Post on 20-Feb-2017
Brendan Witcher Principal Analyst @BrendanWitcher
@Forrester
Welcome!
THE NEW RULES OF RETAIL: OPTIMIZING STORES IN A MOBILE WORLD
Marissa Tarleton CMO, North America
@MBTarleton @RetailMeNotInc
F E AT U R I N G
Omnichannel Retailing: The Role Of The Store In A Mobile World
Brendan Witcher, Principal Analyst
October 18, 2016
© 2016 Forrester Research, Inc. Reproduction Prohibited 4
© 2016 Forrester Research, Inc. Reproduction Prohibited 5
Agenda › How The Age Of The Customer Is
Driving Omnichannel › Omnichannel Imperatives: Optimizing
Store Experiences & Fulfillment › Keys To Succeed In The Multichannel
To Omnichannel Evolution
Empowered customers have given rise to a new era
© 2016 Forrester Research, Inc. Reproduction Prohibited 7
Empowered Customers Have Given Rise To A New Era
Age of manufacturing Mass manufacturing makes industrial powerhouses successful
• Ford • Boeing • GE • RCA
Age of distribution Global connections and transportation systems make distribution key
• Wal-Mart • Toyota • P&G • UPS
Age of information Connected PCs and supply chains mean those that control information flow dominate • Amazon • Google • Comcast • Capital One
Age of the customer Empowered buyers demand a new level of customer obsession
• Macy’s • Salesforce.com • USAA • Amazon
© 2016 Forrester Research, Inc. Reproduction Prohibited 8
The past…
Information
Price Location
© 2016 Forrester Research, Inc. Reproduction Prohibited 9
Then…
Information
Price Location Tech
© 2016 Forrester Research, Inc. Reproduction Prohibited 10
Today…
Information
Price Location
Tech
By 2019 there will be ~3.5 billion smartphones in the world
Source: Global Business And Consumer Tablet Forecast Update, 2013 To 2017
© 2016 Forrester Research, Inc. Reproduction Prohibited 12
Shoppers Use Smartphones And Tablets For Shopping Equally And Frequently
© 2016 Forrester Research, Inc. Reproduction Prohibited 13
By 2020, mobile phone and tablet commerce will exceed 48% of online retail sales
© 2016 Forrester Research, Inc. Reproduction Prohibited 14
Welcome to the Mobile Mind Shift
The expectation that I can get what I want in my immediate context and moment of need.
© 2016 Forrester Research, Inc. Reproduction Prohibited 15
S ource: Forres ter R esearch Web-‐Influenced Retail S ales Forecas t, 2015 To 2020 (US )
US reta il s a les($ billions)
$376 $415 $452 $488 $523
$1,290 $1,366$1,445 $1,530 $1,618
$1,706 $1,710 $1,715 $1,721 $1,728
2016 2017 2018 2019 2020
Online sales
Web-‐influencedoffline sales
Offline sales
49% 51% 53% 54% 55%
In 2016, 49% of all US retail sales will either be influenced by or occur online…
Source: Forrester Research Web-Influenced Retail Sales Forecast, 2015 To 2020 (US)
$3.4T
Web-impacted sales CAGR 2015-2020:
6.6%
Sales and conversion do not reflect the value of most online/mobile touchpoints
Companies today must stop asking “What do we want to do?”…
and start asking “what does our customer want to experience?”
Every time a customer is exposed to an improved shopping experience, their
shopping expectations are reset to a new higher level
© 2016 Forrester Research, Inc. Reproduction Prohibited 19
Base: 4,485 US online adults (ages 18 and older); Source: Forrester’s North American Consumer Technographics® Customer Life Cycle Survey 2, 2015
Experience is a significant factor in every online shopper’s journey
68% “I am unlikely to return to a
website that does not provide a satisfactory customer experience.”
In this new omnichannel world, the roles of digital channels and stores must change
© 2016 Forrester Research, Inc. Reproduction Prohibited 21
Agenda › How The Age Of The Customer Is
Driving Omnichannel › Omnichannel Imperatives: Optimizing
Store Experiences & Fulfillment › Keys To Succeed In The Multichannel
To Omnichannel Evolution
© 2016 Forrester Research, Inc. Reproduction Prohibited 22
“The coordination of traditional marketing channels, selling channels, fulfillment channels, and supporting systems to
create a seamless and consistent customer experience.”
Omnichannel Retailing
© 2016 Forrester Research, Inc. Reproduction Prohibited 23
Source: April 16, 2014 “Understand The Digital Business Landscape” Forrester report
Iterate and innovate to maintain mastery
© 2016 Forrester Research, Inc. Reproduction Prohibited 24
“The [coordination] of traditional marketing channels, selling channels,
fulfillment channels and supporting systems to create a [seamless and consistent customer experience].”
Omnichannel Retailing
© 2016 Forrester Research, Inc. Reproduction Prohibited 25
Seamless, consistent customer experiences in engagement and fulfillment
The Goal
© 2016 Forrester Research, Inc. Reproduction Prohibited 26
Great omnichannel experiences require understanding of omnichannel customers
© 2016 Forrester Research, Inc. Reproduction Prohibited 27
Today’s omnichannel customers are looking for brands to understand them…
© 2016 Forrester Research, Inc. Reproduction Prohibited 28
Customers must receive value in exchange for their personal information
Customer Data
Shopping Value
© 2016 Forrester Research, Inc. Reproduction Prohibited 29
Nordstrom puts the customer in control of the marketing experience
Online…
© 2016 Forrester Research, Inc. Reproduction Prohibited 30
Nordstrom puts the customer in control of the marketing experience
© 2016 Forrester Research, Inc. Reproduction Prohibited 31
Sephora captures in-store engagement through digital, personal experiences
In Store…
© 2016 Forrester Research, Inc. Reproduction Prohibited 32
Sephora captures in-store engagement through digital, personal experiences
© 2016 Forrester Research, Inc. Reproduction Prohibited 33
Neiman Marcus utilizes app engagement to personalize customer experiences
On mobile and apps…
© 2016 Forrester Research, Inc. Reproduction Prohibited 34
Neiman Marcus utilizes app engagement to personalize customer experiences
© 2016 Forrester Research, Inc. Reproduction Prohibited 35
GS Shop targets online customers through beacons in high-traffic public locations
Really everywhere.
© 2016 Forrester Research, Inc. Reproduction Prohibited 36
GS Shop targets online customers through beacons in high-traffic public locations
© 2016 Forrester Research, Inc. Reproduction Prohibited 37
Investing in channel coordination that aligns with customer expectations
The Path
© 2016 Forrester Research, Inc. Reproduction Prohibited 38
Omnichannel Engagement
© 2016 Forrester Research, Inc. Reproduction Prohibited 39
Experience = Top Business Priority
Source: Forrester’s Business Technographics® Global Priorities And Journey Survey, 2015
© 2016 Forrester Research, Inc. Reproduction Prohibited 40
Starbucks leverages app data to deliver rich, relevant experiences everywhere
© 2016 Forrester Research, Inc. Reproduction Prohibited 41
Nordstrom and Shoes of Prey enhance the in-store experience with mobile devices.
© 2016 Forrester Research, Inc. Reproduction Prohibited 42
Kohl’s: incentivizes customers at the beginning of the in-store journey
© 2016 Forrester Research, Inc. Reproduction Prohibited 43
Kohl’s: reminds customers throughout the store experience
© 2016 Forrester Research, Inc. Reproduction Prohibited 44
Kohl’s: creates a great in-store branded experience that matches the store theme
© 2016 Forrester Research, Inc. Reproduction Prohibited 45
Kohl’s: still has challenges like other retailers in execution at the store level
© 2016 Forrester Research, Inc. Reproduction Prohibited 46
Mobile
Websites
Contact Centers Stores
Flash Sales
Mail Order
eComm DCs
Drop Ship
Outlets Stores
Pop Ups
Remote Pickup
Fulfillment Channels
Purchase Channels
Omnichannel Fulfillment
Customer
© 2016 Forrester Research, Inc. Reproduction Prohibited 47
Why are today’s retailers implementing omnichannel initiatives?
© 2016 Forrester Research, Inc. Reproduction Prohibited 48
Why are today’s retailers implementing omnichannel initiatives?
• Customers are rapidly adopting services
© 2016 Forrester Research, Inc. Reproduction Prohibited 49
14% of US shoppers
use in-store pickup all or most of the time
when it is available
Another 26 % use it sometimes
© 2016 Forrester Research, Inc. Reproduction Prohibited 50
Why are today’s retailers implementing omnichannel initiatives?
• Customers are rapidly adopting services
• More retailers are offering these services
© 2016 Forrester Research, Inc. Reproduction Prohibited 51
Investments in omnichannel are tripling
Source: Forrester’s Global eBusiness and Channel Strategy Professional Online Survey, Q4 2015
© 2016 Forrester Research, Inc. Reproduction Prohibited 52
Why are today’s retailers implementing omnichannel initiatives?
• Customers are rapidly adopting services
• More retailers are offering these services
• Retailer with mature programs are expanding services as they realize benefits
© 2016 Forrester Research, Inc. Reproduction Prohibited 54
Agenda › How The Age Of The Customer Is
Driving Omnichannel › Omnichannel Imperatives: Optimizing
Store Experiences & Fulfillment › Keys To Succeed In The Multichannel
To Omnichannel Evolution
© 2016 Forrester Research, Inc. Reproduction Prohibited 55
Traditional omnichannel…
Fulfillment
© 2016 Forrester Research, Inc. Reproduction Prohibited 56
Today’s omnichannel…
Fulfillment
Engagement
© 2016 Forrester Research, Inc. Reproduction Prohibited 57
Omnichannel capabilities provide new opportunities to create unique value
© 2016 Forrester Research, Inc. Reproduction Prohibited 58
Recommendations
© 2016 Forrester Research, Inc. Reproduction Prohibited 59
Recommendations 1. Identify the digital gaps in your company’s ability to
deliver seamless, channel-less customer experiences.
© 2016 Forrester Research, Inc. Reproduction Prohibited 60
Recommendations 1. Identify the digital gaps in your company’s ability to
deliver seamless, channel-less customer experiences.
2. Take off your departmental blinders and consider every part of the customer journey (mobile, store web).
© 2016 Forrester Research, Inc. Reproduction Prohibited 61
Recommendations 1. Identify the digital gaps in your company’s ability to
deliver seamless, channel-less customer experiences.
2. Take off your departmental blinders and consider every part of the customer journey (mobile, store web).
3. Review each digital touchpoint and its ability both use and collect customer data.
© 2016 Forrester Research, Inc. Reproduction Prohibited 62
Recommendations 1. Identify the digital gaps in your company’s ability to
deliver seamless, channel-less customer experiences.
2. Take off your departmental blinders and consider every part of the customer journey (mobile, store web).
3. Review each digital touchpoint and its ability both use and collect customer data.
4. Assess your ability to create customer experiences that are personal and contextually relevant.
© 2016 Forrester Research, Inc. Reproduction Prohibited 63
Recommendations 1. Identify the digital gaps in your company’s ability to
deliver seamless, channel-less customer experiences.
2. Take off your departmental blinders and consider every part of the customer journey (mobile, store web).
3. Review each digital touchpoint and its ability both use and collect customer data.
4. Assess your ability to create customer experiences that are personal and contextually relevant.
5. Don’t go it alone! Find strong digital partnerships.
Virgin Media rewards employees based on Net Promoter Score (NPS) improvements
MEASURE SUCCESS!
forrester.com
Thank you
Brendan Witcher bwitcher@forrester.com @BrendanWitcher
Marissa Tarleton, CMO, North America @MBTarleton @RetailMeNotInc
Retail Marketers Are Facing New Challenges
• Mobile has changed the landscape and is influencing in-store purchases
• The customer journey is complex
• The consumer is in control and
expectations are high
The New Consumer Journey
1,044 DIGITAL TOUCHPOINTS*
Source: Google/Luth Research, “Mobile’s Growing Role in a Shopper’s Purchase Decision,” July 2016. *Touchpoints = searches, website visits, video views, clicks
54%DESKTOP 46%
MOBILE
MEET LEENA
MEET SAM
79%DESKTOP 21%
MOBILE
600 DIGITAL TOUCHPOINTS*
11%DESKTOP 89%
MOBILE
MEET KATE
947 DIGITAL TOUCHPOINTS*
RESEA
RC
H
BR
OW
SE
RETA
RG
ETING
PUR
CH
ASE
ABANDONABANDON
83% Begin journey
on mobile
90% of purchases
are still made in a store
Engaging Across Your Customer’s Micromoments
Sources: (from left to right): Think with Google, ATKearney.
Three Ways Retailers Can Win inEngaging Customers in Micromoments
Discover & Anticipate
Personalize the Experience
Utilize Location-based Marketing
USE DATA TO DISCOVER CONSUMER TRENDS
WHEN, WHAT, WHERE
Discover and Anticipate
Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 71
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 1 26
27 28 29 30
DECEMBER 1 2 10
4 5 6 7 8 9 411 12 13 14 15 7 2
3 8 9 21 22 6 24
25 5 27 28 29 30 31
Use Data to Discover Trends Mobile
Desktop
Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 72
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 1 26
27 28 29 30
DECEMBER 1 2 10
4 5 6 7 8 9 411 12 13 14 15 7 2
3 8 9 21 22 6 24
25 5 27 28 29 30 31
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
DECEMBER 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
DECEMBER1 2 3
4 5 10 9 8 9 10
11 4 7 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 8 2 26
3 1 6 30
Use Data to Discover Trends Mobile
Desktop
Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 73
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 1 26
27 28 29 30
DECEMBER 1 2 10
4 5 6 7 8 9 411 12 13 14 15 7 2
3 8 9 21 22 6 24
25 5 27 28 29 30 31
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
DECEMBER 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Use Data to Discover Trends Mobile
Desktop
Food & Entertainment Travel & Auto
Clothing Home & Garden Office Supplies
RESEARCH & PLANNING(PRE- THANKSGIVING)
Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 74
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 1 26
27 28 29 30
DECEMBER 1 2 10
4 5 6 7 8 9 411 12 13 14 15 7 2
3 8 9 21 22 6 24
25 5 27 28 29 30 31
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
DECEMBER 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Use Data to Discover Trends Mobile
Desktop
Food & Entertainment Travel & Auto
Clothing Home & Garden Office Supplies
Computers & Electronics Multi-Category
Sports & Fitness Teen Clothing Toys & Kids
RESEARCH & PLANNING(PRE- THANKSGIVING)
DEAL SEEKING(THANKSGIVING – MID-DEC)
Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 75
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 1 26
27 28 29 30
DECEMBER 1 2 10
4 5 6 7 8 9 411 12 13 14 15 7 2
3 8 9 21 22 6 24
25 5 27 28 29 30 31
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
DECEMBER 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Use Data to Discover Trends Mobile
Desktop
Food & Entertainment Travel & Auto
Clothing Home & Garden Office Supplies
Computers & Electronics Multi-Category
Sports & Fitness Teen Clothing Toys & Kids
Accessories Books Gifts
Health & Beauty Personal Services Sports & Fitness
RESEARCH & PLANNING(PRE- THANKSGIVING)
DEAL SEEKING(THANKSGIVING – MID-DEC)
LAST MINUTE(MID-DEC TO CHRISTMAS)
Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 76
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 1 26
27 28 29 30
DECEMBER 1 2 10
4 5 6 7 8 9 411 12 13 14 15 7 2
3 8 9 21 22 6 24
25 5 27 28 29 30 31
NOVEMBER1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30
DECEMBER 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31
Use Data to Discover Trends Mobile
Desktop
Food & Entertainment Travel & Auto
Clothing Home & Garden Office Supplies
Computers & Electronics Multi-Category
Sports & Fitness Teen Clothing Toys & Kids
Accessories Books Gifts
Health & Beauty Personal Services Sports & Fitness
Food & Entertainment Health & BeautyPersonal Finance
RESEARCH & PLANNING(PRE- THANKSGIVING)
DEAL SEEKING(THANKSGIVING – MID-DEC)
LAST MINUTE(MID-DEC TO CHRISTMAS)
POST HOLIDAY (AFTER CHRISTMAS)
Source: The RetailMeNot Promotions Index data - https://www.retailmenot.com/corp/index/ 77
77% of consumers have chosen, recommended,
or paid more for a brand that provides a personalized service or experience.
78 Source: Forrester’s North American Consumer Technographics Brand Compass Survey, Q3 2015
Personalization & Scaling Data
Merchant Affinity
Location Demographics Platform Recency
How RMN uses Data to Reach the Right Audience
1:1 Personalization Drives More Engagement
70% of RetailMeNot’s user base opts-in to receive Push Notifications
42% of consumers
feel mobile messages are not relevant
81 Source:
Leverage Location-based Marketing
20X Location-based
advertising provides a 20X return vs.
generic banner ads
As of June 30, 2016
The RetailMeNot Consumer Audience is Large and Engaged
688MM+ Visits / Year
37MM+ Email
Subscribers
6MM+ Push-enabled
app users
18MM+ Monthly mobile unique visitors
(US)
Thank You For Joining! QUESTIONS?
hello@rmn.com To Learn More About Partnering With RetailMeNot:
https://www.retailmenot.com/corp
Alternate End Slide