digital shopper relevancy

Digital Shopper

RelevancyProfiting from Your Customers’ Desired

All-Channel Experience

Brian Girouard, Capgemini

November 15, 2012

2© 2012 Capgemini. All rights reserved.

Digital Shopper Relevancy | November 2012

16,000 Consumers

9 Countries

2,000 Consumers

4 Countries

16,000 Consumers

16 Countries

10 Years + 34,000 Consumers + 18 Countries =

Countless Insights Into Shopping Behavior

Consumer Relevancy 2002 Future Consumer 2007 Digital Shopper Relevancy



Digital Shopper Relevancy

16,000 Consumers in 16 Countries

Canada

USA

Mexico

Brazil

Sweden Finland

China

India

Australia

RussiaGermanyFrance

Italy

UK

Spain

Turkey

The Objective: To understand how a range of channels and devices are used and valued by shoppers

during the All-Channel Shopping Journey



Digital Shoppers* Weave In and Out of Multiple Channels

During the “All-Channel Shopping Journey”

(*) shoppers who use one or more digital channels in one or more phases of their journey

Shoppers are no longer loyal to an individual channel but rather to an experience across all channels



We Analyzed Different Dimensions of Digital Shopping Behavior

Digital

Channels

Shopping

Journey

Phase

Market

Maturity

Shopper

Demographics

Attitudes &

Expectations

6 distinct segments

of digital shoppers

with specific behavior

and preferences

in their digital

shopping journeys

Product

Category



Segment 1: Techno-Shy Shoppers

Passive attitude to technology

Digital channels not important

Only little recent online

shopping

Prefer personal contact

Bought online during last six months

1



Segment 2: Value Seekers

Price-Sensitive,

Looking for best deals

Fashion & Personal Healthcare

More women than men

2




Segment 3: Occasional Online Shoppers


Fewer online transactions

Use digital for

choosing & tracking

Better educated,

majority > 45 yrs

3



Segment 4: Rational Online Shoppers


2nd most active segment

Know what they want

Fashion & Electronics

Less interested in social & mobile

4



Segment 5: Digital Shopaholics

Highest rate of online purchases

Heavy use of digital thru Journey

Social, share opinions

Expect fully integrated experience

Men, working full time, educated


5



Segment 6: Social Digital Shoppers

Frequently shop online, but

purchase < avg in most categories

Social media, smartphones,

identification are important

Young & from developing markets

6




Developing Countries Have a Higher Degree of Digital-Savvy

Shoppers

Dominant in developing

markets

Smallest segment, but

relatively big in Spain, France &

Germany

43% are “Digital Savvy”

Value



Women are More Engaged Than Men When Using Digital

Channels

Source: Capgemini, Digital Shopper Relevancy, 2012

Receiving personalized offers and recommendations

Receiving inspirational content

Participating in online communities.

Using digital devices inside the physical store

Women are more interested in:



1.0 2.0 3.0 4.0 5.0

The Techno-Shy

The Rational Online Shopper

The Occasional Online Shopper

The Convenience-Seeker

The Digital Shop-a-Holic

The Social Digital Shopper

Digital Channels Likely Increase the Amount Spent In Stores for

50%+ of Digital Shoppers

I am likely to spend more at the physical store if I have used

digital channels to research products before going to the store

1.0 2.0 3.0 4.0 5.0

The Techno-Shy

The Rational Online Shopper

The Occasional Online Shopper

The Convenience-Seeker

The Digital Shop-a-Holic

The Social Digital Shopper

I am likely to spend more with a retailer if their services are

available at any time via any channel

1=strongly disagree, 5= strongly agree


The Value Seeker

The Digital Shopaholic The Digital Shopaholic

The Value Seeker



Most Digital Shoppers Expect Major Changes in All-Channel

Experience In Future


Half of all consumers expect that by

2020 most physical retail stores will

just be showrooms to select and order

product

Roughly 30-40 % of the traditional

segments are more doubtful about the

pace of digital development of shopping

experience

Roughly 80 % of Social Digital

Shoppers and Digital Shopaholics

expect to see fully transformed role of

physical stores by 2020

56% of global consumers expect

seamless integration of multichannel

shopping experience by 2014

I expect that by 2020 most physical retail stores will just be showrooms to select

and order product, and the delivery will be done separately at my convenience

I expect my favorite retailers to provide seamless integration of their online,

physical and mobile shopping experience by 2014

0% 20% 40% 60% 80% 100%

The Techno-Shy"

"The Rational Online Shopper"

"The Occasional Online …

"The Convenience-Seeker"

The Digital Shop-a-Holic"

"The Social Digital Shopper"

Positive indication Neutral indication Negative indication

0% 20% 40% 60% 80% 100%

The Techno-Shy"

"The Rational Online Shopper"

"The Occasional Online …

"The Convenience-Seeker"

The Digital Shop-a-Holic"

"The Social Digital Shopper"

Positive indication Neutral indication Negative indication

“The Value Seeker”

“The Digital Shopaholic”

“The Value Seeker”

“The Digital Shopaholic”



How to be Relevant?

The Myth of All Channels



The Myths of the All-Channel Experience

Attempting to be great at all aspects of (digital) shopper

engagement is the way to win…

Most businesses understand what their (digital) shoppers

really want…

A compelling website, slick apps, and social media listening

are the ingredients for delivering an

All-Channel Experience…



It’s crucial to be clear on your brand position, and defend it

digitally

Differentiate on another attributeDominate on one attribute

Be On Par for the rest



Access Experience Price Product Service

Friendly and clean

storeEasy to reach stores

Easy to navigate

storesCompelling

promotionsFreshness/ Quality

Maximum opening

hours

Availability

(no stock-outs)

No damaged goods

in store

Inspirational

Atmosphere

Customer Service

Complaints

handling /

return policy

Loyalty program

Wide and deep

assortment

Competitive pricing

Traditional

Relevancy

Criteria for

Physical Channels

“Better

Stuff, Better

Life”

“Making It

Easy for

You”

“Lowering

Your Costs”

“All About

Your

Experience”

“Whatever It

Takes for

You”

Dynamic Pricing

Mobile in-store

Shopping support

Advanced /

visualized product

information and

(usage) advice

Product

Comparison

e-Commerce

(mobile, social,

web)

Flexible delivery-

options ( home,

store-pick-up etc.)

Personalized

Pricing

Additional

Relevancy

Criteria for

Digital Channels

Personalized offers

Technology-

enabled staff –

support in-store

Interactive service

via digital channels

(e.g. click-to-chat,

social media)

Wider and deeper

assortment

Solution Pricing

Inspirational

Content

Community

engagements

(share

experiences)

Social Shopping

Location-based

pricing

Price

Comparison

Illustrative

Being relevant is about understanding shopper needs and

perceptions across the 5 Key Attributes



Superior execution starts with putting the consumer in the center

and building capabilities to deliver an All-Channel Experience

Put the Shopper at the Center

RelevantPersonalEngaging

Truly all-channel

Consumer InteractionConsumer ManagementCommerce ManagementOperations Management

Deploy Integrated & Flexible Business & IT

Architectures

Follow a Phased &

Controlled Approach

Grow the All-Channel Experience

2011 –H1 2011 –H2 2012 –H1 2012 – H2

Mo

bile

Pre

se

nce

Strategic Foundations Web Presence Social Network Presence

Future State

Current State

Mobile AppFactory

MED MED MED

Mobile WebFactory

MobileTicketing

HIGH HIGH HIGH

MDM

LOW MED LOW

Location Based Services

MED MED MED

AugmentedReality Game

MED MED MED

MobileCoupons

HIGH HIGH HIGH

MobileCompensation

HIGH HIGH HIGH

Google EarthEnterprise

LOWLOW MED

WidgetFactory

LOW LOW LOW

ProfilingEnhancements

MED LOWMED

Service Integration

ServiceManagement

Identity & Access Mgmt

BusinessProcess Mgmt

Strategy, ToolsIntegration

LOW LOW LOW

FacebookGame

MED MED MED

FacebookTicketing

LOW LOW MED

Bid-BasedCapacity Mgmt

HIGH HIGH MED

GroupReusable Portal

MED MED MED

Target ModelEnabler

MED MED MED

Diff Cost Time

Define and Build the Required Capabilities



How Can Capgemini Help?

Digital StrategyDigital

Re-Platform

Social Insight &

Interaction

Digital in the

Store

Customer

Analytics /

Digital Marketing

Let’s Discuss an All-Channel Experience Discovery Workshop

Contact

Brian Girouard

Vice President, Capgemini

[email protected]

mailto:[email protected]

digital shopper relevancy

Technology

digital shopper relevancy16

digital devices

digital forchoosing

social digital shoppers6

social digital shopperproduct

higher degree of digital

online communities

rational online shoppers4