From Clicks to BricksDriving footfall in-store through digital innovation

In-StoreisStillthePrimaryRevenueEarnerConsumersgloballyhaverapidlyadopteddigitalretailchannels.OnlineretailsalesintheUSareexpectedtoreach$370billionin2017,upfrom$231billionin2012.However,thisdoesnotringadeathknellforbrick-and-mortarretailstores.Despitetherapiddouble-digitgrowthrateofe-business,onlinechannelsareexpectedtocontributetoonlyaround10%ofallUSretailsalesby20171.Thephysicalstorestillremainstheprimarypointofsaleforalargeproportionofconsumers.

Figure 1: Percentage of Consumers Preferring In-store vs. Online Experience

Source: Wanderful Media Research, December 2012

2

During 2011, US store sales conversion rates were 14 times higher than their e-business counterparts.

Online channels are expected to contribute to only around 10% ofall US retail sales by 2017.

In-store Online

16%40%

13%50%

12%51%

Bettercustomer service

Getting answersfor questions

Establishing relationshipwith merchant

Majority of Consumers Prefer to Shop In-StoreAUSsurveyshowsthatconsumerspreferthein-storeexperienceforavarietyofreasons(seeFigure1)2.Physicalstoreshelpconsumersestablisharelationshipwiththemerchant,getimmediateanswerstoquestionsandgetaccesstobetterservice.Fromaretailerperspective,thishighlightstheareaswheretheyneedtocontinueinnovatinginordertostayrelevanttothedigitalconsumer.

In-Store Sales Conversions are Higher Compared to OnlineAnotherkeyfactorthatmakesphysicalstoresindispensabletoretailersisthehighersalesconversionratesthattheyachieve.Astudyindicatesthatduring2011,USstoresalesconversionrateswere14timeshigherthantheire-businesscounterparts3.Drivingmoretrafficin-storehasanimmediateimpactonacceleratingsales.

Digitaltechnologiescanhelpretailersmatchconsumerinterestinonlinechannelswiththehigher

salesconversionbenefitsofphysicalstores.

Inthenextsection,wediscusswhichdigitalserviceshavethepotentialtodrivein-storetrafficandincreaserevenues.

DigitalToolsDriveAdditionalIn-StoreRevenuesDigitaltechnologieshavepervadedallsegmentsoftheconsumerpurchasecycle.Theyallowcustomerstomakepurchasedecisions,locateretailstoresoravaildiscounts.Weidentifiedasetof13suchdigitalservicesthatconsumerscanuseacrossthepurchasecycle.Alloftheseservicesarerelevantatdifferentpointsofthepurchasecycle–fromcustomercommunicationtoafter-salescustomerrelationships(seeFigure2).

Interestingly,retailersarealreadyusingsomeofthesedigitalservicesandseeingpositiveresults.Forinstance,inmid-2011,Seattle-basedfashionandbeautyretailerNordstromrolledout6,000mobilepaymentdevicesacross117ofitsstores.

Thesedevicesenableemployeestocheck-outconsumersfromanywhereinthestorewhiletheapponthedevicealsoallowsassociatesaccessintothecompany’sinventory.Thisresultedinanincreaseintheaveragesellingpriceandthenumberofitemssoldin2011ascomparedto2010.TheuseofmobiledeviceshadanimpactonthetotalretailsalesforNordstorm,whichjumpedby15.3%inthefirstquarterof2012ascomparedtothesameperiodinthepreviousyear4.

These13servicesindependentlyhavetheabilitytodrivebothtrafficandrevenuesforaretailer.However,ourexperienceintheretailsectorindicateshighestinterestlevelsforAppointment

3

Figure 2: Digital Shopper Services and the Consumer Purchase Cycle

Source: Capgemini Consulti ng Analysis

Communication Sales promotion Sales Customerrelationship

Dig

ital

shop

per s

ervi

ces

mee

ting

thes

e ex

pect

ation

sCu

stom

erex

pect

ation

s

To find information

about a retailer easily

To be advised and

reassured in their choices

To benefit from

discounts

Virtual product trials

Service comparison tool

e-/m-coupons

Online personal shopping / “coaching”

Store Locator Appointmentbooking

Shopping list apps M-payment Multichannel loyalty

programmes

Retargeting

Click & ReserveStore

happenings

Product Locator

To prepare the purchase

To facilitate the

transaction

To be supported after their purchase

In a survey conducted with more than 1,000 North American shoppers, 48% indicated that helpful store associates motivated them to spend more in-store.

BookingandOnlineShoppingListservices.Boththeseserviceshavehighup-sellingpotentialandprovidestrongdifferentiationintermsofcustomerexperienceagainstcompetitors.Inaddition,

Appointment Booking Service: Home Depot In-Store Appointment Maker

HomeDepot,inanefforttoprovideaconsultativedimensiontoitsself-service/DIYproducts,hasimplementedanin-storeappointmentmakerapplication.Theappisverydetailed,allowingcustomerstoidentifytheirnicherequirementsbasedonspecifictypesofproducts,viaanonlineform.Userscanalsoselectstoresanywherebetween5-100milesfromwheretheylive.Theappalsoprovidesanoptiontomakethatstorethe‘default’choicesothatthenexttimethecustomerhastoaccesstheapp,itavoidsduplicationofeffortsinfillingoutallthedetailsonceagain.Theusersubsequentlyschedulestheappointmentbyselectingaconvenientdateandtime.

Source: Home Depot website

4

theavailabilityofmaturetechnologiesforboththeseservicesfacilitatetechnicaldeploymentandeasierserviceadoptionwithseveralmonths’leadtime.Webelievethesetwoservicesshouldformtheinitialfocusforanyretailerthatislookingtowardsdigitaltechnologiesasameansofdrivingphysicalin-storetraffic.

Appointment Booking Service Drives Up-sellTheAppointmentBookingservicerevolvesaroundtheconcept

ofin-storesalesadvisorswhoassistshoppersandrecommendrelevantproductsinlinewiththeirrequirements.This,inturn,canencouragecustomerstoincreasetheirspend.Infact,inasurveyconductedwithmorethan1,000NorthAmericanshoppers,48%indicatedthathelpfulstoreassociatesmotivatedthemtospendmorein-store5.

TheAppointmentBookingserviceprovidesadifferentiatedofferingcomparedtopureonlineplayersduetothepresenceofdedicatedsalesadvisors.Theservicealso

increasestheconsumer’saverageshoppingbasketsizeduetoup-sellingofcomplementaryproducts.Italsorecordsconsumerdatapriortoscheduling,whichcanbeusedforfollow-upsinthecaseofnoshowsornopurchase.SeveralretailershavestartedimplementingAppointmentBookingservices.HomeDepotisonesuchretailerthathasalreadyimplementedanin-storeappointmentmaker;theserviceallowscustomerstoscheduleappointmentsthroughthewebsite(seeinsert)6.

Schedule your initial in-store appointment with a Home Depot specialist.To schedule an appointment with a particular associate or to schedule a follow-up appointment, please contact the store directly.

1. Select Product & Store

Product:

Store: Select a Store

2. Select Date & Time

3. Enter Contact Information

Select a Product

In-StoreAppointmentMaker

Online Shopping List Service Catches the Customer Early in the Purchase CycleTheOnlineShoppingListserviceallowsconsumerstocreatelists,plantheirpurchasesinadvanceandgetrelevantinformationonselectedproducts,suchasavailabilityandoffers.Once

thecustomerisin-store,theapplicationalsoinformsaboutusefulrelevantproductspreviouslynotconsidered,therebyincreasingthestore’sup-sellpotential.Onlineshoppinglistserviceshelpsecurebrandloyaltybynarrowingdownthecustomerinteractiontooneparticularchannel.Itincreasestheaverageshoppingbasketbyrecommendingrelevant

productsaccordingtoconsumers’shoppingrequirements.TescoisonesuchretailerthathasalreadyimplementedanonlineshoppinglistservicecalledTescoFinderthatenablescustomerstocreateandsharelistsonline,andaddproductstothelistinreal-timewhileatthestore(seeinsert)7.

Online Shopping List: Tesco Finder

Tesco,initseffortforprovidingcustomerswithadifferentiatedexperience,hasintroducedseveraldigitalservices.OneoftheseservicesisaDigitalShoppingList;thisserviceisloadedwithmanyfeaturesallowinguserstoeasilyidentifytheirneedsandgoaboutfulfillingthemwithease.

TheDigitalShoppingListservice,namedTescoFinder,inadditiontofindingthenearestTescostore,alsoallowsconsumerstobuildashoppinglistbybrowsingthroughvariousproductcategoriesanddepartments,sharethelistwithfriendsandaddproductstothelistwhiletheyareinthestore.Theservicedisplaysspecialoffersonproducts,storetimings,productavailabilityintheselectedstoreandproductdetails.Consumerscanusethemobileversionoftheservicetolocateproductswithinthestoreandaddthemtothelistbysimplyscanningthebarcode.

Afewoftheotherfeatures,suchasvoice-enabledproductsearchandin-storenavigation,letconsumerssavetimeinfillingupthelistorpickingupproductsfromthestore.Thein-storenavigationfeaturecreatestheshortestroutewithinthestorebasedonproductsintheconsumer’sshoppinglist.

Tescorealizestheimportanceofusingdigitaltechnologyinbringingconsumerstothestore.ThisisconcurredbyitsCIOMikeMcNamara,whenhesays,“Idon’tthinkwehaveanonlinestrategy,wehavearetailingstrategythatisincreasinglydigital.Onlineisbecomingpartofthecorebusiness”.

Source: Tesco website

5

Groceries

Book details

Add itemShopping list

Milk

Rice �akes

+

<

Favourites

Basket

Orders

2 pending orders

Book details

Favourites Orders

Groceries Home

Book a slot

Favourites

Shop

Basket £ 26.17

Orders

Checkout

Tesco direct

FREE Click & Collect from over 750 scores

Technology & Gaming

Home Electrical

Home Furniture

DIY & Car

Garden

Toys +

+

+

+

+

+

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Great o�er on International tour

6

ServicessuchasAppointmentBookingandOnlineShoppingListgiveretailerstheabilitytodriveadditionalrevenuesfromtheincrementaltrafficthattheycandriveinsidestores.Wecallsuchenablerservices“Click2Stores”.

The Benefi ts Case for “Click2Stores” ServicesAppointmentBookingandOnlineShoppingListservicesgeneratesubstantialfinancialbenefitsforretailers.However,thesebenefitswouldalsolargelydependon

theproductcategoriessoldbyretailers.

OuranalysisrevealsthatanAppointmentBookingservicehasthepotentialtogenerateupto2.2%ofadditionalrevenuesperyear(seeFigure3).Ifaretailersellingconsumerelectronics,suchasBestBuy,weretoimplementanAppointmentBookingserviceitwouldhavethepotentialtogenerateadditionalannualrevenuesupto$800millionbasedonitscurrentoperatingmetrics.

Figure 3: Additional Revenue Generating Potential of Appointment Booking Service

Source: Capgemini Consulti ng Analysis

For each family of high value products, one customer per week intended to buy the product but didn’t

because of the absence of a shop assistant.

Results

Benefits

Reduced loss of earning due to in-store

assistance

Upselling due to anappointment

Cut in acquisitioncosts of qualified

contacts

Model

60% of the sales on an appointment generate 20% of upselling

The number of customers completing the online questionnaire is twice the number

of appointments made

Sportswear

$ 60 Average Basket Value

Hypotheses

3350Number of stores

6Number of families of high value products

30Number of appointments per week per store

50%Percentage of customers on appointment, buying with flexible budget

50%Part of overbooking on appointment

$ 3 Value of a qualified contact

$ 65 M

$ 30 M

$ 30 M

$ 125 M

2.2% of sales

DIY

$ 80

2248

$ 80

2248

14

$ 3

$ 130 M

$ 28 M

$ 21 M

$ 180 M

0.25% of sales

ConsumerElectronics

$ 200

4379

13

$ 4 $ 4

$ 590 M

$ 135 M

$ 55 M

$ 780 M

1.6% of sales

Online Shopping List service can generate between $1 billion and $1.5 billion additional revenues for largegrocery retailers.

7

ForDIYandgroceryretailers,theAppointmentBookingservicecouldgeneratebetween0.25%and0.1%ofadditionalannualrevenue,respectively.

Similarly,ouranalysisrevealsthattheOnlineShoppingListservicehasthepotentialtogenerateupto0.3%ofadditionalrevenueseachyear(seeFigure4).Forinstance,groceryretailerssuchasWal-Martcouldexpectpotentialadditionalrevenuesofaround$1billionto$1.5billioneachyearbyimplementinganOnlineShoppingListservice.DIYretailers

Figure 4: Revenue Generating Potential of Online Shopping List Service

Source: Capgemini Consulti ng Analysis

Results

Benefits

*Data estimated based on calculation

Increase of the average basket(1 to 2 additional products in the basket per transaction)

Increase of the purchase frequency(2 additional transactions per year per household)

Food superstore

leader

Non-foodsuperstore

Average basket

Hypotheses

Number of products in an average basket

$ 50 B

850 M*

1%

Average number of products forgotten per transaction

Revenue per year

Number of transactions per year

Percentage of customers adopting the service

Average number of transactions per year per household

Additional number of transactions per year per household

$ 870 M

$ 430 M

$ 1300 M

0.3% of sales

$ 59

4*

1

$ 447 B

13000 M *

2.5%

50

2

$ 33.4

25*

2

$ 125 M

$ 125 M

0.3% of sales

couldgenerateadditionalannualrevenuesofaround0.05%.

Thesuccessofboththeseservicesdependsontheproductcategoryforwhichtheyarebeingutilized.Forinstance,AppointmentBookingserviceismostbeneficialinthecaseofretailerssellingproductswithhighaveragebasketvalue,asisthecasewithcategoriessuchasconsumerelectronics.Ontheotherhand,anOnlineShoppingListservicegeneratesmaximumbenefitforretailerswithhighernumberofproductsperbasketandhigher

frequencyofpurchases,asisthecasewithgroceryretailers,forexample.

Tofindouttheadoptionandmaturitylevelsoftheseservicesweconductedananalysisofthetop30globalretailers.Theobjectivewastoidentifymaturitylevelsoftheseservicesacrossregionsandchannels.

8

Benefits Case MethodologyWeassessedtheadditionalrevenuegeneratingpotentialofboththeAppointmentBookingandOnlineShoppingListservices.Weconsideredgloballeadersforeachofthecategoriesconsideredaspartofourbenefitscaseanalysis.

Appointment BookingWeassessedtheAppointmentBookingserviceacrossthreeproductcategories:ConsumerElectronics,SportswearandDo-It-Yourself.Thebenefitscasewasbasedonthefollowingcriteria:

Averagebasketvalue

Numberofstores

Numberoffamiliesofhighvalueproducts

Numberofappointmentsperweekperstore(1appointmentevery20minutesonSaturdayfor1FTEsalesperson)

Segmentofcustomersonappointment,purchasingwithaflexiblebudgetof20%

Partofover-bookingsonAppointments

Valueofaqualifiedcontact

Wecalculatedtheadditionalrevenuegeneratedperyearbasedonthefollowingbenefitmodels:

Decreasedlossofearningduetoavailabilityofin-storeassistance:NumberofhighvalueproductfamiliesXAverageshoppingbasketcomprisingtheseproducts XNumberofstoresXNumberofweeksperyear.

Up-sellingduetoanappointment:Numberofappointmentsperweek XNumberofstores XNumberofweeksperyear X Averageshoppingbasketcomprisingtheseproducts X Proportionofthecustomers(50%purchasingwithaflexiblebudgetof20%).

Reducedacquisitioncostofqualifiedcontacts:NumberofappointmentsperweekXNumberofstoresX Numberofweeksperyear X{(1/Overbookingpercentage(50%)}XValueoftheenrichedcontact.

Online Shopping ListWeassessedtheOnlineShoppingListserviceacrosstwocategories:non-foodsuperstoreandfoodsuperstore.Thebenefitscasewasbasedonthefollowingcriteria:

AverageBasket

Numberofproductsinanaveragebasket

Numberofproductsforgottenonanaverageduringcashing(1forahypermarketand2foraspecializedhypermarket)

Revenuesperyear

Numberofcheckoutsperyear

Percentageofcustomersadoptingtheservice(between1%inaspecializedhypermarketand2.5%inahypermarket)

Averagenumberoftransactionsperyearperhousehold

AdditionalnumberoftransactionsperyearperhouseholdduetotheuseofOnlineShoppingListservice(2additionaltransactionsperyear)

Wecalculatedtheadditionalrevenuegeneratingpotentialbasedonthefollowingbenefitmodels:

IncreaseintheAverageBasket:NumberofproductsforgottenonanaverageforeachtransactionX(Valueofanaveragebasket/Numberofproductsinanaveragebasket)XNumberoftransactionsperyearXPercentageofcustomersadoptingthefunctionality(1%to2.5%).

IncreaseinPurchaseFrequency:(Numberoftransactionsperyear/Averagenumberoftransactionsperyearperhousehold)X PercentageofcustomersadoptingtheserviceXAdditionalnumberoftransactionsperyearperhouseholdXAveragebasket.

RetailersCurrentlyLackaCohesiveApproachto“Click2Stores” OurresearchfoundthatmostretailersarealreadyusingbothAppointmentBookingandOnlineShoppingListservices.However,wefoundastarkcontrastintheadoptionlevelsofboththeservices.Outofthetop30retailersintheworld73%useOnlineShoppingListtodrivein-storetraffic,comparedtoonly20%whousetheAppointmentBookingservice.Thedifferencebetweenadoptionlevelsoftheseservicesismuchmoreapparentwhencomparedacrossgeographies.Over80%ofretailersinbothNorthAmericaandEUprovideOnlineShoppingListservicestotheircustomers,whileonly7%ofretailersinEUand42%inNorthAmericaofferAppointmentBookingservices.

9

Only 13% of retailers allow the shopping lists to be shared across social media.

73% of retailers use Online Shopping List while only 20% use an Appointment Booking service.

66% of retailers record consumer requirements while only 25% share personalized offers.

Very Few Retailers Off er Appointment Booking Over MobileAppointmentBookingservicesarestilllargelyofferedovertheWebandretailersareyettorealizetheimportanceofofferingthisserviceovermobileaswell.AgoodexampleofaretailereffectivelyusingbothchannelsisUS-basedretailerWalgreens,whichoffersthisserviceovertheWebandmobilealongwiththeoptionofreschedulingappointmentsremotely.Thepossibilityofthecustomerbeingabletoaccesstheserviceanytime,anywherealongwiththeabilitytoremotelyrescheduleappointmentsreducesdropoutsandnoshows.Also,acoherentapproachiscriticalinextractingthemaximumpotentialfromtheAppointmentBookingservice.Asperouranalysis,while66%ofretailersofferingthisservicerecordconsumerrequirements,only25%share

personalizedofferswiththem,indicatingalostopportunityforincreasingin-storesales.

Retailers Sti ll Do Not Off er Criti cal Online Shopping List FeaturesForOnlineShoppingList,ouranalysisindicatedthatmostretailersarestilllackingacohesivemulti-channelstrategy.Outofalltheretailerswhoareofferingthisserviceoverbothmediums,Webandmobile,only26%allowtheWebservicetosyncwiththeconsumer’smobileandamere13%allowtheshoppingliststobesharedacrosssocialmedia.Forinstance,onlytworetailers,MetroandBestBuy,allowconsumerstosharetheirshoppinglistsonsocialmedia.WebelievethatofferingaseamlessconsumerexperiencefortheOnlineShoppingListservicewouldincreasebothitsusageandin-storesalespotential.

Figure 5: Service Maturity Levels Provided by Retailers for Online Shopping List

Source: Capgemini Consulti ng Analysis

10

EU Retailers Off er Less Advanced Online Shopping List FeaturesFurthermore,onanalyzingthematurityleveloffeaturesofferedforOnlineShoppingListwefoundaninterestingcontrastbetweenNorthAmericaandEU-basedretailers.Thefigurebelowshowstheservicematuritylevelachieved,acrosseachcategoryofservice,forOnlineShoppingListinNorthAmericaandEurope(seeFigure5).

WefoundthatEU-basedretailersaredoingbetterthanNorthAmericaintermsofproviding‘Basic’featuressuchasstorelocatoranduseofcoupons.Outof12retailersfromEU,11offeramajorityofthe‘Basic’featuresforOnlineShoppingList.Incomparison,only4outof10retailersfromNorthAmericaofferthesamefeatures.Ontheotherhand,NorthAmericanretailersofferadvancedfeaturescomparedtotheirEUcounterparts–an

15%

Basic Services:Use of coupons, Store Locator,

Barcode Scanning and Sharing via email/SMS

Differentiators: Synced with Mobile, Sharable on

Social media, Inventory check and Product comparison tools

Premium Services: In-store aisle location/navigation, Voice-enabled search and Offers

based on in-store location

63%

73%

24%20%

11%

North America EU

indicatorofservicematurity.Asmanyas40%ofNorthAmericanretailersofferawidearrayofinnovativeservicessuchasin-storenavigationandvoice-enabledsearch.Incomparison,TescoistheonlyretailerintheEUthathasaportfolioofsimilarofferings.

Inthenextsection,welookathowretailersshouldgoaboutdesigningandimplementingsuchservices.

11

Methodology:Theobjectiveofouranalysiswastofirstestablishthepresenceofa“Click2Stores”implementation,i.e.AppointmentBookingandOnlineShoppingList,acrossthetop30globalretailers.Thiswasfollowedbyanalyzingchannelmaturity,feature-richnessandgeographicalspreadoftheseapplications.

Companies Analyzed:Weconsideredthetop30retailersintheworld,basedontheir2011annualretailrevenues:

Wal-MartStoresInc.,CarrefourS.A.,TescoPLC,MetroAG,TheKrogerCo.,SchwarzUnternehmensTreuhandKG,CostcoWholesaleCorporation,TheHomeDepot,Inc.,WalgreenCo.,AldiEinkaufGmbH&Co.oHG,TargetCorp.,ReweGroup,CVSCaremarkCorp.,Seven&iHoldingsCo.,Ltd.,GroupeAuchanSA,EdekaZentraleAG&Co.KG,AeonCo.,Ltd.,WoolworthsLimited,BestBuyCo.,Inc.,Lowe’sCompanies,Inc.,WesfarmersLimited,SearsHoldingsCorp.,CentresDistributeursE.Leclerc,SafewayInc.,KoninklijkeAholdN.V,CasinoGuichard-PerrachonS.A.,ITMD,JSainsburyPlc,TheIKEAGroupandLoblawCompaniesLimited.

Key Parameters: AdoptionlevelsWedefineadoptionlevelasthenumberofretailersthatoffereachoftheseservicesacrossgeographies.

ChannelMaturityWedefinechannelmaturityasthenumberofchannelsoverwhichaparticularservicewasoffered(Web,onlymobileorboth).

Feature-Richness Featuresofbothservicesweresegmentedintothreedistinctareas,namely,‘Basic’,‘Differentiator’and‘Premium’.FortheAppointmentBookingservice,‘Basic’featuresincludedabilitytorecordconsumerdetailsandshoppingneeds,offeringmultiplestoreselectionandprovidingmultipleappointmentbookingslots.‘Differentiator’featuresincludedabilitytosyncwiththeconsumer’sprimarydevice,optionofreschedulingappointmentsremotely,providingpromotionalandpersonalizedoffers.‘Premium’featuresincludedusingGPStoprovidetheneareststorelocation.Similarly,fortheOnlineShoppingList,‘Basic’featuresincludeduseofcoupons,StoreLocator,BarcodeScanningandsharingviaemail/SMS.‘Differentiator’featuresincludedsyncingwithmobile,sharingonsocialmedia,inventorycheckandproductcomparisontools.‘Premium’featuresincludedin-storeaislelocation/navigation,voice-enabledsearchandoffersbasedonin-storelocation.

Research Findings:Theanalysisfindingsarestrictlybasedonthenumberofcompaniesusingthe“Click2Stores”Servicestodrivein-storetraffic.

OverallFindingsMostretailersareyettotapintothefullpotentialofthesetwoservices.Europeanretailerscontinuetofocuson‘Basic’featureswhileNorthAmericanretailersoffermoreadvancedfeatures.However,retailershavenotofferedadvancedoptionsthatcontributetoadirectimpactonin-storesales,suchaspushingpersonalizedoffersbasedonconsumerdataorshareabilityonsocialmediasites.NoneoftheretailersintheAPACregionhaveadopted“Click2Stores”services.

Category-wiseFindings

Region-wiseFindings-AdoptionlevelsforOnlineShoppingListaresimilaracrossNorthAmericaandEU.Forinstance,83%ofNorthAmericanretailershaveadoptedanOnlineShoppingListservicewhile86%ofEU-basedretailersprovidethesameservice.-Only1outofevery14retailersintheEUoffersAppointmentBookingserviceascomparedto5outof10inNorthAmerica.

Our “Click2Stores” Implementation Research for the Top 30 Global Retailers:

1. AppointmentBookingService:-ItstillremainsaservicewhichislargelyofferedovertheWeb,withonlyoneretailer(Walgreens)offeringitovermobile.-While66%oftheretailersrecordconsumers’needs,only25%usethisdatatosharepromotionalpersonalizedofferstoconsumers.

2. OnlineShoppingList:-Outof15retailersofferingthisserviceonboththemediums,webandmobile,only6providetheabilitytosyncshoppinglistwiththeconsumer’smobiledevice.-Only3retailersenableshoppinglistshareabilityacrosssocialmedia.

KeySuccessFactorstoConsiderWhenImplementing“Click2Stores” Ouranalysisofleadingretailersandtheirimplementationofthesetwoserviceshaveenabledustoarriveatasetofkeysuccessfactorsthatshouldbeconsideredwhendesigning“Click2Stores”typeservices.

Create a compelling multi -channel experience with “Click2Stores” ServicesThesuccessofbothappointmentbookingandonlineshoppinglisthingesonbeingabletoprovideaconsistentservicedeliveryacrossmultiplechannels.Manyretailersareyettotapintocriticalfeaturesthatwebelievehavethepotentialtodrivemorefootfallandrevenues.Forinstance,activitysynchronizationisacriticalfeatureofbothservices.Inthecaseofappointmentbooking,customerswanttosyncappointmentswiththeirmobiledevice.Theyalsowanttobeabletoinstantlyconfirmreservationsonthemobileplatform.Similarly,inthecaseofonlineshoppinglistservices,customerswanttheabilitytosynclistsfromtheWebtotheirsmartphonesaswellaspre-populatelistsbasedonpastpurchases.

Customize “Click2Stores” Services to Customer NeedsItisimportanttobearinmindthattheappointmentbookingservicetakesaconsultativeapproachtoselling.Assuch,itisimportanttosegmentconsumersanddesignthepurchasejourney,oncein-store,accordingtotheirrequirements.Unlikethe

appointmentbookingservicethatislargelydrivenbyin-storesalesassociates,inthecaseofonlineshoppinglistservices,customerswantuserinteractionstobekepttoabareminimum,onceinsidethestore.Thesesubtledifferencesshouldbecapturedindesigningeffective“Click2Stores”services.

Synchronize “Click2Stores” Services with your Store Soft ware and CRM DatabaseInbothservices,geo-localizationandcustomerprofilesshoulddeterminethechoiceofstorelocationofferedaswellasproductpromotionspushedtotheconsumer.Customersalsoappreciatewhenretailersprovidethemwithreal-timeupdatesandinformationaboutinventoryandpricing.Thismeanssyncingtheapplicationdatawiththestore’sownsoftware,sothatinventoryandpricingupdatesareaccurate.Retailersshouldfocusonprovidingpersonalizedpromotionaloffersbasedonconsumerdataandtheprovisiontoshareshoppinglistsacrosssocialmediaforappointmentbookingandonlineshoppinglistservices,respectively.

Adopt a Dynamic Approach while Implementi ng “Click2Stores” ServicesImplementingtheappointmentbookingservicehasastrongorganizationalimpactonphysicalretailstores.Beforethecustomer’sarrivalatthepointofsale,itiscriticaltodefinetheappointment

12

scheduleandprocesstooptimizesalesadvisors’schedules(managementofdelays,noshowsandpeaktime).Thesalesadvisors’teamhastobestructured(generalistorproductspecialist)andtrained/coachedforthisnewactivity.Moreover,retailersneedtofocusonareaswhichprovidethemaximumbenefitsandensureanevenuptakeofappointmentsslotsbyproactivelyofferingserviceduringoff-peakhours.Adynamicapproachalongwithpropercommunicationwithsalesadvisorsiscriticaltomakethetransactionandup-sellsuccessful.

Whileretailershaveadoptedboththeseservicesatvaryingdegreesofmaturity,theireffortscomeacrossasfragmented.Inanagewhereconsumersexpectaseamless,connectedomni-channelexperience,retailersneedtohaveacomprehensiveandcohesiveapproachtowardsimplementingtheseservices.Doingsowouldenableretailerstotapintothefullrangeofbenefitsofferedbydigitalserviceswhilealsomaximizingchannelpotential.

1 Forrester,“USOnlineRetailForecast,2012To2017”,March2013

2 WanderfulMediaResearch,“TechnologyBlurstheLineofOnlinevs.In-StoreShopping”,December2012

3 CapgeminiConsultinganalysis

4 Forbes,“NordstromSeesSalesBoostfromMobilePOSDevices”,June2012

5 Motorola,“HolidayShoppingStudy”,December2012

6 HomeDepotIn-StoreAppointmentMakerwebsite

7 Tescowebsite

References

Authors

Eric Sindou eric.sindou@capgemini.com

Olivier Guilhot-gaudeffroy olivier.guilhotgaudeffroy@capgemini.com

Sarah Driay sarah.driay@capgemini.com

Digital Transformation Research Institute dtri.in@capgemini.com

Jerome Buvat, Amrita Radhakrishnan and Ashish Bisht from the Digital Transformation Research Institute worked on this paper.

The authors would also like to acknowledge the contributions of Olivier Pacaud.

Rightshore® is a trademark belonging to Capgemini

Capgemini Consulting is the global strategy and transformation consulting organization of the Capgemini Group, specializing in advising and supporting enterprises in significant transformation, from innovative strategy to execution and with an unstinting focus on results. With the new digital economy creating significant disruptions and opportunities, our global team of over 3,600 talented individuals work with leading companies and governments to master Digital Transformation, drawing on our understanding of the digital economy and our leadership in business transformation and organizational change.

Find out more at: http://www.capgemini-consulting.com/

With around 120,000 people in 40 countries, Capgemini is one of the world’s foremost providers of consulting, technology and outsourcing services. The Group reported 2011 global revenues of EUR 9.7 billion. Together with its clients, Capgemini creates and delivers business and technology solutions that fit their needs and drive the results they want. A deeply multicultural organization, Capgemini has developed its own way of working, the Collaborative Business ExperienceTM, and draws on Rightshore®, its worldwide delivery model.

Learn more about us at www.capgemini.com.

About Capgemini

Capgemini Consulting is the strategy and transformation consulting brand of Capgemini Group. The information contained in this document is proprietary. © 2013 Capgemini. All rights reserved.

FranceLaurence Jumeauxlaurence.jumeaux@capgemini.com

FinlandSami Finnesami.finne@capgemini.com

GermanyRalph Beckerralph.becker@capgemini.com

NetherlandsArmijn Beekarmijn.beek@capgemini.com

USDan Albrightdan.albright@capgemini.com

UKMike Petevinos mike.petevinos@capgemini.com

SwedenPeter Lindellpeter. lindell@capgemini.com

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