optimizing stores in a mobile world

Brendan Witcher Principal Analyst @BrendanWitcher

@Forrester

Welcome!

THE NEW RULES OF RETAIL: OPTIMIZING STORES IN A MOBILE WORLD

Marissa Tarleton CMO, North America

@MBTarleton @RetailMeNotInc

F E AT U R I N G

Omnichannel Retailing: The Role Of The Store In A Mobile World

Brendan Witcher, Principal Analyst

October 18, 2016


Agenda › How The Age Of The Customer Is

Driving Omnichannel › Omnichannel Imperatives: Optimizing

Store Experiences & Fulfillment › Keys To Succeed In The Multichannel

To Omnichannel Evolution

Empowered customers have given rise to a new era


Empowered Customers Have Given Rise To A New Era

Age of manufacturing Mass manufacturing makes industrial powerhouses successful

•  Ford •  Boeing •  GE •  RCA

Age of distribution Global connections and transportation systems make distribution key

•  Wal-Mart •  Toyota •  P&G •  UPS

Age of information Connected PCs and supply chains mean those that control information flow dominate •  Amazon •  Google •  Comcast •  Capital One

Age of the customer Empowered buyers demand a new level of customer obsession

•  Macy’s •  Salesforce.com •  USAA •  Amazon


The past…

Information

Price Location


Then…

Information

Price Location Tech


Today…

Information

Price Location

Tech

By 2019 there will be ~3.5 billion smartphones in the world

Source: Global Business And Consumer Tablet Forecast Update, 2013 To 2017


Shoppers Use Smartphones And Tablets For Shopping Equally And Frequently


By 2020, mobile phone and tablet commerce will exceed 48% of online retail sales


Welcome to the Mobile Mind Shift

The expectation that I can get what I want in my immediate context and moment of need.


S ource: Forres ter R esearch Web-‐Influenced Retail S ales Forecas t, 2015 To 2020 (US )

US reta il s a les($ billions)

$376 $415 $452 $488 $523

$1,290 $1,366$1,445 $1,530 $1,618

$1,706 $1,710 $1,715 $1,721 $1,728

2016 2017 2018 2019 2020

Online sales

Web-‐influencedoffline sales

Offline sales

49% 51% 53% 54% 55%

In 2016, 49% of all US retail sales will either be influenced by or occur online…

Source: Forrester Research Web-Influenced Retail Sales Forecast, 2015 To 2020 (US)

$3.4T

Web-impacted sales CAGR 2015-2020:

6.6%

Sales and conversion do not reflect the value of most online/mobile touchpoints

Companies today must stop asking “What do we want to do?”…

and start asking “what does our customer want to experience?”

Every time a customer is exposed to an improved shopping experience, their

shopping expectations are reset to a new higher level


Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015

Experience is a significant factor in every online shopper’s journey

68% “I am unlikely to return to a

website that does not provide a satisfactory customer experience.”

In this new omnichannel world, the roles of digital channels and stores must change


“The coordination of traditional marketing channels, selling channels, fulfillment channels, and supporting systems to

create a seamless and consistent customer experience.”

Omnichannel Retailing


Source: April 16, 2014 “Understand The Digital Business Landscape” Forrester report

Iterate and innovate to maintain mastery


“The [coordination] of traditional marketing channels, selling channels,

fulfillment channels and supporting systems to create a [seamless and consistent customer experience].”

Omnichannel Retailing


Seamless, consistent customer experiences in engagement and fulfillment

The Goal


Great omnichannel experiences require understanding of omnichannel customers


Today’s omnichannel customers are looking for brands to understand them…


Customers must receive value in exchange for their personal information

Customer Data

Shopping Value


Nordstrom puts the customer in control of the marketing experience

Online…


Nordstrom puts the customer in control of the marketing experience


Sephora captures in-store engagement through digital, personal experiences

In Store…


Sephora captures in-store engagement through digital, personal experiences


Neiman Marcus utilizes app engagement to personalize customer experiences

On mobile and apps…


Neiman Marcus utilizes app engagement to personalize customer experiences


GS Shop targets online customers through beacons in high-traffic public locations

Really everywhere.


GS Shop targets online customers through beacons in high-traffic public locations


Investing in channel coordination that aligns with customer expectations

The Path


Omnichannel Engagement


Experience = Top Business Priority

Source: Forrester’s Business Technographics® Global Priorities And Journey Survey, 2015


Starbucks leverages app data to deliver rich, relevant experiences everywhere


Nordstrom and Shoes of Prey enhance the in-store experience with mobile devices.


Kohl’s: incentivizes customers at the beginning of the in-store journey


Kohl’s: reminds customers throughout the store experience


Kohl’s: creates a great in-store branded experience that matches the store theme


Kohl’s: still has challenges like other retailers in execution at the store level


Mobile

Websites

Contact Centers Stores

Flash Sales

Mail Order

eComm DCs

Drop Ship

Outlets Stores

Pop Ups

Remote Pickup

Fulfillment Channels

Purchase Channels

Omnichannel Fulfillment

Customer


Why are today’s retailers implementing omnichannel initiatives?



•  Customers are rapidly adopting services


14% of US shoppers

use in-store pickup all or most of the time

when it is available

Another 26 % use it sometimes




•  More retailers are offering these services


Investments in omnichannel are tripling

Source: Forrester’s Global eBusiness and Channel Strategy Professional Online Survey, Q4 2015




•  More retailers are offering these services

•  Retailer with mature programs are expanding services as they realize benefits


Traditional omnichannel…

Fulfillment


Today’s omnichannel…

Fulfillment

Engagement


Omnichannel capabilities provide new opportunities to create unique value


Recommendations


Recommendations 1.  Identify the digital gaps in your company’s ability to

deliver seamless, channel-less customer experiences.




2.  Take off your departmental blinders and consider every part of the customer journey (mobile, store web).





3.  Review each digital touchpoint and its ability both use and collect customer data.






4.  Assess your ability to create customer experiences that are personal and contextually relevant.






4.  Assess your ability to create customer experiences that are personal and contextually relevant.

5.  Don’t go it alone! Find strong digital partnerships.

Virgin Media rewards employees based on Net Promoter Score (NPS) improvements

MEASURE SUCCESS!

forrester.com

Thank you

Brendan Witcher [email protected] @BrendanWitcher

Marissa Tarleton, CMO, North America @MBTarleton @RetailMeNotInc

Retail Marketers Are Facing New Challenges

•  Mobile has changed the landscape and is influencing in-store purchases

•  The customer journey is complex

•  The consumer is in control and

expectations are high

The New Consumer Journey

1,044 DIGITAL TOUCHPOINTS*

Source: Google/Luth Research, “Mobile’s Growing Role in a Shopper’s Purchase Decision,” July 2016. *Touchpoints = searches, website visits, video views, clicks

54%DESKTOP 46%

MOBILE

MEET LEENA

MEET SAM

79%DESKTOP 21%

MOBILE

600 DIGITAL TOUCHPOINTS*

11%DESKTOP 89%

MOBILE

MEET KATE

947 DIGITAL TOUCHPOINTS*

RESEA

RC

H

BR

OW

SE

RETA

RG

ETING

PUR

CH

ASE

ABANDONABANDON

83% Begin journey

on mobile

90% of purchases

are still made in a store

Engaging Across Your Customer’s Micromoments

Sources: (from left to right): Think with Google, ATKearney.

Three Ways Retailers Can Win inEngaging Customers in Micromoments

Discover & Anticipate

Personalize the Experience

Utilize Location-based Marketing

USE DATA TO DISCOVER CONSUMER TRENDS

WHEN, WHAT, WHERE

Discover and Anticipate

Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 71

NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 1 26

27 28 29 30

DECEMBER 1 2 10

4 5 6 7 8 9 411 12 13 14 15 7 2

3 8 9 21 22 6 24

25 5 27 28 29 30 31

Use Data to Discover Trends Mobile

Desktop


NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 1 26

27 28 29 30

DECEMBER 1 2 10

4 5 6 7 8 9 411 12 13 14 15 7 2

3 8 9 21 22 6 24

25 5 27 28 29 30 31

NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

DECEMBER 1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

DECEMBER1 2 3

4 5 10 9 8 9 10

11 4 7 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31

NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 8 2 26

3 1 6 30


Desktop


NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 1 26

27 28 29 30

DECEMBER 1 2 10

4 5 6 7 8 9 411 12 13 14 15 7 2

3 8 9 21 22 6 24

25 5 27 28 29 30 31

NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

DECEMBER 1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


Desktop

Food & Entertainment Travel & Auto

Clothing Home & Garden Office Supplies

RESEARCH & PLANNING(PRE- THANKSGIVING)


NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 1 26

27 28 29 30

DECEMBER 1 2 10

4 5 6 7 8 9 411 12 13 14 15 7 2

3 8 9 21 22 6 24

25 5 27 28 29 30 31

NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

DECEMBER 1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


Desktop



Computers & Electronics Multi-Category

Sports & Fitness Teen Clothing Toys & Kids


DEAL SEEKING(THANKSGIVING – MID-DEC)


NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 1 26

27 28 29 30

DECEMBER 1 2 10

4 5 6 7 8 9 411 12 13 14 15 7 2

3 8 9 21 22 6 24

25 5 27 28 29 30 31

NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

DECEMBER 1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


Desktop





Accessories Books Gifts

Health & Beauty Personal Services Sports & Fitness



LAST MINUTE(MID-DEC TO CHRISTMAS)


NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 1 26

27 28 29 30

DECEMBER 1 2 10

4 5 6 7 8 9 411 12 13 14 15 7 2

3 8 9 21 22 6 24

25 5 27 28 29 30 31

NOVEMBER1 2 3 4 5

6 7 8 9 10 11 12

13 14 15 16 17 18 19

20 21 22 23 24 25 26

27 28 29 30

DECEMBER 1 2 3

4 5 6 7 8 9 10

11 12 13 14 15 16 17

18 19 20 21 22 23 24

25 26 27 28 29 30 31


Desktop





Accessories Books Gifts

Health & Beauty Personal Services Sports & Fitness

Food & Entertainment Health & BeautyPersonal Finance



LAST MINUTE(MID-DEC TO CHRISTMAS)

POST HOLIDAY (AFTER CHRISTMAS)


77% of consumers have chosen, recommended,

or paid more for a brand that provides a personalized service or experience.

78 Source: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2015

Personalization & Scaling Data

Merchant Affinity

Location Demographics Platform Recency

How RMN uses Data to Reach the Right Audience

1:1 Personalization Drives More Engagement

70% of RetailMeNot’s user base opts-in to receive Push Notifications

42% of consumers

feel mobile messages are not relevant

81 Source:

Leverage Location-based Marketing

20X Location-based

advertising provides a 20X return vs.

generic banner ads

As of June 30, 2016

The RetailMeNot Consumer Audience is Large and Engaged

688MM+ Visits / Year

37MM+ Email

Subscribers

6MM+ Push-enabled

app users

18MM+ Monthly mobile unique visitors

(US)

Thank You For Joining! QUESTIONS?

[email protected] To Learn More About Partnering With RetailMeNot:

https://www.retailmenot.com/corp

Alternate End Slide