engaging customers differently: 4 ways to disrupt the retail model and engage customers differently

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© 2015 Aptos, Inc. All rights reserved. Engaging Customers Differently 4 Ways to Disrupt the Retail Model and Engage Customers Differently August 4, 2015 A web seminar produced by RIS News

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Copyright © 2015 Aptos, Inc. All rights reserved.

11 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

Engaging Customers Differently4 Ways to Disrupt the Retail Model and Engage Customers Differently

August 4, 2015

A web seminar produced by RIS News

Copyright © 2015 Aptos, Inc. All rights reserved.

22 • © 2015 Aptos, Inc. All rights reserved.

Nothing Lasts ForeverThe pace of change in retail is accelerating, causing competitive advantage to erode more rapidly than ever before…

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33 • © 2015 Aptos, Inc. All rights reserved.

Image: Norton Ip

100Department Stores: years

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44 • © 2015 Aptos, Inc. All rights reserved.

Image: Amanda Bengston

50Category Killers: years

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55 • © 2015 Aptos, Inc. All rights reserved.

Image: Mike Seyfang

1995

????

Eventually,

reinventionAll models require

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66 • © 2015 Aptos, Inc. All rights reserved.

Image: Sharon Michele Ursno

To differentiate,

People no longer GO shopping…people are ALWAYS shopping

essentialExperience is

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77 • © 2015 Aptos, Inc. All rights reserved.

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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88 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

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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99 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

Monthly Subscription Boxes

“Discovery Commerce Comes of Age”

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1010 • © 2015 Aptos, Inc. All rights reserved.

"Reimagining beauty retail online." 

Image: Jeanna

retailing is bornLittle BoxSeptember 2010:

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1111 • © 2015 Aptos, Inc. All rights reserved.

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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1212 • © 2015 Aptos, Inc. All rights reserved.

Image: Angie Six

results

Global subscribers800,000

Annual Sales$96M

Source: Forbes

impressiveBirchbox today:

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1313 • © 2015 Aptos, Inc. All rights reserved.

Image: Angie Six

phenomenonBirchbox spawned a global

US Subscription Services600

2013 VC Investments

$300MSource: Subbly

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1414 • © 2015 Aptos, Inc. All rights reserved.

Virtually limitless variety

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1515 • © 2015 Aptos, Inc. All rights reserved.

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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1616 • © 2015 Aptos, Inc. All rights reserved.

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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1717 • © 2015 Aptos, Inc. All rights reserved.

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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1818 • © 2015 Aptos, Inc. All rights reserved.

TargetNordstromAmazonCVSBergdorf GoodmanDrugstore.com

Not surprisingly, big brands have begun to invest

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1919 • © 2015 Aptos, Inc. All rights reserved.

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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2020 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

Mobile Commerce 2.0

“Back to the Future?”

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2121 • © 2015 Aptos, Inc. All rights reserved.

Retail trucks arrived on the LA scene

circa 2010

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2222 • © 2015 Aptos, Inc. All rights reserved.

Today there are more than 450 trucks…

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2323 • © 2015 Aptos, Inc. All rights reserved.

In all shapes & sizes…

School buses Double decker buses Airstreams

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2424 • © 2015 Aptos, Inc. All rights reserved.

…and countless categories

High fashion Yarn & Knitting Supplies Records (yes - vinyl!)

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2525 • © 2015 Aptos, Inc. All rights reserved.

“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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2626 • © 2015 Aptos, Inc. All rights reserved.

“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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2727 • © 2015 Aptos, Inc. All rights reserved.

“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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2828 • © 2015 Aptos, Inc. All rights reserved.

No Rent to Pay

entrepreneursThe appeal to

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2929 • © 2015 Aptos, Inc. All rights reserved.

investingNot surprisingly, big brands are

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3030 • © 2015 Aptos, Inc. All rights reserved.

5enabling technologies

Mobile POS/Cloud POS1

2345

Assortment Planning

Enterprise inventory/ endless aisle

Integrated CRM

Analytics: location planning & mapping

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3131 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

Showrooming, Redefined?

“Bricks Like Clicks”

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3232 • © 2015 Aptos, Inc. All rights reserved.

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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3333 • © 2015 Aptos, Inc. All rights reserved.

showroomWhy open a

1. Additional saleschannels

2. Wider assortment, smaller footprint

3. Product testing labs

4. Return locations & help desks

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3434 • © 2015 Aptos, Inc. All rights reserved.

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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3535 • © 2015 Aptos, Inc. All rights reserved.

5enabling technologies

Omni-channel Commerce1

2345

Order Management and Fulfillment

Warehouse Management

CRM & Clienteling

Enterprise Inventory

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3636 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

Stores as Points of Experience

“Lifestyle Curation”

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3737 • © 2015 Aptos, Inc. All rights reserved.

Lifestyle Curation defined

Offering related

services and experiences that go

beyond products to foster

deeper connections with shoppers

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3838 • © 2015 Aptos, Inc. All rights reserved.

Significant successMany experience pioneers have achieved

$400M

$600M

$2.2B

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3939 • © 2015 Aptos, Inc. All rights reserved.

experienceA look at several recent attempts to

transform the store from errand to…

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4040 • © 2015 Aptos, Inc. All rights reserved.

Massage SpaGarden Paths

Design ClassesFarm to Table Cafe

Private EventsCoffee Shop

Wine Tastings

Terrain

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4141 • © 2015 Aptos, Inc. All rights reserved.

GalleryLibrary

Floral BoutiqueCinema Room

Wine BarBilliards Lounge

Sculpture Garden

Restoration Hardware

Former Museum of Natural History

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4242 • © 2015 Aptos, Inc. All rights reserved.

Expert TipsTraining Classes

Shoe RentalLockersShowers

Adidas

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4343 • © 2015 Aptos, Inc. All rights reserved.

Integrated & Interactive

Internet of Things Studio

Home SecurityFitness

AppliancesGrillsTools

Heating/Air

Sears

3,900 sq. ft. demo home

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4444 • © 2015 Aptos, Inc. All rights reserved.

5enabling technologies

Marketing/CRM12345

Deep Customer Analytics

ConnectivityTools

Clienteling

Mobile POS

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4545 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

Engaging Customers Differently

How Aptos Can Help

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4646 • © 2015 Aptos, Inc. All rights reserved.

“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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4747 • © 2015 Aptos, Inc. All rights reserved.

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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4848 • © 2015 Aptos, Inc. All rights reserved.

Related resources…

eBook On Demand Recording SlideShare

www.aptos.com/customer-engagement-ebook http://bit.ly/1Kwi2R0 http://bit.ly/1M721Ev

Copyright © 2015 Aptos, Inc. All rights reserved.

4949 • © 2015 Aptos, Inc. All rights reserved.© 2015 Aptos, Inc. All rights reserved.

Thank you