Post on 30-Aug-2020
RETAIL INNOVATION&CONSUMERBEHAVIOUR
SHOPPING TODAY
More people are doing little and often trips to supermarkets and convenience stores due to:
• Saving Money
• Reducing food waste
• Too busy to do big shops
74% OF PEOPLE SHOP AT A GROCERY
STORE OR DRUGSTORE ONCE PER WEEK
OR MORE WITH 45% SHOPPING TWO OR
MORE TIMES IN A WEEK
THE CONVENIENCE SECTOR ADDS TO THE ECONOMY IN GROSS VALUE JUST OVER…
£5bn That’s over 6% of all UK RETAIL…
Convenience leads the way as the most common place to top up but the food discounter (Lidl & Aldi) and High street discount (Poundland & B&M) are taking over.
• Satisfying customer needs: Food discounters are the highest ranked due to overall satisfaction, prices and store navigation
• Convenience gap is lowering. There are too many of them.
• Shopper behavior's are changing, technology and new applications linked to social media are driving footfall, particularly for new generation customers
SHOPPING TODAY
GOALS TO ATTRACT FUTURE CONSUMERS
Future mission to improve channels:
• Mission Focused
• Speed of Service
• Easy to shop
• Support lifestyle
• Inspire especially the new generation of shopper
• Create loyalty
• Use data effectively…information is currency
WHAT RETAILERS SHOULD ALWAYS ASK?
• Why are the shoppers in THIS store? Category should start with good range. Does not have to be bestseller but should provide for the shoppers in that store.
• Where should you be pushing harder? Showcase that section and expand it. Show the consumer what makes your store special.
• Where do you accept that certain products do not justify a place? Place the product in the less obvious section. Focus on what would the consumer purchase this item with(think meal deals)
CONVENIENCE STORES NOW OFFER A WIDE RANGE OF SERVICES AND FEATURES IN-STORE FOR THEIR CUSTOMERS.
IT’S ALL ABOUT SPEED
• Small stores allows customers to get in and out quickly.
• Self checkout- customers do complain about the keys at the checkout.
• Mobile scan & go- Scan and pay with your mobile phone
• Home delivery- Food delivered to your house
IT’S ALL ABOUT SIMPLICITY AND SPEED
DOES 'PAY BY APP' MEAN AN END TO SHOPPING QUEUES?
Smartphones are a critical part of the path to purchase.
• 44% of people use their smartphone always or most of the time while in-store shopping at grocery or drugstore locations.
• 75% of people have one or more grocery store or drugstore app on their smartphone with 39% of people having two or three apps and 28% of people having three or more.
CONTACTLESS PAYMENTS MAY BE ALL THE RAGE THESE DAYS, BUT YOU STILL HAVE TO TAP
YOUR SMARTPHONE, SMARTWATCH OR CARD ON A TERMINAL OF SOME KIND.
EASY TO SHOPConsumers want easy navigation and speed. Here are 2 examples of how 2 brands have achieved this:
• Sainsbury’s- Position products close to the entrance to speed up shopping for top up shoppers. Small basket shop.
• Media screens at till or behind the counter entice consumers to purchase whilst queueing to pay
• Hello Fresh- No shopping list needed. Meal solutions chosen by you or store and they deliver it to you. Benefits: No need to think, no need to shop. Becoming more popular.
SUPPORT CONSUMER LIFESTYLE
• Goal: Make your day and shopping easier
-Argos store in large Sainsbury’s
-Giraffe in Tesco
-Waitrose- Purchase John Lewis
products whilst doing food shop
ITS ALL ABOUT INNOVATION
• Saves both money & time
-automated ordering
-never being unable to sell
-controlling staffing costs
Loyalty solutions to provide the data is key for retailers to understand consumers
Tesco ‘If this then that’ app
Online platform to set triggers and
actions.
LINKS BACK TO SPEED AND CONSUMER
LIFESTYLE THEY WANT TO ENJOY THEIR
SHOPPING INSTEAD OF FEELING LIKE
IT’S A BURDEN.
CONVENIENCE FIGHTS BACK TO STAY AHEAD
• Food-to-go: stealing the limelight from traditional stores. Convenience are ideally placed to fight this battle but must ensure offer is right. Forecourts are ideally placed to exploit this
• Coffee offer in convenience stores- Coffee is key for consumers. Creates a relaxed atmosphere
• Focus on the community. More attractive to consumers if they have more offers to give e.g. royal mail, boots pharmacy etc.
• Invest in innovative loyalty schemes that provide instant customer treats or rewards
• Technology and innovation need no longer be the domain of the big boys.
• Be aware of the data available from your back office, a regular review of reports will help improve your offer
• Use all your instore technology to advertise, tills, PEDs, OPTs
• Introduction
• Payments today
• Payments tomorrow
• New insights
• Growing retail with insights
• Discussion
14
Agenda
Confidential & Commercially Sensitive
15
Today’s discussion
Confidential & Commercially Sensitive
Intelligent use of new data for new insights that enhance revenue
Confidential & Commercially Sensitive 16
INTRODUCTION
Diverse FTSE 100 multinational PLC
Record of growth and an ability and willingness to invest
Reputation for innovation and value creation through IT
Commercially conservative with courage to challenge
One of Britain’s largest independent agents for fuel cards
Provide fuel cards for all major networks
Excellent nationwide coverage – c. 80% of all sites available
Most experienced management team in the industry
Dedicated technology hub within DCC
In expanding software-as-a-service (SaaS) in UK and Sweden
Low impact deployment with cost and risk reduction
Award-winning Cardivation adds intelligence to any bank card
x
x
x
AIM:
Get fuel customers to spend more in
the shop
CHALLENGES:
Only get data on fuel cards
and affiliated loyalty scheme
Lots of payment methods
Sites can’t track many customers
Don’t know what they buy
Can’t communicate with them
Can’t link private sales to fuel cards
PAYMENTS TODAY
Confidential & Commercially Sensitive 17SOURCE: UK fuel industry
Cash30%
Debit cards40%
Credit cards10%
Allstarfuel cards
7%
Otherfuel cards
13%
Typical mix of payment methods
Cash is projected to decline.
Frictionless digital payments
Mobile and contactless will be big winners
• Growth of mobile – Apple Pay, Android Pay, Samsung Pay and LG’s G Pay
• Going wearable – Barclaycard bPay
• Security fears – tokenisation
• Biometrics – finger vein mapping
PSD2 legislation – new entrants with greater efficiency and cost-reduction
PAYMENTS TOMORROW
Confidential & Commercially Sensitive 18
Top payment trends
SOURCE: Tech Week Europe
19
There is a newpayment technology that gives dealers…
Confidential & Commercially Sensitive
Insights into ALL cardholders
Cardivation
Confidential & Commercially Sensitive 20
WHAT IT IS:
Cardivation is a patent pending card innovation that combines cloud and tokenisation technologies to add intelligence to any existing terminal* or card scheme…
MAIN ADVANTAGE:
…without adding expense to the card scheme or interfering with legacy systems at the bank or merchant.
*HTEC GemPAY 1 & 2 processed by FIS
Cardivation
Confidential & Commercially Sensitive 21
WHY WE INVENTED IT:
Better insights into all unknown customers
Channels to communicate with all customers
Digital replacement for paper receipts
Platform for new fuel card
DESCRIPTION:
CRM system imports PCI compliant level 3 VAT data from payment terminals and stores it for each payment card.
No separate loyalty cards needed.
BENEFITS:
Dealers get actionable insights on every cardholder, not restricted to one loyalty scheme, reduce loyalty overheads – i.e. card issuance and reward fulfillment.
Cardholders earn points on every transaction without carrying loyalty cards.
CARD-FREE LOYALTY
Confidential & Commercially Sensitive 22
Commercialised
OPTIONS:• Interface with existing loyalty scheme• Create new virtual loyalty scheme
Merchants need new insights
to increase margins
Confidential & Commercially Sensitive 23
If you switch
on Cardivation you will get…
24Confidential & Commercially Sensitive
BENEFITS OF CARDIVATION
Confidential & Commercially Sensitive 25
TOP LEVEL
Insights into
every unique
bank card
customer
Channels to
communicate
with them
Low impact
deployment
with no
disruption to
legacy systems
Digital
level 3 VAT
receipts
Optional
Card-free
Loyalty
Platform for accepting mobility
cards that can add incremental dry
goods sales to fuel card customers
MERCHANTSaves printing
VAT receipts
Reduces
checkout time
Simplifies PCI
compliance
Reduces cost of
loyalty data
More targeted
& integrated
offers
Reduces loyalty
infrastructure
Lower loyalty
fulfilment cost
CARDHOLDE
R
Easy receipt
management
Quicker
transactions
More secure
due to emailed
receipts
Easy expense
& VAT claim
Don’t need
loyalty cards
Rewards on all
transactions
Quick & easy
rewards
redemption