Physical/Digital Convergence: New Technology for Omnichannel Retail
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1 Physical/Digital Convergence: New Technology for Omnichannel Retail Moderator Allison Enright Editor Internet Retailer Featured Panelist Nikki Baird Partner Retail Systems Research Speaker Jeremy Wilson Global Retail Solutions Leader, Business Analytics IBM #IRWebinars
2 What is Physical/ Digital Convergence? For consumers, it s the ability to incorporate digital technology into store shopping, either through their smartphones or through digital services retailers provide them in stores. For retailers, it s also about incorporating digital technology into store shopping, but it s also about being able to collect data on how consumers shop across all channels, including stores, just as easily as they collect data online, and putting the data to use. #IRWebinars
3 Average Time Spent Per Day Shopping for Consumer Goods 2004 vs %Change Weekdays % Weekends & Holidays % Source: Bureau of Labor Statistics' American Time Use Survey #IRWebinars
4 Retail & Web Sales Growth %Change Total retail excluding foodservice: $ billion $ billion 4.20% Total e-commerce : $ billion $ billion 16.87% E-commerce as a percentage of total Retail : 5.90% 6.60% Source: U.S. Department of Commerce, unadjusted sales #IRWebinars
5 Consumer Shopping Patterns 60% of all U.S. retail sales will involve the Internet in some way by 2017, either as a direct e-commerce transaction or as part of a shopper s research. Source: Forrester Research Inc. U.S. Cross-Channel Retail Forecast, 2012 To % consumers say they ve checked out a product in a bricks-andmortar store but then bought the same item online. 69% have done the reverse, researching a product online and then buying it in a store. Source: Harris Poll, Nov % of consumers who used the mobile web or mobile apps from their smartphones in October shopped Amazon.com. Source: Nielsen #IRWebinars
6 Where Dollars Are Going Online* Year Web-only Retailers Retail Chains *as a percentage of Total 500 sales Source: Top500Guide.com 24.10% 27.20% 30.20% 30.80% 30.90% 31.80% 34.00% 37.90% 40.60% 42.40% 40.60% 38.90% 40.30% 41.30% 39.90% 38.90% 39.40% 36.80% 35.80% 34.90% #IRWebinars
7 As a result, retailers are building fewer stores #IRWebinars
8 #IRWebinars And are finding ways to get more sales with less
9 Digital Integrations Bon-Ton Stores' Tap & Learn program #IRWebinars
10 Digital Integrations Boston Proper's "omnichannel" retail stores #IRWebinars
11 Thank You #IRWebinars
12 Digital and Store NIKKI BAIRD, MANAGING PARTNER MARCH 2014
13 What Is RSR? Market Intelligence, focused on retail Context: the business challenges & opportunities that drive technology investments Pragmatic insights Powered by extensive retail experience Fueled by a deep bed of research data We help retailers keep their IT strategies aligned with corporate objectives We help solution providers align their products and messages with retailers needs
14 Omni-Channel Erosion MULTIPLE PRESSURES ON STORES
15 Once Upon A Time... Image Source:
16 Stores are Too Big and Too Many 16
17 And Yet Not Enough Product
18 Stores Need a New Reason to Exist and it s Not to Sell Stuff!
19 The Big Picture Store Growth Plans Winners Average Laggards We plan to continue to open new stores in our existing geographies We plan to open new stores in new geographies We plan to open smaller stores in the future We do not plan to open new stores in the near future We plan to close stores in the near future We plan to open larger stores in the future 36% 40% 29% 24% 26% 43% 14% 14% 21% 10% 20% 50% 10% 17% 7% 63% 66% 76% Source: RSR Research, May 2013
20 The Digital Opportunity REDEFINING THE STORE
21 Two Opportunities in the Store DIGITAL INTO STORE STORE INTO DIGITAL
22 DIGITAL INTO STORE Making Employees Smarter The idea: Employees should be at least as smart as your website if not smarter. Employee handhelds Training Apps Manufacturer Apps Image source: Image source: dership_series_part_2_of_3_team_leadership_app/ Image source: itunes App Store
23 DIGITAL INTO STORE Connecting Employee Expertise The idea: Make every store associate as knowledgeable as your most knowledgeable store associate Twelpforce Clienteling Image Source: GlobalBay
24 DIGITAL INTO STORE Connecting Employee Expertise Theatro:
25 DIGITAL INTO STORE Connect Customers to ecommerce The idea: Make it easy for consumers to connect products with online information ZBD Displays
26 DIGITAL INTO STORE Bring Digital Into the Store The idea: Surface customer trends that are happening online in the store Image source:
27 STORE INTO DIGITAL 27
28 STORE INTO DIGITAL Local Events
29 STORE INTO DIGITAL Local Face on National Campaigns Momentfeed:
30 Where to Start? Insights: In-Store Analytics
31 The More Digital You Get, The More Chances You Have
32 Where to Go? Location Analytics Becomes Local Analytics
33 Thank You! Nikki Baird Managing Partner RSR Research
34 Jeremy Wilson, Global Retail Portfolio Leader, Business Analytics Physical-Digital Convergence: New Technology for Omnichannel Retail Internet Retailer Webinar Series March 13, 2014
35 Topics Physical & Digital Worlds are Converging Deliver a Smarter Shopping Experience Process and Technology Flow Getting Started
36 Physical & Digital Worlds are Converging Physical-Digital convergence transforms the retail experience Consumers expect to use all their technologies (smart phones, tablets, social medial, etc.) in all aspects of their lives including in stores, which are still the heart of the brand experience New data sources such as intelligent opt-in location based technology New data sources combined with existing data sources (POS, web, marketing, social, etc.) and using advanced analytics retailers can gain a true 360 view of customers and performance Smart retailers must: Improve store operations and service Connect shopper behavior across channels Drive sales, increase margins and loyalty Reconsider the number, format and role of physical stores in a digital world Differentiate themselves from competitors, become more relevant to consumers
37 Physical-Digital Convergence is about delivering a smarter shopping experience: What does this look like in your company? Retailers that deliver a smarter shopping experience interact with consumers in ways that provide each of them with a timely, relevant and personalized experience. What it takes to deliver a smarter shopping experience in the Physical-Digital Convergence: 360 view of the customer A single, comprehensive picture of individual customers across all touch points including in-store, web, mobile, loyalty, social and the ability to turn that insights into actions Connected marketing Deliver personalize messages at the right point in time for each consumer Omni-channel commerce Perform seamlessly and consistently, so consumers can shop anywhere, anytime, anyhow
38 Topics Physical & Digital Worlds are Converging Deliver a Smarter Shopping Experience Process and Technology Flow Getting Started
39 Introduction
40 Real Time Traffic & Sales Performance
41 Store Heat Map and Dwell Time
42 Store Heat Map and Dwell Time
43 Sales Performance & Staffing
44 Alerts in Real Time
45 Opt-In for Personalization
46 Segment Persona
47 Offers and Promotions
48 Uber Personalization Meet Lily
49 Dynamic Changes & Pattern Recognition
50 Real Time Personalization 360 View
51 Topics Physical & Digital Worlds are Converging Deliver a Smarter Shopping Experience Process and Technology Flow Getting Started
52 Process & Technology Flow Data Sources POINT OF COMMERCE IBM Analytics & Presence Zones 2 Wi-Fi Signal Shopper Unique Media Access Control Address MOBILE 1 ONLINE SOCIAL IBM Presence Zones Server 3 4 The Connect Employee CALL CENTER 5 6 IBM Smarter Commerce Commerce Platform Customer & Product Data 8 IBM Digital Analytics IBM Commerce Customer Cross-Channel Commerce & Product Web & Mobile Stores Data, Precision Marketing IBM IBM Campaign Personalized Messages Interact Personalized Promotions 3 Customer Interaction Mobile Customer Interaction 7 Personalized Shopper Interaction Promotions, Offers, Service, etc
53 Topics Physical & Digital Worlds are Converging Deliver a Smarter Shopping Experience Process and Technology Flow Getting Started
54 Starting Point Recommendation 5: Keep Existing Capabilities While Adding New Ones Path to the Physical-Digital Convergence Five Recommendations for Getting Started Recommendation 1: Focus on the Biggest and Highest Value Opportunities Recommendation 4: Embed Insights to Drive Actions and Deliver Value Recommendation 2: Start with Questions, Not With Data Recommendation 3: Plan for the Future, i.e. Develop an Analytics, Social, Mobile Agenda
55 #IRWebinars
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