new technology concepts to drive customer engagement in the retail world
TRANSCRIPT
New technology concepts to drive customer engagement
in the retail world
2015 global digital snapshot
TOTAL
POPULATION
ACTIVE
USERS
ACTIVE SOCIAL
MEDIA ACCOUNTS
MOBILE
USERS
7,210
BILLION
3,010
BILLION
2,708
BILLION
3,649
BILLION
PENETRETION: 53% 42% 29% 51%
YoY CHANGE: +1.6% +21% +12% +5%
Europe is in the game
TOTAL
POPULATION
ACTIVE
USERS
ACTIVE SOCIAL
MEDIA ACCOUNTS
MOBILE
USERS
837
MILLION
584
MILLION
387
MILLION
1,104
MILLION
PENETRETION: 72% 73% 46% 132%
Internet penetration
Mobile penetration
Social Media penetration
Digital commerce
39% 14% 69%
INDIA UK
16% 6% 37%
JAPAN SOUTH KOREA
e-commerce
m-commerce
Visual optimization
1998:
8 Billion
2014 (est.):
880 Billion
2014:
1.8 Billion
150% increase from 2013
515% increase from 2012
Sources: Kodak, Yahoo, L2,Kleiner Perkins
PHOTOS
TAKEN
PHOTOS SHARED
PER DAY
What does it all mean?
∕ Consumer time spent with digital and mobile media is changing how consumers prefer to engage with businesses
What does it all mean?
∕ E-commerce accounts for an estimated 5 percent total of European retail
What does it all mean?
∕ Mobile payments and mobile banking are reaching key milestones
∕ Social networks will serve as shopping platforms.
∕ Omnichannel will keep businesses in the game
∕ Relevance to the brand and to the customer will determine for how long
What does it all mean for you?
What does it all mean for you?
∕ Keep the customer loyal
∕ Outshine competition
∕ Optimize operation
∕ Increase customer spending
∕ Maximize (and keep maximizing) profits
Old School going Digital
‘New School’ going Physical
Kate Spade Saturday
Macy’s Department Stores
C&A Hangers
https://www.youtube.com/watch?v=Hba1wnpVzoQ
Walgreens Mobile App
https://www.youtube.com/watch?v=dwt-mgxq_ao
virtual grocery stores
https://www.youtube.com/watch?v=7JItU05mjCk
Walmart Pickup
Mobile Self-Scanning
Scan Anywhere
Online Only
Shadow QR Code
https://www.youtube.com/watch?v=EvIJfUySmY0
Rubens Art Museum
http://vimeo.com/95948530
Mobile Applications/1
Mobile Applications/2
What’s a mobile app?
software
program
should be
downloaded
needs internet
access
accessed
directly using a
smart mobile
device
Mobile Applications/3
Apps can display
∕ Information on services
∕ Locations visible in maps
∕ Push Notifications
∕ Instant messages (special offers)
∕ Reservation (Ticketing, Queuing, Appointments)
∕ Payment
∕ Guided shopping
Mobile Applications/4
Mobile Applications/5
Mobile apps vs Websites
Mobile Applications/6
Beacons/1
Identity & Proximity Application Relevant user experience
Beacons/2
https://www.youtube.com/watch?v=SrsHBjzt2E8
Beacons/3
MARKET M
A
L L
STORE
TONIGHT
Digital Signage/1
Digital Signage/2 Retail
Digital Signage/3 Restaurants & QSR
Digital Signage/3 Banking
https://www.youtube.com/watch?v=JC1j7PYCZ_A
Wearable Technology
https://www.youtube.com/watch?v=eYw-PJmbqlM
Mobility
https://vimeo.com/85753674
mPOS
Data Utilization
http://www.experian.com.au/consumer-segmentation/mosaic-consumer-segments-2013-videos.html
Data Utilization
Mosaic data to provide a “richer picture” of
customers
Demographic profile
Residence
Durable goods
Car
Financial Services
Media usage Entertainment
Travel Shopping Preferences
Attitudes
Values
Views
Census data
Age Gender Marital Status Occupation
Transaction data
(typically forms the start of any client analysis)
Education
Insight into customers, locations and markets
1 Customer Insight
“What products do they buy, where, and when?”
“Where should marketing initiatives be directed?”
“What is the best means of communicating with them?”
“What products and services should be offered?”
“What is their profile, and how do they behave?”
“Where do customers live?”
“How much expenditure do they account for?”
Insight into customers, locations and markets 1
Retail Location Insight
“Which weaker stores should be down-sized or
closed?”
“How can existing stores improve their sales?”
“Does the store chain achieve optimum market coverage?”
“How can the chain be segmented on the basis of performance and market characteristics?”
“Which stronger stores require re-investment?”
Insight into customers, locations and markets 1
Market Intelligence
“What do store catchment areas look like?”
“How do stores impact one another?”
“What are a location’s key characteristics?”
“What market share does a store achieve?”
“Are there untapped market ‘hot-spots’?”
Store 1
Store 2
Store 1
High potential
“Where are competitors and what are they doing?”
Data Alignment Customers don’t think about channels - they just want convenience
http://www.experian.com/marketing-services/cross-channel-marketing-platform-video.html
The loyalty report
29% of Members
would not be loyal to the brand, if it weren’t for the program.
60% of Millennials
are willing to switch brands they buy if it means getting more benefits.
72% of customers
are interested in interacting with their loyalty program through a mobile device.
4,6x higher satisfaction
with the loyalty program is among consumers who strongly agree that the communications they receive from the brand are relevant.
Rewards-based Loyalty
channel
preferences
amount interaction
Summary/1
• Customers will come to expect a better type of shopping experience across channels that they choose at a time they want
• Brands must invest in omnichannel solutions and ensure that convergence benefits consumers and increases satisfaction both online and off
• Tracking, analyzing and monetizing customer data will become increasingly important
• Ensuring “last mile” delivery capacity likely to become more challenging, and we are likely to see more partnerships emerge to most efficiently manage cost, capacity and demand
Summary/2
• Theater—the art of dramatic presentation—is the key to creating a differentiating retail experience (Innovative digital shopping experiences like virtual shelves, storefronts, and fitting rooms are accelerating)
• Retailers must master mobile to make purchasing easier, step up service, emphasize storytelling and personalization, and integrate the physical and virtual to create better customer experiences
• Social technologies present a key opportunity for retailers to build relationships with their consumers
Summary/3
• As traditional retailers go increasingly virtual, digital players are building up their physical presence
• Marketers are increasingly adapting their budgets, strategies and tactics to reach consumers across digital touchpoints at the right time and context
• If you truly believe you offer the best deals, then let customers access search and surf in-store
To do list
1. Identify what bugbears your customers have with your retail operation. Can technology help speed up queues? Remove crowds? Offer better ways of explaining and demonstrating your product range?
2. Trial different technologies; if it doesn't work, dump it – but if others do work, they could open up opportunities for your business that other competitors have yet to exploit.
3. Uncertain how to move forward? Then call in an expert supplier to help clarify and hone your vision.
Additional sources
• McKinsey&Company: Retail 4.0: The Future of Retail Grocery in a Digital World
• Interbrand: Best Retail Brands 2014
• We Are Social: Global Digital Statistics 2014, 2015
• Beyond: 12 Trends for 2015 What Marketers Should Be Thinking About in Digital
• References / Mellon partners:
– Ingenico
– Gemalto
– Estimote
– LG Commercial Display
– Experian
– CRM.com
– NemoQ
