engaging customers differently: 4 ways to disrupt the retail model and engage customers differently
TRANSCRIPT
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Engaging Customers Differently4 Ways to Disrupt the Retail Model and Engage Customers Differently
August 4, 2015
A web seminar produced by RIS News
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Nothing Lasts ForeverThe pace of change in retail is accelerating, causing competitive advantage to erode more rapidly than ever before…
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Image: Norton Ip
100Department Stores: years
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Image: Amanda Bengston
50Category Killers: years
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Image: Mike Seyfang
1995
????
Eventually,
reinventionAll models require
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Image: Sharon Michele Ursno
To differentiate,
People no longer GO shopping…people are ALWAYS shopping
essentialExperience is
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Don't sell! No! That's a turn-off. Build an amazing brand experience, and then selling will just naturally happen.
“
-Angela Ahrendts SVP Retail and Online Stores Apple
Image: CGP Grey
experienceRethinking
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Today’s Agenda
1.Subscription Boxes
2.Mobile Commerce 2.0
3.Showrooming, Redux
4.Lifestyle Curation
Image: Sharon Jan Inge
Potentially disruptive experiences
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Monthly Subscription Boxes
“Discovery Commerce Comes of Age”
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"Reimagining beauty retail online."
Image: Jeanna
retailing is bornLittle BoxSeptember 2010:
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Image: Angie Six
Initial e-mail to
40 friends
$10 /month
A few curated samples
Source: Inc. Magazine
beginningshumbleBirchbox takes root from
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Image: Angie Six
results
Global subscribers800,000
Annual Sales$96M
Source: Forbes
impressiveBirchbox today:
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Image: Angie Six
phenomenonBirchbox spawned a global
US Subscription Services600
2013 VC Investments
$300MSource: Subbly
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Virtually limitless variety
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Everything you need to take a much-needed
getaway without leaving home
Toys, collectibles, t-shirts and other
"geeky" things
4-5 carefully selected products & presents from Austin, Texas every month
Virtually limitless variety
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shoppers
“It's like Christmas! I’m never sure what's going to be in there.”
The Thrill of the Hunt
“I get exposed to things I wouldn’t know about. I recently got a bronzer
that I’m addicted to.”
Personalized Curation
“If you walk into a big-box store, there are aisles and aisles...
It can be overwhelming.”
Decision Fatigue
The appeal to
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investorsThe appeal to
“Acquiring a transaction means acquiring a customer for the long term,
rather than a single purchase.”
Greater Lifetime Value
“You have a very close idea of how much stock you need, shipping costs,
the spread of delivery destinations, and likely future income.”
Greater Predictability
“A company built on recurring revenue is usually viewed as more attractive than the same company without the
near-guarantee of income.”
Company Value
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TargetNordstromAmazonCVSBergdorf GoodmanDrugstore.com
Not surprisingly, big brands have begun to invest
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Recurring order functionality
5enabling technologies
12345
Store integration via CRM/Clienteling
Commissions for high-performing stylists
Loyalty/point tracking
Analytics-driven personalization
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Mobile Commerce 2.0
“Back to the Future?”
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Retail trucks arrived on the LA scene
circa 2010
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Today there are more than 450 trucks…
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In all shapes & sizes…
School buses Double decker buses Airstreams
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…and countless categories
High fashion Yarn & Knitting Supplies Records (yes - vinyl!)
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“It’s very cute and inviting. It’s just so adorable how it’s set up, it
makes you just want to go inside.”
The Treasure Hunt
“I love the quirkiness of the fashion trucks and it feels a lot more personal
than going to a traditional store.”
It’s Personal
“I like the convenience of fashion coming to me.”
It’s Convenient
shoppersThe appeal to
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“Invest a few thousand in a truck to have it retrofitted and you have a mobile boutique that can go anywhere.”
Low Barriers to Entry
entrepreneursThe appeal to
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“Facebook and Twitter are integral to our business, but I also set out a Welcome sign, along with a few items...”
CheapMarketing
entrepreneursThe appeal to
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No Rent to Pay
entrepreneursThe appeal to
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investingNot surprisingly, big brands are
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5enabling technologies
Mobile POS/Cloud POS1
2345
Assortment Planning
Enterprise inventory/ endless aisle
Integrated CRM
Analytics: location planning & mapping
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Showrooming, Redefined?
“Bricks Like Clicks”
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showroomHow to shop a
1. Browse the collections
2. Try on/sample the merchandise
3. Make assisted online purchases
4. Head home and wait for purchases to arrive
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showroomWhy open a
1. Additional saleschannels
2. Wider assortment, smaller footprint
3. Product testing labs
4. Return locations & help desks
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Bonobos GuideshopsThe benchmark today:
Web site visitorconversion rate5%Store shopperconversion rate83%
2xSuits sell the online rate
sq. ft. showrooms1,500
Sources: Retail Wire 2014, Forbes 2014
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5enabling technologies
Omni-channel Commerce1
2345
Order Management and Fulfillment
Warehouse Management
CRM & Clienteling
Enterprise Inventory
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Stores as Points of Experience
“Lifestyle Curation”
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Lifestyle Curation defined
Offering related
services and experiences that go
beyond products to foster
deeper connections with shoppers
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Significant successMany experience pioneers have achieved
$400M
$600M
$2.2B
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experienceA look at several recent attempts to
transform the store from errand to…
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Massage SpaGarden Paths
Design ClassesFarm to Table Cafe
Private EventsCoffee Shop
Wine Tastings
Terrain
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GalleryLibrary
Floral BoutiqueCinema Room
Wine BarBilliards Lounge
Sculpture Garden
Restoration Hardware
Former Museum of Natural History
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Expert TipsTraining Classes
Shoe RentalLockersShowers
Adidas
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Integrated & Interactive
Internet of Things Studio
Home SecurityFitness
AppliancesGrillsTools
Heating/Air
Sears
3,900 sq. ft. demo home
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5enabling technologies
Marketing/CRM12345
Deep Customer Analytics
ConnectivityTools
Clienteling
Mobile POS
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Engaging Customers Differently
How Aptos Can Help
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“The Power of One”Our Vision for Engaging Customers Differently:
One Customer
Personalized, consistent & profitable offers in every touch point that motivate purchases, reward loyalty
One Interaction
Integrated journeys where every shopper is recognized, empowered, and rewarded at every touch point
One Order
Enterprise inventory visibility fuels centralized management of every order in every channel
One Product
Integrated merchandising & planning processes that bring your unique brand vision to life in every channel
One Truth
Ensuring validated, accurate, & timely data from every corner of the enterprise in support of effective analytics
One View of the Enterprise
Role-based, actionable analytics that identify the right action at the right time for strategic decisions
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One Customer One Interaction One Order
One Product One Truth One View of the Enterprise
CRM • Clienteling POS • Mobile POS • Digital Commerce Enterprise Order Management
Planning • Merchandising Audit Operations Management Analytics by Quantisense
One Secure Platform, in the Cloud
Singular Commerce, Seamless Experiences.
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Related resources…
eBook On Demand Recording SlideShare
www.aptos.com/customer-engagement-ebook http://bit.ly/1Kwi2R0 http://bit.ly/1M721Ev