The Convergence of Content and Commerce in a Complex World
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The document discusses the evolving landscape of retail and the importance of integrating content and commerce to meet the needs of connected consumers. It emphasizes the necessity for retailers to adapt to changing consumer behaviors, the significance of consistency across channels, and introduces the concept of the 'five c's'—community, commerce, content, context, and customer, along with a proposed sixth 'c' of consistency. Key insights highlight the challenges retailers face and the critical need for a unified digital experience to enhance customer engagement and drive profitability.
The Convergence of Content and Commerce in a Complex World
- 2. JASON WALLIS CTO, MOZU PAULA ROSENBLUM MANAGING PARTNER, RSR CONSISTENCY: RETAIL’S NEW IMPERATIVE CREATING A DIGITAL SOLUTION TO REACH THE CONNECTED CONSUMER “Advertising is luxury, but content is survival.” -Joe Pulizzi
- 3. Consistency: Retail’s New Imperative PAULA ROSENBLUM, MANAGING PARTNER JUNE 2014 3
- 4. Discussion Topics • About RSR • Retail’s Reset Moment • Continuous Transformation is the New Norm • The 5 C’s (or is it 6?) • Relevant Research Findings • Key Takeaways 4
- 5. About RSR Founded in 2007 to quickly become the leading source of insights for trends in retail technology, and retail in general Mission: To elevate the conversation about retail technology to a strategic level within the retail enterprise by: • Providing objective, pragmatic advice to both retailers and solution providers • Leveraging our extensive retail industry experience (75+ years) • Providing a deep bed of research into retailers' technology investment plans and the business opportunities and challenges that drive those investments. 5 Copyright© 2013 by Retail Systems Research LLC • All rights reserved
- 6. Retail’s Reset Moment ALMOST EVERYTHING CHANGED 6
- 7. A Worldview Designed Around This: 7 Or this: Copyright© 2013 by Retail Systems Research LLC • All rights reserved
- 8. Met a Worldview Enabled by This: 8 A dramatic shift in the power dynamic between the retailer and the consumer. And this: Copyright© 2013 by Retail Systems Research LLC • All rights reserved
- 9. Consumer Behaviors Fundamentally Changing … From This …(very orderly) Investigate Select Pay For Fulfill Investigate Select Pay For Fulfill Investigate Select Pay For Fulfill Investigate Select Pay For Fulfill Store Web Catalog Direct Sales Copyright© 2013 by Retail Systems Research LLC • All rights reserved
- 10. …To This (Many Paths To Purchase / Chaotic Patterns) Web Investigate Select Pay for Fulfill Store Store Store Store Call Center Call Center Call Center Direct Delivery Web Web Mobile Anything …and Direct Sales Direct Sales Direct Sales Copyright© 2013 by Retail Systems Research LLC • All rights reserved
- 11. Where Are We Now? • Cross-channel is no longer a “why” question but a “how” question • How can I improve the customer experience? • How do I maximize my inventory investment? • How do I plan for the future? • How should I organize my company? How should I re-define my processes? • The number of channels is almost infinite: that’s the “omni” part • The challenge ahead: navigating transformative internal change – not just to be customer-facing, but to create leverage 11 Copyright© 2013 by Retail Systems Research LLC • All rights reserved
- 12. The Biggest Question of All 12 How do I get all this done and make money too? Copyright© 2013 by Retail Systems Research LLC • All rights reserved
- 13. The Problem in a Nutshell • In virtually every benchmark study RSR conducts several facts emerge: • IT portfolios are a mess (complicated, convoluted, hard to change) • But change they must • Marketing can afford its own IT, not always to a retailer’s best advantage • Recognition of the need to present a single face to the customer • Cross-channel customers more profitable, but money still left on the table • Retailers know consumers want consistency in their experience 13
- 14. If You Get it Right: The Payoff 14 Source:, RSR Research , May 2013 29% 4% 11% 28% 28% 26% 3% 6% 26% 39% 18% 3% 3% 29% 47% Don't know / Can't tell Less profitable than single channel customers Equally profitable Slightly more profitable than single channel customers Significantly more profitable than single channel customers Multi-channel Customers are: 2013 2010 2009 And mobile shoppers spend even more than “traditional” web shoppers
- 15. So What are the 5 C’s? Is there a 6th C we should consider? FROM OCTOBER 2009 TO JUNE 2014 15
- 16. “The Five C’s” 1616 Community Commerce Content Context CustomerCustomer THE CUSTOMER At The Center: It’s Not What You Want To Sell, But What/When/Where/How Consumers Want To Buy
- 17. Context (“The Problem To Be Solved”) 17 Community Commerce Content ContextContext CustomerCustomer
- 18. • Content is focused on PRODUCT CHOICES or COMPARISON • Community is focused on VALIDATION • Web Commerce is Featured 18 Context = Relevancy = Behavior • Content is focused on PRODUCT CHOICES or COMPARISON • Community is focused on VALIDATION • Mobile or Store Commerce is Featured • Content is focused EDUCATION • Community is focused on CATEGORY • Mobile or Store Commerce is Available • Content is focused EDUCATION • Community is focused on CATEGORY • Web Commerce is Available PHYSICAL PROXIMITY DECISIONPROXIMITY Far Near AwarenessSelection
- 19. Content (“The Information Needed To Solve The Problem”) 19 Community Commerce Content Context Content CustomerCustomer
- 20. Content = All of the content that a retailer or brand can bring to bear to influence, enhance, or shape the purchase decision • Product/category info • Reviews • Recommendations • Blogs • Videos • Comments • Comparisons/Analysis 20 Early in the buying process, content serves an educational role and may be more relevant at category, rather than product level. Later in the buying process, content serves a selection role, helping consumers narrow their choices within a category.
- 21. Community (“What Others Who Have Solved The Problem Have To Say”) 21 Commerce Content Context CommunityCommunity CustomerCustomer
- 22. Community = All of the people that a customer might involve in a purchase decision, whether known or strangers • Retailer or brand employees • Friends & family • “People like me” • Trusted reviewers • Crowd-sourced opinions • Etc. 22 Early in the buying process, community may be more focused on category aspects. Later in the buying process, serves a validation role in helping or confirming a consumer’s selection.
- 23. 23 Social Media’s Role: A Managed Environment for People to Share Ideas and Comments
- 24. Commerce (“Exchanging Money For The Solution”) 24 Community Content Context CommerceCommerce CustomerCustomer
- 25. Today’s Commerce Challenges • Security • Scalability • Simplicity • Extensibility
- 26. But… The whole package is incomplete without consistency And…..without consistency, the customer won’t play 26
- 27. The Sixth ‘C’ 27 Community Content Context Commerce CustomerCustomer Consistency This may be the second most important ‘C’ of all,
- 29. Expectations are Clear, Retailers Struggle 29 20% 18% 27% 33% 41% 37% 53% 51% 15% 19% 32% 41% 42% 44% 48% 51% Need to control labor costs while integrating new cross- channel processes into our operations Consumers know more about products and prices than our employees do Digital channels are creating increasingly global competition for consumers’ “share of pocket” The way consumers use channels to make purchase decisions is unpredictable, but important to understand A good customer experience in one channel is not enough to maintain customer loyalty We are not doing enough to leverage our assets (digital, inventory, or otherwise) across channels We struggle to effectively integrate new processes driven by cross-channel strategies into the store Consumer expectations outpace our ability to deliver cross-channel experiences Top Three (3) Business Challenges Faced In Cross- channel Strategy 2013 2012 Source: RSR Research, June 2013
- 30. A New Reality 30 16% 8% 18% 12% 14% 33% 10% 12% 13% 15% 25% 26% To encourage the consumer to “buy the lifestyle” To help the consumer “build your personalized solution” To drive traffic to stores To educate consumers about our company and brand To provide the consumer “everything you need to know to buy” products and services Commerce- “to sell stuff” Primary Role of Digital Selling Channels (eCommerce, mobile, social media) in your Company’s Overall Strategy 2013 2012 Source: RSR Research, June 2013 The implication: “Everything you need to know” REGARDLESS OF WHERE YOU’RE GOING TO BUY Suddenly, consistency becomes as important as all other C’s
- 32. Key Takeaways • Recognize that this is strategic and transformative • It’s not over yet, we need to be more nimble • Need a holistic approach • Think about incentives: the world has changed for employees too • Think architecture • Think simplicity 32
- 33. Register to read our research and newsletter! Paula Rosenblum: prosenblum@rsrresearch.com 1-305-757-1357 Miami, FL, USA 33 Thank You! www.rsrresearch.com
- 34. LIMITLESS COMMERCE Creating a Digital Solution to Reach the Connected Consumer
- 35. Confidential and Proprietary Information Converging Content + Commerce The Connected Customer expects a unified experience across all channels. v Discover, Explore Purchase, Use Provide consumers with a consistent, seamless brand experience across all platforms. Provide businesses with a better understanding of customers needs and behaviors. A quick ramp-up to test new markets, benefiting both consumers and businesses alike. Benefits of a unified experience
- 36. Confidential and Proprietary Information V The Rise of Content Where content lives Site landing pages Site search results pages Site product pages Site commerce pages Site content pages Off property syndicated locations Mobile apps Emails Digital Ads and Signage Social Channels
- 37. Content Defined Retailers manage many kinds of content • Images • Videos • pdf documents Digital Assets • Descriptive content • Promotions Unstructured content • Product descriptions • Product imagery and assets • Product specifications • Price Product catalog structured content • Expert reviews • Community reviews Product Reviews • Taxonomy for site structure Navigation hierarchies • SEO tags and metadata • Site search tuning rules • Site search presentation rules Content search optimization behavior • Manufacturers • Dealers Syndicated Content
- 38. Confidential and Proprietary Information Managing Content + Commerce: It’s complicated. Too often, companies have to compromise vision, strategy and customer experience because of fragmented, incomplete tools and strained resources. CustomerCMS Search eCommerce Email Digital Mobile Inventory Costly Delayed purchasesLack of consistency Consumer confusion
- 39. Confidential and Proprietary Information Closing the Content + Commerce Gap Engaging customers consistently requires a powerful and intuitive platform that enables your business teams to deliver a unified content experience to multiple channels simultaneously and in real time. Publish everywhere Manage, augment & validate content from a single interface Search Catalog Unstructured Digital assets Suppliers Community Partners Internally Created Multi-site Mobile Stores Email Social Content received from multiple sources Reduce costs Increased revenueConsistent experience Engaged customers
- 40. Confidential and Proprietary Information More efficiently deliver consistency Better Technology Better Business Strong tooling for managing and previewing content in one toolset Separate content edit workflow from content publish workflow to enable quality control Link content to promote re-use Manage SEO and search settings in context of catalog and page content Publish out of a single source Dramatically simplifies management enabling streamlined experiences Marketing content, product content and commerce content managed under one tool Multiple content owners can revise and manage content without disruption Maintain consistent brand message across every customer touch point
- 41. Confidential and Proprietary Information Future of Commerce + Content Today’s Connected Consumer buys from and builds loyalties with businesses that nurture emotional connections and anticipate their personal preferences. Commerce and content will become seamless. Technology will evolve to meet the needs of both content creators and commerce drivers, and these tools will become more powerful and easier to use. Content will do more to build brands than any other single type of marketing. Traditional content and social content will combine forces—“content marketing” will become simply “marketing” and “social media” will become simply “media.” We will see a shift in power as user-generated content, personal brands and online communities command greater respect and take over digital environments. Trust among corporate content creators will increase as content—especially user-generated content—builds greater monetization opportunities.
- 42. Confidential and Proprietary Information Curious to see what connected commerce could mean for your company? Let’s talk. mozu.com
Editor's Notes
- #40: Site builder Houses all four repositories ( search, catalog, unstructured data and digital assets) to store and manage content Within Mozu CMS, the site pages anchors all the content to make it easier to navigate, manage and refine content in once place When you manage these, it’s oriented around a page, open site builder navigate around a page. Page metephor anchors all the content to make it easier to fine Catalog – products Manage search, digital assets all pages 4 repositories to store and manage content manage in pages Attached to search term
- #41: Front end experience – buyer of journey. Result of blending Screen shot of android ap. Mobile, desktop, app Manage it once and deploy-it everywhere. Business users to make changes. Site builder, mystic based storefront Publishing – to other system. Muliple images, bring it over to mozu to size New: Create content and manage them inside Mozu: videos, flash sales, blogs, put anywhere. Easy management and automatically deployment -