raising the bar – how to get even closer to your customer
TRANSCRIPT
OCTOBER 6, 2021
TCG Summit
Raising the bar – how to get even closer to your customer in the new reality
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Four big themes shape the world coming out of the pandemic
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Source: BCG analysis
Emotional and mental stress
Limited direct interactions
Digital has jumped to a different curve
Still being forced to work a lot from
home
The extent of change driven by these themes on employees and consumers is still not fully visible
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In just 18 months, the online channel share for consumer electronics grew rapidly due to the pandemic
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Pre-crisis (2019)
36% online channel share1
Post-crisis (2021)
52% online channel share1
18 months
Source: Forrester 1. Western Europe average of online channel share for consumer electronics
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Successful retailers have gotten even closer to their customers and leave the crisis as winner in the market
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Source: BCG analysis
Ultra-fast order pick-up
Fast delivery options
Digital purchase planningSubscription models
Personalization
Frictionless checkout
Table-stake features
Differen-tiating
features
Automated re-ordering of commodities
Digital shopping events
Digital consulting
Ultra-fast & same day delivery
(Personalized) Digital in-store navigation
Deep-Dive
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Digital consulting | Lowe's AR-based app provides personalized customer support
Source: BCG F&L PA, News articles, Interviews, BCG analysis
• Combines video, computer vision and augmented reality capabilities to help Pros evaluate repair and maintenance projects during virtual consultations with customers
• Provides 1:1 support: • Includes AR and tools for
guiding customers visually • Detects serial numbers for
quick product details and reference to Pros
• Innovative for touchless service and support
Lowe's for Pros JobSIGHT app uses AR-support for in-home service calls virtually:
Deep DiveThese analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Table stake
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Digital instore navigation | Walmart to leverage benefits of store network to compete with Amazon
Source: BCG F&L PA, News articles, Interviews, BCG analysis
• In-store layout supports end-to-end digital navigation guiding customers through a ‘seamless omni-shopping experience’
• Inspired by airport wayfinding systems, Walmart seeks to leverage benefits of its significant store network
• Stores includes new, contactless, app-based checkout experience
• New features to be rolled out in 200 Supercenters, some Health Centers and Neighborhood Markets by the end of FY
Walmart unveiled new store design focused on digitally enabled shopping experience (Sept. 2020):
Deep DiveThese analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Differentiator
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• Arive works directly with consumer brands like Apple and Samsung
• Promise of on-demand bike delivery in under 30 minutes of order
• Products in multiple categories like consumer electronics, beauty, fitness and more
• Startup operational in Munich, Frankfurt and Berlin
• Focus on sustainable operations
Arive delivers premium brands in multiple categories within 30 minutes of order:
Ultra-fast delivery | Startup Arive delivers high-end products in under 30 minutes
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Source: BCG analysis
Deep Dive Differentiator
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Not a lack of understanding but rather executional challenges prevent step changes in customer experience
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Specification of "How to make it happen" as next step
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Offering such features requires massive changes to the front and back-end structures
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Source: BCG analysis
Customer Relationship
Enabler:Operating model
Enabler:Technology
Organization
Talent
Culture & Collabo-ration
Tech &tools
Data & AI
Go-to-market
& offering
Persona-lization
Omni-channel
customer journey
Vision
Automation & robotics
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Operating Model | What determines a "digital mindset" within an organization?
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Cult
ure
and
colla
bora
tion
Key dimensions
Focus
1
Ways of working
2
Leadership
3
Change mgmt.approach
4
Project-centric Product-centric
Waterfall with chronological process steps Agile & iterative working process
Hierarchal top-down leadership style Collaborative & autonomous mindset
Comprehensive trainings Change "on the flight"
Design options
Note: Options are not mutually exclusive. Several options may be relevant for each dimensions.
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Technology | Be bold in pursuing greenfield approach
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Source: BCG analysis
Recommended approach
Online web
Legacy Landscape
Core Transaction layer
Infrastructure layer
Mobile In-Store Other
Brownfield Update
Core Transaction layer
Infrastructure layer
OmniservicesMobileOnline web In-Store Other
Greenfield Replacement
Core Transaction layer
Infrastructure layer
Data layer
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Omnichannel challenges are not
new but well understood in the
industry. Thus, nothing stands in the
way of short-term acceleration
There are many reasons to believe why there are a lot of opportunities in the TCG industry
These analyses represent only potential scenarios based on discrete data from one point in time. They are not intended as a prediction or forecast, and the situation is changing daily
Source: BCG analysis
1Stores will still have a role as unmatched points of experience & trustworthy points of sale for high-value
products and solutions
Demand for CE will continue to rise:
Digitalization drives demand for computers,
peripherals etc. (B2C as well as B2B)
New categories and services are on the rise: smart home, mobility etc. with
numerous opportunities
New business models emerge: Leveraging data & connectivity enabled by devices and applying this to
the business practices
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