@
Digital Shopper
Relevancy 2014 Kees Jacobs
November 2014
2 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Capgemini is helping our retail clients to become successful in engaging with Technology-Enabled Consumers at their Moments of Truth
Capgemini’s DCX in Retail delivers improved consumer insights, differentiated consumer engagement,
increased loyalty, higher sales conversion, more profit and ultimately, business continuity!
Strong
Partners
Strong Credentials
& Experiences
Capgemini’s Service Proposition
All-Channel Consulting Services (e.g., ACE Strategy, Customer Journeys & Experience,
CRM/Digital Marketing, Digital Transformation)
All-Channel IT Services (e.g., Solution Architecture Leadership, Cloud Services
Orchestration, Mobile Platforms, Agile, Big Data)
All-Channel Managed Services (e.g., Social Media Engagement, Digital Asset
Management, Consumer Insights)
Our Retail Client’s Proposition
Etc.
3 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Customer
Managing a personal and relevant dialogue with individual customers
Content
Managing high-quality and rich inspirational
content across all channels and touch
points
Single View of Data
Demand Driven Business Operations
Commerce
Managing maximised sales conversion leveraging optimal merchandising and pricing across all
channels
People Process
Technology
Managing involved and
motivated staff with relevant performance
rewards
Orchestrating dynamic, front-end IT solutions
integrated with a cost-effective , reliable IT
foundation
Managing streamlined and
customer-focussed ways of working
across the company
Providing relevant Digital Customer Experiences across all channels requires a well-balanced set of new and integrated Businesses and IT Capabilities
Fulfilment
Efficiently delivering the orders across all
channels at the location and time your
customers prefer
Email/DmailMobile TabletWeb site Instore TechnologySocial media Call centreBought media Future channels
4 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
The Importance of the Customer’s Voice
56% of companies
described themselves as customer centric….. But
Only 12% of their
customers agreed
5 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Consumer Relevancy 2002 Future Consumer 2007 Digital Shopper Relevancy 2012
16,000 Consumers 9 Countries
2,000 Consumers 4 Countries
16,000 digital shoppers 16 Countries
Source: Capgemini, Digital Shopper Relevancy, 2014
Digital Shopper Relevancy 2014
18,000 digital shoppers 18 Countries
Our Research’s Evolution: 12 Years + 50,000 Consumers + 20 Countries = Countless Insights into Shopping Behavior
6 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Digital Shopper Relevancy 2014 – scope and scale
• The Digital Shopper Relevancy research was an online study, conducted in collaboration with ORC International, a
London-based global research firm
• ORC hosted an online survey for more than 18,000 digital shoppers representing 18 countries. The digital shopper
sample in each country is based on the national samples representative of the population in terms of age and gender
• A Digital Shopper translates in the study as a ‘shopper using one or more digital technologies or channels in one
or more phases of their shopping journey’
• Key areas of the study include the usage of digital channels and devices, purchasing behavior in different
product categories, and the role of digital channels throughout the shopping process today and in the future
• The Capgemini India research team segmented the consumer base using over fifty behavioral variables. Methods
included factor analysis and k-means clustering
The Digital Shopper Relevancy Research 2014
Source: Capgemini, Digital Shopper Relevancy, 2014
technology-enabled consumers
shopping journey
18 countries*18,000 consumers
foo
d
fashionall-channel experience
health & personal care
DIY
ele
ctr
on
ics
digital channels
tab
lets
smartphones
kio
sks
e-commerce
social media
access
experience
pric
e
product
serv
ice
appsweb
7 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Survey built around the different phases of an ‘All-Channel Shopping Journey’
Personal
ConvenientRelevant
Engaging
Flexible
Value for Money
Rewarding
Novel
Innovative
Exciting
Caring Trusting
Moments of Truth
8 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Access Experience Price Product Service
Friendly and clean
store Easy to reach stores
Easy to navigate
stores Compelling
promotions Freshness/ Quality
Maximum opening
hours
Availability
(no stock-outs)
No damaged goods
in store
Inspirational
Atmosphere
Customer Service
Complaints
handling /
return policy
Loyalty program
Wide and deep
assortment
Competitive pricing
Traditional
Relevancy
Criteria for
Physical Channels
Dynamic Pricing
Mobile in-store
Shopping support
Advanced /
visualized product
information and
(usage) advice
Product
Comparison
e-Commerce
(mobile, social,
web)
Flexible delivery-
options ( home,
store-pick-up etc.)
Personalized
Pricing
Additional
Relevancy
Criteria for
Digital Channels
Personalized offers
Technology-
enabled staff –
support in-store
Interactive service
via digital channels
(e.g. click-to-chat,
social media)
Wider and deeper
assortment
Solution Pricing
Inspirational
Content
Community
engagements
(share
experiences)
Social Shopping
Location-based
pricing
Price
Comparison
Illustrative
It’s important to understand the needs and considerations that are specifically important for your consumers
9 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Key Findings: Social Media
Social media: overhyped? Social Media as part of shopping journey has shown a decline over the last two years. Less importance is being
placed on finding out about new products through blogs, social media and consumer reviews, etc. Fewer
shoppers expect the use of Social Media will change their shopping in future.
10 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Key Findings: The Store v other Channels
Physical store reigns - for now Still the favored destination; 72% of shoppers see the store as important or very important compared to 67% for
the Internet. But In the future the majority of shoppers (51%) say they will spend more money online than
in-store. Most important
2nd most
important
3rd most
important4th most important 5th most important
6th most
importantLeast important
Australia Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Canada Traditional store Internet site Email In-store technology Social media Smartphones Phone – call center
Finland Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
France Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Germany Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Italy Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Japan Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center
Netherlands Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Portugal Internet site Email Traditional store In-store technology Social media Smartphones Phone – call center
Spain Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Sweden Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center
UK Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
USA Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center
Brazil Internet site Traditional store In-store technology Email Social media Smartphone Phone – call center
China Internet site Traditional store Smartphones In-store technology Email Social media Phone – call center
India Internet site Smartphones Email In-store technology Social media Traditional store Phone – call center
Mexico Internet site Traditional store In-store technology Social media Email Smartphone Phone – call center
Russia Internet site Traditional store In-store technology Email Social media Smartphones Phone – call center
Total Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center
Q: Importance of
different channels to
learn about products
and promotions
11 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Key Findings: Differences between Categories
Fashion is stealing the show Online fashion is up 9 % since 2012
This compares to low growth in other categories.
12 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Nevertheless, physical stores still reign – for now
However, in the future, the majority
of shoppers (51 percent) say they
will spend more money online than
in-store.
In addition to the smartphone’s
ubiquitous growth, in-store digital
interactions (eg via kiosks) are
popular amongst shoppers,
suggesting that the introduction of
more technology into retail stores
would be a welcome shift for the
consumer.
Store is still the favored destination; 72% of shoppers saw the store as important or very
important compared to 67% for the Internet
Only 14 per cent of shoppers strongly indicate that physical stores have become less important
for them.
The relevance of the physical store in the purchase and payiment of a product
13 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Key Findings: Mature v High-growth Markets
Digitally-savvy high-growth markets High-growth markets show a stronger preference for digital technologies than mature markets, regarding the
use of Social Media and Smartphone. Interested rather than reluctant to receive personalized offers
Broad digital acceptance
Social Shoppers
High-growth markets Mature markets
Technology and digital-savvy
Fragmented attitudes Digital
resistance still exists
More rational; less social
$
Digital Shopper Relevancy Study 2014
A2 Thinking about digital channels for XXX, how important is it for you to be able to do each of the following?
On a scale of 1 to 5 where 1 = not at all important and 5 = extremely important
Values in %, Means; n (Total) = 18436 (all countries) NOTE: all 2012 data based on how appeal rather than importance
Learn about products and promotions: Receiving personalized offers and recommendations
4.16
3.96
3.23
3.26
2.97
N/A
3.16
India
China
Mexico
Brazil
Italy
Spain
Russia
Canada
Germany
USA
France
Finland
Japan
Australia
Sweden
3.94
3.93
3.45
3.62
2.91
2.94
3.69
3.19
1 Not at all important 5 Extremely important
14
Mean
2014 Mean
2012
Awareness
Portugal N/A
3.13 UK
N/A Netherlands 22
23
17
21
14
16
21
21
16
18
10
6
6
3
5
4
1
1
14
12
15
13
15
18
12
10
12
10
10
9
9
8
7
6
3
4
27
25
29
24
35
27
24
22
27
27
20
25
23
22
17
16
19
15
25
26
25
26
28
26
28
26
29
26
33
35
34
40
32
34
47
39
11
13
13
16
8
13
15
22
16
19
26
24
26
27
38
40
30
42 4.18
4.02
3.19
3.17
3.03
3.02
3.02
4.00
3.91
3.62
3.65
3.02
3.18
3.56
3.05
3.80
2.95
2.90
Digital Shopper Relevancy Study 2014
C2 Thinking about digital channels for XXX, how important is it for you to be able to do each of the following?
On a scale of 1 to 5 where 1 = not at all important and 5 = extremely important
Values in %, Means; n (Total) = 18436 (all countries) NOTE: all 2012 data based on how appeal rather than importance
Search for information, compare, choose product: Use digital devices inside the physical store to help your shopping process
Mexico
India
China
Brazil
Russia
Italy
Portugal
Spain
Japan
Germany
France
Sweden
USA
Canada
Australia
Netherlands
3.46
1 Not at all important 5 Extremely important
15
Mean
2014
Mean
2012
Choice
2.75 Finland
3.02 UK
4.03
4.10
N/A
3.08
3.14
3.10
3.07
3.93
3.93
N/A
3.72
N/A
2.85
3.28
2.69
3.70
2.63
2.56
4.15
4.14
2.99
2.95
2.83
2.83
2.78
4.03
3.92
3.54
3.62
2.66
2.97
3.46
2.87
35
24
28
28
29
32
24
23
21
14
9
7
7
7
5
1
2
4
14
22
14
12
11
10
14
14
14
17
11
10
10
9
8
4
3
4
21
26
29
24
23
18
27
24
24
35
26
24
25
20
17
18
15
12
20
19
21
23
24
21
24
22
28
25
32
38
32
34
30
45
39
35
11
8
8
12
14
18
12
16
13
9
22
20
26
30
40
32
41
46
Purchase and pay for the product: Use a mobile phone application to pay for in-store products
1 Not at all important 5 Extremely important
47
40
37
45
46
39
36
35
34
21
16
12
14
14
10
3
5
7
12
17
19
9
9
13
13
14
13
17
13
12
11
9
7
6
6
6
16
19
21
18
14
19
21
19
21
31
26
25
21
22
15
22
18
13
16
15
15
16
16
18
20
18
20
22
27
30
27
31
31
40
34
30
10
8
8
12
15
11
10
14
13
9
17
21
27
25
38
29
38
43
16
Mean
2014 Mean
2012
Transaction
Digital Shopper Relevancy Study
T3 Thinking about digital channels for XXX, how important are each of the following for you to be able to do? Please use a scale of 1 to 5 where 1 = not at all
appealing and 5 = extremely appealing
Values in %, Means; n (Total) = 18436 (all countries) NOTE: all 2012 data based on how appeal rather than importance
Mexico 3.88
India 4.00
China 3.86
Brazil 3.87
Italy 3.39
Russia 3.20
N/A Portugal
Spain 3.03
Japan N/A
Germany 2.46
France 2.58
N/A Netherlands
Australia 2.58
USA 2.81
Canada 2.80
Finland 2.34
Sweden 2.07
UK 2.46
3.96
3.95
3.84
3.80
3.44
3.43
3.37
3.15
2.82
2.65
2.61
2.55
2.48
2.44
2.41
2.38
2.34
2.30
How role of digital channels will change: Online ordering directly from brand manufacturers
11
14
10
10
11
7
11
8
7
9
4
2
4
2
4
3
1
2
5
4
4
2
4
6
4
4
4
4
2
1
1
1
2
2
1
2
7
5
5
5
3
5
3
4
4
3
3
3
3
3
3
2
2
2
39
29
24
26
27
21
25
25
25
24
20
21
18
18
16
13
11
9
28
29
36
34
30
34
30
31
33
30
39
37
34
41
34
28
30
30
10
19
21
23
25
28
26
28
28
30
32
36
39
36
40
52
55
56
17
Mean
2014
Mean
2012
Current &
Future Use
1 Decrease considerably 5 Increase considerably Don’t know
Mexico 4.27
India 4.34
Brazil 4.23
Japan N/A
Russia 4.06
China 4.32
Spain 3.85
N/A Portugal
Italy 3.87
Canada 3.79
Australia 3.79
France 3.79
USA 3.81
Germany 3.70
UK 3.76
Finland 3.74
N/A Netherlands
Sweden 3.63
4.39
4.37
4.29
3.35
4.13
4.11
4.10
4.05
4.01
3.87
3.83
3.80
3.79
3.79
3.78
3.78
3.71
3.61
Digital Shopper Relevancy Study 2014
U1: Using a scale of 1 to 5 where 1=decrease considerably and 5=increase considerably, please indicate how you think the role of the following digital channels
will change your shopping process during the next three years
Top 2 box; n (Total number of mentions) = 18436 (all countries) NOTE: all 2012 data based on how appeal rather than importance
18 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Key Findings: The Privacy Issue
The Privacy Issue 30% feel they’re not being provided with clear information from retailers on how their personal data is used.
50% trust their favorite retailers to use their personal data responsibly
33% does not agree to their Social Media data being used by retailers, particularly in the Nordic countries.
19 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
There is no ‘one’ digital shopper
Reluctant Digital Shopper (11%)
Not comfortable using technology; prefer
physical stores
Value-Conscious Digital Shopper (29%)
Prefer in-store shopping, but comfortable
using the Internet & email
Socially-Engaged Digital Shopper (41%)
Heavy users of digital technologies and
comfortable using Social Media
True Digital Shopper (19%)
Purchases online most frequently, use
apps, sacrifice personal data for
customized deals.
We found 4 distinct behaviour patterns in mature markets
20 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
The level of ‘digital shopper savvyness’ is different across mature countries
21 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Access Experience Price Product Service
Friendly and clean
store Easy to reach stores
Easy to navigate
stores Compelling
promotions Freshness/ Quality
Maximum opening
hours
Availability
(no stock-outs)
No damaged goods
in store
Inspirational
Atmosphere
Customer Service
Complaints
handling /
return policy
Loyalty program
Wide and deep
assortment
Competitive pricing
Traditional
Relevancy
Criteria for
Physical Channels
Dynamic Pricing
Mobile in-store
Shopping support
Advanced /
visualized product
information and
(usage) advice
Product
Comparison
e-Commerce
(mobile, social,
web)
Flexible delivery-
options ( home,
store-pick-up etc.)
Personalized
Pricing
Additional
Relevancy
Criteria for
Digital Channels
Personalized offers
Technology-
enabled staff –
support in-store
Interactive service
via digital channels
(e.g. click-to-chat,
social media)
Wider and deeper
assortment
Solution Pricing
Inspirational
Content
Community
engagements
(share
experiences)
Social Shopping
Location-based
pricing
Price
Comparison
Illustrative
So what to do when you understand the needs and considerations that are important for your consumers ?
22 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
You should align on your strategy to be most relevant to them
Successful companies dominate on one attribute,
differentiate on a second and compete at parity on the remaining three
4
3 3
5
3
Access Experience Price Product Service
2. Differentiate on a compatible
value attribute
3. Maintain parity on others
1. Dominate on one value attribute
Illustrative
23 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
And translate that to the right capability roadmap
2011 –H1 2011 –H2 2012 –H1 2012 – H2
Mo
bile
Pre
se
nce
Strategic Foundations Web Presence Social Network Presence
Future State
Current State
Mobile AppFactory
MED MED MED
Mobile WebFactory
MobileTicketing
HIGH HIGH HIGH
MDM
LOW MED LOW
Location Based Services
MED MED MED
AugmentedReality Game
MED MED MED
MobileCoupons
HIGH HIGH HIGH
MobileCompensation
HIGH HIGH HIGH
Google EarthEnterprise
LOWLOW MED
WidgetFactory
LOW LOW LOW
ProfilingEnhancements
MED LOWMED
Service Integration
ServiceManagement
Identity & Access Mgmt
BusinessProcess Mgmt
Strategy, ToolsIntegration
LOW LOW LOW
FacebookGame
MED MED MED
FacebookTicketing
LOW LOW MED
Bid-BasedCapacity Mgmt
HIGH HIGH MED
GroupReusable Portal
MED MED MED
MED MED MED
4
3 3
5
3
Access Experience Price Product Service
2. Differentiate on a compatible
value attribute
3. Maintain parity on others
1. Dominate on one value attribute
Illustrative
Customer
Managing a personal and relevant dialogue with individual customers
Content
Managing high-quality and rich inspirational
content across all channels and touch
points
Single View of Data
Demand Driven Business Operations
Commerce
Managing maximised sales conversion leveraging optimal merchandising
and pricing across all channels
People Process
Technology
Managing involved and
motivated staff with relevant
performance rewards
Orchestrating dynamic, front-end IT solutions integrated with a cost-effective , reliable IT
foundation
Managing streamlined and
customer-focussed ways of working
across the company
Fulfilment
Efficiently delivering the orders across all
channels at the location and time your
customers prefer
Email/DmailMobile TabletWeb site Instore TechnologySocial media Call centreBought media Future channels
Customer Management
Channels
Devices
POSMobile KioskTelephonePC TV
Business– 2 – Business
Agency
Affiliate White-label
API
Business – 2 – Customer
Online
Social Media and Networks
Email SMSContact Center
Security & ID
Management
Infrastructure Security
Logging, auditing and Reporting
Interaction Management
Social Media Management
Proactive Response
Social Media Monitoring
Semantic Analysis
Customer Experience Management
Digital Asset Mgmt
Experience Optimisation
Web Content Mgmt
Enterprise Search
Geo-spatial Visual Search
Multi-faceted
oCommerce
Offers Merchandising
Pricing PIM/Catalogue
Strategic Order Mgmt Basket/Checkout
AnalyticsInsight
Big Data
Traffic
Customer
Activity
Customer Relationship Management
Loyalty
Customer Service Management
Customer Transactions
Integrated Marketing Management
Marketing Asset Mgmt
Multi-Channel Campaign Mgmt
Marketing Resource Mgmt
Integration Management
Service Integration
Orchestration Routing Master Data Management Transformation Business Rules
Interface AdaptersBusiness Activity ServicesETLworkflowGateway ServicesMessage broker
Service Management
Service Operations
Business Service Management
IT Service Management
Financial Services
Configuration Management
Supplier Services
Service Transition
Continuity management
Authentication
Principal Propagation
Encryption
Compliance
Authorization
Single Sign-on
Identity Management
Click and Collect Food Fulfillment
Site Performance and Response
Global Traffic Management
Business Applications
Data
Supply Chain Planning and Execution
Store
Merchandise Operations Management
Merchandise Planning and Optimization Finance
Master Data Transaction Data Data Warehouse
Infrastructure
Servers Storage Network Virtualization
Data Centre
Disaster Recovery
HRM and Payroll
Enterprise Asset Mgmt Store Operations Staff Scheduling
Business Capabilities Technology Capabilities Growthpath Roadmap
24 Copyright © Capgemini 2014. All Rights Reserved
Presentation Title | Date
Digital Shopper Relevancy Assessment: insight in 3 weeks
Digital Shopper Recommendations
How to be relevant?
How to differentiate?
Where to improve capabilities?
How to prioritize to improve results?
Digital
Shopper
Insights
Digital
Capability
Maturity
Digital Shopper Journey
Benchmark
DIGITAL SHOPPER RELEVANCY ASSESSMENT
The information contained in this presentation is proprietary.
Copyright ©2014 Capgemini. All rights reserved.
Rightshore® is a trademark belonging to Capgemini.
www.capgemini.com
About Capgemini
With almost 140,000 people in over 40 countries, Capgemini is
one of the world's foremost providers of consulting, technology
and outsourcing services. The Group reported 2013 global
revenues of EUR 10.1 billion.
Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive
the results they want. A deeply multicultural organization,
Capgemini has developed its own way of working, the
Collaborative Business ExperienceTM, and draws on Rightshore®,
its worldwide delivery model.
Learn more about us at www.capgemini.com