the future of retail - 2011
DESCRIPTION
Future of Retail TrendsTRANSCRIPT
Retail:Influencing the final :30
A ScenarioYou enter a store. You see something you like. You write down the product name and manufacturer. You go home and order it over the Internet.
As a result, you didn't have to carry it, you probably got a better price, and you may have avoided sales tax. The store in this scenario is merely a showroom. Have I just described the exception to tomorrow's retail, or the rule?
- Nicholas Negroponte, 1998 Wired Magazine
“Retail Darwinism”
InformationCommunicationConnections
Retail Truisms
The world of the consumer is changing.Boundaries between online and offline retail are blurring giving rise to more multi-channel experiences.
The relationship between store and consumer is quickly evolving.Mobile and other emerging technologies are empowering the customer.
Niche and personal experiences are replacing the “everything to everyone” model.
Shopping is a social phenomenon, but Retailers have yet to capitalize on that phenomenon throughout the shopping process.
The customer journey is moving from linear to interactive.
Agenda1. Evolution of the Consumer2. Evolution of Retail3. Evolution of Technology4. Evolution of Commerce5. Evolution of Experience6. Roadmap
(r)evolution of the consumer
Everything About Consumers Is Changing
Time has become more preciousWorking longer hoursMore time onlineMobile is fundamental
Critical eye on purchasesSmarter about valueSavvy about discovering products
Emergence of the “Recessionistas”
The majority of consumers have forever
changed.
Three out of four are now “evolved.
cautious optimism
value driven time filling mobiley networked
sourcing inspiration
selfishly green alternative
economy
concierge brands the family
network
The Evolved Consumer 10 consumer behaviors that emerged after the economic downturn
control
Boundaries between mediums is blurredConsumer demanding fluidity
Enabled by Technology
(r)evolution of retail
From a rudimentary beginning, gaming has evolved at exponential rates and has become more sophisticated, accessible and social
1961 1970s 1980s 1990s Late 1990s
Early 2000s
TodayMid-Late
2000’s
Click on a milestone to learn more
Retail has come a long wayWhere we startedPut a roof on itDo it with everyoneDo it from homeDo it yourselfDo it onlineDo it with technologyDo it any way you want
Losing the connection to changed customers
Reinvent the connectionReestablish the brand
We live in a seamless world
Multi-channel mentalityPersonalized commerceUnlimited inventoryBrands become the experience
Channel Agnostic
Reconcile physical and digital experiencesReplicate the efficiency of ecommerceRecommendations across platforms
Transactional to Experiential
Shift to Consumer Leading
With a New Definition of Customer Service
Smarter, more personalized, more informedPrice transparencyValue beyond the sale
New Platforms Where Buyers Become Sellers
Enhanced consumer choicePrice savings & value recoveryCross border tradeNew market formationSmall businesses are born
Perfect Competition?
Not there, but the barriers are breaking downTime and device contingentCreate preference through brand building
(r)evolution of technology
Social
81%received advice from
friends on product purchase through a
social site
90%of consumers online trust
recommendations from people they know
44%of Moms use social
media for brand/product
recommendations
12xNumber of times more
trusted consumer reviews are than
advertiser messages
53% of people on
Twitter recommend companies and/or products in their
Tweets
Real Time Offers
Group BuyingNews,
reviews, & recos
Sharing experiences
Viral promotion
Social
Easy accessibility of information, news and content has forever changed the way buying decisions are made.
Mobile
37%Smartphone users
have made a purchase directly from their phone in the last 6
months
45%Look at third party
or consumer reviews of product during
the purchase process
43%Look for retailer or product coupons
36%Check the price of product while in
store to determine a “good deal”
68%Find address and store hours of a preferred store
SalesProduct
Information & Couponing
Augmented Reality
Comparison Shopping
Drive to Store
Mobile Phone
You can seamlessly move from advertising on the mobile device all the way through to the actual sale itself.
Tablets
36%Have made a
purchase through their tablet device
65%of Fortune 100 companies are
integrating tablets into the retail environment
49%Are interested in
advertising on tablet devices that are either
video or interactive
5.5xAverage conversion
rate of purchases over other mobile devices
147Million tablets sold globally by 2015
Customize Product Features
Concierge Service
EntertainmentReal time Inventory
Personal Shopper
Tablets in the Retail Space
Near Field Communications
150Million NFC chips will be shipped in 2011
1Million NFC enabled
phones will be sold in France in 2011
50%Of all NFC phones will be deployed in North
America by 2014
59%Of consumers want to
use their mobile phone to make
purchases at point of sale
220Million enabled NFC phones shipped by
2014
Near Field Communications
Touch to PayTouch to Discover
Touch to Share Touch to Ticket
Digital Out of Home
40%Say they take note or watch a complete ad
when exposed in store
68%Of shoppers said in-store messages help
their purchase decisions
29%Of shoppers made an unplanned purchase based on what they
saw on screens
#1Fastest growing digital advertising medium of
2010
80%Of brands experience
increases in sales with POS DOOH
placements
On premise On the goIn high traffic
areas
With interactive capabilities
Enhancing the experiences
DOOH
Surface Technology
20%Increase in sales for
on premise restaurant category
70%BMW dealers
implementing surface tech by 2012
50%Increase in on site conversion rates in
finance sector
35%Increase in service
efficiency in wireless carrier category
35%Cheaper for V2 of technology vs. V1
Ordering and On-Premise
Browse Products
Customize Experiences
Drive Foot Traffic
Provide Information
Surface Technology
(r)evolution of commerce
Pre-View Shopping
Reviews & Hints
Tracking & Organizing
Insider AccessGift Guides by
LocationHeat Mapping
Activity
Online click to chat
Twitter to better serve
Service as the new
marketing
Value beyond purchase
Listening to your social
graph
Digitizing Customer Service
Empower in-store
associates
Virtual dressing rooms
RFID for Easy navigation
Online consultScan and
recommend
Digital Assistants
Building Communities
Crowd sourcing ideas
Money saving advice
Sharing ideas through UGC
Extending engagement
Corporate social
responsibility
(r)evolution of experience
The Shopping Experience
Structuring the In-store Experience
• Incent repeat visits• Brands are story tellers• Support discovery• Encourage engagement • Enhance the value chain• Store becomes the stage• Digital drives displays• Implement entertainment experiences
• Enable social connectivity• Exploit multiple platforms• Complimentary experiences• Create targeted value• Expand points of discovery• Virtual currency for engagement• Activate eCRM initiatives
Structuring the Digital Experience
Structuring the Delivery Experience
• Capture / extend the brand experience• Say thank you• Drive trial• eCRM opportunities• Lifestyle surprises• Green alternatives• Hassle free returns
• Connectivity• Interfaces• Relationships• Services • Content• Standards
Structuring the Media Partner Experience
action plan
Breaking down barriers
"Great things are not done by impulse, but by a series of small things brought together.“
- Vincent Van Gogh
Understand Structure Execute Refine Scale
Tenets of an action plan
Understand
Audit the connectivity and technologies available within the retail environment
Connectivity and technology
Understand the financial implication and ongoing investment in maintaining technologies
Investment capital and roll out
Store traffic and buying patterns
Assess competitors use of technology and product suites and determine the unique selling proposition
Competitive audit
Gather a basic understanding of what the core activities, platforms and usage behaviors are in retail environments
Consumer behavior
Understand how consumers use the retail space, interact with products, and what the buying patterns are
Define the consumer behavior you aim to change and the business problem the technology will fix
Goals and objectives
Understand systems and processes to fulfill on consumer demand and avoid potential bottlenecks
Logistics and fulfillmentDetermine employee training needs and develop collateral
Employee training
Assess internal organizational structure and external partner capabilities
Audit internal resources/partners
Perform SWOT analysis of technology options and determine ROI from implementation
Cost/benefit analysis
Develop a long term vision for how the experience will evolve
Growth plan
Determine messaging strategy and points of contact for products and consumer segments
Location and user
Structure
Dynamics, principles and best practices apply globally, but when implementing tactics, local realities trump global trends
Think globally, act locally
Determine how consumers are adopting the technology over time, and what impact it is having on sales
Measure interactions
Create buzz around the launch both internally and externally
Social and PR promotions
Be cognizant of what is relevant to your brand, consumers and capitalize on your resources
Stay relevant
Understand the target’s drivers, passions, addictions and interests and use those as a guide to how you engage
Entertain and engage
Execute
Monitoring how consumers engage with your brand will help shape future consumer facing initiatives as well as how your business operates overall
Continuously measure and optimize/enhance
Analyze impact on the business in combination with other marketing initiatives
Analyze holistically
Champion a ‘beta’ mindset and be willing to learn from your mistakes and adapt to an ever changing marketplace
Test & learn
Constantly provide fresh content, giving your consumers a reason to return and more insights to draw upon
Refresh, refresh, refresh
Refine
Open lines of communication within the organization to create excitement and desire to become part of the program
Socialize successes
Scale
Understand the technology lifecycle and vision for growth and evolution
Product roadmap
Define the timeframe and costs associated with a global roll out
Expansion plan
Develop sharing platform to share best practices and learnings
Share Internally
Rethinking Retail
Apply across channelsConnect with the consumerCreate experiencesRedefine customer service
Summary
case examples
BootsHoliday Retail Integration: Greater than the sum of its parts
DebenhamsUsing QR to support their app
• Debenhams launched their fully transactional iPhone app in Oct 2010. Billed by Debenhams as a ‘virtual shop assistant’ the comprehensive app includes a bar code scanner.
• QR Codes are also appearing in-store, encouraging customer loyalty and improving the shopping experience. Once scanned the message on the left translates to
• “DB::ALERT::Thank you for downloading the Debenhams iPhone app! Enjoy a FREE tea or coffee in this store. Simply show your Debenhams app at the Restaurant or Cafe till in store! [Only valid today for one time use]”
GapDriving customer reviews and tips
• Gap used in-store QR codes to direct to customer reviews and fashion tips
• The bottom image is a direct mail piece linking through to a video interview with a Gap designer and a discount coupon
• Both touchpoints offer value to the customer
In-store QR directs to product reviews and style
tips
OxfamUser generated product history
Daimler’s Mercedes-BenzProduct customization, financing and ordering
Volkswagen Not only lower value purchases
BMWExpediting customer service and personalization
DKNY Discuss with friends and purchase
The North Face Mobile exploration and brand engagement with Facebook Places
StarbucksDoesn’t just have to be the act of sale
StarbucksDelivering discounts
FordDelivering engagement at events
NikeEngaging social behaviour at the storefront
Paramount Pictures Delivering unique content and driving foot traffic
Luxury BrandsActivating traditional mediums
Toys R Us – Hong KongHighlighting deals in the store
McDonald’s Product information
StackedProduct information
Cellar KeyDelivering better information for more informed choices
Macy’sAdvice and behind the scenes content
Things RememberedTablet enabled customization kiosks
Delta AirlinesTablets for at gate entertainment and food ordering
Iceland ExpressRentable in-flight entertainment
4FoodiPad’s enable a tech-savvy, social media oriented fast food experience
City SportsConnecting in-store, rewards, and events through tablets
PumaGlobal in-store crowd source design and building social connections
Metro Group: real,-Future StoreEnabling the consumer with mobile checkout
Kraft: iFoodAdding value through recipe ideas and shopping aids
ShopsavvyIntelligent in-store buying through better information
Tesco: Mobile shopping on the goTaking advantage of consumer wait time
Murphy USALocation based promotion to drive activation
Zoom RoomStreamlining customer service
PumaGlobal in-store crowd source design and building social connections
SF Art ExchangeComparative selling and consumer engagement
JCPenneyBringing online to the real world
Whole FoodsPaperless receipts
SingTel24/7 Flagship store through touchscreen technology
Luisa Via Roma3D Virtual Stores
Kraft & IntelNext generation meal planning
Gap IncEmbracing the auction model
7ElevenEncouraging check in for prizes