the dna of the cross-channel shopper

The DNA Of The CROSS-CHANNEL SHOPPER

Analysis of new consumer shopping data with real world examples of how global retailers are adapting to address these shifting shopper expectations.

#LiveWebinar November 3, 2011

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About Retail TouchPoints

  Launched in 2007

  Over 20,000 subscribers

  To provide executives with relevant,

insightful content across a variety of

digital medium

Free subscription to our weekly newsletter: www.retailtouchpoints.com/signup

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Panelists

Andrew Gaffney Research Director Decision Tree Labs

Mike Elder Director, Retail Practice Junction Solutions

Debbie Hauss Editor-in-Chief Retail TouchPoints

Moderator

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About Decision Tree Labs

  Launched in 2010

  Division of G3 Communications

  Using a targeted online consumer

panel, with the ability to focus on

specific demographic groups—

based on geography, income or

shopping habits.

For more info, head over to DecisionTreeLabs.com

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About The Survey

Gender Age Group

283 CONSUMERS  SURVEYED  

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Growing Influence of the Web

40% OF  CONSUMERS  said  they  increased  their  online  shopping  ac1vity  

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Changing Channel Preferences

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Cross Channel Climbing

45% an1cipated  more  of  their  shopping  will  occur  across  mul1ple  channels  in  the  

coming  year  

NEARLY  HALF  

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Shifting Shopping Behaviors

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Changing Channel Expectations

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New Loyalty Drivers

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Channel = Choice

32% of  respondents  cited  the  ability  to  change  an  order  or  return  an  item  in  the  

channel  of  choice  

32% of  respondents  are  influenced  by  having  personalized  shopping  experience  based  on  individual  history  and  

preferences.  27% valued  the  ability  to  have  visibility  into  real-­‐9me  

order  status.  

45% of  respondents  valued  the  ability  to  have  

convenience  of  being  able  to  “shop  and  receive  merchandise  in  the  sales  channel  of  my  choosing”.  

41% of  respondents  were  

cited  as  the  top  influence  on  customer  loyalty,  

followed  by  the  ability  to  receive  promo1onal  offers  in  all  shopping  

channels.  

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New Factor for Attrition

86% OF  CONSUMERS  

are  somewhat  or  highly  likely  to  move  their  business  to  another  retail  brand  when  they  encounter  

inconsistent  pricing  across  channels.  

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New Shopper DNA

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Mobile: The Next Frontier

10 (11%)  said  they  had  made  a  purchase  

directly  on  their  mobile  device,  compared  to  8%  

who  said  they  had  completed  a  transac1on  via  a  social  media  site.  

MORE  THAN  ONE  IN  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

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atlanta    l    denver    l    san  francisco    l    st.  louis    l    toronto  

CROSS-CHANNEL CHALLENGES

multi-channel retail: catalog, web, mobile, direct, mail B2B and B2C

Mike Elder, Director, Retail Practice

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

•  No  Longer  Op9onal  

•  Organiza9onal  Challenges  

•  System  Challenges  

•  Customer-­‐Centric  

•  Mobile  Expecta9ons  

•  Delivering  Cross-­‐Channel  

•  The  Future  

•  Summary  

Agenda  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

•  Founded  in  2002  

•  Headquartered  in  Denver    6  offices  in  North  America    Partner  rela1onships  globally  

•  Deep  Focus  in  Mul9-­‐Channel  Retail,  Cross-­‐Channel  Retail    Customers  include  Simon  Pearce,  Global  Wine,  Miles  Kimball,  

Century  Mar1al  Arts,  Peet’s  Coffee  &  Tea  

•  Solu9ons  are  built  exclusively  on  MicrosoX  Dynamics®  AX  

•  Recognized  for  excellence  in  solu9ons  and  customer  engagement    Gold  Cer1fied    CfMD  Cer1fied    AMR  Cer1fied  (Dynamics  AX  for  Retail)    2010  MicrosoV  Partner  of  the  Year  –  Retail    2011  MicrosoV  Dynamics®  Award  Excellence  in  Evangelism  

(Peet’s  Coffee  &  Tea)    

Junc9on  Solu9ons  Overview  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

Cross-­‐Channel  is  No  Longer  Op9onal  

As  indicated  by  the  study  ….  

Customer  expects  you  to  look  like  one  consistent  retail  opera1on  • Retail  Store  • Catalog/call  center  • Web  store  • Mobile  (emerging)  

How  you  should  look  to  the  customer:  

Your  channels  are  just  shopping  op9ons  to  the  customer.      They  are  simply  different  varia9ons  of  the  same  retailer.    

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

Organiza9onal  Challenges  

How  your  corporate  organiza1on  probably  looks:  

Silo  organiza1ons:  • Separate  profit  centers  for  each  channel  • Separate  merchandising/buying  teams  • Poten1ally  separate  IT  • Conflict  common  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

System  Challenges  

How  your  systems  probably  look:  

Poten1ally  separate  applica1ons  cobbled  together  for:  • Order  management    • E-­‐commerce  • Point-­‐of-­‐Sale  • Financials  •   and  more  …  

Disparate  system  components:  • Different  focus  • Different  decision  makers  • Different  func1onality  • Best  of  Breed  ????  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

Customer-­‐Centric  

Customer  doesn’t  care  about  your  organiza1on  or  system  challenges  

Customer  expects  consistency  and  transparency  across  channels:  

Product  master  Pricing  Promo1ons  Customer  Data      

And  Ancillary  Services  such  as:  Returns  Loyalty  programs  GiV  Registry  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

Mobile  Expecta9ons  

Just  when  it  couldn’t  get  any  harder:  

Mobile  is  elimina1ng  price  as  a  compe11ve  factor  

Retail  success  in  the  future  will  be  increasingly    dependent  upon  influencing  customer  behavior:  

• Service    • Suppor1ng  informa1on  • Shipping  • Consistency  • Performance  reputa1on  • Loyalty  

Across  all  your  channels  !!!!  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

Delivering  Cross-­‐Channel  

Brute  Force  • Load  and  try  to  maintain  data  manually  across  channels  

Integrate  your  data  and  systems  • Master  system  for  record  data  • Varying  degrees  of  integra1ons  and  methods  

All-­‐in-­‐one  solu1on  with  built-­‐in  integra1on  • Missing  or  limited  func1onality    • Most  common  examples  are  e-­‐commerce  suites  that  support  call  center  

Issues  • Synch  and  1ming  of  data  • Performance  • Agreement  between  channel  organiza1ons  • Differences  between  disparate  system  func1onality  • Expensive  

It  is  not  easy  delivering  on  cross  channel  !!!!  

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

The  Future  

The  Cloud  

• Disparate  systems  (available  now)  • Use  cloud-­‐based  services  and  data  stores  • Current  example:  Online  credit  card  authoriza1on  • Cross-­‐channel  func1onality  example:    

• GiV  registry  

• Fully  Integrated  Solu1on  in  the  cloud  (coming)  • Applica1on  designed  and  built  to  run  via  cloud  • Integrated  sharing  of  data  and  func1onality    

© 2011 Copyright Junction Solutions. All rights reserved. junc9onsolu9ons.com          where  technology  meets  inspira9on  

Summary  

Effec1ve  Cross-­‐Channel  Interoperability  Is  Not  Op1onal  

Your  customers  expect  it  

Your  compe1tors  are  akemp1ng  it  

You  can  do  it  

Excelling  at  cross-­‐channel  execu9on  can  be  a  significant  differen9ator  you  can  leverage  to  your  advantage.  

#LiveWebinar

Q&A Session Your GoToWebinar Attendee Viewer is made of 2 parts:

1.  Viewer  Window   2.  Control  Panel  

Type  your  ques9on  here  

#LiveWebinar

Panelists

Andrew Gaffney Research Director Decision Tree Labs

Mike Elder Director, Retail Practice Junction Solutions

Debbie Hauss Editor-in-Chief Retail TouchPoints

Moderator

#LiveWebinar

Thanks for attending!

You can download this presentation & research White Paper here:

http://rtou.ch/shopper-dna

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Panelists

Contact Andrew at:

andrew@gthreecom.com

Contact Mike at:

melder@junctionsolutions.com