The Future of Retail (by Engagis)
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Transcript of The Future of Retail (by Engagis)
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 [email protected] engagis.com
Customer Support 1300 203 810