1. 1. Winners will redesign the role of their stores
2. 2. Summary Allthedigitalprophetshavebeensomewhatright aboutonething:thenewtechnology,fromsmart phonestosocialnetworks,hasfracturedtheonce- cozyworldofretailandpar>cularlyofthephysical store. Buttheconsumers>lllovestotouchandfeel beforetheybuy. AstudyfromA.T.Kearneyreportsthat95%ofall retailsalesarecapturedbyretailerswithabrick- and-mortarpresence,sugges>ngthatthesocial, physicalandinterac>vedynamicsofthe showrooms>llins>lshopperswiththemost condencetobuy. Source: PFSK
3. 3. 2014 2020 Online purchases In-store purchases $200b $4050b Onlineretailingisgoingtogrowandmorethandouble,buttherela>velevelofmoneyspendingin bricks-and-mortarstoresiss>llmanymul>plesofwhatisspentonline,evenwhenprojectedoutto2020 Source: Timetrade, The state of retail 2015 $550b $4900b
4. 4. 53% Have narrowed it down to 2-3 products and need help making a nal decision60% Are more likely to buy more than planned, if they like the associate helping them 87% Willbuymorethanthey intendedtowhenshoppingin astore Source: Timetrade, The state of retail 2015 The power of In-Store service
5. 5. Consumers are admitting that they prefer the in-store experience report they like to touch and feel products before they decide what they want to buy of 18-34 year olds plan to shop in stores as often if not more in 2015 as they did in 2014 Source: Timetrade, The state of retail 2015 85% >90%
6. 6. Stores haven't changed signicantly in 100 years but customers are changing rapidly and they have devices in their pocket that are extremely powerful
7. 7. Online and oine behaviour are converging and theres no reason not to embrace it
8. 8. If not then prepare for!!
9. 9. How do you please the customer who wants the best of both worlds?
10. 10. You redesign the retail experience Werenotsellingyouanything.Wewantyoutofeeldierentlywhenyouleavethestore.Peoplestarttalking aboutTeslanotbecausewerepoundingitintothembutbecausetheyveexperienceditthemselves.Thegoalisto engageyouinawaythatyouveneverexperienceinanyotherstore. GeorgeBlankenshipVicePresidentofSales&OwnershipExperienceatTesla
11. 11. From WHAT CAN I BUY FROM YOU To WHAT CAN I ACHIEVE WITH YOU
12. 12. Attention - customers can be complex
13. 13. 3 RETAIL DESIGN AREAS KEY
14. 14. DIGICALSIGNATURECOMPLEMENTARY 1 2 3
15. 15. Lets be inspired by some great ones
16. 16. 1 A seamless hassle-free oine/online experience will be an absolute must DIGICAL
17. 17. SHOWROOMING START OFFLINE, FINISH ONLINE WEBROOMING START ONLINE, FINISH OFFLINE +
18. 18. = DIGICAL SHOPPING
19. 19. Giving customers a notion of online experience with an engaging, interactive and personable user experience DIGICAL SHOPPING (a mash-up of the words digital and physical) Digical is a world in which shoppers browse online rst, then go to the store, smartphone in hand, to buy
20. 20. Understand that digital enhancement isnt the answer to change - its the enabler!
21. 21. Digical experience case #1 Rebecca Minko like a online shop, remembering everything you tried on, passed over or purchased
22. 22. Each piece in the shop is recognized by the dressing room mirrors, so as shoppers try on items, they can see how to best accessorize a white sweater or perhaps opt for a similar style. A stylist can be summoned at the press of a button, bringing new sizes, colours or just a hint of advice.
23. 23. The connected tting room Customers check in on arrival, via the "Connected Glass" shopping wall, a large mirrored interactive display. Once a customer has made their selections, they tap a button to have their products sent to a dressing room, each of which is also outtted with the mirrored touchscreens. In the tting room, customers can browse the online catalogue, and will be able to virtually connect with a stylist through the mirror's touchscreen technology for anything they need ... whether it's another size or a glass of champagneThe buying journey at Rececca Minko: Through the mobile app, a customer can check-in to the store upon arrival which prompts the customers personal prole to be carried across the store channels helping store associates provide a more personal, customized experience Check-in upon arrival Browse the connected shopping wall A mirrored, physical manifestation of the Rebecca Minko online experience. You can select send to my room to initiate a 1:1 styling session. You can also order your own beverage directly from the wall, to help youenjoy the space as you begin your shopping experience Connected tting rooms The touch screen mirror automatically recognizes items in the room, through RFID tagged products and unique RFID tting room technology, identifying other sizes and colours that are available in the store. You dont have to leave the tting room to buy just pay with credit card or add items to an online basket for later purchase 1 2 3
24. 24. Digical experience case #2 HOINTER A mix of robotics, mobile technology, hassle-free shopping, all within a bricks-and-mortar store
25. 25. Jeans are presented hanging from their belt buckle, and there are close to 150 styles to choose from. No bulky stacks of jeans to sift through here. But you see only one of each style. When you see a style you like, you pull out your smart phone and launch the Hointer app.
26. 26. An interesting part of this store is that the clothes in your shopping cart arrive in the dressing room within 30 seconds. A specic dressing room number on the app directs the shopper to his clothes. If the clothes dont t, the shopper can place the clothes in a particular section and request a dierent pair on their phone. The clothes that dont t are simultaneously removed from the shoppers virtual shopping cart.
27. 27. Create the future of customer experience INNOVATE No need to sift through piles of clothes. Tap on the clothing you like and your items will be delivered to your tting room in under 30 seconds DISCOVER Browse and try on dierent styles from premium jeans brands. Discover what you like and nd the perfect t fast SIMPLIFY Like it? Swipe your credit card and walk out no lines, no hassle. Not the right t? Tailoringof purchases with free,next-day custom alterations This innovative store format presents a new perspective on integrated retail within a brick and mortar store.Hointers also tracks real-time shoppers activity in the store and permits customers to rate the apparel on their smartphone. Hointers gives brands access to the data on the retailers portal. With this data, brands can see which pair of jeans, shirts, and belts sell well within the beta store.
28. 28. Digical experience case #3 Tesla motors An orchestrated Retail experience that reinvent the way cars are soldSource: Nurun
29. 29. Interactive stations are designed to draw people into the store with visuals and content that address the most common questions they have about electric vehicles. Theyre intended to move visitors from general interest to real consideration
30. 30. Supporting a complex decisionCustomersspendalotof>meconsideringthepurchaseofanelectriccar.ThatswhytheTesla conguratorworkin-store,athomeandonthego,providingcon>nuoussupportandeduca>on. Prospec>vebuyerscancreate,modifyandsavetheircardesignsonTeslastoresta>onsand revisitthemonPCsandtabletsorviceversa.Theexperienceisseamlessacrossdevices. Source: Nurun Ourtechnologyisdierent,ourcaris dierent,and,asaresult,ourstoresare inten>onallydierent. ElonMusk TeslaChairman,ProductArchitect&CEO
31. 31. Digical enhanced The missing link in almost every retailers ecosystem in-store experience
32. 32. The ability to drive foot trac or increase cart size through online initiative has remained dicult
33. 33. Connected stores They integrate retail shopping into a service experience offering seamless interactions before they visit the store, while theyre in-store and post-purchase removes this blind spot
34. 34. Customers benet from more informed choices and smarter, more personalized shopping experience
35. 35. 2 Branded experience signature, unique from one brand to the next. Why shoppers choose one brand over another.SIGNATURE
36. 36. The unfortunate reality
37. 37. Theunfortunaterealityisthatthe majorityofbranddierenBaBonsis nomorethanbeCersameness. Mostisjustdoingwhattheyhave alwaysdoneandwhatpreCy muchallthecompeBtorsdo Better sameness!!
38. 38. Whats the solution?
39. 39. First remember that companies dont have customer experiences only customers do!!
40. 40. Design signature experiences that create an emotional resonance with your customers
41. 41. Experience takes place in one place and one place only - in the mind of the customer
42. 42. Signature brands are increasingly built by what others say about them
43. 43. Signature experience case #1 Starbucks A comfortable, inviting, predictable and highly social third place to go beyond home and oce
44. 44. THE UNIQUE CUP SIZING Part of the Starbucks concept includes that customers have the option to choose from a wide range of beverages, which includes coee, available in various unique sup sizes and avours.Customers can order Moccachino, Iced Venti no-water Americano and Double Tall non-fat extra hot Cappuccino and many other specic coees.
45. 45. Starbucks sta at the counter are trained to take the orders in a very specic way. The philosophy behind the processes is that it will be even more accurate and ecient if all customers can order their coee the same standardized way every time. Therefore Starbucks tries to educate the customers by ensuring that sta repeat the customers order, so that the customer can hear it. Not the way the customer submitted the order, but in the correct way and in a voice seeking to be friendly The way customers orders a product
46. 46. Getting the phone juiced up at Starbucks Roll-out in major markets in 2015
47. 47. Starbucks signature reward program The Starbucks retail experience seamlessly extends to the mobile devices that millions of their customers carry with them every day, oering possibilities like earning free coee, listening to Spotify or free digital NY Times news articles and many more features
48. 48. My Starbucks Idea a social brainstorming platform for all things StarbucksFans can share and discuss new ideas, read others ideas and vote for their favourites. More than 44,000 new ideas for coffee and espresso drinks; nearly 22,000 food ideas; and over 10,000 new ideas for music and merchandise
49. 49. Starbucks goes to a lot of trouble to train employees to be both skilled in the culture and happy in their work. Unlike most companies, Starbucks spends more on training than advertising. Job satisfaction translates into an emotional customer connection. Its about being!! Not just doing!!
50. 50. The personal human connection Personalising your order by writing your name on your Starbucks cup, a small, simple reminder that someone knows your name. As a bonus, the process enables the barista to learn the names of regular customers. That enables an even stronger customer connection when the barista greets her by name. But waitwhat is this?They spell your name wrong on your cup - why? Youll post something on social media about it and thats free publicity. Without you even noticing it! And the one time that they spell your name correctly youll also post it because a miracle happened.Instagram posts: Is misspelling a marketing stunt or not? You decide. The fact is that to inspire and nurture the human spirit one person, one cup and one neighbourhood at a time is an important Starbucks signature experience.Starbucks 15.000.000 McCafe 350.000 Costa Coee 75.000 Dunkin Donuts 950.000
51. 51. Signature experience case #2 LUSH All of their products are handmade and use natural and organic ingredients
52. 52. Appeal to the girl whos had enough and believe in what they believe
53. 53. When you walk into a Lush store its like walking into a candy shop not only visually but also aromatically. You can test everything in the store - all you need to do it just ask!
54. 54. Products are displayed on wooden tables with minimal to no packaging. Once you decide to purchase a product, it is cut and weighed to determine the pricing, then packaged for you to take home in a simple paper bag
55. 55. Innovative, unique and quirkyLUSHstrademarkisitspassionforfreshandnaturalhomemadeproductswhichhasbuilda highleveloftrustamongcustomers.ItsethicalvaluesarehighlyvisibleandmakeLUSHstand outinanindustrysaturatedwithbrandsthatusechemicalsandingredientsnobodycan pronounce. ThethingthatismostuniquewithLUSHsproductsisthefactthattheylooklikesomethingyou caneat.Hasawiderangeofcolours,shapes,sizesandsmells.Notonlyaretheproducts themselvesdis>nc>vebutsoarethenames. AsidefromthesmellthatemanatesfromLUSHstores,therearetwosignatureexperiencepillars thatreallyencouragecustomerstoshopthereintegrityandpersonalisa>on.
56. 56. This is all about getting the customers attention using a small number of high contrast and dierentiated signature experience elements. Signature experience elements catch customers by surprise, are perceived as a dierence in kind compared to what they expected, and contribute to the brand story you want the experience to tell. If you listen to customers talk about the Starbucks experience, the LUSH experience, etc, youll see that customers consistently refer to a small set of experience elements that stand out for them as being the dening elements of the experience. While you can spend a lot of time getting lots of details correct in the experience, having a small set of signature elements are the kinds of things that really resonate with and inuence customers. Signature experience elements
57. 57. 3 Complementary or 3rd party oerings, encouraging shoppers to visit for reasons outside of products COMPLEMENTARY
58. 58. If you get the sense that there arent enough customers coming through your front door
59. 59. Its time to do something to increase foot trac and walk-in business
60. 60. A rising trend in retail is to set aside space within the stores to push complementary services and experiences that go beyond the core product oeringsSpace for relationship and engaging moments that customers will return for again and again Source: PSFK
61. 61. Complementary experience case #1 Umpqua Bank A bank that helps its customers to spark creativity and innovation
62. 62. The experience begins outside with signs and info screens drawing people closer. Inside the front corner is occupied by the Spark centre, where businesses and individuals can connect and be inspired. They host events from yoga classes to small business events to art exhibitions and chocolate tastings.
63. 63. An enjoyable banking experience Umpqua is trying to create stores that neighbourhoods will welcome and people will want to visit. It attempts to make even the most mundane transaction a treat. Tellers, for example, hand out a chocolate with each cash withdrawal. The bank prides itself on doing everything dierently. Instead of sending out junk mail oering consumer loans, Umpqua employees attached small yers to potted plants and placed them on doorsteps in the neighbourhood they are targeting.Their culture brings stores to life and dierentiates Umpquas customer experience from the competition. They empower their people to create an extraordinary experience for customers without having to ask for permission. And in their stores, that means that people are empowered to program their store with events and activities that will resonate in their community - Its not dictated from above.
64. 64. Complementary experience case #2 Urban Outtters NY Try on a sweater, sip on a latte and get your hair styled; all without leaving the store
65. 65. Beside clothes and accessories, the store features a coee shop, a hair salon, vinyl records, book store, bike repair station and a Sephora-sized makeup shop, as well as fun gadgets like a"lensometer" that can scan a customer's glasses and read their prescription.
66. 66. A new lifestyle destination Urban Outtters on Manhattan is another example of the shifting retail environment, in which bricks-and-mortar stores are looking to reinvent themselves to ramp up their foot trac.Extending beyond the traditional Urban Outtters format, the Herald Square location hosts several independently owned and operated companies. Los Angeles-based Hairroin Salon occupies a portion of the rst oor, also hailing from Los Angeles is the legendary Amoeba Records, which has stocked a curated assortment of over 400 vintage vinyl titles that can only be found in Urban Outtters Herald Square. Eyewear company Tortoise & Blonde, who opened a shop-in-shop last year in Urban Outtters Soho location, also has space in Herald Square. The company will provide customers with the latest fashions in prescription eyewear, including an exclusive sunglass collection with Urban Outtters slated to launch in June. The coee bar, Intelligentsia Coee, has a 900-sq.-ft. space on the ground level of the store, with its own entrance.The goal for Urban Outtters was to have the customers to spend more time, explore and be engaged.
67. 67. Complementary experience case #3 Lululemon Athletica Not only do they sell sportswear, they also oer yoga classes in-store
68. 68. Part of the secret of the store formula is that they dont just sell product. They provided community, using yoga as the main hook. Every store holds regular events around its neighbourhood such as Run, Yoga, Breathe, Laugh which showcases local instructors and actively engages people in the brand. This make the store environment a place to inspire shoppers, rather than simply a way to buy cool gear. Fortheyogaandtnessfana>csofLondonitstheplacetogo,not onlydotheysellcelebritylovedsports-wear,theyalsooer complementaryyogaclassesin-store.Oeringanall-roundexperience toconsumersiscrucialandLululemonhavegonetheextramile.Not onlydotheyencouragedwell>me,theyalsogiveconsumersa purposetovisittheirstore.
69. 69. An experience for people to enjoy Lululemon target people who want to experience a certain lifestyle. Through yoga, health and a feel good philosophy, the brand is building an experience for people to enjoy. The success is reected in everything within the store experience. The people who work there believe strongly in the lifestyle and what it represents. People can buy other lines of clothing but Lululemon provides a whole group extension that we are all part of Lululemon. That's why they have such a strong following.Lululemon want every store to be a part of its community from the rst day it opens. Theyinvitetheir customers to hang out, chat with theireducators and learn about local yoga/tness studios. Every week, their stores push aside their product xtures and open the store up to the community for a complimentary yoga class.
70. 70. We are heading into a future where retailers still face challenges
71. 71. Winners will redesign the role of their stores as brand statements or centres of dierentiated experience
72. 72. Innovative retailers will base their visions on real customer and business needs
73. 73. Ensure they have the capabilities to win, master experimental design and be thoughtful in how they commercialize
74. 74. Thank you