1. 1. Key Consumer Trends and how they affect retail FUTURELAB
2. 2. a more customer-friendly place On a mission to make the world FUTURELAB Alain Thys: ath@futurelab.net Some credentials
3. 3. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
4. 4. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
5. 5. (cc)nggalai Key shopper trends and how they affect retail Demographics Technology Mindset FUTURELAB
6. 6. Demographics Source: Eurostat, 2011 1991 2011 2021 WomenMen Demographic Pyramid EU-27 (cc) ThomasSoerenes Shoppers are getting older FUTURELAB
7. 7. Demographics 1/3 of the population > 80% of the wealth > 50 yrs old Image: (cc) Chris_Parfitt Shoppers are getting older 43.4 46.1 48 49.6 1999 2004 2008 2013 Sources: trendwatching.com, 2013 Cyril Huze Post - 2013 Average age of Harley Davidson driver. FUTURELAB
8. 8. Demographics Shoppers are getting more multi-cultural Source: Daily Mail Online, August 2013 Immigration numbers by country, 2012 (cc)epSos.de FUTURELAB
9. 9. Shoppers live in ever smaller households (cc) arileu Aging Divorce Choice Career Demographics FUTURELAB
10. 10. Are you really taking their needs seriously? Influence on retail Store format Merchandise selection Staff behaviour & know how - (cc) augapfel Galina Barskaya (c)Getty Images Ageing Immigration Non-traditional households FUTURELAB
11. 11. Catering to a specific age group Remarkable practice FUTURELAB
12. 12. Catering to different cultural values Remarkable practice Korea: Lavendel Halal, Rice-based Skincare Metropolitan restaurants Halal food at McDonalds FUTURELAB
13. 13. Catering to singles Remarkable practice Slunch Factory (Korea) Single household lunch box Supermarket dating Help singles meet FUTURELAB
14. 14. (cc)nggalai Key shopper trends and how they affect retail Demographics Technology Mindset FUTURELAB
15. 15. 98.1 90 80.5 64 35.9 3.7 16-24 25-34 35-44 45-54 55-64 65-74 Internet access by age group Lithuania, Q1-2012 The internet has changed the way we buy Digital Reality Source: Statistics Lithuania, August 2012 Holidays Cars Books What isnt in Lithuania today, will come. Insurances FUTURELAB
16. 16. In-store smartphone usage per category US, 2013 Mobile is part of the shopping experience Digital Reality Source: Google Shopper Marketing Council, August 2013 On an average day, more than 100,000 unique customers access Nordstrom on a mobile device, with nearly twice that amount during the holidays, In 2012, sales from a mobile device accounted for over 20%more than $260 millionof the companys total direct (digital) sales. Compared to less than 4% in 2010. Source: Internet retailer, February 2013 FUTURELAB
17. 17. 36 43 53 60 Lithuania 2011 Lithuania 2012 Denmark UK Sources: The Baltic Course, May 2013 - OECD, 2012 Ecommerce is part of life for every retailer Digital Reality % of population purchasing online 42% of UK electronic goods buyers will look at products in store before buying online from a different retailer. Source: The Consumer Decision Journey, Microsoft, 2013 Image:(cc)CliveDarra FUTURELAB
18. 18. Digital Transparency Rules Digital Reality Quality Price Coming soon to Europe: FUTURELAB
19. 19. Are you ready for the omnichannel reality? Influence on retail International competitionAlways on transparency Showrooming Image: (cc) Clive Darra FUTURELAB
20. 20. Make shopping easy Remarkable practices Panty Subscription Service (CA) Fastest delivery From store to house in minutes (UK) FUTURELAB
21. 21. Is it a store or a showroom? Remarkable practices Apple stores John Lewis Exeter About 60% of our customers buy both online and in shops so the approach is to make it absolutely seamless for them to move from one to the other. FUTURELAB
22. 22. Hybrid Shopping Remarkable practices FUTURELAB
23. 23. An unusual approach Remarkable practices Brisbane, Australia, 2013 FUTURELAB
24. 24. (cc)nggalai Key shopper trends and how they affect retail Demographics Technology Mindset FUTURELAB
25. 25. Scarcity Mindset Time Money Decreasing disposable income More planned buying Growth in private label Shrinking share of wallet for everyone Life gets busier Time scarcity = more efficient shopping Desire for work-life balance = shopping is a chore Desire for one-stop service & product shopping FUTURELAB
26. 26. Indulgence Mindset Entertain meMake it beautiful (Design matters) FUTURELAB
27. 27. Conscience (& scepticism) Mindset Health World 84% percent of millenials (18-32 yrs) in Europe, Asia and US believe it is their generations duty to change the world Health and wellness is becoming a priority but consumers find it difficult to decode product labeling and nutritional claims. The cat is out of the bag Out of 5,296 products, 95% made at least one false claim Source: Terrachoice, 2012 Source: Bord Bias 2010 Periscope study Source: The Guardian, April 2013 FUTURELAB
28. 28. Are you ready for changing consumer mindset? Influence on retail Health and environmentEfficiency with time & money Design and entertainment Image: (cc) PhotoAtelier Image: (c) Mike Powell FUTURELAB
29. 29. 19/03/2014 29. Tesco Homeplus Korea (by now a classic) Remarkable practices FUTURELAB
30. 30. Disarming detractors No one can do this on his own Brand Utility Examples GS 25 Virtual fridge FUTURELAB Korean supermarket lets consumers store 2-for-1 promotions in a virtual refrigorator
31. 31. Italian food shopping redefined Remarkable practices FUTURELAB
32. 32. Disarming detractors No one can do this on his own Remarkable practices It doesnt have to be so elaborate HEB Supermarkets (Texs) 11% growth in mens care products within 1 year FUTURELAB
33. 33. Disarming detractors No one can do this on his own Remarkable practices Just be honest FUTURELAB
34. 34. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
35. 35. 19/03/2014(cc) Andreas Kollmorgen Preparing for the changing retail reality Secure the basics Offer complete and relevant experiences Focus technology on the customer FUTURELAB
36. 36. Disarming detractors No one can do this on his own Secure the basics Yesterday, mistakes could be forgiven no more. FUTURELAB
37. 37. Disarming detractors No one can do this on his own Secure the basics Digital Basics Fast website Easy shopping Mobile availability Online security Quality home delivery Variety in payment options Social integration FUTURELAB
38. 38. Disarming detractors No one can do this on his own Secure the basics Retail basics Opening hours - Retail standards Staffing - Merchandise availability - Store design (cc)JasonRosenberg FUTURELAB
39. 39. Secure the basics Tactically responding to customer queries What is the % of helpdesk questions that never get answered (Insites Consulting, 2010 n=500 senior marketers in Benelux, France, Germany, UK) 11-28%depending on the channel FUTURELAB
40. 40. Disarming detractors No one can do this on his own Secure the basics Structurally acting on customer feedback 90% Collect Customer Feedback Alert Staff to Findings 50% Make decisions using insights 30% Deploy improve 10% Inform customers of change 5% Source:BupaInternational,2009 DEBATE WHERE IS YOUR BUSINESS? FUTURELAB
41. 41. Remarkable practice: Applying common sense to basics can take you far Metro Bank Theres more Leave the bank with your card Have a coffee next door if you need to wait (with alerts) Friendly & smiling recruitment policy FUTURELAB
42. 42. Disarming detractors No one can do this on his own Remarkable practice: Applying common sense to basics can take you far Own experiences Minimum Standards Brilliant Basics FUTURELAB
43. 43. 19/03/2014(cc) Andreas Kollmorgen Preparing for the changing retail reality Secure the basics Offer complete and relevant experiences Focus technology on the customer FUTURELAB
44. 44. Complete & relevant experiences To avoid misunderstandings Lets spread love & hug Lets be like DisneylandLets go WOOOOOWW!! When I talk about experiences Im not talking about. FUTURELAB
45. 45. Complete & relevant experiences To avoid misunderstandings I am talking about really connecting with your customers FUTURELAB
46. 46. The biggest CX challenge Most companies wear blinders on customer experience FUTURELAB (cc) Emilio Labrador
47. 47. 47 Travel company Which are the customer steps when going on a holiday FUTURELAB 1. I dream of going on holiday 2. I research my holiday 3. I plan my holiday 4. I select my holiday 5. I purchase my holiday 6. I receive travel documents & tickets 7. I anticipate departure 8. I prepare my trip 9. I travel to my destination 10. I discover my destination 11. I experience my destination 12. I record my memories 13. I share my experience 14. I travel back home 15. I share my memories
48. 48. 48 Ask yourself Which steps in the journey do travelcos manage? FUTURELAB 1. I dream of going on holiday 2. I research my holiday 3. I plan my holiday 4. I select my holiday 5. I purchase my holiday 6. I receive travel documents & tickets 7. I anticipate departure 8. I prepare my trip 9. I travel to my destination 10. I discover my destination 11. I experience my destination 12. I record my memories 13. I share my experience 14. I travel back home 15. I share my memories
49. 49. 49. Remarkable practice CEE Mall: Different customers, different experiences Planning Departure Journey Arrival Decompression Exit Journey Remember Returns Shop BuyDwell The Shoppers Journey
50. 50. 19/03/2014 50. Deliver relevant experiences Three steps 1. Map your customers TRUE journey (think beyond your store) 2. Identify key choice and loyalty drivers for each shopper archetype you target 3. Develop experiences which match these drivers at EVERY journey step FUTURELAB
51. 51. 19/03/2014(cc) Andreas Kollmorgen Preparing for the changing retail reality Secure the basics Offer complete and relevant experiences Focus technology on the customer FUTURELAB
52. 52. Embrace technology Consider technology To enhance the experience To become more lean To challenge conventions FUTURELAB
53. 53. Embrace technology Look beyond the apps Customer vs. Shopping cart analytics Customer contacts Support functions Management CEO Customer Reality Seamless Experience Single view of the customer FUTURELAB
54. 54. Embrace technology Look beyond the apps Customer vs. Shopping cart analytics Data Discovery Predictive modeling Customer Intelligence Voice of customer Voice of business Voice of employee Voice of market FUTURELAB
55. 55. Different customers, different styles Selecting a handset Managing Services Simple enough but not too simple Tariffs Billing Remarkable practice Use technology to offer differentiated/relevant experiences FUTURELAB
56. 56. Remarkable thought Point of inspiration: Sharing Data? SVP Digital Business, LOral Group Brands and retailers need to let go of their antagonistic negotiation model and instead focus on working together to maximise retail floor sales and profit. Both stand to gain. Experiment: Joint initiative LOral-Carrefour make-up kiosk FUTURELAB
57. 57. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment FUTURELAB
58. 58. A few words on payment I Thought Long and Hard (cc)BrianHillegas
59. 59. A few words on payment And it was tempting to go visionary Disney electronic wristbandMobile (NFC) wallets Implants (Barcelona) FUTURELAB
60. 60. A few words on payment And it was tempting to go visionary FUTURELAB Points on Kindle, tomorrow?? Alternative currency Pay with sweat More airmiles than dollars? 1/3 of coffees purchased Its money Jim, but not as we know it
61. 61. A few words on payment But pragmatism rules Offer every payment option Lithuanian customers desire. Belgium 1. Credit card 2. Online bank transfer Germany 1. Invoice & pay afterwards (58%) 2. Credit Cards (34%) 3. Variety of others United Kingdom 1. Credit card (40%) 2. Debit card (35%) 3. Paypal (21%)ONLINE (cc)FrankBlais FUTURELAB
62. 62. Two questions to ask yourself How can I simplify? FUTURELAB
63. 63. Two questions to ask yourself Who owns the customer? other locations ?? FUTURELAB
64. 64. PART ONE Key shopper trends and how they affect retail PART TWO How to prepare for the changing retail reality. PART THREE A few words on payment Demographics Technology Mindset Ensure the basics Complete & relevant experiences Focus technology on the customer Offer what your customers seek Always try to simplify Make sure you keep owning your customers FUTURELAB
65. 65. FUTURELAB E: ath@futurelab.net