How To Shop Online

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1 Intelligent Decision Making Consumer & Retail WALL OF DATA 4 Mayo

2 Índice Shopping Trends: - Traditional shopper - Online shopper - Mobile shopper Shopper marketing IDM en Retail: Herramientas y aplicaciones 1# Atracción al punto de venta 2# Punto de venta físico 3# Punto de venta virtual 4# Identificación y segmentación 2

3 INTRODUCTION: Importance of BI and IDM for Marketing and Retail 6 trends to help you avoid the race to the bottom Screening Screens are everywhere, they can be found in kiosks, on tablets, your mobile device, and possibly one day, in the glasses you wear to read. Right now, attention is flowing to the screens and where attention flows money will follow. Retail will happen in the world of screens. Interacting It s all about interactivity. And digitally speaking, interactivity never stops evolving. Sharing Everything that can be shared, will be shared. Flowing If it is not done in real-time, it will not count. In the ocean of these flows (i.e., Twitter, RSS, etc.), there are many different opportunities to create and sell. Accessing (not owning) Access is better than ownership, just talk to Netflix and Zipcar. Generating (not copying) As we see a huge shift to the free, value is placed on what cannot be copied. People will pay for immediacy, personalization, authentication, accessibility, interpretation, and fundability. 3

4 INTRODUCTION: Importance of BI and IDM for Marketing and Retail Uso de datos y BI a lo largo de la cadena de valor 4

5 Shopping trends 5

6 a) Traditional shopper Three Main Shopper Styles Shopping trends They seek value and every shopping trip is a mission Not necessarily low income Almost all coupon use is represented by this group Highest purchase rate of private labels Shop 4X times a week Large super center users Plan their trips and look for value Extremely high response to Every Day Low Price strategies Finds value when they re shopping, not before. Seldom use coupons Very responsive to in-store promotions Average on private label purchase Shop 2.6X per week Largest share of supercenter purchases Average response to EDLP strategies Not concerned with value shopping Virtually never use coupons Little influence from in-store promotions Less frequent purchaser of private label Largest share of club store spending Low response to EDLP strategies 6

7 a) Traditional shopper Three Main Shopper Styles Shopping trends 7

8 a) Traditional shopper Influences along the path Shopping trends 8

9 a) Traditional shopper Out-of-store Influences Shopping trends 9

10 a) Traditional shopper Price Shopping trends 10

11 a) Traditional shopper Beyond Price Shopping trends 11

12 a) Traditional shopper Research and planning before Shopping trends 12

13 a) Traditional shopper Research and planning before Shopping trends 13

14 a) Traditional shopper Research and planning before Shopping trends 14

15 b) Online shopper Understanding the web user Shopping trends 15

16 b) Online shopper Understanding the web user Shopping trends 16

17 b) Online shopper Understanding the web user Shopping trends 17

18 b) Online shopper The Online sales process Shopping trends Think of the shape of a funnel, it is wide at the top and narrow at the bottom. Starting at the wide top, numerous unqualified prospects are just waiting to enter the funnel. These are people who might be willing to buy your product or service, but do not necessarily have a reason to do so. They may be perfectly happy with their current supplier, or perhaps they simply have no need for additional product. Maybe they re already getting a great deal, or think they can t afford your prices. As you communicate with these prospects, you will get a clearer picture of whether or not they will convert to a customer. Each time you contact them, you learn their resistance points and how to overcome them. At this point you are working your way down the funnel. The prospects are decreasing in number, but they are now better qualified. At the narrow bottom of the funnel are those people who make a commitment to place an order. These customers accept delivery of the product, then pay for it, finally taking their place at the funnel s very bottom. 18

19 b) Online shopper Social networking Shopping trends Focus on four key, value boosting opportunities: Brand building by harnessing social networking to help nurture brand awareness and affinity Enhancing reach and loyalty by adding value to and deriving value from dialogue and interactions Gathering and acting on insights by engaging social media users to help drive product and service innovation or improvements Capitalizing on new ways of selling by leveraging the power of consumer buzz, group buying, and new outlets DF/Social%20Networking%20Retail%20web%20Jan. % pdf 19

20 b) Online shopper The community business model Shopping trends 20

21 c) Mobile shopper Shopping trends 21

22 c) Mobile shopper Shopping trends 22

23 c) Mobile shopper Shopping trends Google s research was conducted at the end of 2010 among 5000 US adults. The most common location to use a Smartphone was actually at home (93 percent) 72 percent of Smartphone users use their phones while consuming other media, with one-third using it while watching TV. Smartphone users seem to be a very action-oriented group: 90 percent act on the information they find in a mobile search, with half making a purchase. This is particularly true with local searches where 88 percent of information seekers take action like calling a business or making a purchase within a day. A sizeable 74 million US citizens, almost one in four, currently shop on their phones. ABI research estimates that the mobile shopping market doubled in revenue from $1.2bn in 2009 to $2.4bn in 2010 in the US alone. InMobi predicts growth to skyrocket to $9 billion over the next year. 1/04/27/27venturebeat-search-shop-love-secretsof-smartphone-users html?ref=technology 23

24 b) Mobile shopper Shopping trends 4% of online Americans use location-based services -7% of adults who go online with their mobile phone use a location-based service. -8% of online adults ages use location-based services, significantly more than online adults in any other age group. -10% of online Hispanics use these services significantly more than online whites (3%) or online blacks (5%). - 6% of online men use a location-based service such as Foursquare or Gowalla, compared with 3% of online women. Location-based services such as Foursquare and Gowalla use internetconnected mobile devices geolocation capabilities to let users notify others of their locations by checking in to that location. Location-based services often run on stand-alone software applications, or apps, on most major GPSenabled smartphones or other devices s/reports/2010/pip- Location%20based%20services.pdf 24

25 Shopper Marketing 25

26 Shopper Marketing 26

27 Shopper Marketing Shopper Marketing is the use of insights-driven marketing and merchandising initiatives to satisfy the needs of targeted shoppers, enhance the shopping experience, and improve business results and brand equity for retailers and manufacturers. 27

28 Shopper Marketing The chart illustrates this process, through which a manufacturer aligns its target consumer match the key shopper segments of the retailer. segments to The partners are then able to identify the sweet mutually beneficial results. spots for collaborative activity that will optimize 28

29 Shopper Marketing 29

30 Shopper Marketing 30

31 Tools and Applications 31

32 Ejemplos y Aplicaciones: Estructura Punto de Venta Físico Customer Facing Technology: a) Point of Sales (check-out, payment) b) Self service (information points) c) Customer-owned (Smartphone) Pop up Stores Realidad Aumentada Mobile Applications: Shop Alerts TapCity Foursquare Atracción al punto de Venta a) Social commerce b) Collective buying c) Mobile Google contadores Segmentación Facebook Seguimiento por Smartphone Punto de Venta Virtual Identificación y Segmentación Realimentación /Fidelización 32

33 #1 Atracción al punto de Venta Mobile Applications: Shop Alerts TapCity Foursquare 33

34 Atracción al punto de venta AT&T Advanced Ad Solutions Launches ShopAlerts by AT&T, a Groundbreaking Location-Based Marketing Service Featuring Special Offers from Leading National Brands. Know What's Hot Get text alerts about new products, special offers, and events from your favorite brands when you are nearby stores. It all comes included with America's best wireless service

35 Atracción al punto de venta TapCity is a multiplayer city-building game with a real-world twist. You can actually buy and own the places you visit in real life! A real-world map is your game board and the pieces of the game are the people and places around you. Play with friends as you build and defend your very own city made up of your favorite places in the real world. Take over your world with TapCity: Claim ownership of your favorite real-world places Challenge other players for ownership of places Check-in at new places to unlock sweet rewards Unlock awesome upgrades for your places Earn income on the places you own 35

36 Atracción al punto de venta Avoid the Crowds With Clever New Foursquare API Application While social media is largely used for its ability to connect people, it also has potential to help antisocial types as proven by a clever site that tells people when museums, libraries and theaters are least busy. The site, When Should I Visit?, uses Foursquare s API to map traffic on each day of the week for about 20 venues in London. People who want to avoid crowds can use the site to make decisions about when to visit. 36

37 #2 Punto de Venta Físico Customer Facing Technology: a) Point of Sales (check-out, payment) b) Self service (information points) c) Customer-owned (Smartphone) 37

38 Customer-Facing Technology Few retailers have mastered the delivery of an integrated customer experience, and failure to do so can result in a loss of customer traffic and transactions. Now more than ever, retailers need to evaluate the state of their customer-facing technology (CFT). Retailers must begin to leverage the array of existing and emerging CFT solutions to enable associates to better assist customers, empower customers to assist themselves, and drive conversion and transaction value from in-store customers. The first step in upgrading from a traditional POS to an enhanced CFT environment is to examine how your customer interacts with the store today and how you want them to interact with the store in the future. This analysis can help determine where advances in technology can support the overall customer experience strategy. A successful CFT strategic plan will take four key types of technologies into account: traditional POS, mobile devices, selfservice technology and customer-owned devices. 38

39 Customer-Facing Technology a) Point of Sales Intelligent, connected point-of-sale (POS) transaction terminals use Intel architecture processors and sophisticated market analytics software to monitor inventory and enhance revenue by alerting shoppers to special promotions and locations of favorite products in the store. The new POS systems also ring up big energy savings for retailers. 39

40 a) Point of Sales Customer-Facing Technology NEAR FIELD COMMUNICATION NFC son las siglas en inglés de Near Field Communication (NFC), una tecnología de comunicación inalámbrica, de corto alcance y alta frecuencia que permite el intercambio de datos entre dispositivos a menos de 10cm. Después de casi año y medio varada en proyectos inacabados y pruebas varias, parece que 2011 será el año del despegue para la tecnología NFC o Near Field Communications. Distintos fabricantes, desde Apple hasta Google comienzan anunciar la integración de esta tecnología inalámbrica en sus nuevos terminales. dad/2011-el-ano-de-la-tecnologia-nfc 40

41 a) Point of Sales Customer-Facing Technology SELF SCANNING DEVICES Standing in line is the single biggest source of irritation for the customer. And when the counter is reached, 70% of the time there is spent putting items on the belt, and having them scanned. After that, the customer still has to spend time bagging the items. All this is eliminated when self scanning. The customer picks an item along the aisle, scans it, and bags it directly. At the counter (automated or not), the customer pays the items, without having to put them on the belt. Shops installing self scanning solutions experience happy customers, a cut in cost, and the possibility of placing counter staff at the shop floor. Several self scanning shops also find that their revenue goes up, due to faster processing of large basket customers, and due to an increase in basket size. 41

42 b) Self-service Customer-Facing Technology INTERACTIVE KIOSKS ARE VIRTUAL SHOPPING ASSISTANTS Intelligent, self-service kiosks enable retail businesses to enhance the customer experience while at the same time allowing employees to focus attention where they're needed most. Technologies from Intel provide a flexible foundation for innovation while helping reduce costs and maximize system availability. SMART SHOPPING CARTS Smart shopping carts, handheld devices, and interactive information kiosks connected to a store's network and IT system can recognize individual shoppers who opt-in to the retailer s loyalty programs, help them navigate to efficiently find items in the store, alert them to special sales and complementary items, and even let consumers check out while they shop. 42

43 b) Self-service Customer-Facing Technology THE SHOPPING BUDDY Based on a two-year evaluation of what shoppers actually wanted as they shop, the Shopping Buddy is a wireless touchscreen device that is attached to a shopping cart and scans in items placed in the cart by shoppers. It also delivers personalized services and incentives when activated with a frequent-shopper card. Each cart also has a RFID (radio frequency identification tag) which triggers certain offers and can help shoppers find anything in the store and draw a path to find it. 43

44 b) Self-service INTERACTIVE DISPLAY OBJECTS Customer Facing Technology

45 b) Self-service INTERACTIVE DISPLAY OBJECTS Customer Facing Technology 45

46 b) Self-service AUGMENTED REALITY Customer Facing Technology Marketers want to use augmented reality but don t understand the technology Augmented reality joins forces with visual search and location data to make for the ultimate mobile shopping experience Augmented reality: making big online purchases more likely Augmented reality virtual dressing room launches 46

47 b) Self-service Customer Facing Technology SMART SURFACES TouchMagix is a next gen digital media that engages consumers in a whole new experience that involves interaction. 47

48 b) Self-service Customer Facing Technology SMART SURFACES Microsoft Surface brings people together to connect, learn and decide with a 360- degree interface that supports touch and real-world objects. Mircosoft Surface aplicacions per la llar: a la cuina per exemple explica com preparar una recepta, et recorda quan has de prendre les medicines, interactuar amb el teu telèfon o donar-te dades de la roba que t'estàs provant davant del mirall. 48

49 b) Self-service Customer Facing Technology CARTELERÍA DIGITAL Digital Signage en Supermercados. Be the first, my friend! Hemos seleccionado el ejemplo de Maggi TV integrado en su lineal de un supermercado. En este caso, el objetivo del canal no es atraer nuevos compradores, sino generar que los que pasan por delante del lineal se paren, interactúen con el producto y lo acaben comprando-. Un DS trabajando 100% para incrementar el conversion rate de visit to stop y stop to shop. 49

50 d) Customer-owned device CODE SCANNING Customer Facing Technology Bottom line design your QR Code campaign carefully, provide as big a reward to the consumer as possible and even then be prepared to be underwhelmed by the response. 1/03/16/librarians-qr-codes-and-thegartner-hype-cycle / 50

51 d) Customer-owned device STORE NAVIGATION Customer Facing Technology 51

52 #3 Punto de Venta Virtual a) Social commerce b) Collective buying c) Mobile 52

53 a) Social Commerce Punto de venta virtual How ready are consumers to buy products through social media? A 2010 survey by Booz & Company of consumers who spend at least one hour a month on social networking sites and who have bought at least one product online in the last year provides some insight. 27% of respondents said they would be willing to purchase physical goods through social networking sites. Moreover, 10 percent said their buying through social networking sites will be incremental to other buying they do that is, they will end up buying more physical goods overall. 53

54 a) Social Commerce Punto de venta virtual Turning_Like_to_Buy.pdf 54

55 b) Collective buying Punto de venta virtual Top 10 Reasons For Using Groupon to Advertise Your Business 1. Instantly acquire new customers 2. Quickly generate cash flow 3. No upfront costs 4. Measurable results 5. Increase offline visitor traffic 6. Gain Facebook & Twitter followers 7. Minimal time commitment 8. Incredible business exposure 9. Highly desirable customer demographic 10. Reduce your advertising budget 55

56 b) Collective buying Punto de venta virtual Top 10 Reasons Businesses Shouldn t Use Groupon To Advertise Locally 1. Greater expenses 2. Brand dilution 3. Attracting the wrong customers 4. Too many customers too soon 5. Less online traffic and links 6. Hiring more employees 7. Lower profit margins 8. Short lived exposure 9. No customer addresses gained 10. Employee morale may suffer 56

57 c) Mobile shopping Punto de venta virtual 4 must-have functions of a mobile retail app 1. Place. The top use of cell phones by consumers is locating a store. The mantra is no longer location, location, location, it s locate, locate, locate. Retailers need to make sure their mobile app gives users a quick way to locate a store. 2. Promotion. Whether you are a restaurant, boutique, or one of the largest retailers in the world, your customers want information and promotions about your products. An effective mobile app will give them easy access to in-store specials and product descriptions. 3. Preferences. This is the ultimate customization for customers, and with a unique identifier like a mobile phone, retailers should be able to provide that unique experience. By initiating a loyalty program across all channels and allowing the user to define their own interactions, will improve not just their mobile experience but their cross-channel experience as well. 4. Payments. Mobile payments was the focus of this session, but Crone recognized it s just part of the overall mobile strategy. Providing mobile payments registration within a retailer s mobile app triples cross-channel effectiveness. It can help drive mobile engagement with customers, and those customers are ready with 57% of mobile users interested in having mobile payments. 57

58 #4 Identificación y Segmentación Google contadores Segmentación Facebook Seguimiento por Smartphone 58

59 a) Facebook advertising Punto de venta virtual 5 Steps to Successful Facebook Advertising There s a pretty good bet that some members of your ideal target customer reside in and visit Facebook land, but the trick is to find them. Target Attract and Engage Budget Test Facebook used to have a tool that let you search for the hottest topics being discussed but they shelved it as they build a more robust analytics package. The first thing you must do is decide whether you want people to be directed to your own web page or something on Facebook like a Page, Application, Group or Event. You can choose between a cost per click (CPC) model where you pay only for clicks or a cost per thousand (CPM) model where you pay per 1000 ad views. Once you create an ad you will have the ability to create similar ads and run those as well. You ll be able to easily view which ad is performing the best based on clicks. Analyze Once you create and launch your campaigns you need to start tracking and tweaking. Facebook has a tool that gives you some information on actions taken inside the Facebook platform. 5-steps-to-successful-facebook-advertising/ 59

60 b) iphone Tracker Punto de venta virtual This open-source application maps the information that your iphone is recording about your movements. iphone keeps a minute-by-minute, time-stamped log of everywhere you go. That s right: Your phone is tracking you. So is the cellular version of the ipad. First of all, from what we can determine, this information isn t transmitted anywhere to Apple or anyone else. Instead, it s stored only on your own computer, in a buried and layman-incomprehensible form, in the backup that itunes creates each time you sync your phone or tablet. 60

61 b) iphone Tracker Punto de venta virtual As Apple and Google battle for dominance in mobile computing, they have increasingly been using their customers phones as sensors to collect data about nearby cell towers and Wi-Fi hot spots. Google and Apple use this data to improve the accuracy of everything on the phone that uses location. That includes maps and navigation services, but also advertising aimed at people in a particular spot a potentially huge business that is just getting off the ground. Google, which initially collected data on Wi-Fi hot spots with the same fleet of cars that was taking photos for its StreetView service, said it stopped doing so last year after it was found to have collected s and other data streamed through those hot spots. It now collects much of that data and traffic information, through customers phones. For example, a retailer that has eight outlets in a city could use data about walking patterns to determine where to open its next outlet. y/26locate.html?_r=1&ref=technology 61

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