rethink retail: create the future of shopping today
TRANSCRIPT
May 18, 2011
Shannon WarnerDirector, Multichannel Planning and Strategy Business [email protected]
Rethink Retail: Create the Future of Shopping TodayPutting Multi-Channel to Work to Create the Intelligent Store
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Contents
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• Yesterday…Today…Tomorrow…
• Blueprint for Transformation
• Open Discussion
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Retail Yesterday…
Sylvan Nathan GoldmanInventor of “Folding Carriers”
1937
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And the Evolution of Retail Didn’t Stop There…
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Today’s Consumers are:
• Short on time
• Inundated with information
• Always connected
• Looking for value
• In the “driver’s–seat”
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Channels
TV/Radio
Store
Internet
Telephone
Transaction
Delivery Status
ReturnsAfter Sales
Availability
Assistance
Payment DeliveryPresales Info
Multi-channel Shopping 5 Years Ago
Historically, shopping experiences were very linear—completed end-to-end in a single channel
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Channels
TV/Radio
Store
Internet
Telephone
Transaction
Delivery Status
ReturnsAfter Sales
Availability
Assistance
Payment DeliveryPresales Info
Mobile
Social
Kiosk
Multi-channel ShoppingToday
Today, they’re chaotic and competitors are watching!
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Today…E-CommerceA material source of revenue for retailers
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E-commerce sales as percent of total retail sales reached 4.5% in Q1, 2011 and is continuing to grow faster than retail sales.
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Today…E-CommerceBreaking down the purchase barriers
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Shoeline.com added 100 videos that show how a shoe looks on a model’s foot. The videos boosted conversion rates on those products by 44%
Today…The WebVideos are driving conversion
Source: internetretailer.com
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By improving its product recommendations’ algorithm, Tommy Hilfiger’s checkout frequency increased threefold among shoppers who interacted with the recommendations engine
Today…The Web Personalization is increasing basket size
Source: Forrester
Improvements with Suggestive Selling
Increase in units per transaction
Lift in average order values
27%
47%
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Today…The Web Live Chat is increasing customer satisfaction
A 3-year ROI of 304% on click-to-call and click-to-chat explains why more than 20% of online retailers plan to invest in live help technology in the coming year.
Study commissioned by ATG and completed by Forrester Consulting in September 2010
Click to Call increased conversions by 8 times the site average
Genesco that operates lids.com and journeys.com reported that:
Live Help generated more than a 4% lift in total online revenue
Customer satisfaction exceeded 90%
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Today…The Web In-store pick-up encourages additional purchases
Source: 2011 Retail Tech Trends Study
40% of orders at BestBuy.com are picked up in its stores
When Lowe’s customers pick-up an item ordered online, about one-third of shoppers also make additional store purchases
24.2% 12.1% 13.1% 15.2%In-Store Pickup of Web Goods Up-to-date tech in place | Started but not finished
Will start in next 12 months | Will start in next 12- 24 months
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Today…The WebThe key questions1. How do your customers use your website throughout the
shopping journey, and how is it changing? 2. How can your website deliver an online experience that is
inspiring, informative and convenient?3. How can you achieve the strongest ROI for the enterprise?
DecideSearch
Research Compare
Purchase
Share
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Today..Mobile DevicesSmart phone adoption continues
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In January 2011, Apple crossed10 Billion app. downloads
66% of retailers don’t have
mobile strategies in place,
and only 16% have fully
implemented their mobile
strategies. (Koby, April 2011)
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"If I had asked people what they wanted, they would have said faster horses." — Henry Ford
Today..Mobile DevicesDiscovering what your customers want…
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Today..Mobile DevicesSearch is leading to sales
Google reports:Mobile users who search for local information
61% make a call 59% visit a business
44% purchase something
53% of Mobile Searches have local intent (Microsoft)
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Today…MobileIs influencing in-store sales
Mobile bar code scanning has increased by 4,549 percent in the first quarter of 2011 on a year-over-year basis
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Today..Mobile DevicesIs a terrific marketing channel
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Location-Based Offers
Revenues from mobile location-based services could grow to more than $12.7 billion by 2014 (Juniper Research)
Customer retention is 2.7x better with push-notification;Apps are opened up to 228% more (Mobclix)
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Today…MobileIs changing store operations
Mobile devices equipped with the ability to scan credit cards and print or e-mail receipts will replace the need for traditional wrap stands.
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21 percent of all mobile traffic is coming from tablets – Shop.org/Forrester Survey
Today…TabletsShould they be treated as a phone, desktop, or what?
By 2014, one out of every five U.S. consumers will own a tablet computer (Harris Interactive)
In the near future Mobile Apps won’t lure the tablet users anymore , retailers have to think of very innovative ways to
retain customers.
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FeatureBlackberryWindowsAndroidTablet
Today…Mobile Devices The key questions are 1. What mobile devices are your customer segments using? 2. How can your brand best leverage the utility of mobile
devices to create an integrated shopping experience making the most of all your assets (stores, web, etc.)?
3. How can you achieve the strongest ROI?
iPhone
Mobile Website
Geo-LocateText Messaging
Mobile Apps Internet
Camera CalendarE-MailAudioVideo
ListsStore Locator Digital Product
Order TrackingGift Registry
Wallet
PaymentsStore Maps
Events
Feedback
Instructions
Find Products
Product Information
Extended Inventory
Inventory Look-up
Receipts
Offers/Coupons
PreferencesCustomer ServiceSocial Connection
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Today…Social Media
• 662 MM users• +41% Y/Y• 550K+ Apps• 500 MM+
Downloads
• 253 MM unique visitors • +85% Y/Y• (Mobile = 50% of users
40% of tweets)
• 25 MM subscribers• +25x Y/Y
• 200 MM Active Users• 2x more active than
desktop-only users
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Today…Social Media
Primary ROI of Social Media is around Listening
To your customers…
To your competitor’s customers…
AND
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Product Marketing
Today…Social Media
2-Way Conversations
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Today…Social Media
Exclusive Promotions
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Community Engagement
Brand Awareness
Today…Social Media
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Solicit Feedback
Customer Service
Today…Social Media
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Recruiting
Product Development
Today…Social Media
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Commerce
Fun, Interactive Experiences
Today…Social Media
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Today…Social MediaThe key questions are
1. How do your customer segments use Social Media? 2. How can your brand engage your customers (and others who
fit their profile) and keep them coming back for more?3. How can you achieve the strongest ROI?
Product Marketing
2-Way Conversations
Solicit FeedbackProduct
Development
Exclusive Promotions
Brand Awareness
Community Engagement
Fun, Interactive Experiences
Commerce RecruitingCustomer Service
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Today…In-Store Digital Devices
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Today…In-Store Digital Devices
The key questions are:1. How might your customers use in-store digital devices and
for what purposes?2. Are your existing in-store devices (e.g. Kiosks) the right
format and in the right locations?3. Why would your customers use your store’s devices versus
their personal devices?
Ease of Access
Value Creation
UsabilityCustomer Engagement
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Blueprint for Transformation
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There is not a “one size fits all” solution
Companies must understand who are their shoppers and build their strategy accordingly
Teenagers:Engage social network in shopping decisions
Stay-at-home Moms:Provide easy-to-use mobile coupons and
listing features
High Income Individuals:Latest trends, cross/up-sell
and personalized offersCapture New Market ShareIncrease Basket
Size
Increase Store/Website Visits
Tech Savvy Shopper:
Leading edge apps to make shopping
fun and convenientDrive
Conversion
Note: Examples are illustrative
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Focus on The Basics…With a New Lens
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Companies must have the right product assortment, the right information about their products, available
inventory, and the right prices
Extended Product Assortments
Drive Down Prices
Buy/Fulfill Anywhere
Generate New Income Sources
Easy to Use Promotions
Detailed Product Information
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Leverage the Shoppers’ Voice
Companies must interpret beyond what their customers are directly expressing and innovate to
exceed customers’ expectations
Product Reviews
Survey Results
Social Media Posts
Blogs
Store Employees
Call Center
Etc…
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Be Relevant and Differentiate
Personalized Experiences
Product Recommendations
Build Partnerships with 3rd Parties
Build Channel Specific Strategies
Private Label Brands
Customer Engagement
Better Utility
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Solve for Today…And Tomorrow
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Build Enterprise Solutions
Integrated Supply Chain
Evaluate Organizational Design
Get to Market Quickly
Optimize Business Processes
People
Process
Technology
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Questions???
Thank you