Retail InsightsWhat’s making news this month? November 2014

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Beacon Technology Boom

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From targeted in-store promotions and exclusive offers to tracking store associate sales conversions in real time, beacon technology is set to drive retail success. The upcoming Christmas season is seeing a boom in the adoption of beacon technology among retailers in a bid to drive consumer spend. Although the use of beacons in retail is not new (with US retailers such as Apple, Timberland, Kenneth Cole, and Clarks having activated in-store beacons), consumers are growing more receptive to the technology and accordingly, more retailers are following suit. In the past few months, US department store retailers Macy’s and Lord & Taylor announced roll outs of in-store beacon integrations, as did Canadian department store Hudson’s Bay.

According to US based research firm JiWire, 53 percent of consumers are willing to share their current location to receive more relevant advertising from brands, 57 percent are more likely to engage with location-based advertising and 62 percent share local deals with friends. Given this shifting consumer mindset, and growing implementations by retailers, a positive future for beacons in retail will inevitably play out.

Beacon technology works in two ways: (1) by pushing product information and promotions to consumers, and (2) by pulling individual data for the retailer. For Macy’s and Lord & Taylor, beacons are being installed in multiple departments, each with an individual campaign or push notifications. For example, the cosmetic section of a Boston Lord & Taylor location sends ‘bestseller’ alerts and prompts customer-to-staff engagement with messages including: ‘Ask about our current free gifts with purchase’. Lord & Taylor uses data from the beacons to track dwell-time per section and customer spending habits based on coupon click-throughs. According Lord & Taylor, early results of the beacon implementation are producing high-single to low-double in-store sales conversion rates. As the department store retailer is finding, customers are more likely to share their location in exchange for compelling discounts.

The push-and-pull beacon strategy also enables retailers to re-target customers based on data obtained. For instance, if a potential customer opted out of a cosmetics discount but dwelled on a menswear promotion, the retailer would be able to re-target that individual for future promotions and campaigns based on that information.

According to mobile retail platform GPShopper, beacons should balance product promotions with engaging product information. However, sending multiple discount offers can potentially lead the consumer to opt out, thus retailers need

to ensure they are building the brand as much as the potential sale. American outdoor clothing and accessories retailer The North Face is a leading example of a retailer offering strong product engagement through beacons. When customers are near to a specific product, they are notified of information on how the item works in extreme temperatures and other technical merits about the clothing.

UK department store chain House of Fraser is also using the balanced promotion and information strategy for an upcoming beacon-equipped mannequin deployment in its Aberdeen, Scotland store. When a customer is near the mannequin, the beacon will send clothing and accessories details, pricing information and the in-store item location in addition to same-day discounts.

Another example, beacons at American accessories retailer Alex & Ani highlight campaigns such as ‘Bangle of The Month’, noting the sustainable and/or charitable attributes of the bracelet. After the product history is displayed, customers receive a discount code. “Our customers are tech-savvy and they love their smartphones,” says Ryan Bonifacino, Vice President of Digital Strategy at Alex & Ani. “This new set of capabilities [beacons] allow us to interact with them in real-time and with incredibly relevant content and offers while they shop.”

Data captured by beacons also has the potential to be a significant operational asset, helping retailers optimise in-store staff efficiency. For instance, retailers can track customer dwell-time data to analyse store sections for high and low traffic and visual merchandising display effectiveness. Dwell-time data can also be used to track wait times at the checkouts, enabling retailers to adjust their staffing schedules.

By equipping store employees with beacons via smartphone or tablet, retailers are also able to monitor individual staff performance in real-time. For instance, retailers can see how long an employee is spending with a customer, their conversion rates and identify training gaps. Importantly, store employees could also retrieve data on individual customer profiles such as the purchase history, number of store visits and opportunities for upselling. It is important to acknowledge that privacy issues stemming from this type of data collection is a concern for some customers, however retailers cite the customer’s ability to opt out and not disclose any personal information. WGSN, 27

October

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Social DeliveryIn October, Lexus (in conjunction with Saatchi & Saatchi Fallon Tokyo) gave their Twitter followers VIP access to the upcoming short films that reflect the luxury automotive brand’s ‘Life is Amazing’ theme. The pre-release movie screening occurred via Lexus International’s Twitter page, which was locked for the 24 hours surrounding the release. Only Lexus International followers had access to the pre-screening, creating a VIP experience for brand fans. Twitter’s micro-targeting tools allowed the automotive brand to target movie lovers and enthusiasts to build a captive audience prior to the event. Twitter also allowed Lexus to lock their account to followers and fans for the exclusive experience. The ‘Silver Screen Access’ campaign was initiated on October 21 with a tweet from the brand with a minute-long video about the two films, with the short films officially released on October 27. Mobile Commerce Daily, 22 October

Building on Target’s evolving Instagram strategy, the US retailer used the popular social platform to showcase do-it-yourself Halloween content, including recipes, decorations and craft projects. Target’s Instagram followers were able to virtually explore a ‘Halloween Hills’ fantasy neighbourhood on Instagram, which is geared towards adult consumers looking for creative ideas. Followers were able to unlock 30 DIY recipes and craft projects within the experience, which consisted of a virtual neighbourhood comprised of illustrated haunted houses and spooky inhabitants. After a ‘trick-or-treater’ tapped on one of the homes, they selected a ‘trick’ or ‘treat’ and were then invited into the homes to access the recipe or project (including step-by-step photo tutorials). Some of the family-friendly snacks and crafts included a homemade ‘Mummy Pinata’, filled with festive treats, and brightly frosted ‘Cauldron Cupcakes’. The Mummy Pinata can be made from an inflated balloon filled with candy, and taping horizontally cut pieces of paper onto it to resemble a wrapped mummy. The campaign was also supported by ‘Like2Buy’ technology, which allows users to purchase product via their Instagram account. Users who make the projects or recipes are encouraged to upload photos of their work onto Instagram using the hashtag #HalloweenHills. Target’s Instagram page sees many new followers each week, enabling users to regularly view new photos or haunted houses. Mobile Marketer, 22 October

US retail property group Simon Malls is featuring the ‘Ziploop’ mobile shopping app in its malls across to augment the Christmas shopping process for consumers. Ziploop, referred to as a mobile shopping organiser app, allows consumers to easily organise their shopping activities across tablet, smartphone and desktop devices. As such, Ziploop offers consumers a platform of paper-free shopping, which significantly reduces the possibility of lost receipts, forgotten cards or misplaced coupons. Users can store all of their store rewards and receipts on the app, which also reminds them of expiring coupons. Coupons can be sorted through by location, store date and amount. Simon Malls and Ziploop will be promoting the app to major retailers, including Macy’s, Nordstrom and Sephora, to provide the stores with streamlined ways of tracking user response to store rewards and offers. Essentially, consumers scan their shopping receipts, reward cards and coupons with their mobile phones and email the image to their Ziploop accounts to be stored. Consumers can also filter their personal emails by receiving latest trend updates, new arrivals and special offers directly on the Ziploop app. Fierce Retail, 20 October

Convenience store chain 7-Eleven Singapore is working with Japanese soft drink manufacturer Pocari Sweat on a beacon campaign in Singapore that tracks runners’ progress and offers rewards when they pass one of the chain’s locations. The technology works via a free mobile app called Pocari Cross Run available on iOS and Android devices and will be set up in all of the retailer’s Singapore stores. The beacon device provides area-specific content customisation, as well as a variety of interaction responses, which is determined by the distance a runner has completed. The app also aims to make runs more interesting by allowing users to set goals through customised running courses. The retailer’s stores are marked in the app as hydration points, where runners can purchase Pocari Sweat. When users pass by a store, complete a running course or make a Pocari Sweat purchase, they also receive participation points. Mobile Commerce Daily, 16 October

US retailer Target is planning a mobile Christmas makeover with a Wish List app that enables parents to see, manage and share their children’s favourite items with their print catalogue via augmented reality. The Target Wish List allows young consumers to select from hundreds of items including toys, sporting goods and electronics, while simultaneously allowing parents to manage all of the lists from one simple view. The app is available on both Apple and Android mobile and tablet devices. Once downloaded, users are asked to sign in using and create a profile for themselves and up to 10 children. Children can then choose an avatar, take a virtual tour of Santa’s workshop to select items from a conveyor belt, select designs for rooms within the workshop and create their own holiday wish lists. Users also have the ability to add toys from the Christmas toy catalogue by holding their mobile and tablet devices directly over the page of the catalogue and selecting their desired toy to bring items to life. Geekwire, 22 October

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To mark the launch of the iPhone 6 Plus in the Netherlands, Dutch telecom provider KPN engaged the queue outside the Apple Store in Amsterdam to ensure future iPhone 6 Plus owners do not have to worry about bending their brand new phone. While waiting in line to purchase the new phone, a mobile tailor offered to supersize pant pockets to comfortably store the larger iPhone model. Consumers waiting in line could have their existing pockets made larger by KPN’s mobile tailor, who was on a bike and travelled down the line of people. Complimentary dressing gowns were also made available for customers to wear while they waited for their pocket to be resized. Watch the video here: http://vimeo.com/107250196. Guerrilla Marketing Zone, 1 October

US restaurant Outback Steakhouse is streamlining the reservations and waiting process for consumers with the introduction of ‘Click Thru Seating’, available on Outback’s 365 mobile app and online. The strategy was driven by a survey that identified that consumers often wait 40 minutes to be seated. The new seating service aims to offer convenience to guests as well as servers and hosts in Outback Steakhouse restaurants. Hosts will be able to easily keep track of reservations, and late guests can rest assured that their names will not be dropped from the wait list or that they will be penalised. To sign up for a reservation and view current wait times, consumers visit Outback.com or use the 365 app to sign up for a time slot or change it if they are running late. Outback recognises that allowing Click Thru Seating to be completed with a mobile device will provide guests with complete control and accessibility to current wait times, from any location. Guests will also be able to plan ahead accordingly and feel certain that they will not be wasting time waiting for their table. Mobile

Commerce Daily, 30 October

Launched in October, Curbside is a new mobile app that is reinventing local shopping experiences. Curbside makes finding, buying and getting the things that consumers need from their favourite local stores faster and easier. Curbside allows shoppers to find products that are in stock at multiple stores in a local area and make purchases, with the service free and no additional mark-up on store prices. Essentially, consumers can shop hundreds of thousands of items, available at local stores, any time and select a Store Pickup or a Curbside Pickup. Store Pickup allows for items to be stored inside the store the item was purchased from for pick up, while Curbside locations offer consumers pick up of their purchased items without leaving the car. Following a beta test in San Jose, California, Curbside is now available to the greater San Francisco Bay Area, with plans to expand to other markets in the coming months. Curbside is also currently available at 10 select Target stores throughout the Bay Area and at Westfield’s Oakridge shopping centre in San Jose. Business Wire, 6 October

US toy retailer Toys ‘R’ Us is leveraging NBA legendary player Shaquille O’Neal to promote its ‘Toys for Tots’ fundraiser as well as the hashtag #PlayItForward, a video series and exclusive social content across Instagram, Twitter and Facebook. For every photo shared using the hashtag, Toys ‘R’ Us will donate an additional toy, or the equivalent cash value, to the Marine Toys for Tots Foundation, up to US$150,000. Toys ‘R’ Us is utilising a strong social trend to spread awareness of its ethical efforts in the lead up to the Christmas season. Mr. O’Neal will play Santa Claus for the campaign and encourage the Play It Forward challenge, which is to be ‘un-selfie’ or unselfish and donate a toy in any store across the country and then share a selfie. Shared selfies garner additional donations from Toys ‘R’ Us. Participants are also asked to share their selfies on the Toys ‘R’ Us Facebook page at Facebook.com/Toyrus and tag @Toysrus when posting on Instagram and Twitter. Throughout the campaign, fans of the Toys ‘R’ Us Facebook page and followers on Instagram and Twitter will enjoy exclusive content, such as special messages from Mr. O’Neal, fundraising updates and more. The company has also created a video series featuring Mr. O’Neal and his explanation of the Play It Forward challenge. Mr. O’Neal will also be occasionally posting on Facebook, Twitter and Instagram. NBC News, 18 December

New York-based jewellery retailer Bauble Bar is requesting social photo submissions in a campaign that supports survivors of leukaemia and lymphoma diseases. The ‘As Good As Gold’ campaign features guest ‘bartender’ Megan Runser, a survivor of Hodgkin’s lymphoma. Bauble Bar has built a collection of jewellery that describes her style and is donating 100 percent of net proceeds to the Leukaemia and Lymphoma Society (LLS). For its ongoing guest bartender program, Bauble Bar selected Ms. Runser to work with the brand and build her own jewellery collection. While 100 percent of the net proceeds from the collection’s purchased products will be given to the LLS, Bauble Bar is also activating its social followers on Instagram and Twitter to participate in another way. For photos posted that showcases users’ source of strength, Bauble Bar will donate US$1 to the LLS. Users are asked to include the hashtag #AsGoodAsGold and can submit photos now through December 31. Mobile Commerce Daily, 27 October

US restaurant chain Chipotle is leveraging social media to engage costumed Halloween customers in a contest while raising up to US$1 million for its Chipotle Cultivate Foundation. The chain’s fourth annual ‘Boorito’ event offered US$3 burritos, bowls, salads, tacos, and kids’ meals for customers dressed in costume in support of the non-profit foundation which started at 5pm on October 31. The chain’s Denver-based restaurants also awarded the top three costume photos uploaded to Twitter or Instagram using the hashtag #ChipotleBooritoContest Three grand prize winners in the photo contest won US$2,500 in the respective categories for best group, scariest and most creative, while five runners-up were chosen to receive free Chipotle catering for up to 20 people. Slate, 31 October

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Service Ethical

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Thought Leader Q&A Dr Sean Sands, Research Director, ACRS

from an entertainment focused experience, while recreation-oriented consumers (i.e. with no real goal) appreciate either education or entertainment. In sum, education is a safer option for retailers than providing entertainment because it satisfies a wider range of shopper needs. What’s more, education may actually be a foundation for transformational experiences, providing an appropriate mix of work and play, and potentially leading to a form of individual self-development through the learning process. Such experiences provide something more lasting than a memory, something beyond what any good, service or experience alone can offer.

What is the role of mobile looking ahead?

Two years ago mobile was about driving consumers to the store. Now, the focus is very much about engaging consumers within the store. One of the key technologies that was focused upon at the recent Shop.org conference in Seattle is Beacon technology. Beacons use low-energy wireless Bluetooth signals to detect the position of smartphones, and the system is much more accurate than GPS. This system has the potential to make shopping easier for the consumer and to provide data for the retailer. Early adopters are entering this space right now, but we can expect 2015 to see more uptake of the technology. Another area mobile will dominate is payments. Facebook are considering launching peer-to-peer payments, similar to venmo, which will allow friends to split payments. Venmo has entered into US Millennial consumer vernacular, with the phrase “We’re not at venom status yet”.

How can retailers leverage social media to engage consumers beyond the store environment?

One such way is via social service. Young consumers are turning to social media sites such as Facebook and Twitter to search for information, solve problems and express complaints. KLM Royal Dutch Airlines is a fantastic example of a brand offering help to as many travellers as possible. The campaign targets KLM consumers as well as those who are not travelling with KLM, through an ambitious global social campaign called #HappytoHelp. Starting with the premise that the best promotion for customer service is great customer service, KLM developed a social media strategy to identify travellers’ problems by monitoring Twitter and sifting input from KLM ground staff. Selected problems were solved in a variety of ways, ranging from actual physical intervention, helping someone retrieve a forgotten passport and still make their flight, to providing one-to-one advice or information through social media.

What are the key retailing trends for 2015?

Over the past 12-months I have seen a move toward the integration of store, online and digital to a more central focus on the consumer. Underpinning this shift are three key trends that will impact retail in 2015 and beyond, discovery, inspiration and curation.

1. Discovery is a means by which retailers can expose consumers to new products and is particularly applicable to the social space. Social discovery site Wanelo - short for Want Need Love - is doing a great job in this area. Wanelo is a unique social shopping experience, which at first glance is akin to Pinterest. However, Wanelo provides users with product ideas from their favourite brands and influencers, opening them up a wide range of new items to discover, democratising e-commerce and empowering consumers.

2. Inspiration is very much about providing consumers with solutions as opposed to products. Myer are doing a fantastic job at this with their Gioftorium - a 37,000sqm floor space showcases Myer’s Christmas product range and provides ideas for Christmas shoppers, as well as services such as personal shopping, gift experts, and a ‘Shop and Drop’ parcel service.

3. Curation is what time-poor shoppers will increasingly seek. Attendees at the recent ACRS World Retail Congress highlights seminar heard insights from Will Rogers, Founder and CEO of Australian online fashion retailer, KENT & LIME. KENT & LIME are a retail operation with a service layer, and their service layer is in the curation of products carefully selected for each individual shopper through an in-depth process of consultation with stylists.

Regardless of the specific retail category, the premise of discovery, inspiration and curation will increasingly be applied to retail in 2015 and beyond.

How can retailers engage consumers within the physical store environment?

I have recently been involved in a project looking at how education and entertainment can be used within the store environment. Despite this being an increasingly common practice, little is actually known about how consumers value such events, and the subsequent impacts on behaviour. Findings showed that task-oriented consumers (i.e. goal-focused) derive more value and satisfaction from an educational based experience than

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1. Connected consumers

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The ACRS also facilitates in-company presentations based on this report, for more information please contact Erika Pacini (erika.pacini@monash.edu).

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