ofexperience

Mobile is the starAngp o i n t f o r d i g i t a lengagement and thecreaAon of a mobile-firstcultureiskey”

“IftherewasonepervasivethemethatseemedtoweavethroughtheDigitalSummit,itwasthis:

Know the mobile KPI’S

“Whatisimportanttoyou?”“Isitsales?Downloads?NewcustomeracquisiAon?Orareyougoingforprofitabilityandcostsavings?”

Know the customer

Toys“R”Us:‘Wherearethemicro-momentsthataregoingtohavethebiggestimpact?’”“Wecan’tchangeeveryaspectofthejourney,butifwefocusour

aRenAon on the right spot, thenwe’ll know thatwe’ll have thebest returns.Making surewe’re constantly thinking aboutwhatthey’redoingandwherethey’recomingfromwouldhelpusout.”

Know the right balance of human and machine learning

Toys “R” Us has incorporated machine learning to helppersonalizethesearchprocessforitsmobile

“But then there are also aspects of the business that weknowbest,wherewewillknowmorethanamachinewill.”

Know how to design and test for the mobile user

ColumbiaSportswearlifestylebrandprAna:the mobile strategy includes leWng users influence designthroughA/BtesAng.“NotourCEO,notthemarkeAngteam,notthedesigners,”Pennsaid.“WelettheusersdictateourdesignthroughA/BtesAng.”

Trends 2017

“Machine learning, ArAficial intelligence, broadly, has plenty of potenAalbut it’s machine learning that will advance personalizaAon and chatcommerce,anddeeplearningthatwillmakechat/conversaAonalcommerceanincreasinglypracAcalsoluAonformanyretailers”.

Banter.ai is an example of a simplevalue-add for customers and retailersalike.

ConversaAonalCommercePla[orm

hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8

hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8

BanterisaPersonalShopper

Banter i s an In S toreAssistant

CustomerserviceChatcommerce“Customer service Chat commerce, especially via SMS (vs. retailer orotherapps),wasjustonetopicrelatedtoservice.

Butcustomerservicecamethroughinotherways,too.Retailers are using technology to empower store associates, which isdrivingonlinesalesandfulfillment”.

hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8

Augmentedreality“ARseemstobeapproachingtheAppingpointtowardmainstreamapplicaAon:-emphasisoncustomerexperience,- Strata 3D allows retailers to “see” new stores and different merchandisingdisplaysbeforedoingbuildoutormakingchanges,whichcouldsaveAmeandallowexperimentaAon.

- in home furnishings (the sector where AR could fastest become a customerexpectaAon),Houzzmeets Lowe’s andHomeDepot in providingAR visualizaAontoolsfordecorconsideraAons.-Sephorahaswidespreaduseofitsmobilemakeuptry-ontools,butusersarethen

heading to stores (yes, physical ones) to test the final lipsAck contenders inperson”.

hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8

Digitalsupportforphysicalretail“Further evidence of retail’s demand for online-to-offline came from Facebook,which already sells dynamic ads showing local inventory and acknowledgedthere’smuchmoretheycanbuildintothisproduct.Similarly, Facebook’s currentOffers tab noAfies users of promoAons saved in itbuttomorrowcouldincludegeo-targeAng.

RichRelevance allowscustomers insidearetailstoretoopenupthatretailer’swebsite(notjustmobileapp)andautomaAcallyseelocallyavailableinventory — andwhereinthestoreit’slocated — asthefirstsearchresults.Dependingonhowyoulookatit,maybethat’soffline-to-onlineandnottheother

wayaround”.

hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8

Channelconvergence

“In store andonline shopping experiences are converging and ablendedandseamless“digital”shoppingexperiencethatcombinesthebestofbothworldsis one of the leading reasons for the brick-and-mortar store’s digitaltransformaAon.Facebook’s cross-device ROAS (return on adverAsing spending *) report now

includes store visits and store purchases, and it’s person-based rather thancookie-based”.

hRps://medium.com/nrf-events/what-was-hot-or-not-at-retails-digital-summit-de4a4b133d96#.i6ei4u2u8

*hRps://www.facebook.com/business/news/cross-device-measurement

10 Pillars of the New Digital Shopping Experience

PSFK,FutureofRetailhRp://www.pso.com/report/future-of-retail-2016

CREATE CONFIDENCE “Providing shoppers with the tools and advice to help them discover

new products and choose the best op?ons for their lifestyles and

needs.

Key trends to inspire confidence in shoppers:

•  Product Immersion: create opportuni?es for customers to get hands-on with products to decide which op?on is the best fit for

them. •  Guided Recommenda?ons: use one-to-one exper?se or automated

services to help people narrow down available choices, models and styles”.

Virtual Remodels Help Home Owners Decide @IKEA

Virtual Remodels Help Home Owners Decide @IKEA

EmployeesBestMatchingCustomerBodyTypeModelDressesOnSnapchatToEnsureProperFit@RenRheRunway

ELIMINATE OBSTACLES

“Saving customers Ame and effort along thepurchasepaththroughstreamlinedtechnologyandservices”.

“Modiface, an augmented reality (AR) company serving the beautyindustry with custom try-on apps, has integrated its simulaAontechnology into a conversaAonal beauty advisor on FacebookMessenger”.

Taco Bell Slack-Bot Orders F o o d T h r o u g h Instant Message

“Keytrendstoeliminateobstaclesinthepurchasepath•  AnywherePurchasePla9orms:leverageemergingtoolsto

allowshopperstoquicklydiscoverandbuyproductsanywheretheyencounterthem.

•  ShopAhead:providedigitalservicesthatallowcustomerstoplanoutandopAmizeeverystorevisitbeforetheygo.

•  One-ClickTransacBons:streamlinethecheckoutprocesswithservicesthatautomaAcallyrecognizeshoppersandtheirpreferredpaymentmethod”.

DEMOCRATIZE ACCESS “Openingthedoor forconsumerstotakeadvantageofservicesandexperiencesthatwerepreviouslytooexclusiveorexpensive.Keytrendstodriveshopperaccess:•  Customer Concierges: enable one-to-one relaAonships betweencustomers and members of staff to deliver more personalizedserviceandexperiences.

•  AspiraAonal Experiences: experimentwith immersive360-degreeandreal-AmevideotechnologiestoopennewpossibiliAesforhowaudiencesexperienceabrandanditsproducts.”

Connect with an associate 24/7

RECOGNIZE & PERSONALIZE “PuWng systems in place for remembering and acAng on the purchasehistoryandpreferencesofcustomers,andtailoringthoseexperiencesoverAme.Keytrendstobuildapersonalizedshoppingexperience:360-DegreeService:providemembersofstaffwithtoolsthatenablethemto build and act on the preferences of shoppers to deliver more

personalizedserviceandexperiences.PredicBve Assistance: develop sophisAcated pla[orms that leverage

known preferences and behaviors alongside key contexts to deliverrelevantinformaAonandservicesthatanAcipateshopperneeds”.

Macy’s x IBM Watson AI Assistant Offers Loca?on-Specific Guidance And Advice

@Macys@IBMWatson

The departmentstorehasenlisteda n e w A I -p o w e r e dassistant.

PROMOTE TRANSPARENCY

KeytrendstogiveshopperstransparencyReciprocal RelaBonships: develop opt-in experiences that give consumersinsight and control over their personal informaAon, and deliver greater

valuearounditsuse.StoriedProducts:givecustomersabehindthescenes lookatthesourcing

ofproductsandtheirimpacts.”.

“Being upfront with consumers about the policies and processes thatunderlietheproductsandservicesthatthey’rebuyinginto.

Sage Project

“Anewonlinepla[ormthatreimaginesfooddata.Sage deconstructs more than 20,000fresh and packaged foods (mostlyorganic brands fromWhole Foods, fornow) into interacAve, personalizedblurbs of informaAon that makethebasicsof food labels—calories, topnutrients, ingredients, and allergens—easiertodigest”.

PERFECT PARTNERSHIPS

Keytrendstobuildbrandpartnerships:Cross-Channel Rewards: build an ecosystem of partners and perks thatrewardengagementinbroadervarietyofways.

AddiBve Experiences: enhance the experience of shopping and/orownership by connecAng with partners to deliver premium services,

contentandperks.”.

“CreaAngaddiAonalvalueforcustomersbycollaboraAngwithlike-mindedcompaniestodeliverexpandedofferings.

OPTIMIZE OWNERSHIP

KeytrendstoopAmizeownership:CulBvatedExperBse:createeducaAonaliniAaAvesthat

teachconsumersnewskills,whileextendingtheusefulnessofproductofferings.

Always-On Support: leverage a mix of text, video and AI services toprovide real-Ame access a network of experts to troubleshoot problemsandprovideadvice”.

“Building a responsive support network that provides expert service andeducatesconsumersarerapurchaseismade.

@oBo?cario Live Streamed Professional Make Up Classes For All

CULTIVATE COMMUNITY

Keytrendsdrivingcommunityengagement:Cultural Hubs: set aside space within stores to push complementaryservicesandexperiences that gobeyondcoreproductofferings, creaAngmarketplacesforrelaAonships,notjustproducts.CollaboraBveMarketplaces:experimentwithnewwaystomakeproductsa catalyst for shared connecAons – whether through knowledge,experiencesorownership”.

“CreaAngopportuniAes forconsumersand fans tocometogetheraroundthehaloofabrandtobuildvalueontopofexisAngproductsandservices.

ENCOURAGE ADVOCACY

Keytrendstoencouragecommunity-ledadvocacy:Shopper-LedExchange:createopportuniAes for shoppers to share theiradviceandexperienceswithacommunityofothershoppers.CrowdBuy-In:uAlizethepowerofcommunity-basedpla[ormstolaunchnewideasandsolicitfeedbackfromanengagedaudienceoffans.”.

“Tapping consumers for their knowledge and feedback to createopportuniAesforthemtoadvocateonyourbehalf.

CoverFX Social Media Fans Become Makeup Models @CoverFX

DELIVER DELIGHT

Keytrendtodeliverdelight:InsiderExclusives:offerone-of-a-kind

rewards and experiences to a top-Aer group of customers andinfluencerstogenerateexcitementandgrowbroaderappeal”.

“ProvidingunexpectedperksandpromoAonsthatreenergizeexisAngrelaAonshipsandbuildonthebroaderbrandpromise.

Taco BellRewards for Social Behavior Embodying Brand Lifestyle @TacoBell

5PlacesToInvest

Automate An Intelligent Front Line

Empower A Connected Salesforce

Build A Comprehensive Customer View

Drive Commerce With Compelling Content

Equip The Modern Shopper To Act

“boundarylessretail”

Drop the ‘e’ and capitalize the ‘c’ — it’s all about Commerce

“We’ve entered the age of boundaryless retail – a

world devoid of ar?ficial barriers, driven by innova?on

and collabora?on, where we leverage the power of

technology to create a seamless experience for

consumers.”

HSNiCEOMindyGrossmandescribeshervisionasboundarylessretail.

Drop the ‘e’ and capitalize the ‘c’ — it’s all about Commerce

“Successful retailers will focus less on akrac?ng

customers to their own points of sale, and more on

mee?ng them wherever, whenever and however they

want to engage”.

hkps://youtu.be/M_weWs29eYY

HSNiCEOMindyGrossmandescribeshervisionasboundarylessretail.

Main Source:

hkp://retailsdigitalsummit.nrf.com/recap#ar?cles

Thank You,

Andrea Puerari www.andreapuerari.com