Endless Aisle Virtual Merchandising In An Omnichannel Marketplace

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Endless Aisle: Virtual Merchandising in an Omnichannel Marketplace

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Panelists Kim Zimmermann

Managing EditorDemand Gen

Report

MODERATOR

Alen PuacaCreative Director

iQmetrix

Perry KramerVice President

Boston Retail Partners

Comprehensive Retail Consulting

6©2014 Boston Retail Partners. All rights reserved

Endless Aisle:Virtual Merchandising in anOmnichannel Marketplace

Perry Kramer, Vice President



Agenda

About Boston Retail Partners Unified Commerce POS/Customer Engagement Survey Customer Engagement Mobile Digital Catalog Considerations and Conclusion



About Boston Retail Partners



Retail experts with retail backgrounds

Built with unique professional profile Managed by industry-recognized leaders Recruit experienced retail professionals with process, technology and operations skills Recognized expertise in all facets of strategy, selection and deployment of Point of Sale,

CRM/Loyalty, Customer Engagement, Order Management, Merchandising and Supply Chain solutions

Trusted advisors of acknowledged industry leaders

No exclusive partnerships or alliances with software or hardware providers

Home Depot TJ Maxx Family Dollar

Lowe’s Sports Authority Dick’s Sporting Goods

Tire and Battery Corp Brooks Brothers Michaels Stores

About Boston Retail Partners



White Papers

Speaking Engagements

Webinars/Articles

Industry-leading Surveys

Thought Leadership



Retail Experience

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Unified Commerce



Unified Commerce puts the Customer at the Center of the Universe

Customers now have the freedom to achieve their goals throughout the shopping process…

…usingwhichever

channels and touch points they prefer.



Unified Commerce Platform

Unified Commerce Enterprise

BICRM

FIN

INV

MFG

Customer Devices

AssociatePOS

Web Site

Customer Communication

Unified Commerce

Middleware

Customer/Associate

StationsSocial Media

Integration

Rules Engine



POS/Customer Engagement Survey



Survey Methodology

15th consecutive year Survey more than 500 top North American

retailers Broad selection of Tier 1, 2,

and 3 retailers 60% of respondents fall into

Specialty retailer category



The customer experience is the driver

70% of retailersresponded thattheir #1 priorityrelated to EndlessAisle philosophy



Customer Engagement



Available customer informationIdentifying the customer before they have made their purchasing decision offers retailers the ability to influence the decision

51% of the retailers have the ability to identify customersbefore checkout



Offering personalized servicesPersonalized services to help customize the shopping experience for customers

40% have implemented or will implement ability for self-service inventory locating



The next-level customer experienceTech-savvy, always online customers change the way retailers need to interact



Mobile



Slow death of traditional registers80% have mobile devices accounting for at least 20% of their POS/Customer Engagement tools



Digital Catalog



Customer-facing technology expands

40% of retailers have a digital catalog and additional 25 % plan to have one. 40% have mobile search for product by location and availability



Delivery options

Delivery option expansion helps brick-and-mortar retailers compete against online giants



Considerations and Conclusion



Endless Aisle Considerations

To successfully integrate virtual inventory and Unified Commerce into your business model, significant process changes must be mapped out and piloted. Areas impacted will include:

Store operations Commission processing Labor management Replenishment and fulfillment Returns and reverse logistics WMS slotting and picking Custom product delivery and order



Endless Aisle is the Future

We are at a strategic inflection point where the network is taking center stage, this enables an integrated world where consumers drive self checkout on their smart phone, interact with their friends in real-time on purchase decisions, and receive discounts and personalized pricing as they are shopping, creating a cohesive customer experience.




(617) 899-7543pkramer@

bostonretailpartners.comwww.bostonretailpartners.com

mailto:[email protected]



About iQmetrix

Founded in 1999, iQmetrix is a leading provider of retail management and customer experience technology.

75% of top independent wireless retailers in North America use RQ retail management system (12,000 doors)

$9,404,705,267 in retail sales processed through RQ in 2013

RQ Retail Management System

XQ Interactive Retail

Business Intelligence

Commerce Platform

① Today’s Consumer

② Omnichannel

③ Endless Aisle / Virtual Merchandising

iQmetrix agenda

Connected

Empowered

Busy

High Expectations

Entertained

Face of Today’s Consumer?

How is she shopping?

Sources: IAB: “Showrooming: Empowering Consumer electronics shoppers”, 2013, Forrester Consulting: “Customer desires Vs. Retail capabilities”, 2014, Zogby analytics survey, 2013, Ominco: technology driven shopping, 2013, IAB: “Showrooming: Empowering Consumer electronics shoppers”, 2013

62%

71%

of multichannel shoppers feel it’s important to view the in-store inventory of products

> 60%

tech savvy customers would choose to shop in-store because of online services in stores

Comparing pricesComparing prices

65%

65% of consumers are demanding “more product variety” out of their shopping experiences.

The most important reasons for US consumers to shop online

Price 74%

of shoppers who use their mobile phones in the store say it makes them more likely to buy the product

65%

Shopping with smartphone in-store

Sources: Zogby analytics survey, 2013, eMarketer, 2013, Forrester Consulting: “Customer desires Vs. Retail capabilities”, 2014, Zogby analytics survey, 2013, Ominco: technology driven shopping, 2013, IAB: “Showrooming: Empowering Consumer electronics shoppers”, 2013

92%of 18 – 24 year olds want discounts/coupons via text or smartphone apps

12.3M – 53.2M2010 - 2014

US mobile coupon users rise

Comparing prices70%

of smartphone shoppers use a store locator to plan their shopping trip

44%US shoppers access their smartphones in store for shopping and purchasing most of or all the time

46%Compare best prices - the most important reason for use of mobile phone in store.

Technology has changed the way people shop

• Unprecedented and instant access to product info, pricing and inventory

• Increased need for convenience and efficiency

• Higher expectations of in-store experiences and brand experience

Omnichannel?Seamless shopping experience across channels and touch points

Anytime, any place, anywhere

“The store, in essence, is becoming a physical web site.”

Doug Stephens, Retail Prophet

Virtual Merchandising

iQmetrix.com/products/XQ/whitepapers

1. Online In-store

2. Checkout Anywhere

3. Relationship

4. In-store Edutainment

5. Social Hub

5 Checkpointsfor Next Gen Retail Stores

5W’s of Virtual Merchandising?

Virtual merchandising is online in-store. It is bringing the elements of online shopping into physical environment.

Key benefit

Increase product selection and availability by displaying unlimited number of products.

“Endless Aisle”

How to Offer Virtual Merchandise?

Back End• Unified Product Catalog (online/in-store)• Unified Inventory (with integrated suppliers)• Drop-ship in-store

Customer Facing•In-store interactive screens in multiple form factors•Rich product info, engaging media •“Lifestyle features”•Integration with staff and/or consumer’s mobile devices•Location awareness

How to Offer Virtual Merchandise?

Electronics

Appliances

Apparel

Key Takeaways

① Consumer is shopping anytime and anywhere

② Retailers use technology to deliver unified shopping experience

③ In-store Virtual Merchandising can significantly improve both customer experience and the bottom line

AlenPuaca Creative Director

[email protected] Bartlett Director of Marketing

[email protected]

iQmetrix.com | 1.866.iQmetrix



#CCS14

Q & A // Panelists Kim Zimmermann

Managing EditorDemand Gen

Report

MODERATOR

Alen PuacaCreative Director

iQmetrix


Boston Retail Partners

#CCS14

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Endless Aisle Virtual Merchandising In An Omnichannel Marketplace

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Transcript of Endless Aisle Virtual Merchandising In An Omnichannel Marketplace