The Future of RetailEmbracing Digital for Improved Service & Profit

Leon Condon, CEO, Engagis

Engagis is a recognised leader in customer & staffengagement solutions and digital display technology.

Established in 2001 with offices in Sydney, Melbourne & Auckland.

4,000+30+ 19,000+

99%+ 10 13

Connected Blue Chip Customers

Individual Retailers

Connected devicesunder management

Uptime Industries Years in Business

Key Learnings

1. How to Empower Your Customers and Staff

2. How to Create Personalised & Contextual Offers

3. How to Measure Engagement

4. How to Develop an Effective Digital Strategy

The Future of Retail

1. The Rules Have Changed

2. Adapting to Change

2. The Future of Retail

3. Next Steps

Today’s Webinar:

PART 1

The Rules Have Changed

The Rules Have Changed

Customers no longer shop

exclusively in bricks and mortar stores.

Whether at home, on the go or in store, shoppers are now

using multiple channels to search, compare and transact.

The Rules Have Changed

• Smartphone Penetration rocketed from 19% in 2007 to 84% in 2014.

• 94% of shoppers research products and services on their smartphone.

• 47% now actively engage in Showrooming (viewing products in-store then buying

them cheaper elsewhere).

• The number of Australian online stores DOUBLED between 2010 and 2012, making

us the leading country in the world with regard to the most new e-commerce stores.

• Online sales topped $15 BILLION in Australia last year and $1 TRILLION worldwide.

Source: Business Insider Australia (2014), Google 2014, Nielsen 2014, BandT 2013, PWC 2012)

The days of ignoring digital are gone.

The New Customer

• 51% of shoppers are willing to use mobile shopping tools, but less than 5% of

retailers offer them.

• 51% of shoppers now use or want to use in-store kiosks for self-service.

• 60% of smartphone owners said they would use their mobile phone to pay in-store

if it meant they didn’t have to wait in line.

Source: NRF Study (1), Business Insider Australia (2014)(2), Nielsen (2014)(3)

The way customers communicate with each other is vastly different to how retailers communicate with their customers.

The New Retail

• Based on price alone, retailers can’t compete with online.

• HOWEVER 73% of shoppers still prefer to physically interact with products

in-store before purchasing.

• Only 26% of companies have a well-developed strategy in place for

improving

the customer experience.

• 6.5% of total Australian retail spend is currently online…

Source: Business Insider Australia (2014) (1), Forbes 2014 (2), NAB Online Retail Sales Index 2014 (3), Mediapost (4)

Online media influences more than 50% of in-store sales.

80%

of companies believe they deliver ‘superior experience’.

Slide courtesy of Mash Up.

80%

of companies believe they deliver ‘superior experience’.

8%

of customers agree.

Slide courtesy of Mash Up.

But while digital is changing the purchase habits of

consumers, 80% of businesses have not responded.

e.g. don’t yet have mobile-optimised websites. 

(Source: BandT 2013)

But Are You Ready?

54% of attendees don’t have mobile optimised websites.

Summary – The Rules Have Changed

The shopping process has changed

Consumers clearly do not exclusively use either online or offline channels but

rather navigate across devices at different stages of the shopping process.

What was once a sales message is now a conversation

People today find and share information in their own way, in their own time.

Consumers now demand an integrated experience

Delivering customer engagement anytime, anywhere, from the shopfront to your

customer’s home, is a key part of offering an integrated experience today.

PART 2

Adapting to Change

The New Retail

86% of customers will happily pay for a better customer experience.

The new retail currency

is the customer experience.

Source: McKinsey (2013; Consumers: Life Online)

Retailers are investing billions to make their brands e-commerce enabled.

But many are failing to integrate this online activity into their bricks and mortar retail stores.

Adapting to change

What’s the solution?

Retailers must offer the benefits of Online… In-Store.

To create an experience that is faster, easier, cheaper and more personal. 

Adapting to change

What Customers Want

Customer expectations have changed, they now want a shopping experience

that is:

• Faster

• Easier

• Better Value

• More Personal

How Retailers Can Respond

In response, retailers need to identify customers early, get to know them and make

offers that are:

• Timely

• Relevant

• Contextual

• Targeted

PART 3

The Future of Retail

Attract Entertain Engage Transact Reward

 The CUSTOMER Pathway to Purchase

One Thing Has Stayed The Same

 The RETAILER Pathway to Purchase

Omni-Channeling Is The Future

• Digital Displays• Touchscreens• Video Walls• Sales Apps• Self-Order Kiosks• Sensors (NFC, RFID)

• Smartphones• Tablets• Interactive Glasses• Interactive Watches• Mobile Loyalty

• Personal Computers• Smart Phones• Tablets• Interactive TVs

The Retail “Store” of The Future

In the Home

At the Store

On the Go

The Future of RetailCreating Connections along the Pathway to Purchase

• Digital Signage

• Electronic Shelf Labels

• Digital Ticketing

• Location Based Advertising

• Gamification

• Interactive Gaming

• Video Walls

• Touch Screens

• Augmented Reality

• Mobile Apps

• Solution Finders

• Digital Catalogues

• Staff Tablets

• Digital Wayfinders

• Secure Merchandising

• Remote Activation

• Online Ordering

• Mobile Ordering

• Self-Order Kiosks

• Mobile POS Systems

• Mobile Loyalty & Rewards

• Staff Communication Portals

• Staff Training Systems

• Audience Tracking

• Shopper Insights Portals

Attract Entertain Engage Transact Reward

ROI of the Digitally Connected Business

ATTRACT (Digital Signage)

• + 32% Increase in Traffic

• + 30% Increase in Sales

TRANSACT (Assisted / Self-Ordering)

• + 22% Increase in Sales

REWARD (Mobile Rewards & Loyalty)

• + 72% of rewards/gift card recipients spend more than the amount of the reward.

Source: Engagis 2014

AttractDigital Signage

From $48/wk

Pricing based on Total Cost of Ownership of 40” Display, 100+ sites over 3 years

AttractIntelligent Digital Signage

Attract

Mobile Loyalty

From $25/store /wk

Indicative pricing based on Total Cost of Ownership, 100+ sites over 3 years

EntertainInteractive Gaming / Gamification

Engage

Interactive Dressing Room

Engage

Solution Finders

From $26/wk

Indicative pricing based on Total Cost of Ownership, 100+ sites, 3 years

Attract > Engage

Solution Finders

Attract > Engage > Transact

Self Order Kiosks

Attract > Engage > Transact

Interactive Shopping Windows

Engage > Transact

Mobile POS

Transact

Scan as you Shop

MeasureCapturing Every Interaction

Passers By Walk Ins Message Recall Product Lifts

Product

Interactions

Catalogue

Searches

Transactions Offers &

Redemptions

Analytics via Shopper Insights Portals

Analyse

EngagementScorecard

Offers and CampaignsUsing the Data

Reward > Attract

Mobile Loyalty

From $25/store /wk

Indicative pricing based on Total Cost of Ownership, 100+ sites over 3 years

Case Studies

Attract Entertain Engage Transact Reward

Key Learnings

1. How to Empower Your Customers and Staff

2. How to Create Personalised & Contextual Offers

3. How to Measure Engagement

4. How to Develop an Effective Digital Strategy

PART 4

Next Steps

Developing a Strategy

Understanding what you CAN do

vs what you SHOULD do

Strategy Define objectives Map your customer’s pathway to purchase Identify touch points and explore relevant technology

options Review ROI Provide a detailed technology road map addressing

business goals

Solution Design and Prototyping Prepare a fully interactive demonstration of the

recommended solution

Rapid Pilot Testing· Build > Measure > Learn > Improve

Next Steps

Why Digital? Why now?

1. The dramatic reduction in the cost of hardware

2. The speed and quality of internet connections

3. The availability of rich, compelling content

4. The customer’s avid acceptance of technology

5. The ability to measure all interactions

Key Learnings

1. How to Empower Your Customers and Staff

2. How to Create Personalised & Contextual Offers

3. How to Measure Engagement

4. How to Develop an Effective Digital Strategy

Creating the Connected Experience

“In the near future all forms of digital media will be

seamlessly and expertly embedded into retail

environments, creating an unparalleled shopping

experience that puts the customer first.”

- Bob Greenberg, CEO R/GA

Leadership in Digital Communications and Customer Engagement

Thank You

Leon CondonCEO

Engagis Pty LtdABN 98 098 945 469Level 5, 144 – 148 Pacific HighwayNorth Sydney, NSW 2060

T +61 2 8039 0651M 0414 266 366E leon.condon@engagis.comW engagis.com

Customer Support 1300 203 810