Digital shopper relevancy kees jacobs nov 2014

@

Digital Shopper

Relevancy 2014 Kees Jacobs

November 2014

2 Copyright © Capgemini 2014. All Rights Reserved

Presentation Title | Date

Capgemini is helping our retail clients to become successful in engaging with Technology-Enabled Consumers at their Moments of Truth

Capgemini’s DCX in Retail delivers improved consumer insights, differentiated consumer engagement,

increased loyalty, higher sales conversion, more profit and ultimately, business continuity!

Strong

Partners

Strong Credentials

& Experiences

Capgemini’s Service Proposition

All-Channel Consulting Services (e.g., ACE Strategy, Customer Journeys & Experience,

CRM/Digital Marketing, Digital Transformation)

All-Channel IT Services (e.g., Solution Architecture Leadership, Cloud Services

Orchestration, Mobile Platforms, Agile, Big Data)

All-Channel Managed Services (e.g., Social Media Engagement, Digital Asset

Management, Consumer Insights)

Our Retail Client’s Proposition

Etc.



Customer

Managing a personal and relevant dialogue with individual customers

Content

Managing high-quality and rich inspirational

content across all channels and touch

points

Single View of Data

Demand Driven Business Operations

Commerce

Managing maximised sales conversion leveraging optimal merchandising and pricing across all

channels

People Process

Technology

Managing involved and

motivated staff with relevant performance

rewards

Orchestrating dynamic, front-end IT solutions

integrated with a cost-effective , reliable IT

foundation

Managing streamlined and

customer-focussed ways of working

across the company

Providing relevant Digital Customer Experiences across all channels requires a well-balanced set of new and integrated Businesses and IT Capabilities

Fulfilment

Efficiently delivering the orders across all

channels at the location and time your

customers prefer

Email/DmailMobile TabletWeb site Instore TechnologySocial media Call centreBought media Future channels



The Importance of the Customer’s Voice

56% of companies

described themselves as customer centric….. But

Only 12% of their

customers agreed



Consumer Relevancy 2002 Future Consumer 2007 Digital Shopper Relevancy 2012

16,000 Consumers 9 Countries

2,000 Consumers 4 Countries

16,000 digital shoppers 16 Countries

Source: Capgemini, Digital Shopper Relevancy, 2014

Digital Shopper Relevancy 2014

18,000 digital shoppers 18 Countries

Our Research’s Evolution: 12 Years + 50,000 Consumers + 20 Countries = Countless Insights into Shopping Behavior



Digital Shopper Relevancy 2014 – scope and scale

• The Digital Shopper Relevancy research was an online study, conducted in collaboration with ORC International, a

London-based global research firm

• ORC hosted an online survey for more than 18,000 digital shoppers representing 18 countries. The digital shopper

sample in each country is based on the national samples representative of the population in terms of age and gender

• A Digital Shopper translates in the study as a ‘shopper using one or more digital technologies or channels in one

or more phases of their shopping journey’

• Key areas of the study include the usage of digital channels and devices, purchasing behavior in different

product categories, and the role of digital channels throughout the shopping process today and in the future

• The Capgemini India research team segmented the consumer base using over fifty behavioral variables. Methods

included factor analysis and k-means clustering

The Digital Shopper Relevancy Research 2014

Source: Capgemini, Digital Shopper Relevancy, 2014

technology-enabled consumers

shopping journey

18 countries*18,000 consumers

foo

d

fashionall-channel experience

health & personal care

DIY

ele

ctr

on

ics

digital channels

tab

lets

smartphones

kio

sks

e-commerce

social media

access

experience

pric

e

product

serv

ice

appsweb



Survey built around the different phases of an ‘All-Channel Shopping Journey’

Personal

ConvenientRelevant

Engaging

Flexible

Value for Money

Rewarding

Novel

Innovative

Exciting

Caring Trusting

Moments of Truth



Access Experience Price Product Service

Friendly and clean

store Easy to reach stores

Easy to navigate

stores Compelling

promotions Freshness/ Quality

Maximum opening

hours

Availability

(no stock-outs)

No damaged goods

in store

Inspirational

Atmosphere

Customer Service

Complaints

handling /

return policy

Loyalty program

Wide and deep

assortment

Competitive pricing

Traditional

Relevancy

Criteria for

Physical Channels

Dynamic Pricing

Mobile in-store

Shopping support

Advanced /

visualized product

information and

(usage) advice

Product

Comparison

e-Commerce

(mobile, social,

web)

Flexible delivery-

options ( home,

store-pick-up etc.)

Personalized

Pricing

Additional

Relevancy

Criteria for

Digital Channels

Personalized offers

Technology-

enabled staff –

support in-store

Interactive service

via digital channels

(e.g. click-to-chat,

social media)

Wider and deeper

assortment

Solution Pricing

Inspirational

Content

Community

engagements

(share

experiences)

Social Shopping

Location-based

pricing

Price

Comparison

Illustrative

It’s important to understand the needs and considerations that are specifically important for your consumers



Key Findings: Social Media

Social media: overhyped? Social Media as part of shopping journey has shown a decline over the last two years. Less importance is being

placed on finding out about new products through blogs, social media and consumer reviews, etc. Fewer

shoppers expect the use of Social Media will change their shopping in future.



Key Findings: The Store v other Channels

Physical store reigns - for now Still the favored destination; 72% of shoppers see the store as important or very important compared to 67% for

the Internet. But In the future the majority of shoppers (51%) say they will spend more money online than

in-store. Most important

2nd most

important

3rd most

important4th most important 5th most important

6th most

importantLeast important

Australia Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Canada Traditional store Internet site Email In-store technology Social media Smartphones Phone – call center

Finland Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

France Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Germany Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Italy Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Japan Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center

Netherlands Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Portugal Internet site Email Traditional store In-store technology Social media Smartphones Phone – call center

Spain Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Sweden Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center

UK Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

USA Traditional store Internet site Email In-store technology Smartphones Social media Phone – call center

Brazil Internet site Traditional store In-store technology Email Social media Smartphone Phone – call center

China Internet site Traditional store Smartphones In-store technology Email Social media Phone – call center

India Internet site Smartphones Email In-store technology Social media Traditional store Phone – call center

Mexico Internet site Traditional store In-store technology Social media Email Smartphone Phone – call center

Russia Internet site Traditional store In-store technology Email Social media Smartphones Phone – call center

Total Internet site Traditional store Email In-store technology Smartphones Social media Phone – call center

Q: Importance of

different channels to

learn about products

and promotions



Key Findings: Differences between Categories

Fashion is stealing the show Online fashion is up 9 % since 2012

This compares to low growth in other categories.



Nevertheless, physical stores still reign – for now

However, in the future, the majority

of shoppers (51 percent) say they

will spend more money online than

in-store.

In addition to the smartphone’s

ubiquitous growth, in-store digital

interactions (eg via kiosks) are

popular amongst shoppers,

suggesting that the introduction of

more technology into retail stores

would be a welcome shift for the

consumer.

Store is still the favored destination; 72% of shoppers saw the store as important or very

important compared to 67% for the Internet

Only 14 per cent of shoppers strongly indicate that physical stores have become less important

for them.

The relevance of the physical store in the purchase and payiment of a product



Key Findings: Mature v High-growth Markets

Digitally-savvy high-growth markets High-growth markets show a stronger preference for digital technologies than mature markets, regarding the

use of Social Media and Smartphone. Interested rather than reluctant to receive personalized offers

Broad digital acceptance

Social Shoppers

High-growth markets Mature markets

Technology and digital-savvy

Fragmented attitudes Digital

resistance still exists

More rational; less social

$

Digital Shopper Relevancy Study 2014

A2 Thinking about digital channels for XXX, how important is it for you to be able to do each of the following?

On a scale of 1 to 5 where 1 = not at all important and 5 = extremely important

Values in %, Means; n (Total) = 18436 (all countries) NOTE: all 2012 data based on how appeal rather than importance

Learn about products and promotions: Receiving personalized offers and recommendations

4.16

3.96

3.23

3.26

2.97

N/A

3.16

India

China

Mexico

Brazil

Italy

Spain

Russia

Canada

Germany

USA

France

Finland

Japan

Australia

Sweden

3.94

3.93

3.45

3.62

2.91

2.94

3.69

3.19

1 Not at all important 5 Extremely important

14

Mean

2014 Mean

2012

Awareness

Portugal N/A

3.13 UK

N/A Netherlands 22

23

17

21

14

16

21

21

16

18

10

6

6

3

5

4

1

1

14

12

15

13

15

18

12

10

12

10

10

9

9

8

7

6

3

4

27

25

29

24

35

27

24

22

27

27

20

25

23

22

17

16

19

15

25

26

25

26

28

26

28

26

29

26

33

35

34

40

32

34

47

39

11

13

13

16

8

13

15

22

16

19

26

24

26

27

38

40

30

42 4.18

4.02

3.19

3.17

3.03

3.02

3.02

4.00

3.91

3.62

3.65

3.02

3.18

3.56

3.05

3.80

2.95

2.90


C2 Thinking about digital channels for XXX, how important is it for you to be able to do each of the following?

On a scale of 1 to 5 where 1 = not at all important and 5 = extremely important


Search for information, compare, choose product: Use digital devices inside the physical store to help your shopping process

Mexico

India

China

Brazil

Russia

Italy

Portugal

Spain

Japan

Germany

France

Sweden

USA

Canada

Australia

Netherlands

3.46


15

Mean

2014

Mean

2012

Choice

2.75 Finland

3.02 UK

4.03

4.10

N/A

3.08

3.14

3.10

3.07

3.93

3.93

N/A

3.72

N/A

2.85

3.28

2.69

3.70

2.63

2.56

4.15

4.14

2.99

2.95

2.83

2.83

2.78

4.03

3.92

3.54

3.62

2.66

2.97

3.46

2.87

35

24

28

28

29

32

24

23

21

14

9

7

7

7

5

1

2

4

14

22

14

12

11

10

14

14

14

17

11

10

10

9

8

4

3

4

21

26

29

24

23

18

27

24

24

35

26

24

25

20

17

18

15

12

20

19

21

23

24

21

24

22

28

25

32

38

32

34

30

45

39

35

11

8

8

12

14

18

12

16

13

9

22

20

26

30

40

32

41

46

Purchase and pay for the product: Use a mobile phone application to pay for in-store products


47

40

37

45

46

39

36

35

34

21

16

12

14

14

10

3

5

7

12

17

19

9

9

13

13

14

13

17

13

12

11

9

7

6

6

6

16

19

21

18

14

19

21

19

21

31

26

25

21

22

15

22

18

13

16

15

15

16

16

18

20

18

20

22

27

30

27

31

31

40

34

30

10

8

8

12

15

11

10

14

13

9

17

21

27

25

38

29

38

43

16

Mean

2014 Mean

2012

Transaction

Digital Shopper Relevancy Study

T3 Thinking about digital channels for XXX, how important are each of the following for you to be able to do? Please use a scale of 1 to 5 where 1 = not at all

appealing and 5 = extremely appealing


Mexico 3.88

India 4.00

China 3.86

Brazil 3.87

Italy 3.39

Russia 3.20

N/A Portugal

Spain 3.03

Japan N/A

Germany 2.46

France 2.58

N/A Netherlands

Australia 2.58

USA 2.81

Canada 2.80

Finland 2.34

Sweden 2.07

UK 2.46

3.96

3.95

3.84

3.80

3.44

3.43

3.37

3.15

2.82

2.65

2.61

2.55

2.48

2.44

2.41

2.38

2.34

2.30

How role of digital channels will change: Online ordering directly from brand manufacturers

11

14

10

10

11

7

11

8

7

9

4

2

4

2

4

3

1

2

5

4

4

2

4

6

4

4

4

4

2

1

1

1

2

2

1

2

7

5

5

5

3

5

3

4

4

3

3

3

3

3

3

2

2

2

39

29

24

26

27

21

25

25

25

24

20

21

18

18

16

13

11

9

28

29

36

34

30

34

30

31

33

30

39

37

34

41

34

28

30

30

10

19

21

23

25

28

26

28

28

30

32

36

39

36

40

52

55

56

17

Mean

2014

Mean

2012

Current &

Future Use

1 Decrease considerably 5 Increase considerably Don’t know

Mexico 4.27

India 4.34

Brazil 4.23

Japan N/A

Russia 4.06

China 4.32

Spain 3.85

N/A Portugal

Italy 3.87

Canada 3.79

Australia 3.79

France 3.79

USA 3.81

Germany 3.70

UK 3.76

Finland 3.74

N/A Netherlands

Sweden 3.63

4.39

4.37

4.29

3.35

4.13

4.11

4.10

4.05

4.01

3.87

3.83

3.80

3.79

3.79

3.78

3.78

3.71

3.61


U1: Using a scale of 1 to 5 where 1=decrease considerably and 5=increase considerably, please indicate how you think the role of the following digital channels

will change your shopping process during the next three years

Top 2 box; n (Total number of mentions) = 18436 (all countries) NOTE: all 2012 data based on how appeal rather than importance



Key Findings: The Privacy Issue

The Privacy Issue 30% feel they’re not being provided with clear information from retailers on how their personal data is used.

50% trust their favorite retailers to use their personal data responsibly

33% does not agree to their Social Media data being used by retailers, particularly in the Nordic countries.



There is no ‘one’ digital shopper

Reluctant Digital Shopper (11%)

Not comfortable using technology; prefer

physical stores

Value-Conscious Digital Shopper (29%)

Prefer in-store shopping, but comfortable

using the Internet & email

Socially-Engaged Digital Shopper (41%)

Heavy users of digital technologies and

comfortable using Social Media

True Digital Shopper (19%)

Purchases online most frequently, use

apps, sacrifice personal data for

customized deals.

We found 4 distinct behaviour patterns in mature markets



The level of ‘digital shopper savvyness’ is different across mature countries




Friendly and clean

store Easy to reach stores

Easy to navigate

stores Compelling

promotions Freshness/ Quality

Maximum opening

hours

Availability

(no stock-outs)

No damaged goods

in store

Inspirational

Atmosphere

Customer Service

Complaints

handling /

return policy

Loyalty program

Wide and deep

assortment

Competitive pricing

Traditional

Relevancy

Criteria for

Physical Channels

Dynamic Pricing

Mobile in-store

Shopping support

Advanced /

visualized product

information and

(usage) advice

Product

Comparison

e-Commerce

(mobile, social,

web)

Flexible delivery-

options ( home,

store-pick-up etc.)

Personalized

Pricing

Additional

Relevancy

Criteria for

Digital Channels

Personalized offers

Technology-

enabled staff –

support in-store

Interactive service

via digital channels

(e.g. click-to-chat,

social media)

Wider and deeper

assortment

Solution Pricing

Inspirational

Content

Community

engagements

(share

experiences)

Social Shopping

Location-based

pricing

Price

Comparison

Illustrative

So what to do when you understand the needs and considerations that are important for your consumers ?



You should align on your strategy to be most relevant to them

Successful companies dominate on one attribute,

differentiate on a second and compete at parity on the remaining three

4

3 3

5

3


2. Differentiate on a compatible

value attribute

3. Maintain parity on others

1. Dominate on one value attribute

Illustrative



And translate that to the right capability roadmap

2011 –H1 2011 –H2 2012 –H1 2012 – H2

Mo

bile

Pre

se

nce

Strategic Foundations Web Presence Social Network Presence

Future State

Current State

Mobile AppFactory

MED MED MED

Mobile WebFactory

MobileTicketing

HIGH HIGH HIGH

MDM

LOW MED LOW

Location Based Services

MED MED MED

AugmentedReality Game

MED MED MED

MobileCoupons

HIGH HIGH HIGH

MobileCompensation

HIGH HIGH HIGH

Google EarthEnterprise

LOWLOW MED

WidgetFactory

LOW LOW LOW

ProfilingEnhancements

MED LOWMED

Service Integration

ServiceManagement

Identity & Access Mgmt

BusinessProcess Mgmt

Strategy, ToolsIntegration

LOW LOW LOW

FacebookGame

MED MED MED

FacebookTicketing

LOW LOW MED

Bid-BasedCapacity Mgmt

HIGH HIGH MED

GroupReusable Portal

MED MED MED

MED MED MED

4

3 3

5

3


2. Differentiate on a compatible

value attribute

3. Maintain parity on others

1. Dominate on one value attribute

Illustrative

Customer

Managing a personal and relevant dialogue with individual customers

Content

Managing high-quality and rich inspirational

content across all channels and touch

points

Single View of Data

Demand Driven Business Operations

Commerce

Managing maximised sales conversion leveraging optimal merchandising

and pricing across all channels

People Process

Technology

Managing involved and

motivated staff with relevant

performance rewards

Orchestrating dynamic, front-end IT solutions integrated with a cost-effective , reliable IT

foundation

Managing streamlined and

customer-focussed ways of working

across the company

Fulfilment

Efficiently delivering the orders across all

channels at the location and time your

customers prefer

Email/DmailMobile TabletWeb site Instore TechnologySocial media Call centreBought media Future channels

Customer Management

Channels

Devices

POSMobile KioskTelephonePC TV

Business– 2 – Business

Agency

Affiliate White-label

API

Business – 2 – Customer

Online

Social Media and Networks

Email SMSContact Center

Security & ID

Management

Infrastructure Security

Logging, auditing and Reporting

Interaction Management

Social Media Management

Proactive Response

Social Media Monitoring

Semantic Analysis

Customer Experience Management

Digital Asset Mgmt

Experience Optimisation

Web Content Mgmt

Enterprise Search

Geo-spatial Visual Search

Multi-faceted

oCommerce

Offers Merchandising

Pricing PIM/Catalogue

Strategic Order Mgmt Basket/Checkout

AnalyticsInsight

Big Data

Traffic

Customer

Activity

Customer Relationship Management

Loyalty

Customer Service Management

Customer Transactions

Integrated Marketing Management

Marketing Asset Mgmt

Multi-Channel Campaign Mgmt

Marketing Resource Mgmt

Integration Management

Service Integration

Orchestration Routing Master Data Management Transformation Business Rules

Interface AdaptersBusiness Activity ServicesETLworkflowGateway ServicesMessage broker

Service Management

Service Operations

Business Service Management

IT Service Management

Financial Services

Configuration Management

Supplier Services

Service Transition

Continuity management

Authentication

Principal Propagation

Encryption

Compliance

Authorization

Single Sign-on

Identity Management

Click and Collect Food Fulfillment

Site Performance and Response

Global Traffic Management

Business Applications

Data

Supply Chain Planning and Execution

Store

Merchandise Operations Management

Merchandise Planning and Optimization Finance

Master Data Transaction Data Data Warehouse

Infrastructure

Servers Storage Network Virtualization

Data Centre

Disaster Recovery

HRM and Payroll

Enterprise Asset Mgmt Store Operations Staff Scheduling

Business Capabilities Technology Capabilities Growthpath Roadmap



Digital Shopper Relevancy Assessment: insight in 3 weeks

Digital Shopper Recommendations

How to be relevant?

How to differentiate?

Where to improve capabilities?

How to prioritize to improve results?

Digital

Shopper

Insights

Digital

Capability

Maturity

Digital Shopper Journey

Benchmark

DIGITAL SHOPPER RELEVANCY ASSESSMENT

The information contained in this presentation is proprietary.

Copyright ©2014 Capgemini. All rights reserved.

Rightshore® is a trademark belonging to Capgemini.

www.capgemini.com

About Capgemini

With almost 140,000 people in over 40 countries, Capgemini is

one of the world's foremost providers of consulting, technology

and outsourcing services. The Group reported 2013 global

revenues of EUR 10.1 billion.

Together with its clients, Capgemini creates and delivers

business and technology solutions that fit their needs and drive

the results they want. A deeply multicultural organization,

Capgemini has developed its own way of working, the

Collaborative Business ExperienceTM, and draws on Rightshore®,

its worldwide delivery model.

Learn more about us at www.capgemini.com

http://www.facebook.com/Capgemini

http://www.linkedin.com/company/capgemini

http://www.twitter.com/capgemini

http://www.youtube.com/capgemini

http://www.slideshare.net/capgemini

http://www.capgemini.com/about/how-we-work/the-collaborative-business-experiencetm








http://www.capgemini.com/about/how-we-work/rightshorer

http://www.capgemini.com/about/how-we-work/rightshorer

http://www.capgemini.com/





Digital shopper relevancy kees jacobs nov 2014

Marketing

Transcript of Digital shopper relevancy kees jacobs nov 2014