4. INNOVATE LIKE ONLY ROMANIANS CAN
COPY MODIFY CREATE
Introduce global
formats that already
exist
Modify existing
concepts to better
match local needs
Develop new
concepts, targeting
specific local
segments and needs
DEGREE OF
INNOVATION
FUTURELAB
BRANDS
Be the first to become friendly with your
new customers
Help your existing distribution to
« make the jump »
Pro-actively say goodbye to those who
can‟t or won‟t innovate.
RETAILERS/INVESTORS
Be first to bring a (modified) format into the
market
Come with something « unique » which
internationals can’t offer
Get out of the way and sell as expensive as
possible.
FUTURELAB
THEN, GO TO WORK
FUTURELAB
Source: IBM Business Consulting Services – The Retail Divide, 2004
BUT WE WILL START WITH INNOVATION FROM A STRATEGIC PERSPECTIVE
And to be more precise:
« customer centric retail innovation »
• Traditional Innovation is Broken
• Competition is Changing
• There‟s not much to be done at retail anyway
Why Customer Centric?
• Traditional Innovation is Broken
• Competition is Changing
• There‟s not much to be done at retail anyway
Why Customer Centric?
FUTURELAB
CUSTOMER CENTRIC RETAIL INNOVATION
Customer Centric Retail Innovation
WHAT ABOUT THE CUSTOMER?
FUTURELAB
Apple Retail 2001
Sorry Steve, Apple Stores Won‟t Work
(Business Week)
Apple Retail 2004:
Fastest retailer ever to reach the
$1 billion mark a year
Apple Retail 2006
Fastest retailer ever to reach
$1 billion/quarter mark
Apple Retail 2007
Sales per sq.meter = $ 30,176
(as comparison: BestBuy = $10,643)
FUTURELAB
HOW DID THEY DO IT?
Watch video on
http://www.youtube.com/watch?v=
m-Y7vZMEPrU
DRIVERS FOR RECOMMENDATION IN ICT
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008 FUTURELAB
• Careful segmentation and focus on students, educators and
creative professionals (even now consumer appeal broadens)
• A retail experience differentiated by service before, during and
after sales (Genius bar)
• Scenario or lifestyle Marketing & Sales vs. Product « What do
you want to do ? »
• Style & design
FUTURELAB
THE RESPONSE
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008
• No commissions
• Team bonuses
• Focus on experience
• Fashion & design people to run computer retail
• Hire for personality, attitude and customer fit
… train the rest
• High identification: Tshirts, iPod, discounts, …
• 3 week immersion at start of job ONLY on
customer relationship skills and understanding
customer needs/lifestyle
• All product training is online (except
geniuses)
• Training on store computers or borrowed
laptop
Ron Johnson
Target
MickeyDrexler
The Gap
BREAKING ALL THE RULES
FUTURELAB
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008
Apple: 2007 Net Promoter Performance and 5 Year Trend vs. Overall
B2C High Tech Computer Hardware Manufacturers
RESULTS
FUTURELAB
Total Customer Value of an Apple advocate is almost twice that
of the industry average
Source: Net Promoter ™ Economics: the Impact of WOM, Satmetrix, 2008FUTURELAB
RESULTS
13,8
6,5
24,3
8,46,2
0,8
5,5
HP Dell Apple Xerox Sun NCR Pitney Bowes
Revenue Growth % 2007 vs 2008Source: Fortune Magazine, May 5,2008
RESULTSFUTURELAB
THE CUSTOMER JOURNEY – BRAND/RETAIL PERSPECTIVE
AwarenessBuilding
PreferencePurchase
Use & Service
Repurchase Loyalty Advocacy
HOTSPOT HOTSPOT
FUTURELAB
CUSTOMER PERSPECTIVE
Flipchart Time
Which are the steps in the
customer journey when
booking a holiday?
How could you innovate
on them?
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THE CUSTOMER JOURNEY
FUTURELAB
1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10. I discover my destination
11. I experience my destination
12. I record my memories
13. I share my experience
14. I travel back home
15. I share my memories
LVMH - AOL Time Warner
UBS - Richemont
CUSTOMER PERSPECTIVE
THE CUSTOMER JOURNEY
How Can You Innovate Now?
TRAVEL
Photo Nils Bremer, cc. 2.0
FUTURELAB
BANKINGCARS FOOD
How About You?
CUSTOMER PERSPECTIVE
THE CUSTOMER JOURNEY
WHICH EMOTIONS ?
ARE ALL EMOTIONS
EQUALLY STRONG?
FUTURELAB
WHAT DO YOUR CUSTOMERS
REALLY CARE ABOUT?
1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I anticipate departure
8. I prepare my trip
9. I travel to my destination
10. I discover my destination
11. I experience my destination
12. I record my memories
13. I share my experience
14. I travel back home
15. I share my memories
PROCESSED FOODPHARMA
INNOVATORS SEEM TO DISAGREE
AIRLINES BANKS
COMPUTERS
UTILITIES
FUTURELABSource: The Doblin Group
1. I dream of going on holiday
2. I research my holiday
3. I plan my holiday
4. I select my holiday
5. I purchase my holiday
6. I receive travel documents & tickets
7. I prepare my trip
8. I travel to my destination
9. I discover my destination
10. I experience my destination
11. I record my memories
12. I share my experience
13. I travel back home
14. I share my memories
THIS ALSO APPLIES TO CUSTOMER CENTRIC INNOVATION
FUTURELAB
Observation
Most of the travel
industry focuses on
those areas which have
least or most negative
emotional involvement
Opportunities for
meaningful
differentiation
Areas to keep up
or stay ahead
Look at the niches
Copy when
proven only
High
Low
Low High
Custo
mer
Engagem
ent
Innovation Intensity
CROSS YOUR INNOVATION LANDSCAPE WITH THE CUSTOMER ENGAGEMENT
FUTURELAB
perception
80% of CEO‟s believe of believe their brand provides a superior customer experience
8 % of their customers agree
(Bain & Company)
FUTURELAB
We show that we value our
customers by serving them
well, putting their needs and interests
at the center of everything we do.
(from the AOL mission statement)
FUTURELAB
Watch video on:
http://www.youtube.com/watch?v=xa
aAYVUWP0I
Source: Norton, D. Aligning your Strategy to the Customer Value Proposition, 13/9/2005
ONLY 5% OF THE WORKFORCE UNDERSTANDS THE
STRATEGY (when innovating this gets even worse).
FUTURELAB
76% of consumers don‟t believe that
companies tell the truth in advertisementsYankelowich,2006
FUTURELAB
FUTURELAB
5steps
To Customer
Centric Retail
Innovation
1. Take the Customer Perspective
2. Get the Customer Heartbeat
3. Focus Your Efforts
4. Make Sure your People Are With You
5. Start Swimming
INTERNET
IF YOU PLAY, GET THE BASICS RIGHT
“Out of 35 European
premium brand dealers
only 1 responded to an
email enquiry from their
own website … after 2
weeks”
2007 Retail Study for Customer Focused Excellence(N = 300 large online retailers)
• 61% do not offer any information on the product page regarding
in-stock availability
• 38% of sites have difficult to read fonts
• Only 58% correctly answer an e-mail question within 24 hours
• Only 33% offer customer reviews.
• 24% do not allow customers to enlarge the product image
Source: FutureNow, 2007
FUTURELAB
INTERNET
LISTEN AND REACTFUTURELAB
Category %
Restaurant 79%
Hotels 87%
Travel 84%
Automotive 78%
Home 73%
Medical 76%
Legal 79%
US Online Review Users Identifying Review as
Having Significant Influence on their Purchase
Source: Comscore Inc., the Kelsey Group, Oct. 2007
Hi Joel,
Sorry if we weirded you or your friend out by
following you on twitter. @JetBlue isn‟t a bot, it‟s
merely me and my team keeping our ears to the
ground and listening to our customers talk in open
forums so we can improve our service to them. It‟s
not marketing, it‟s trying to engage on a level other
than mass broadcast, something I personally
believe more companies should try to do.
Because corporate involvement in social media is a
new and evolving discipline, I also take a specific
interest on conversations revolving around our role
here. I‟d have DMd you and Lisa directly if you
allowed DMs, so please also forgive me for following
the link on your twitter page here to send you this
note.
You and Lisa are no longer being „followed‟ as you
seem to indicate.
Again, my apologies
Morgan Johnston
Corporate Communications
JetBlue Airways
KEEP IT SIMPLE ON THE
MOBILE FRONT
On-Demand
SMS push
Location Based Push
INFORMATIONAL
(PART OF EXPERIENCE) PROMOTIONAL
!RELEVANCE
PERMISSION
FUTURELAB
FUTURELAB
IN-STORE INSPIRATION
Watch video on
http://www.youtube.com/watch?v=gQBFaVfBi9w&feature=related#
Queen‟s Arcade (Cardiff)
WATCH THE CONTENT
LESSONS IN NARROWCASTING
FUTURELAB
McDonalds Amsterdam Veritas Antwerp
INSTORE
FUTURELAB
COPY MODIFY CREATE DEGREE OF
INNOVATION
Turnover of Retail Trade in Romania 2001-2007, 2010(€ billions)
ROMANIA IS ON THE VERGE OF SOMETHING BIG
For more information
contact Alain Thys via
Or read up on the
Futurelab blog at:
http://blog.futurelab.net
FUTURELAB
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