Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey

Coming Full-‐Circle: The Store As The Center Of The

Omnichannel Shopping Journey

Presented by Session sponsored by

#RetailCCS

Follow this Webinar on Twi1er

#RetailCCS @ConnectConsumer @RTouchPoints

#CCSeries13

About CCS 2013

ü 5 Webinars, 4 Days

ü Sessions covering Store

Ops, X-Channel, Loyalty,

Big Data & more

ü Featuring industry

analysts and consultants

ü Free for Retail executives

www.retailtouchpoints.com/special-connected-consumer-series-2013

#RetailCCS

Welcome Webinar A1endees

#RetailCCS

Xbox One Giveaway

Enter to win an Xbox One by attending at least two sessions from this week’s webinar series!

*Visit the contest rules page for more information.

#RetailCCS

About Retail TouchPoints

ü Launched in 2007

ü Over 28,000 subscribers

ü To provide executives

with relevant, insightful

content across a variety

of digital medium

#RetailCCS

Panelists

Alicia Fiorletta Senior Editor

Retail TouchPoints

MODERATOR

Pam Goodfellow Principal Analyst, Consumer

Insights Director Prosper Insights & Analytics

Randy Misener Director, Retail Industry Business

Development Avanade

David Vitak Global Business Solutions

Avanade

© 2013, Prosper® www.ProsperDiscovery.com

Pam Goodfellow Principal Analyst

Consumer Insights Director Prosper Insights & Analytics

December 11, 2013

Omnichannel Engagement: Connecting With Consumers Instore

In An Increasingly Digital World


ABOUT PROSPER

Prosper Insights & Analytics™ •  Provides forward looking insights and analytics

predictive of consumer behaviors •  InsightCenter platform analyzes millions of data points

including our own •  10 Year Relationship with the National Retail Federation

–  Providing predictive consumer data and analysis for all major U.S. holidays

–  Power the NRFF Retail InsightCenter, which allows the public to explore and gather retail data

Since 1990, Prosper Business Development •  Has helped business see the future •  Provided solutions to be successful in an ever-

changing marketplace


Connecting With Consumers Instore In An Increasingly Digital World

What’s Driving Spending Today?

Consumer overview with a look a key indicators, including confidence and

practical purchase intentions.

Connecting with Consumers Instore

Holiday 2013 highlights, revealing spending plans, purchase motivations,

and shopping strategies.

Know Your Customers

Know Your Competitors’ Customers

Service, Service, Service


CONSUMER CONFIDENCE

39.7%

28.3%

36.4%

20%

25%

30%

35%

40%

45%

Very Confident/Confident in Chances for a Strong Economy Adults 18+

Thanks in large part to October’s government shutdown,

economic sentiment dropped dramatically in Oct-13.

Employment, Income Growth, Financial Stability, etc. continue

to take a toll on consumer psyche headed into the 2013

Holiday season.

Source: Prosper Insights & Analytics™

Current confidence reading rests 8% below Nov-12, but remains

above recession-era readings… so we’ve seen worse.


PRETTY PRACTICAL PURCHASERS In the last six months, have you made any of the following changes?

Adults 18+, 3 Month Moving Average


30%

35%

40%

45%

50%

55%

60%

65%

No

v-07

M

ar

Jul

No

v-08

M

ar

Jul

No

v-09

M

ar

Jul

No

v-10

M

ar

Jul

No

v-11

M

ar

Jul

No

v-12

M

ar

Jul

No

v-13

I have become more practical and realistic in my purchases

I focus more on what I NEED rather than what I WANT

While practical spending and focus on needs peaked during

the recession, consumers still haven’t reverted to their old

habits.

As of November, more than half (52.6%) still focus more on what

they need rather than what I want when at the store, while

nearly as many (47.5%) cite pragmatic purchase plans.

Holiday 2013 buzzwords: cautious, conservative,

budget-conscious, and SALE!


Source: National Retail Federation, Prosper Insights & Analytics™

Holiday 2013 Planned Spending per Person* Gifts, Décor, Cards, Food & Flowers

$700

$735

$751 $755

$694

$682

$719

$741 $752

$738

$640

$660

$680

$700

$720

$740

$760

$780

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

* Estimated Actual Spending 2004 - 2012

While Holiday spending has improved from the recession…

SHOPPERS AREN’T SPENDING LIKE IT’S 2007.

DOWN 1.9%

from 2012


Where were Thanksgiving/Black Friday budgets spent? Black Friday Weekend Shoppers 18+

INSTORE’S VIRTUAL CHALLENGER

This year, 44% of Thanksgiving/Black

Friday weekend budgets were spent

ONLINE by shoppers, rising 63%

from 2007.

Source: National Retail Federation, Prosper Insights & Analytics™

73%

56%

27%

44%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

2006 2007 2008 2009 2010 2011 2012 2013

Instore Online


Which of these ways do you research the following items before purchasing? by Generation

DIGITAL CHANGING THE LANDSCAPE

BIG TICKET ELECTRONICS


Millennials (1983 – 1995), Gen X (1965 – 1982), Boomers (1946 – 1964), Silent (born pre-1946)

0%

10%

20%

30%

40%

50%

60%

70%

In the store

Mobile device (Smartphone/tablet)

Online on a laptop/desktop computer


Which of these ways do you research the following items before purchasing? by Generation

DIGITAL CHANGING THE LANDSCAPE

0%

10%

20%

30%

40%

50%

60%

In the store

Mobile device (Smartphone/tablet)

Online on a laptop/desktop computer

APPAREL


Millennials (1983 – 1995), Gen X (1965 – 1982), Boomers (1946 – 1964), Silent (born pre-1946)


How Can Instore Retailing Compete With

Digital?


Connecting With Consumers Instore In An Increasingly Digital World

Know Your Customers

Know Your Competitors’ Customers

Service, Service, Service

Solutions for Engaging Customers Instore

1

2

3


KNOW YOUR CUSTOMERS Influence to Purchase Apparel

weighted by consumption for shoppers of a leading U.S. department store

Traditional Media, 63%

Online Advertising,

20%

Mobile Advertising,

9%

Social Media, 8%

Source: Prosper® Media Plan IQ™

Goal: Maximize marketing efforts to reach shoppers most effectively to and drive traffic instore using exclusive promotions, merchandise, shopper services, etc.


KNOW YOUR COMPETITORS’ CUSTOMERS Influence to Purchase Apparel

weighted by consumption for shoppers of leading U.S. department stores

0% 15% 30% 45% 60% 75%

Traditional Media

Online Advertising

Mobile Advertising

Social Media

Department Store A Department Store B

Source: Prosper® Media Plan IQ™


KNOW YOUR COMPETITORS’ CUSTOMERS Mobile Aptitude Score

shoppers of leading U.S. department stores indexed to Adults 18+


129.9

88.2

88.1

140.6

99.5

80.0 90.0 100.0 110.0 120.0 130.0 140.0 150.0

A

B

C

D

E


SERVICE, SERVICE, SERVICE

DID YOU FIND EVERYTHING OK?


CUSTOMER SERVICE PITFALLS 1. Uninvested Employees

2. Draining Atmosphere

3. Inconsistency

“Coworkers are very rude and standoff-ish to the customers. They act as if the customer inconveniences them even though it is their job to help the customers.”

“I told the cashier I couldn’t find what I needed in the store and she said ‘sorry about that’ and didn’t offer to help or anything at all.”

“I just don't feel good in that store.”

“[The] last time I was there..., I waited for help for over 20 minutes and then got a salesperson who knew nothing. The store was a disaster. The checkout lines were ridiculous. That was over 4 years ago, and I have not been back.”

“They have so many rules that keep changing and are so rigid, but then you get a different person and it’s a different policy. No continuity and when there is, it inconveniences the customer.”

“They do not seem to know what they are doing, especially when you order online and arrange for pick up in a store. I received different answers from everyone I called, and no one appeared to be interested in solving my problem.”


KEY TAKEAWAYS

Retailers need to provide clear, cohesive, consistent messaging to shoppers across all channels.

Shoppers are budget-conscious, careful spenders

•  Today’s consumers have adopted smart shopping strategies to compare prices, look for the best deals, and become more informed shoppers – making it more difficult for retailers to cultivate a “loyal” shopper.

•  Online and mobile connectivity have only enhanced shoppers’ ability to educate themselves on their purchases.

•  Buying online offers today’s busy, multitasking, channel agnostic consumers time-saving convenience, creating a challenge for instore retailing.

•  Knowing how to reach your customers and your competitors’ customers will help maximize efforts to drive shopper traffic into stores.

•  Customer service practiced effectively helps a retailer provide that delightful instore shopping experience – a key point of differentiation that can increase the probability of a shopper’s return visit.


CONTACT

Pam Goodfellow Principal Analyst Consumer Insights Director Prosper Insights & Analytics [email protected] www.ProsperDiscovery.com

© Copyright 2013 Avanade Inc. All Rights Reserved.

26

Connected Retail Day-In-The-Life


Your Speakers Today: David Vitak and Randy Misener From Avanade Avanade provides business technology solutions and managed services that connect insight, innovation and expertise in Microsoft technologies to help our customers realize results.


Avanade Connected Retail

Avanade’s Connected Retail portfolio of solutions and services empowers your employees to deliver greater value and reinvents customer experiences to strengthen customer loyalty.

We leverage Microsoft technology and Accenture industry insights and leading practices to deliver innovative retail solutions rooted in real results.

:

Our solutions focus on five key retail business areas:

In-Store Experience

Omni-Channel Enablement

Digital Marketing

Data and Analytics

Customer Service and Collaboration


How can we make the retail store more convenient and compelling for your customers?

>How can we integrate the store with other channels to provide

Consistent Engagement across channels?

>How can we deliver Expert Support to customers in store making their experience more convenient?

>How can we provide Personalized Attention making their experience more compelling?

>How can we drive Memorable Interactions that enrich the customer’s overall experience?


30

Day-in-the-Life of Retail Customer Scenario:

A repeat customer starts shopping on-line but wants to continue her shopping journey in the store. How can we make her experience more compelling and convenient?


E-COMMERCE WEBSITE Search Driven discovery and navigation engages the customer to do some research for a new phone

START

>Consistent Engagement CUSTOMER DOES RESEARCH ON-LINE


REQUEST APPOINTMENT Customer completes an appointment request on-line to meet with an expert on smart phones in the store.

>Consistent Engagement CUSTOMER REQUESTS APPOINTMENT ON-LINE


CUSTOMER RECEIVES EMAIL Customer receives the appointment request on-line and also receives an email confirmation.

>Consistent Engagement APPOINTMENT IS CONFIRMED VIA EMAIL


34

>Consistent Engagement APPOINTMENT SET IN THE STORE

STORE INTEGRATION Store Associate is automatically notified of the appointment on his appointment dashboard of his Assisted Selling Tool.

Onto Personalized Attention & Expert Support in the Store


ASSISTED SELLING DASHBOARD Sales Associate sees Sales Graphs, Tasks and News on the Dashboard to ready him for the day and for his appointments.

>Personalized Attention STORE ASSOCIATE PREPARES FOR WORKDAY


>Personalized Attention ASSOCIATE PREPARES FOR APPOINTMENT

APPOINTMENT DETAILS Store Associate prepares for the appointment by reviewing customer’s information and status.


37

>Personalized Attention ASSOCIATE MEETS THE CUSTOMER

APPOINTMENT DETAILS Store Associate access appointment details and reviews customer’s history and current need(s) with the customer.


38

>Expert Support ASSOCIATE CONSULTS WITH CUSTOMER

FINDING THE RIGHT PROUCT Store Associate works with customer to find the right product by refining and searching for product selections by asking guided questions and setting filters.


COMPARE PRODUCTS Sales Associate refines product selections by asking questions and setting filters.


REVIEWING PRODUCT DETAIL


41


PROVIDING HELPFUL INFO Store Associate has quick access to all the information needed to handle the customer’s questions:

•  Chat– Talk to an expert •  Inventory View – Stock positions at other

stores •  Promotions – How can we make this

selection even more appealing? •  Competition – Prices and offers of other

retailers •  Save Materials – Email the customer the

rich media we reviewed


42

>Expert Support ASSOCIATE COMPLETES SALE

CHECKOUT Store Associate completes the sale by either taking payment on the mobile device or sending the transaction to a traditional POS.


IMPROVE SALES PROCESS Sales Associate completes some survey questions to capture details of the customer interaction.

>Expert Support GATHERING CUSTOMER FEEDBACK


LONG LINE IN THE STORE Mobile POS lets customers orders to be entered while in line to speed up checkup using Line Busting.

FORGOT SOMETHING? Suspend the order to avoid having to repeat work and waste time while the customer goes and gets the missing items.

COMPLETE THE TRANSATION Accept Credit Cards and Capture Signatures on the mobile device. Or let the customer use their own mobile phone as a mWallet to make the payment using NFC technology.

>Memorable Interactions MAKING THE PURCHASE MORE CONVENIENT


MOBILE RETAIL BACK OFFICE Joe, the assistant store manager, is walking around the store to complete his daily tasks list.

He uses his tablet to mark off completed activities, check inventory, take picture of issues that can prevent a positive customer experience.

>Memorable Interactions AND THE STORE MANAGER HAS A KEY ROLE!

MANAGER ACTIONS While looking at the store’s latest performance metrics, he is alerted that a quick price change is required. Immediately he accesses and specific menu option on his tablet to automatically change the price .


What’s Next in Creating Memorable Interactions? Next-Generation Store Technology


OUTSIDE TRADITION On arrival at the store, you see the retailer has their “best sellers” for sale in a vending machine just outside the store. Sounds interesting, but anyway, you decide to enter into the store.

INSIDE ACCESS You decided to use the kiosk or display at the store. •  Identify yourself •  Browse the catalog to create a

shopping list •  Print out the coupons (for instance, if

you forgot your mobile device at home with your digital coupons)

•  Make a product reservation •  Make a purchase •  Ask for personal assistant (OC) •  Read other customer’s reviews

>Memorable Interactions & The Next Generation Store Kiosks and Displays


48

GRAB & GO Scanning the QR Code from the Kiosk or the display you download the information to your phone including a map of the location of the item in the store.

>Memorable Interactions & The Next Generation Store Displays with Interactive Mobile Technology


ATTRACTING INTEREST You walk by a store after hours and you see an interactive device on the window…

ENCOURAGING INTERACTION You start interacting just for fun and you find out that there some cool items in the store and you end-up finding the product of your wife’s dreams and scan the QR code to your phone to share later.

>Memorable Interactions & The Next Generation Store Displays with Motion Sensitive Technology


NEXT GEN TECHNOLOGY & DIGITAL ASSETS Leverage digital assets with next-gen technology, such as RFID tags and Windows Embedded Devices, the Retailer creates new and memorable customer experience, such as a Connected Fitting Room, for real-time interactive information and support on garments in the fitting room.

>Memorable Interactions & The Next Generation Store In-Store Digital Showcasing


51

These Next-generation store technology can give your customers want they want:

Consistent Engagement across channels

Expert Support making their purchase more convenient

Personalized Attention supporting their unique profile and needs

Memorable Interactions enriching their overall experience

To learn more about the Solutions discussed today:

Email [email protected]

More Modern More Mobile More Global Visit Booth # 2703 to learn more

Kick-off NRF in style by attending the Opening Night Reception at the Marriott Marquis Times Square Sunday Jan 12 5:30 – 7:30 pm

Follow all the action live on Twitter and Facebook @msretail FB.com/MicrosoftforRetail

BIG !deas Session: Become a Dynamic Retailer and Make Sure You’re Ready for What’s Next Monday Jan 13 3:15 – 4:15 pm

#RetailCCS

Help us Support RetailROI at NRF this year…

Schedule a meeBng with Avanade at NRF and aEend it, and Avanade will donate $25 to RetailROI. The Purpose of the Retail Orphan IniJaJve (RetailROI) is to raise awareness and provide real soluJons for the more than 400 million vulnerable children worldwide. Visit www.retailroi.org for more informaJon. To schedule a meeJng, send an email to [email protected] with the subject line NRF MeeJng or visit: h1p://www.avanade.com/advisor/NRF2014/Pages/naJonal-‐retail-‐federaJon.aspx to schedule on-‐line.

#RetailCCS

Q &A // Panelists

Alicia Fiorletta Senior Editor

Retail TouchPoints

MODERATOR

Pam Goodfellow Principal Analyst, Consumer

Insights Director Prosper Insights & Analytics

Randy Misener Director, Retail Industry Business

Development Avanade

David Vitak Global Business Solutions

Avanade

#RetailCCS

Xbox One Giveaway

Enter to win an Xbox One by attending at least two sessions from this week’s webinar series!

*Visit the contest rules page for more information.

#CCSeries13

Thank You For Joining Us

www.retailtouchpoints.com/special-connected-consumer-series-2013

Delivering Omnichannel: From The Back-‐End To The Front-‐End and Beyond Tomorrow, 12 PM ET / 9 AM PT

The next Connected Consumer Series session…

Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey

Business

Transcript of Coming Full-Circle: The Store As The Center Of The Omnichannel Shopping Journey